| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1.General information - legal status and principal activities (a)General informationGulf Union Alahlia Cooperative Insurance Company (the “Company”) is a Saudi joint stock company registered on 13 Sha’aban 1428H (corresponding to 26 August 2007) under Commercial Registration (“CR”) number 2050056228. The Company’s principal place of business is in Dammam, Kingdom of Saudi Arabia.The purpose of the Company is to transact cooperative insurance operations and all related activities. Its principal lines of business include medical, motor, marine, fire and engineering insurance.On 2 Jumada II 1424H, (corresponding to 31 July 2003), the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). On 29 Shaban 1428 H, (corresponding to 11 September 2007), the Saudi Central Bank (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia. On 27 Jumada II 1435H, (corresponding to 27 April 2014), the Company received SAMA’s approval of its request to change its license of transacting insurance and reinsurance business to insurance business.The Company operates through six main branches and various point-of-sale stores located in the Kingdom of Saudi Arabia. Following are the CR numbers of the nine branches:Branch typeLocationCR numberRegional branchDammam2050118944Regional branchRiyadh1010247518Regional branchJeddah4030177933Regional branchRiyadh1010238441Regional branchAl Khobar2051048012Regional branchJeddah4030224075(b)Accumulated lossesOn 8 June 2022, the Company completed its rights issue amounting to Saudi Riyals 229.5 million, gross of expenses of Saudi Riyals 2.9 million. As at 30 September 2022, the accumulated losses of the Company amounted to Saudi Riyals 130.2 million and were 28% of the share capital of the Company as of that date.The total loss attributable to the shareholders of Saudi Riyals 16.1 million and net operating cash outflows of Saudi Riyals 93.0 million for the nine-month period ended 30 September 2022 are mainly attributable to the underwriting loss amounting to Saudi Riyals 34.0 million in the motor segment (Note 12). Management has formulated and implemented measures since the end of 2021, as approved by the Company’s Board of Directors, which include better pricing strategies for motor policies, diversification of insurance portfolio and improvement in claims management processes, among others. Management expects that this will reflect positively in the operational results and cash flows for the remainder of 2022 provided that the underlying projections of the business and economic conditions continue to be realized.(c)Going concern and shareholding percentageManagement has performed an assessment of its going concern assumption and prepared this interim condensed financial information on a going concern basis. Based on the approved business plan of the Company, management believes that the Company will be able to continue its operations and meet its obligations as they fall due within the next 12 months. 1.General information - legal status and principal activities (continued)(c)Going concern and shareholding percentage (continued)Shareholding percentageThe shareholding percentage of the Company at 30 September 2022 and 31 December 2021 was as follows:30 September 202231 December 2021Shareholding percentage subject to zakat95%95%Shareholding percentage subject to income tax5%5%100%100%(d)Non-binding memorandum of understanding (MoU) for potential mergerOn 15 Jumada I 1443H (corresponding to December 19, 2021), the Board of Directors of the Company resolved to start initial discussions with Al Sagr Cooperative Insurance Company (“Al Sagr”) to explore the possibility of merging the two companies. During the nine-month period ended 30 September 2022, the Company signed a non-binding MoU with Al Sagr, on 23 Safar 1444H (corresponding to September 19, 2022), to evaluate a potential merger between Al Sagr and the Company. In the event that a binding merger agreement is signed with Al Sagr, it has been agreed the Company will issue new shares to the Al Sagr’s shareholders in exchange for all issued shares of Al Sagr, which will be subject to obtaining the required approvals of the regulatory authorities and the shareholders of both Al Sagr and the Company, before completing the merger. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | Basis of preparation(a)Statement of ComplianceThe interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia.As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for insurance operations and shareholders’ operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity is recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by management of the Company and the Board of Directors.In accordance with the requirements of Implementing Regulation for Co-operative Insurance Companies (the “Regulations”) issued by SAMA and as per by-laws of the Company, shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising from insurance operations is transferred to the shareholders’ operations in full.The interim condensed statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders’ operations are presented in Note 19 of the interim condensed financial information as supplementary financial information and to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the interim condensed statements of financial position, income, comprehensive income and cash flows prepared for the insurance operations and shareholders’ operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.In preparing the Company’s financial information in compliance with IAS 34, as endorsed in the Kingdom of Saudi Arabia, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.2.Basis of preparation (continued)(b)Basis of measurement The interim condensed financial information is prepared under the historical cost convention, except as explained in the relevant accounting policies in the annual financial statements for the year ended 31 December 2021. The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as current: cash and cash equivalents, short-term deposits, premiums and reinsurers’ receivable - net, premiums receivable - related parties - net, deferred excess of loss premiums, prepaid expenses and other assets, accrued income on statutory deposit, accounts payable, accrued and other liabilities, zakat and income tax, surplus distribution payable, accrued income payable to SAMA, reinsurers’ share of outstanding claims, outstanding claims, claims incurred but not reported, additional premium reserves, other technical reserves and reinsurers’ share of claims incurred but not reported. The following balances would generally be classified as non-current: investments, goodwill, property and equipment, right-of-use assets, intangible assets, statutory deposit, long-term deposits and employee benefit obligations. The balances which are of mixed in nature i.e. include both current and non-current portions include reinsurers’ share of unearned premiums, deferred policy acquisition, unearned premiums, unearned reinsurance commission, reinsurers' balances payable and lease liabilities.(c)Basis of presentationThe interim condensed financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 31 December 2021.(d)Functional and presentation currencyThis interim condensed financial information is expressed in Saudi Arabian Riyals (“Saudi Riyals”) which is the functional and presentation currency of the Company.(e)Critical accounting judgments, estimates and assumptionsThe preparation of interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing this interim condensed financial information, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2021.Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:(i)Liability arising from claims under insurance contractsConsiderable judgement by management is required in the estimation of amounts due to policyholders arising from claims made under insurance policies. Such estimates are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities.In particular, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred but not reported (“IBNR”) claims at the reporting date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past claim settlement trends to predict future claims settlement trends. 2.Basis of preparation (continued)(e)Critical accounting judgments, estimates and assumptions (continued)(i)Liability arising from claims under insurance contracts (continued)Claims requiring court or arbitration decisions, if any, are estimated individually. Independent loss adjusters normally estimate property claims. Management reviews its provisions for claims incurred and claims incurred but not reported, on a quarterly basis. The Company is exposed to disputes with, and possibility of defaults by, its reinsurers. The Company monitors on a quarterly basis the evolution of disputes with and the strength of its reinsurers.(ii)Impairment of premiums and reinsurers’ receivableAn estimate of the uncollectible amount of premiums receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.(iii)Impairment of available-for-sale investmentsThe Company treats investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments.(iv)Impairment testing of goodwillThe Company’s management tests, at each reporting date, whether goodwill arising from merger has suffered any impairment. This requires an estimation of the recoverable amount of the cash generating unit (“CGU”) to which goodwill has been allocated. The key assumptions used in determining the recoverable amounts are set out in Note 4.(f)Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company. The interim results may not represent a proportionate share of the annual results due to cyclical variability in premiums and uncertainty of claims occurrences.The accounting policies, estimates and assumptions used in the preparation of this interim condensed financial information are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2021, except as explained below. | 2 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of changes in accounting policy [text block] | Significant accounting policies3.1New standards, amendments and interpretations not yet applied by the Company-IFRS 9, ‘Financial Instruments’ (including amendments to IFRS 4, Insurance Contracts)In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized or at fair value through other comprehensive income, if certain conditions are met. Assets not meeting either of the above categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss. Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle-based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2023. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.The Company is eligible and has chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9.For detailed impact assessment of IFRS 9 adoption, reference to the annual financial statements for the year ended 31 December 2021 should be made.-IFRS 17, ‘Insurance Contracts’Applicable for the period beginning on or after 1 January 2023 and will supersede IFRS 4. Earlier adoption is permitted if IFRS 9 has also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance contracts that will affect the interim condensed statements of financial position, income and comprehensive income. The Company has decided not to early adopt this new standard.For detailed impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended 31 December 2021 should be made.3.Significant accounting policies (continued)3.1New standards, amendments and interpretations not yet applied by the Company (continued)-IFRS 17, ‘Insurance Contracts’ (continued)Subsequent to the nine-month period ended 30 September 2022, the Company has finalised the second dry run special purpose financial statements and is in the process of submitting such special purpose financial statements along with the auditor’s report thereon to SAMA, to comply with the regulatory requirements. Further, as required by SAMA, the Company is in the process of preparing the special purpose financial statements for the period ended 30 June 2022 under the requirements of IFRS 17 and IFRS 9.The key focus areas of the IFRS 17 project team for the remainder of the year are as below:Completing any remaining system development and key controls required to implement IFRS 17.Commence with an IFRS 4 and IFRS 17 dual reporting run.Produce and request business sign-off, as well as external audit sign-off of transition balances.Update the budgeting process to ensure alignment to IFRS 17.Finalise the management reporting and key performance measures.Continue engaging with the executive committee and business through various training initiatives.Finalise and implement future financial and data governance processes and accountabilities.3.2Risk managementThe Company’s activities expose it to variety of financial risks: market risk (including commission rate risk, currency risk and price risk), credit risk and liquidity risk.The interim condensed financial information does not include all financial risk management information and disclosures required in the annual financial statements and therefore should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2020. There have been no changes in the risk management department or in any risk management policies since the year end except that the Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | 5.Cash and cash equivalentsCash and cash equivalents included in the statement of cash flows comprise the following:Insurance operationsShareholders’ operationsTotal30 September 202231 December 202130 September 202231 December 202130 September 202231 December 2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)Cash in hand-20,190---20,190Cash at bank - current accounts10,352,86210,366,71531,279,9652,999,94041,632,82713,366,655Time deposits-30,279,79250,000,00071,315,45650,000,000101,595,24810,352,86240,666,69781,279,96574,315,39691,632,827114,982,093Cash at banks is placed with counterparties with sound credit ratings. As at 30 September 2022, deposits were placed with local banks with original maturities of less than three months from the date of placement and earned commission income at an average rate of 5.5% to 6.0% per annum as at 31 December 2021 and 30 September 2022. | 5 |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 7.Premiums and reinsurers’ receivable - net 30 September 202231 December 2021(Unaudited)(Audited)Premiums receivable from policyholders176,796,098148,699,770Premiums receivable from brokers19,605,81327,934,934Receivable from reinsurance companies22,230,50235,540,016218,632,413212,174,720Allowance for doubtful debts:- Receivable from policyholders(44,776,725)(41,393,582)- Receivable from brokers(3,946,253)(4,273,816)- Receivable from reinsurance companies(5,518,757)(5,283,982)(54,241,735)(50,951,380)164,390,678161,223,340Movement in the allowance for doubtful debts was as follows:30 September 202231 December 2021(Unaudited)(Audited)At beginning of the period / year50,951,38048,962,389Charge for the period / year3,290,3552,870,788Write-off during the period / year -(881,797)At end of the period / year54,241,73550,951,380 | 7 |
| Description of accounting policy for intangible assets and goodwill [text block] | 4.GoodwillThe goodwill arising from the merger is attributable to the expected synergies from combining the operations of the Gulf Union and Al Ahlia Cooperative Insurance Company (“Al Ahlia”) and cannot be assigned to any other determinable and separate provisional intangible asset. Goodwill is allocated to the Company as a single CGU, being the combined operations of the Company and Al Ahlia. Management’s judgment to allocate goodwill to the Company considered the broader reason for which acquisition was made, i.e. synergies from combining the operations. The Company tests the goodwill for impairment at each reporting date. For the impairment testing, management determines the recoverable amount of the CGU based on value-in-use calculations. These calculations require the use of estimates in relation to the future cash flows, based on the most recent five years’ approved business plan, and use of an appropriate discount rate applicable to the circumstances of the Company. Cash flows beyond the five-years period are extrapolated using the estimated growth rate stated below. This growth rate is consistent with the forecasts included in industry reports specific to the industry in which the CGU operates. The calculation of value in use is most sensitive to the assumptions of gross premiums written growth and average claims ratio. Key assumptions underlying the projections are:Key assumptions%Gross premiums written growth5.2Average claims ratio85.0Discount rate10.5Terminal growth rate2.04.Goodwill (continued)Sensitivity to the changes in assumptionsThe estimated recoverable amount of the CGU exceeded its carrying value by approximately Saudi Riyals 35.9 million. Management has identified that a reasonably possible change in the below given key assumptions could cause the carrying amount to exceed the recoverable amount.Gross premiums written growth The gross premiums written growth in the forecast period has been estimated to be a compound annual growth rate of 5.19%. If all other assumptions kept the same, a reduction of this growth rate from 5.19% to 4.8% would give a value in use equal to the current carrying amount.Average claims ratioThe average claims ratio in the forecast period has been estimated to be 85.0%. If all other assumptions kept the same, an increase of this ratio from 85.0% to 85.5% would give a value in use equal to the current carrying amount.Discount rateThe discount rate used to calculate the present value of future cashflows in the forecast period has been estimated to be 10.5%. If all other assumptions kept the same, an increase of this ratio from 10.5% to approximately 11.2% would give a value in use equal to the current carrying amount.Terminal Growth rateThe terminal gross premiums written growth in the forecast period has been estimated to be 2.0%. If all other assumptions kept the same, a decrease of this ratio from 2.0% to 1.15% would give a value in use equal to the current carrying amount.With regard to the assessment of the value in use, management believes that no reasonably possible change in any of the other key assumptions above would cause the carrying value of CGU including goodwill to materially exceed its recoverable amount. | 4 |
| Description of accounting policy for provisions [text block] | 8.Technical reserves 8.1Net outstanding claims and reservesNet outstanding claims and reserves comprise the following:Nine-month period ended 30 September 2022(Unaudited)GrossReinsuranceNet1 January93,994,985(34,230,197)59,764,788Claims paid(363,082,892)57,458,857(305,624,035)Claims incurred387,071,070(51,486,572)335,584,49830 September117,983,163(28,257,912)89,725,251Salvage and subrogation(27,574,979)2,047,674(25,527,305)Gross outstanding claims90,408,184(26,210,238)64,197,946Claims incurred but not reported125,389,605(15,710,593)109,679,012Additional premium reserves19,716,848-19,716,848Other technical reserves11,717,075-11,717,07530 September247,231,712(41,920,831)205,310,881Year ended 31 December 2021(Audited)GrossReinsuranceNet1 January104,742,560(48,489,107)56,253,453Claims paid(635,933,259)89,703,315(546,229,944)Claims incurred658,128,475(77,779,426)580,349,04931 December126,937,776(36,565,218)90,372,558Salvage and subrogation(32,942,791)2,335,021(30,607,770)Gross outstanding claims93,994,985(34,230,197)59,764,788Claims incurred but not reported186,847,969(21,446,416)165,401,553Additional premium reserves22,019,563-22,019,563Other technical reserves17,984,038-17,984,03831 December320,846,555(55,676,613)265,169,942 8.Technical reserves (continued)8.2Movement in net unearned premiumsMovement in unearned premiums comprise the following:Nine-month period ended 30 September 2022(Unaudited)GrossReinsuranceNetBalance as at the beginning of the period255,996,173(44,001,521)211,994,652Balance as at the end of the period(231,329,037)34,414,318(196,914,719)Changes in unearned premiums24,667,136(9,587,203)15,079,933Premium written during the period366,560,495(61,776,032)304,784,463Excess of loss premiums-(10,840,762)(10,840,762)Net premium earned391,227,631(82,203,997)309,023,634Year ended 31 December 2021(Audited)GrossReinsuranceNetBalance as at the beginning of the year375,588,801(36,474,798)339,114,003Balance as at the end of the year(255,996,173)44,001,521(211,994,652)Changes in unearned premiums119,592,6287,526,723127,119,351Premium written during the year572,523,050(107,358,473)465,164,577Excess of loss premiums-(22,451,425)(22,451,425)Net premium earned692,115,678(122,283,175)569,832,503 | 8 |
| Description of accounting policy for derivative financial instruments and hedges [text block] | 11.Fair value of financial instrumentsThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:-Level 1 - quoted (unadjusted) market prices in active markets for identical assets or liabilities;-Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and-Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. 11.Fair value of financial instruments (continued)The following table shows the carrying amount and fair values of financial assets, including their levels in the fair value hierarchy for financial instruments measured at fair value. As at 30 September 2022 and 31 December 2021, the face values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate to their fair values. The fair values of the non-current financial liabilities are considered to approximate to their carrying amounts as these carry interest rates which are based on market interest rates.(a)Carrying amounts and fair value30 September 2022(Unaudited)Level 1Level 2Level 3TotalFinancial assets measured at fair valueMutual funds - available-for-sale30,621,041--30,621,041Sukuks - available-for-sale211,397,368--211,397,368Ordinary shares - available-for-sale --3,846,1563,846,156242,018,409-3,846,156245,864,56531 December 2021(Audited)Level 1Level 2Level 3TotalFinancial assets measured at fair valueMutual funds - available-for-sale48,138,850--48,138,850Sukuks - available-for-sale190,296,857-- 190,296,857Ordinary shares - available-for-sale --3,846,1563,846,156238,435,707-3,846,156242,281,863During the nine-month ended 30 September 2022, there have been no transfers between level 1, level 2 and level 3. Available-for-sale investment comprises equity investment of 384,616 of Najm for Insurance Services (Najm) (31 December 2021: 384,616 shares). During the nine-month period ended 30 September 2022, Najm has issued 994,694 bonus shares on account of increase in their share capital. As at 30 September 2022 and 31 December 2021, the investment is carried at cost as management considers that the recent available information is insufficient to determine fair value and the cost represents the best estimate of fair value in the current circumstances. Cash and cash equivalents, deposits, premiums and reinsurers’ balances receivable - net, premium receivable - related parties - net, reinsurers’ share of outstanding claims, statutory deposit, accrued income on statutory deposits and the financial labilities except employee benefit obligations are measured at amortized cost. | 11 |
| Description of accounting policy for time (murabaha) deposit [text block] | 6.Short-term and long-term depositsShort-term deposits are placed with local banks and financial institutions with an original maturity of more than three months but less than or equal to twelve months from the date of placement and a commission income rate of 3.1%. Long-term deposits represents deposit with maturity of more than one year from the date of placement and are placed with the financial institution carrying commission income at the rate of 6.5% per annum and will mature by September 2024. | 6 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 9.Investments(a)Investments are classified as follows:Insurance operationsShareholders’ operationsTotal30 September202231 December202130 September202231 December202130 September202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)Available-for-sale114,833,843124,878,010131,030,722117,403,853245,864,565242,281,863Held-to-maturity9,931,03114,933,04419,093,39820,551,72529,024,42935,484,769124,764,874139,811,054150,124,120137,955,578274,888,994277,766,632(b)Category wise investment analysis is as follows:Insurance operationsShareholders’ operationsTotal30 September202231 December202130 September 202231 December202130 September 202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)Quoted114,833,843127,956,945127,184,566122,480,777242,018,409250,437,722Unquoted9,931,03111,854,10922,939,55415,474,80132,870,58527,328,910124,764,874139,811,054150,124,120137,955,578274,888,994277,766,632(c)The analysis of the composition of investments is as follows:Insurance operationsShareholders’ operationsTotal30 September 202231 December202130 September 202231 December202130 September 202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)Mutual funds17,789,56519,355,26512,831,47628,783,58530,621,04148,138,850Ordinary shares-1,923,0783,846,1561,923,0783,846,1563,846,156Sukuks106,975,309118,532,711133,356,488107,248,915240,331,797225,781,626124,764,874139,811,054150,124,120137,955,578274,888,994277,766,632Management has performed a review of the impairment indicators for available-for-sale investments and based on specific information, management did not identify any impairment indicators in respect of the available-for-sale investments.All investments are denominated in Saudi Riyals and United States Dollars. As at the reporting date, investments amounting to Saudi Riyals 30.6 million were denominated in United States Dollars (31 December 2021: Saudi Riyals 24.7 million). 9.Investments (continued)(d)Movement in available-for-sale investments is as follows:Insurance operationsShareholders’ operationsTotal30 September 202231 December202130 September 202231 December202130 September 202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)At the beginning of the period / year124,878,010109,187,954117,403,853114,817,528 242,281,863 224,005,482 Acquisitions during the period / year-19,288,09159,025,44210,000,000 59,025,442 29,288,091 Disposals during the period / year(1,923,078)-(38,958,136)(10,000,000) (40,881,214) (10,000,000)Unrealized losses(8,121,089)(3,598,035)(6,440,437)2,586,325 (14,561,526) (1,011,710)Realized (losses)/gains on disposals-- (1,600,001)140,129 (1,600,001) 140,129 Reclassified from equity to interim condensed statement of income-- 1,600,001(140,129) 1,600,001 (140,129)At the end of period /Year114,833,843124,878,010131,030,722117,403,853 245,864,565 242,281,863 (e)Movement in held-to-maturity investments is as follows:Insurance operationsShareholders’ operationsTotal30 September 202231 December202130 September 202231 December202130 September 202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)At the beginning of the period / year14,933,0445,002,01320,551,72528,051,719 35,484,769 33,053,732 Transfer /acquisitions during the period / year-9,931,031-- - 9,931,031 Redemption/disposals / transfer during the period / year(5,002,013)-(1,458,327)(7,499,994) (6,460,340) (7,499,994)At the end of period / year9,931,03114,933,04419,093,39820,551,725 29,024,429 35,484,769 9.Investments (continued)(e)Movement in held-to-maturity investments is as follows: (continued)Insurance operationsSecurityIssuerMaturityLocationProfit marginAmortized cost30 September 202231 December 2021(Unaudited)(Audited)SEC - SukukSECMay 2022Saudi Arabia3.15%-5,002,013`Islamic Leasing and Finance Fund 21NBK Wealth ManagementAugust 2026Saudi Arabia6.0%9,931,0319,931,0319,931,03114,933,044Shareholders’ operationsSecurityIssuerMaturityLocationProfit marginAmortized cost30 September 202231 December 2021(Unaudited)(Audited)STC SukukSTCSeptember 2024Saudi Arabia2.49%2,000,0002,000,000Maaden phosphate company - SukuksMaaden phosphate company SukuksFebruary 2025Saudi Arabia3.44%5,000,0005,000,000SukukSaudi Kuwait Finance HouseDecember2021Saudi Arabia6 months SIBOR plus 7.50%981,458,425Sukuk AlAwwal Energy FundDecember 2028Saudi Arabia SIBOR plus 8.2%12,093,30012,093,30019,093,39820,551,725 9.Investments (continued)(f)Geographical concentration:The maximum exposure to credit and price risk for available-for-sale and held-to-maturity investments at the reporting date by geographic region is as follows:Insurance operationsShareholders’ operationsTotal30 September 202231 December202130 September 202231 December202130 September 202231 December2021(Unaudited)(Audited)(Unaudited)(Audited)(Unaudited)(Audited)Kingdom of Saudi Arabia121,459,354136,030,860126,286,329117,036,409 247,745,683 253,067,269 United Arab Emirates---10,663,253 - 10,663,253 France ---7,089,263 - 7,089,263 Switzerland---3,166,653 - 3,166,653 United Kingdom3,305,5193,780,19423,837,791- 27,143,311 3,780,194 124,764,873139,811,054150,124,120137,955,578 274,888,994 277,766,632 | 9 |
| Disclosure of zakat [text block] | 14.Zakat and income tax The Company has obtained zakat and income tax certificates from the Zakat, Tax and Customs Authority (“ZATCA”) for the years through 2021. In July 2020, the Company received zakat and income tax assessment for the year 2014 amounting to Saudi Riyals 7.1 million. The zakat differences as per the initial assessments were mainly due to the disallowances by ZATCA of certain balances related to outstanding claims, IBNR, accounts and reinsurance payable and amounts due to related parties from the zakat base. The Company filed an appeal against the ZATCA’s initial assessment and received an updated assessment amounting to Saudi Riyals 3.3 million. The Company has further filed an appeal to the Committee for Resolution of Tax Violations and Disputes and believes that the outcome of such appeal will be in favor of the Company. During 2020, the Company also received zakat and income tax assessment for the years 2015 through 2018 amounting to Saudi Riyals 10.25 million. The zakat differences as per the initial assessments were mainly due to the disallowances by ZATCA of certain balances related to term deposits and investments from the zakat base. The Company has recognised an additional provision amounting to Saudi Riyals 1.9 million under protest and paid such amount to ZATCA, and in parallel filed an appeal against the ZATCA’s initial assessment. During the three-month period ended 31 March 2022, the Company received revised assessments for the years 2015 through 2018 with additional zakat liability of Saudi Riyals 8.36 million. The Company has filed an appeal with the Tax Violations and Disputes Resolution Committees against ZATCA’s revised assessment and believes that the outcome of such appeal will be in favor of the Company. Accordingly, no further provision for such additional assessments has been made in the accompanying financial statements. No provision for income tax was made for the three-month period ended 30 September 2022, due to adjusted net loss for such period.The Company’s zakat and income tax assessments for the years 2019 and 2020 are currently under review by the ZATCA. The zakat and income tax liability as computed by the Company could be different from zakat and income tax liability as assessed by the ZATCA for years for which assessments have not yet been raised by the ZATCA. In 2018, Al Ahlia received zakat and income tax assessments for the years 2011 and 2012 amounting toSaudi Riyals 2.1 million. Al Ahlia filed an appeal against the ZATCA’s assessment to General Secretariatof the Tax Committees (“GSTC”) for which the outcome is pending. Further, during 2020, Al Ahlia received zakat and income tax assessments for the years 2015 through 2018 amounting to Saudi Riyals 9.5 million against which Al Ahlia filed an appeal to the GSTC and the outcome is pending. The zakat differences as per the initial assessments for the years 2011, 2012 and 2015 through 2018 were mainly due to the disallowances by ZATCA of certain balances related to investments, statutory deposit and adjusted accumulated losses from the zakat base. Management believes that ZATCA will reconsider the initial assessments and will allow certain deductions from the zakat base in the final assessments. However, Al Ahlia’s management has submitted a settlement request to the ZATCA for all pending assessments with an amount of Saudi Riyals 7.8 million and is of the view that the level of the existing provisions for zakat is presently sufficient. Al Ahlia had obtained zakat and income tax certificates from the ZATCA for the years through 2019 and its zakat and income tax assessment for the year 2019 is currently under review by the ZATCA. | 14 |
| Disclosure of classes of share capital [text block] | 15.Share capitalThe authorized, issued and paid up capital of the Company was Saudi Riyals 458.9 at 30 September 2022 (31 December 2021: Saudi Riyals 229.4 million) consisting of 45.8 million shares (31 December 2021: 22.9 million shares) of Saudi Riyals 10 each. Also refer to Notes 1 and 18.Shareholding structure of the Company as of 30 September 2022, is as below: Authorized and issuedPaid upNo. of SharesSaudi RiyalsYaqeen Capital12,560,668125,606,680125,606,680Gulf Union Insurance and Projects Management Holding Company B.S.C. (c.)2,475,00024,750,00024,750,000Others30,859,260308,592,600308,592,60045,894,928458,949,280458,949,280 | 15 |
| Disclosure of statutory reserve [text block] | 16.Statutory reserveIn accordance with By-laws of the Company and Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to transfer not less than 20% of its annual profits, after adjusting accumulated losses, to a statutory reserve until such reserve amounts to 100% of the paid-up share capital of the Company. This reserve is not available for distribution to the shareholders until the liquidation of the Company. | 16 |
| Disclosure of earnings per share [text block] | 18.Basic and diluted earnings (losses) per shareBasic and diluted earnings (losses) per share for the three-month and nine-month periods ended 30 September 2022 and 2021 are calculated by dividing total loss for the period attributable to the shareholders by the weighted average number of outstanding shares during the period.The weighted average number of shares has been retrospectively adjusted for the prior period to reflect the element of the right issue as required by IAS 33, ‘Earnings per share’ as follows:Three-month period ended 30 September 2022Three-month period ended 30 September 2021Nine-month period ended 30 September 2022Nine-month period ended 30 September 2021Issued ordinary shares at 1 January 202222,947,46422,947,46422,947,46422,947,464Rights issue adjustment22,947,4641,971,72013,112,6831,971,720Weighted average number of ordinary shares45,894,92824,919,18436,060,14724,919,184The weighted average number of ordinary shares for prior year is computed using an adjustment factor of 1.09 which is a ratio of the theoretical ex-rights of Saudi Riyals 10.94 and closing price per share of Saudi Riyals 11.88 on 8 May 2022, the last day on which the shares were traded before the rights issue. 18.Basic and diluted earnings (losses)per share (continued)The basic and diluted earnings (losses)per share is calculated as follows:Three-month period ended 30 September 2022Three-month period ended 30 September 2021Nine-month period ended 30 September 2022Nine-month period ended 30 September 2021Total income (loss) for the period attributable to the shareholders3,607,073(17,055,510)(16,065,443)(122,653,435)Weighted average number of ordinary shares for basic and diluted income per share45,894,92824,919,18436,060,14724,919,184Basic and diluted earnings (losses) per share0.08(0.68)(0.45)(4.92) | 18 |
| Disclosure of related party transactions [text block] | 13.Related party transactions and balancesRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances:Nature of transactionsTransactions for the three-month period endedTransactions for the nine-month period ended30 September 202230 September 202130 September 202230 September 2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Major shareholdersInsurance premium written2,772,8121,509,37910,675,59411,976,906Claims paid657,2903,286,8281,521,33510,345,091OthersRent charged968,000-968,000448,525Directors’ remuneration and meeting fee2,495,689233,500 3,527,689571,500The compensation of key management personnel during three-month and nine-month periods ended is as follows:Three-month period ended 30 September 2022Three-month period ended 30 September 2021Nine-month period ended 30 September 2022Nine-month period ended 30 September 2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Salaries and benefits932,5431,034,3753,500,1934,839,271Employee benefit obligations 47,915115,922143,745347,765980,4581,150,2973,643,9385,187,036Premium receivable - related parties, net30 September 202230 December 2021(Unaudited)(Audited)Premium receivable from related parties7,562,7335,936,160Less: allowance for doubtful debts(1,227,045)(1,483,538)6,335,6884,452,622Movement in the allowance for doubtful debts is as follows:30 September 202230 December2021(Unaudited)(Audited)At beginning of the period / year1,483,5381,726,798Reversal for the period / year(256,493)(243,260)At end of the period / year1,227,0451,483,538 | 13 |
| Disclosure of entity's operating segments [text block] | 12.Segmental informationOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since 31 December 2021.Segment results do not include other underwriting expenses, general and administration expenses, allowances for doubtful debts, investment and commission income, realized gain (loss) on investments and other income. 12.Segmental information (continued)Segment assets do not include cash and cash equivalents, premiums and reinsurers’ receivable - net, premiums receivable - related parties, net, investments, prepaid expenses and other assets, long term deposits, property and equipment, right-of-use assets, intangible assets, goodwill, statutory deposit, accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include accounts payable, accrued and other liabilities, reinsurer’s balances payable, lease liabilities, employee benefit obligations, zakat and income tax, surplus distribution payable, accrued commission income payable to SAMA. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.For management purposes, the Company is organized into business units based on their products and services and has the following reportable segments:-Medical;-Motor;-Property and casualty; and-Protection and savings.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities as at 30 September 2022 and 31 December 2021 and its total revenues, expenses, and net loss for the nine-month ended 30 September 2022 and 30 September 2021 is as follows: 12.Segmental information (continued)Insurance operations30 September 2022(Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalAssets Reinsurers’ share of unearned premiums-15,508,84218,905,476-34,414,318-34,414,318Reinsurers’ share of outstanding claims175,9899,397,00716,637,242-26,210,238-26,210,238Reinsurers’ share of claims incurred but not reported4,580,8475,276,5415,853,205-15,710,593-15,710,593Deferred policy acquisition costs 4,968,424 7,246,883 5,466,610 -17,681,917-17,681,917Deferred excess of loss premiums826,250667,206429,314-1,922,770-1,922,770Segment assets10,551,51038,096,47947,291,847-95,939,836-95,939,836Unallocated assets389,608,943544,597,637934,206,580Total assets485,548,779544,597,6371,030,146,416Total liabilitiesUnearned premiums 93,401,16094,660,67243,267,205-231,329,037-231,329,037Unearned reinsurance commission-2,549,5996,173,140-8,722,739-8,722,739Outstanding claims24,411,48136,989,96729,006,736-90,408,184-90,408,184Claims incurred but not reported64,774,04544,964,10715,651,453-125,389,605-125,389,605Additional premium reserves-19,306,021410,827-19,716,848-19,716,848Other technical reserves--11,717,075-11,717,075-11,717,075Segment liabilities182,586,686198,470,366106,226,436-487,283,488-487,283,488Unallocated liabilities and equity175,876,745366,986,183542,862,928Total liabilities and equity663,160,233366,986,1831,030,146,416 12.Segmental information (continued)Insurance operations31 December 2021 (Audited)MedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalAssetsReinsurers’ share of unearned premiums- 26,910,825 17,090,696- 44,001,521- 44,001,521Reinsurers’ share of outstanding claims 175,989 12,977,197 21,077,011- 34,230,197- 34,230,197Reinsurers’ share of claims incurred but not reported 7,679,230 5,852,711 7,914,475- 21,446,416- 21,446,416Deferred policy acquisition costs 6,847,593 6,478,136 3,907,143- 17,232,872- 17,232,872Segment assets 14,702,812 52,218,869 49,989,325-116,911,006-116,911,006Unallocated assets 447,939,427365,906,596813,846,023Total assets564,850,433365,906,596 930,757,029Total liabilitiesUnearned premiums 112,185,331 108,065,758 35,745,084-255,996,173-255,996,173Unearned reinsurance commission- 5,255,283 5,087,676-10,342,959-10,342,959Outstanding claims 21,366,735 26,238,457 46,389,793-93,994,985-93,994,985Claims incurred but not reported 126,019,918 41,810,839 19,017,212-186,847,969-186,847,969Additional premium reserves 7,338,707 14,114,751 566,105- 22,019,563- 22,019,563Other technical reserves 10,718,891 4,803,164 2,461,983- 17,984,038- 17,984,038Segment liabilities 277,629,582200,288,252 109,267,853-587,185,687-587,185,687Unallocated liabilities and equity185,490,046 158,081,296 343,571,342Total liabilities and equity772,675,733 158,081,296 930,757,029 12.Segmental information (continued)For the nine-month period ended 30 September 2022 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written143,504,340 151,993,591 71,062,564 -366,560,495-366,560,495Reinsurance premiums ceded:-Foreign-(23,117,332)(31,937,857)-(55,055,189)-(55,055,189)-Local--(6,720,843)-(6,720,843)-(6,720,843)Excess of loss expenses:-Foreign(5,074,562)(1,974,091)(1,253,113)-(8,301,766)-(8,301,766)-Local(2,476,635)(27,532)(34,829)-(2,538,996)-(2,538,996)Net premiums written135,953,143126,874,63631,115,922-293,943,701-293,943,701Changes in unearned premiums18,784,17413,405,086(7,522,124)-24,667,136-24,667,136Changes in reinsurers’ share of unearned premiums-(11,401,985)1,814,782-(9,587,203)-(9,587,203)Net premiums earned154,737,317128,877,73725,408,580-309,023,634-309,023,634Reinsurance commissions- 6,039,0539,812,460-15,851,513-15,851,513Fee income from insurance16,75541,741330,150-388,646-388,646TOTAL REVENUES154,754,072134,958,53135,551,190-325,263,793-325,263,793UNDERWRITING COSTS AND EXPENSESGross claims paid(177,730,221)(169,313,418)(11,834,591)-(358,878,230)-(358,878,230)Reinsurers’ share of claims paid11,416,59841,099,8324,942,427-57,458,857-57,458,857Expenses incurred related to claims(4,004,662)(200,000)--(4,204,662)-(4,204,662)Net claims and other benefits paid(170,318,285)(128,413,586)(6,892,164)-(305,624,035)-(305,624,035)(continued) 12.Segmental information (continued)For the nine-month period ended 30 September 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(7,640,001)1,826,9769,399,826-3,586,801-3,586,801Changes in reinsurers’ share of outstanding claims(1,142,545)(6,878,293)884-(8,019,954)-(8,019,954)Changes in claims incurred but not reported61,245,873(3,153,268)3,365,759-61,458,364-61,458,364Changes in reinsurers’ share of claims incurred but not reported(3,098,383)(576,170)(2,061,270)-(5,735,823)-(5,735,823)Net claims and other benefits incurred (120,953,341) (137,194,341) 3,813,035 - (254,334,647) - (254,334,647)Policy acquisition costs(9,767,200)(10,469,417)(5,491,279)-(25,727,896)-(25,727,896)Changes in additional premium reserves7,338,707(5,191,269)155,277-2,302,715-2,302,715Changes in other technical reserves5,401,425403,425462,113-6,266,963-6,266,963Other underwriting expenses-(16,455,364)--(16,455,364)-(16,455,364)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(117,980,409) (168,906,966) (1,060,854) - (287,948,229) - (287,948,229)NET UNDERWRITING INCOME (LOSS) 36,773,663 (33,948,435) 34,490,336 - 37,315,564 - 37,315,564 (continued) 12.Segmental information (continued)For the nine-month period ended 30 September 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,033,785) -(3,033,785) General and administrative expenses(68,627,833)(7,592,775)(76,220,608)Investment and commission income4,577,5519,912,48114,490,032Finance costs on leases(174,201)-(174,201)Other income13,057,555 -13,057,555 Total other 0perating expenses, net(54,200,713)2,319,706(51,881,007)Total loss for the period before surplus attribution, zakat and income tax(16,885,149)2,319,706(14,565,443)Surplus attributed to the shareholders’ operations16,885,149(16,885,149)-Total loss for the period before zakat and income tax-(14,565,443)(14,565,443)Zakat expense -(1,500,000) (1,500,000) Income tax expense ---Total loss for the period attributable to the shareholders-(16,065,443)(16,065,443) 12.Segmental information (continued)For the nine-month period ended 30 September 2021 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written189,006,979169,311,36063,353,785-421,672,124-421,672,124Reinsurance premiums ceded:-Foreign-(37,312,895)(34,663,557)-(71,976,452)-(71,976,452)-Local-(4,623,804)(4,787,457)-(9,411,261)-(9,411,261)Excess of loss expenses:-Foreign(13,113,997)(2,564,880)(1,407,856)-(17,086,733)-(17,086,733)-Local(1,050,000)(251,653)(276,005)-(1,577,658)-(1,577,658)Net premiums written174,842,982124,558,12822,218,910-321,620,020-321,620,020Changes in unearned premiums112,231,486298,0226,806,096-119,335,604-119,335,604Changes in reinsurers’ share of unearned premiums-9,376,209(1,874,182)-7,502,027-7,502,027Net premiums earned287,074,468134,232,35927,150,824-448,457,651-448,457,651Reinsurance commissions-6,186,03210,593,399-16,779,431-16,779,431Fee income from insurance19,95038,830230,718-289,498-289,498TOTAL REVENUES287,094,418140,457,22137,974,941-465,526,580-465,526,580UNDERWRITING COSTS AND EXPENSESGross claims paid(305,587,975)(142,586,322)(13,805,413)-(461,979,710)-(461,979,710)Reinsurers’ share of claims paid23,090,65929,908,5646,510,872-59,510,095-59,510,095Expenses incurred related to claims(5,315,682)(6,303,373)--(11,619,055)-(11,619,055)Net claims and other benefits paid(287,812,998)(118,981,131)(7,294,541)-(414,088,670)-(414,088,670)(continued) 12.Segmental information (continued)For the nine-month period ended 30 September 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(9,557,180)13,334,715(9,096,261)-(5,318,726)-(5,318,726)Changes in reinsurers’ share of outstanding claims(533,657)(3,523,219)5,120,862-1,063,986-1,063,986Changes in claims incurred but not reported(34,222,741)(3,739,671)(4,882,079)-(42,844,491)-(42,844,491)Changes in reinsurers’ share of claims incurred but not reported2,328,334190,751(570,672)-1,948,413-1,948,413Net claims and other benefits incurred(329,798,242)(112,718,555)(16,722,691)-(459,239,488)-(459,239,488)Policy acquisition costs(24,341,535)(11,424,040)(5,485,954)-(41,251,529)-(41,251,529)Changes in additional premium reserves(17,772,110)10,498,578--(7,273,532)-(7,273,532)Changes in other technical reserves(2,833,126)159,470(281,556)-(2,955,212)-(2,955,212)Other underwriting expenses(535,798)(827,259)(6,340,072)-(7,703,129)-(7,703,129)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(375,280,811)(114,311,806)(28,830,273)-(518,422,890)-(518,422,890)NET UNDERWRITING (LOSS) INCOME(88,186,393)26,145,4159,144,668-(52,896,310)-(52,896,310)(continued) 12.Segmental information (continued)For the nine-month period ended 30 September 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(5,124,271)-(5,124,271)General and administrative expenses(81,084,827)(1,944,013)(83,028,840)Investment and commission income4,808,7858,525,07913,333,864Finance costs on leases(219,660)-(219,660)Other income7,281,782-7,281,782Total other 0perating (expenses) income, net(74,338,191)6,581,066(67,757,125)Total (loss) income for the period before surplus attribution, zakat and income tax(127,234,501)6,581,066(120,653,435)Surplus attributed to the shareholders’ operations127,234,501(127,234,501)-Total loss for the period before zakat and income tax-(120,653,435)(120,653,435)Zakat expense -(2,000,000)(2,000,000)Income tax expense ---Total loss for the period attributable to the shareholders-(122,653,435)(122,653,435) 12.Segmental information (continued)Gross premiums written for the nine-month period ended 30 September 2022 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates29,856,56040,472,44531,940,271-102,269,276Medium corporates17,878,47638,697,69319,485,454-76,061,623Small enterprises27,267,32715,436,9573,159,778-45,864,062Micro enterprises35,289,6361,728,663591,976-37,610,275Retail33,212,34155,657,83315,885,085-104,755,259143,504,340151,993,36171,062,794-366,560,495Gross premiums written for the three-month period ended 30 September 2022 can be categorized in following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates9,941,8276,120,9727,765,097-23,827,897Medium corporates7,840,43714,429,4096,055,267-28,325,113Small enterprises10,329,6205,307,488786,358-16,423,466Micro enterprises13,533,374166,44717,419-13,717,240Retail10,226,93712,462,6344,333,679-27,023,25051,872,19538,486,95018,957,820-109,316,965 12.Segmental information (continued)Gross premiums written for the nine-month period ended 30 September 2021 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates34,457,13457,850,12334,659,900-126,967,157Medium corporates15,740,72490,664,33715,768,549-122,173,610Small enterprises50,175,26214,871,6675,061,762-70,108,691Micro enterprises86,587,4264,227,277645,904-91,460,607Retail2,046,4331,697,9567,217,670-10,962,059189,006,979169,311,36063,353,785-421,672,124Gross premiums written for the three-month period ended 30 September 2021 can be categorized in following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates13,306,0535,296,3585,862,268-24,464,679Medium corporates5,520,10137,336,2864,126,358-46,982,745Small enterprises14,042,7836,023,7991,098,555-21,165,137Micro enterprises18,355,672604,731270,828-19,231,231Retail1,538,591652,0362,344,527-4,535,15452,763,20049,913,21013,702,536-116,378,946 12.Segmental information (continued)For the three-month period ended 30 September 2022 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalREVENUESGross premiums written51,872,19538,486,95018,957,820-109,316,965-109,316,965Reinsurance premiums ceded:-Foreign-(5,815,854)(9,682,008)-(15,497,862)-(15,497,862)-Local-76,295(76,295)----Excess of loss expenses:-Foreign(1,569,541)(1,103,502)(598,825)-(3,271,868)-(3,271,868)-Local(1,505,202)436,294169,511-(899,397)-(899,397)Net premiums written48,797,45232,080,1838,770,203-89,647,838-89,647,838Changes in unearned premiums1,982,57614,799,4891,451,748-18,233,813-18,233,813Changes in reinsurers’ share of unearned premiums-(4,086,676)(1,469,458)-(5,556,134)-(5,556,134)Net premiums earned50,780,02842,792,9968,752,493-102,325,517-102,325,517Reinsurance commissions-1,633,9533,155,266-4,789,219-4,789,219Fee income from insurance9,45012,07596,110-117,635-117,635TOTAL REVENUES50,789,47844,439,02412,003,869-107,232,371-107,232,371UNDERWRITING COSTS AND EXPENSESGross claims paid(47,470,100)(49,312,730)(4,760,457)-(101,543,287)-(101,543,287)Reinsurers’ share of claims paid2,851,23310,358,2651,934,829-15,144,327-15,144,327Expenses incurred related to claims(294,007)---(294,007)-(294,007)Net claims and other benefits paid(44,912,874)(38,954,465)(2,825,628)-(86,692,967)-(86,692,967)(continued) 12.Segmental information (continued)For the three-month period ended 30 September 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(8,875,680)1,267,4395,341,209-(2,267,032)-(2,267,032)Changes in reinsurers’ share of outstanding claims(1,142,545)(4,420,325)1,187,646-(4,375,224)-(4,375,224)Changes in claims incurred but not reported10,092,722(561,482)736,679-10,267,919-10,267,919Changes in reinsurers’ share of claims incurred but not reported(834,307)(1,988,110)(113,523)-(2,935,940)-(2,935,940)Net claims and other benefits incurred(45,672,684)(44,656,943)4,326,383-(86,003,244)-(86,003,244)Policy acquisition costs(2,856,832)(3,668,893)(1,679,935)-(8,205,660)-(8,205,660)Changes in additional premium reserves-3,510,183(68,610)-3,441,573-3,441,573Changes in other technical reserves3,182,692(5,818)191,634-3,368,508-3,368,508Other underwriting expenses-(5,291,624)--(5,291,624)-(5,291,624)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(45,346,824)(50,113,095)2,769,472-(92,690,447)-(92,690,447)NET UNDERWRITING INCOME (LOSS)5,442,654(5,674,071)14,773,341-14,541,924-14,541,924(continued) 12.Segmental information (continued)For the three-month period ended 30 September 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING EXPENSESAllowance for doubtful debts---General and administrative expenses(19,569,375)(5,851,749)(25,421,124)Investment and commission income1,649,0783,592,5515,241,629Finance costs on leases(53,546)-(53,546)Other income9,798,190-9,798,190Total other 0perating expenses, net(8,175,653)(2,259,198)(10,434,851)Total income for the period before surplus attribution, zakat and income tax6,366,271(2,259,198)4,107,073Surplus attributed to the shareholders’ operations(6,366,271)6,366,271-Total income for the period before zakat and income tax-4,107,0734,107,073Zakat expense -(500,000)(500,000)Income tax expense ---Total income for the period attributable to the shareholders-3,607,0733,607,073 12.Segmental information (continued)For the three-month period ended 30 September 2021 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written52,763,20049,913,21013,702,536-116,378,946-116,378,946Reinsurance premiums ceded:-Foreign-(11,059,657)(7,576,453)-(18,636,110)-(18,636,110)-Local-(1,368,208)(842,453)-(2,210,661)-(2,210,661)Excess of loss expenses:-Foreign(3,617,632)(811,509)(297,861)-(4,727,002)-(4,727,002)-Local(350,000)(74,707)(80,392)-(505,099)-(505,099)Net premiums written48,795,56836,599,1294,905,377-90,300,074-90,300,074Changes in unearned premiums38,538,7718,367,3106,248,196-53,154,277-53,154,277Changes in reinsurers’ share of unearned premiums-(65,112)(3,201,410)-(3,266,522)-(3,266,522)Net premiums earned87,334,33944,901,3277,952,163-140,187,829-140,187,829Reinsurance commissions-2,244,7492,907,425-5,152,174-5,152,174Fee income from insurance8,6509,70071,730-90,080-90,080TOTAL REVENUES87,342,98947,155,77610,931,318-145,430,083-145,430,083UNDERWRITING COSTS AND EXPENSESGross claims paid(90,526,926)(49,748,205)(6,854,816)-(147,129,947)-(147,129,947)Reinsurers’ share of claims paid10,118,2509,993,7293,356,568-23,468,547-23,468,547Expenses incurred related to claims(2,324,978)(1,500,169)--(3,825,147)-(3,825,147)Net claims and other benefits paid(82,733,654)(41,254,645)(3,498,248)-(127,486,547)-(127,486,547)(continued) 12.Segmental information (continued)For the three-month period ended 30 September 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims3,826,5803,745,674(2,702,336)-4,869,918-4,869,918Changes in reinsurers’ share of outstanding claims(29,430)(1,203,268)573,296-(659,402)-(659,402)Changes in claims incurred but not reported(17,805,134)(1,519,349)(22,711)-(19,347,194)-(19,347,194)Changes in reinsurers’ share of claims incurred but not reported1,191,242(609,590)(1,823,089)-(1,241,437)-(1,241,437)Net claims and other benefits incurred(95,550,396)(40,841,178)(7,473,088)-(143,864,662)-(143,864,662)Policy acquisition costs(7,480,630)(3,903,062)(1,728,661)-(13,112,353)-(13,112,353)Changes in additional premium reserves9,263,7741,044,629--10,308,403-10,308,403Changes in other technical reserves(1,082,858)19,555(41,217)-(1,104,520)-(1,104,520)Other underwriting expenses(81,468)2,518,106(6,340,072)-(3,903,434)-(3,903,434)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(94,931,578)(41,161,950)(15,583,038)-(151,676,566)-(151,676,566)NET UNDERWRITING (LOSS) INCOME (7,588,589)5,993,826(4,651,720)-(6,246,483)-(6,246,483)(continued) 12.Segmental information (continued)For the three-month period ended 30 September 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts1,633,164-1,633,164General and administrative expenses(21,064,557)(574,106)(21,638,663)Investment and commission income1,994,4892,617,0314,611,520Finance costs on leases(72,679)-(72,679)Other income4,657,631-4,657,631Total other 0perating (expenses) income, net(12,851,952)2,042,925(10,809,027)Total (loss) income for the period before surplus attribution, zakat and income tax(19,098,435)2,042,925(17,055,510)Surplus attributed to the shareholders’ operations19,098,435(19,098,435)-Total (loss) income for the period before zakat and income tax-(17,055,510)(17,055,510)Zakat expense ---Income tax expense ---Total loss for the period attributable to the shareholders-(17,055,510)(17,055,510) | 12 |
| Disclosure of commitments and contingencies, general [text block] | 10.Commitments and contingenciesi)The Company, in common with significant majority of insurers, is subject to litigation in the normal course of its business. The Company, based on independent legal advice, does not believe that the outcome of these cases will have a material impact on the Company’s financial performance.ii)See Note 14 for contingencies pertaining to zakat and income tax assessments. iii)As at 30 September 2022, the Company was contingently liable for financial guarantees issued against litigation in the normal course of business amounting to Saudi Riyals 1.0 million (31 December 2021: Saudi Riyals 1.0 million). | 10 |
| Disclosure of risk management [abstract] | | |
| Disclosure of operational/ process risk [text block] | 17.Capital risk management The Company’s objectives when managing capital are:To comply with the insurance capital requirements as set out in the Insurance Law. The Company’s current paid-up share capital is in accordance with Article 3 of the Insurance Law;To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; andTo provide an adequate return to shareholders by pricing insurance contracts commensurately with the level of risk.As per Article 66 of the Regulations, the Company shall maintain a solvency margin equivalent to the highest of the following three methods:Minimum Capital RequirementPremium solvency margin; orClaims solvency margin.As stated in Note 1, the Company completed its rights issue on 8 June 2022 amounting to Saudi Riyals 229.5 million. As a result and at 30 September 2022, the Company is in compliance with the solvency margin requirements as stipulated by the Law. | 17 |
| Disclosure of board of director's approval of the financial statements [text block] | 21.Approval of the interim condensed financial informationThis interim condensed financial information has been approved by the Board of Directors on 01/11/2022 | 21 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 19.Supplementary information Interim condensed statement of financial position30 September 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalASSETSCash and cash equivalents10,352,86281,279,96591,632,82740,666,69774,315,396114,982,093Short-term deposits-70,000,00070,000,000---Premiums and reinsurers’ receivable - net164,390,678-164,390,678161,223,340-161,223,340Premiums receivable - related parties - net6,335,688-6,335,6884,452,622-4,452,622Reinsurers’ share of unearned premiums34,414,318-34,414,31844,001,521-44,001,521Reinsurers’ share of outstanding claims26,210,238-26,210,23834,230,197-34,230,197Reinsurers’ share of claims incurred but not reported15,710,593-15,710,59321,446,416-21,446,416Deferred policy acquisition costs17,681,917-17,681,91717,232,872-17,232,872Deferred excess of loss premiums1,922,770-1,922,770---Investments124,764,874150,124,120274,888,994139,811,054137,955,578277,766,632Prepaid expenses and other assets26,612,6978,326,55134,939,24841,968,1723,744,99245,713,164Long term deposits-90,000,00090,000,000-40,032,87740,032,877Property and equipment7,091,485-7,091,4858,854,908-8,854,908Right-of-use assets6,405,923-6,405,9237,584,087-7,584,087Intangible assets43,654,736-43,654,73643,378,547-43,378,547Goodwill-67,697,75067,697,750-67,697,75067,697,750Statutory deposit-68,842,39268,842,392-34,421,19634,421,196Accrued income on statutory deposit-8,326,8598,326,859-7,738,8077,738,807Due from shareholders’ operations177,611,447-177,611,447207,825,300-207,825,300TOTAL ASSETS 663,160,226544,597,6371,207,757,863772,675,733365,906,5961,138,582,329Less: inter-operations elimination(177,611,447)-(177,611,447)(207,825,300)-(207,825,300)TOTAL ASSETS485,548,779544,597,6371,030,146,416564,850,433365,906,596930,757,029(continued) 19.Supplementary information (continued)Interim condensed statement of financial position (continued)30 September 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalLIABILITIES Accounts payable114,309,238-114,309,238117,346,288-117,346,288Accrued and other liabilities22,381,2473,952,46026,333,70714,148,035352,46014,500,495Reinsurers' balances payable8,764,871-8,764,87114,478,470-14,478,470Unearned premiums231,329,037-231,329,037255,996,173-255,996,173Unearned reinsurance commission8,722,739-8,722,73910,342,959-10,342,959Outstanding claims90,408,184-90,408,18493,994,985-93,994,985Claims incurred but not reported125,389,605-125,389,605186,847,969-186,847,969Additional premium reserves19,716,848-19,716,84822,019,563-22,019,563Other technical reserves11,717,075-11,717,07517,984,038-17,984,038Lease liabilities6,907,011-6,907,0116,732,810-6,732,810Employee benefit obligations17,600,692-17,600,69216,927,680-16,927,680Zakat and income tax-21,572,94821,572,948-20,072,94820,072,948Surplus distribution payable12,707,310-12,707,31013,748,722-13,748,722Accrued income payable to SAMA-8,326,8598,326,859-7,738,8077,738,807Due to insurance operations-177,611,447177,611,447-207,825,300207,825,300TOTAL LIABILITIES669,953,857211,463,714881,417,571770,567,692235,989,5151,006,557,207Less: inter-operations elimination-(177,611,447)(177,611,447)-(207,825,300)(207,825,300)TOTAL LIABILITIES669,953,85733,852,267703,806,124770,567,69228,164,215798,731,907EQUITYShare capital-458,949,280458,949,280-229,474,640229,474,640Statutory reserve-4,885,6914,885,691-4,885,6914,885,691Accumulated losses-(130,240,752)(130,240,752)-(111,242,809)(111,242,809)Remeasurement reserve of employee benefit obligations(948,943)780,592(168,351)(168,351)-(168,351)Fair value reserve on investments(5,844,681)(1,240,895)(7,085,576)2,276,3926,799,5599,075,951TOTAL EQUITY(6,793,624)333,133,916326,340,2922,108,041129,917,081132,025,122TOTAL LIABILITIES AND EQUITY663,160,233366,986,1831,030,146,416772,675,733158,081,296930,757,029 19.Supplementary information (continued)Interim condensed statement of income for the nine-month period ended30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalREVENUESGross premiums written366,560,495-366,560,495421,672,124-421,672,124Reinsurance premiums ceded:--Foreign(55,055,189)-(55,055,189)(71,976,452)-(71,976,452)-Local(6,720,843)-(6,720,843)(9,411,261)-(9,411,261)Excess of loss premiums:-Foreign(8,301,766)-(8,301,766)(17,086,733)-(17,086,733)-Local(2,538,996)-(2,538,996)(1,577,658)-(1,577,658)Net premiums written293,943,701-293,943,701321,620,020-321,620,020Changes in unearned premiums24,667,136-24,667,136119,335,604-119,335,604Changes in reinsurers’ share of unearned premiums(9,587,203)-(9,587,203)7,502,027-7,502,027Net premiums earned309,023,634-309,023,634448,457,651-448,457,651Reinsurance commissions15,851,513-15,851,51316,779,431-16,779,431Fee income from insurance388,646-388,646289,498-289,498Total revenues325,263,793-325,263,793465,526,580-465,526,580(continued) 19.Supplementary information (continued)Interim condensed statement of income for the nine-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalUNDERWRITING COSTS AND EXPENSESGross claims paid(358,878,230)-(358,878,230)(461,979,710)-(461,979,710)Reinsurers’ share of gross claims paid57,458,857-57,458,85759,510,095-59,510,095Expenses incurred related to claims(4,204,662)-(4,204,662)(11,619,055)-(11,619,055)Net claims and other benefits paid(305,624,035)-(305,624,035)(414,088,670)-(414,088,670)Changes in outstanding claims3,586,801-3,586,801(5,318,726)-(5,318,726)Changes in reinsurers’ share of outstanding claims(8,019,954)-(8,019,954)1,063,986-1,063,986Changes in claims incurred but not reported61,458,364-61,458,364(42,844,491)-(42,844,491)Changes in reinsurers’ share of claims incurred but not reported(5,735,823)-(5,735,823)1,948,413-1,948,413Net claims and other benefits incurred(254,334,647)-(254,334,647)(459,239,488)-(459,239,488)Policy acquisition costs(25,727,896)-(25,727,896)(41,251,529)-(41,251,529)Changes in additional premium reserves2,302,715-2,302,715(7,273,532)-(7,273,532)Changes in other technical reserves6,266,963-6,266,963(2,955,212)-(2,955,212)Other underwriting expenses(16,455,364)-(16,455,364)(7,703,129)-(7,703,129)Total underwriting costs and expenses, net(287,948,229)-(287,948,229)(518,422,890)-(518,422,890)NET UNDERWRITING INCOME (LOSS)37,315,564-37,315,564(52,896,310)-(52,896,310)(continued) 19.Supplementary information (continued)Interim condensed statement of income for the nine-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,033,785)-(3,033,785)(5,124,271)-(5,124,271)General and administrative expenses(68,627,833)(7,592,775)(76,220,608)(81,084,827)(1,944,013)(83,028,840)Investment and commission income - net4,577,5519,912,48114,490,0324,808,7858,525,07913,333,864Finance costs on leases(174,201)-(174,201)(219,660)-(219,660)Other income13,057,555-13,057,5557,281,782-7,281,782Total other operating (expenses) income, net(54,200,713)2,319,706(51,881,007)(74,338,191)6,581,066(67,757,125)Total (loss) income for the period before surplus attribution, zakat and income tax(16,885,149)2,319,706(14,565,443)(127,234,501)6,581,066(120,653,435)Zakat expense -(1,500,000)(1,500,000)-(2,000,000)(2,000,000)Income tax expense------Total (loss) income for the period attributable to the shareholders(16,885,149)819,706(16,065,443)(127,234,501)4,581,066(122,653,435)Deficit transferred to the shareholders’ operations16,885,149(16,885,149)-127,234,501(127,234,501)-Total loss for the period after transfer of deficit-(16,065,443)(16,065,443)-(122,653,435)(122,653,435)Weighted average number of outstanding shares36,060,14722,947,464Loss per share (expressed in Saudi Riyals per share)Basic loss per share(0.45)(5.34)Diluted loss per share(0.45)(5.34) 19.Supplementary information (continued)Interim condensed statement of comprehensive income for the nine-month period ended30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalTotal loss for the period after transfer of deficit -(16,065,443)(16,065,443)-(122,653,435)(122,653,435)Other comprehensive income:Items that will be reclassified to the interim condensed statement of income in subsequent periodsNet change in fair value of available-for-sale investments(8,121,089)(6,440,437)(14,561,526)(3,829,841)2,063,827(1,766,014)Realized gain reclassified to interim condensed statement of income-(1,600,001)(1,600,001)---Total other comprehensive (loss) income(8,121,089)(8,040,438)(16,161,527)(3,829,841)2,063,827(1,766,014)Total comprehensive loss for the period(8,121,089)(24,105,881)(32,226,970)(3,829,841)(120,589,608)(124,419,449) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period ended30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalREVENUESGross premiums written109,316,965-109,316,965116,378,946-116,378,946Reinsurance premiums ceded:-Foreign(15,497,862)-(15,497,862)(18,636,110)-(18,636,110)-Local---(2,210,661)-(2,210,661)Excess of loss premiums:-Foreign(3,271,868)-(3,271,868)(4,727,002)-(4,727,002)-Local(899,397)-(899,397)(505,099)-(505,099)Net premiums written89,647,838-89,647,83890,300,074-90,300,074Changes in unearned premiums18,233,813-18,233,81353,154,277-53,154,277Changes in reinsurers’ share of unearned premiums(5,556,134)-(5,556,134)(3,266,522)-(3,266,522)Net premiums earned102,325,517-102,325,517140,187,829-140,187,829Reinsurance commissions4,789,219-4,789,2195,152,174-5,152,174Fee income from insurance117,635-117,63590,080-90,080Total revenues107,232,371-107,232,371145,430,083-145,430,083(continued) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalUNDERWRITING COSTS AND EXPENSESGross claims paid(101,543,287)-(101,543,287)(147,129,947)-(147,129,947)Reinsurers’ share of gross claims paid15,144,327-15,144,32723,468,547-23,468,547Expenses incurred related to claims(294,007)-(294,007)(3,825,147)-(3,825,147)Net claims and other benefits paid(86,692,967)-(86,692,967)(127,486,547)-(127,486,547)Changes in outstanding claims(2,267,032)-(2,267,032)4,869,918-4,869,918Changes in reinsurers’ share of outstanding claims(4,375,224)-(4,375,224)(659,402)-(659,402)Changes in claims incurred but not reported10,267,919-10,267,919(19,347,194)-(19,347,194)Changes in reinsurers’ share of claims incurred but not reported(2,935,940)-(2,935,940)(1,241,437)-(1,241,437)Net claims and other benefits incurred(86,003,244)-(86,003,244)(143,864,662)-(143,864,662)Policy acquisition costs(8,205,660)-(8,205,660)(13,112,353)-(13,112,353)Changes in additional premium reserves3,441,573-3,441,57310,308,403-10,308,403Changes in other technical reserves3,368,508-3,368,508(1,104,520)-(1,104,520)Other underwriting expenses(5,291,624)-(5,291,624)(3,903,434)-(3,903,434)Total underwriting costs and expenses, net(92,690,447)-(92,690,447)(151,676,566)-(151,676,566)NET UNDERWRITING INCOME (LOSS)14,541,924-14,541,924(6,246,483)-(6,246,483)(continued) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts---1,633,164-1,633,164General and administrative expenses(19,569,375)(5,851,749)(25,421,124)(21,064,557)(574,106)(21,638,663)Investment and commission income – net1,649,0783,592,5515,241,6291,994,4892,617,0314,611,520Finance costs on leases(53,546)-(53,546)(72,679)-(72,679)Other income9,798,190-9,798,1904,657,631-4,657,631Total other operating (expenses) income, net(8,175,653)(2,259,198)(10,434,851)(12,851,952)2,042,925(10,809,027)Total income (loss) for the period before surplus attribution, zakat and income tax6,366,271(2,259,198)4,107,073(19,098,435)2,042,925(17,055,510)Zakat expense -(500,000)(500,000)---Income tax expense------Total income (loss) for the period 6,366,271(2,759,198)3,607,073(19,098,435)2,042,925(17,055,510)Surplus (deficit) attributed to the shareholders’ operations(6,366,271)6,366,271-19,098,435(19,098,435)-Total loss for the period after transfer of deficit-3,607,0733,607,073-(17,055,510)(17,055,510)Weighted average number of outstanding shares45,894,92822,947,464Loss per share (expressed in Saudi Riyals per share)Basic loss per share0.08(0.74)Diluted loss per share0.08(0.74) 19.Supplementary information (continued)Interim condensed statement of comprehensive income for the three-month period ended30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalTotal loss for the period after transfer of surplus (deficit) -3,607,0733,607,073-(17,055,510)(17,055,510)Other comprehensive income:Items that will be reclassified to the interim condensed statement of income in subsequent periodsNet change in fair value of available-for-sale investments2,113,531(851,533)1,261,998(4,144,728)(317,901)(4,462,629)Total comprehensive income (loss) for the period2,113,5312,755,5404,869,071(4,144,728)(17,373,411)(21,518,139) 19.Supplementary information (continued)Interim condensed statement of cash flows for the nine-month period ended30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM OPERATING ACTIVITIESTotal loss for the period before surplus attribution, zakat and income tax-(14,565,443)(14,565,443)-(120,653,435)(120,653,435)Adjustments for non-cash items:Depreciation of property and equipment2,050,666-2,050,6661,928,661-1,928,661Amortization of intangible assets4,829,891-4,829,8911,940,973-1,940,973Depreciation of right-of-use assets 1,178,164-1,178,1641,420,835-1,420,835Finance costs on leases174,201-174,201219,660-219,660Allowance for doubtful debts3,033,785-3,033,7855,124,271-5,124,271Investment and commission income(4,577,551)(9,912,481)(14,490,032)(4,808,785)(8,525,079)(13,333,864)Provision for employee benefit obligations673,012-673,012847,802-847,802Gain on termination of lease liabilities---(112,288)-(112,288)7,362,168(24,477,924)(17,115,756)6,561,129(129,178,514)(122,617,385)Changes in operating assets and liabilities:Premiums and reinsurers’ receivable(6,201,123)-(6,201,123)52,536,986-52,536,986Premium receivables - related parties(1,883,066)-(1,883,066)1,444,811-1,444,811Reinsurers’ share of unearned premiums9,587,203-9,587,203(7,502,027)-(7,502,027)Reinsurers’ share of outstanding claims8,019,959-8,019,959(1,063,986)-(1,063,986)Reinsurers’ share of claims incurred but not reported5,735,823-5,735,823(1,948,413)-(1,948,413)(continued) 19.Supplementary information (continued)Interim condensed statement of cash flows for the nine-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalDeferred policy acquisition costs(449,045)-(449,045)9,541,784-9,541,784Deferred excess of loss premiums(1,922,770)-(1,922,770)(1,714,499)-(1,714,499)Prepaid expenses and other assets14,690,590(4,581,559)10,109,031(21,683,928)5,824,756(15,859,172)Accounts payable(3,037,043)-(3,037,043)17,594,086-17,594,086Accrued and other liabilities8,233,2123,600,00011,833,212(2,146,250)(427,304)(2,573,554)Reinsurers' balances payable(5,713,599)-(5,713,599)(3,984,255)-(3,984,255)Unearned premiums(24,667,136)-(24,667,136)(119,335,604)-(119,335,604)Unearned reinsurance commission(1,620,220)-(1,620,220)1,278,316-1,278,316Outstanding claims(3,586,801)-(3,586,801)5,318,726-5,318,726Claims incurred but not reported(61,458,364)-(61,458,364)42,844,491-42,844,491Additional premium reserves(2,302,715)-(2,302,715)7,273,532-7,273,532Other technical reserves(6,266,963)-(6,266,963)2,955,212-2,955,212Employee benefit obligations paid---(2,909,660)-(2,909,660)Zakat and income tax paid----(1,886,010)(1,886,010)Surplus paid to the policy holders(1,041,412)-(1,041,412)---Net cash used in operating activities(66,521,302)(25,459,483)(91,980,785)(14,939,549)(125,667,072)(140,606,621)(continued) 19.Supplementary information (continued)Interim condensed statement of cash flows for the nine-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM INVESTING ACTIVITIES Placement of short-term deposits-(70,000,000)(70,000,000)---Liquidation of short-term deposits---86,516,96240,053,779126,570,741Placement in Long term Deposits-(49,967,123)(49,967,123)Purchases of available-for- sale investments-(59,025,442)(59,025,442)(19,288,091)(10,000,000)(29,288,091)Purchases of held-to-maturity investments----(9,931,031)(9,931,031)Proceeds from sales of available-for-sale investments 1,923,078 38,958,136 40,881,214 -(40,033,333)(40,033,333)Proceeds from redemption of held-to-maturity investment 5,002,013 1,458,327 6,460,340 -5,763,8855,763,885Investment and commission income received4,577,5519,945,35814,522,9094,672,7489,011,62813,684,376Additions/disposals in property and equipment(287,243)-(287,243)---Payments for purchases property and equipment---(401,645)-(401,645)Additions to intangible assets(5,106,080)-(5,106,080)(3,154,222)-(3,154,222)Proceeds from disposal of property and equipment---468,264-468,264Liquidation of statutory deposit-(34,421,196)(34,421,196)-18,450,00018,450,000Net cash generated from (used in) investing activities6,109,319(163,051,940)(156,942,621)68,814,01613,314,92882,128,944CASH FLOWS FROM FINANCING ACTIVITIESPrincipal elements of lease payments(903,870)-(903,870)(78,435)-(78,435)Finance cost paid(64,130)-(64,130)(5,565)-(5,565)Issue of share capital, net of expenses-226,542,140226,542,140---Due from / to shareholders’ operations31,066,155(31,066,155)-(64,132,414)64,132,414-Net cash generated from (used in) financing activities30,098,155195,475,985225,574,140(64,216,414)64,132,414(84,000)(continued)19.Supplementary information (continued)Interim condensed statement of cash flows for the nine-month period ended (continued)30 September 2022 (Unaudited)30 September 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalNet change cash and cash equivalents(30,313,828)6,964,562(23,349,266)(10,341,947)(48,219,730)(58,561,677)Cash and cash equivalents, beginning of the period40,666,69774,315,396114,982,09367,852,194111,655,835179,508,029Cash and cash equivalents at end of the period10,352,86281,279,96591,632,82757,510,24763,436,105120,946,352Supplemental non-cash information:Net change in fair value reserve for available-for- sale investments(8,121,089)(6,440,437)(14,561,526)(3,829,841)2,063,827(1,766,014) | 19 |
