| 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 basis of preparation of financial statements [text block] | 1. BASIS OF PREPARATIONStatement of ComplianceThe interim condensed financial information of the Company has been prepared in accordance with International Accounting Standard (IAS) 34 - Interim Financial Reporting as modified by the Saudi Arabian Monetary Authority (“SAMA”) for the accounting of zakat and income tax, which requires, adoption of all IFRS as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 – “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated 11 April 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through shareholders’ equity under retained earnings. These interim condensed financial information do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at and for the year ended 31 December 2017.The Company follows a fiscal year ending 31 December.The interim condensed financial information are expressed in Saudi Riyals, being the functional currency of the Company and have been rounded off to the nearest thousand, unless otherwise specified.The preparation of interim condensed financial statements in conformity with International Financial Reporting Standards (“IFRS”) requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the interim condensed financial information and the reported amounts of revenues and expenses during the reporting period. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. 2. BASIS OF PREPARATION – (continued)Basis of presentationThe interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available-for-sale investments. The Company’s interim 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, term deposits, premiums and reinsurers’ receivable - net, reinsurers’ share of unearned premium, reinsurers’ share of outstanding claims, reinsurers’ share of claims incurred but not reported, deferred policy acquisitions cost, due from related parties, prepaid expenses and other assets, policyholders claim payable, accrued and other liabilities, unearned premiums, unearned reinsurance commission, outstanding claims, claims incurred but not reported, other technical reserves, surplus distribution payable and Zakat and income tax. The following balances would generally be classified as non-current: end-of-service indemnities, investments, statutory deposit, accrued income on statutory deposit and property and equipment.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 are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income and statement of comprehensive income and cash flows of the insurance operations and shareholders operations which are presented on Note No. 16 of the financial information have been provided 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, statements of 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-level financial information in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealised 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.The inclusion of separate information of the insurance operations with the financial information of the Company in the interim condensed statement of financial position, the statement of income, statement of comprehensive income, cash flows as well as certain relevant notes to the financial information represents additional supplementary information required as required by the implementing regulations.As per the by-laws of the Company, surplus arising from the Insurance Operations is distributed as follows:Transfer to Shareholders’ operations 90%Transfer to Policyholders’ operations 10% 100%In case of deficit, the whole deficit will be transferred to Shareholders’ operations. | 2 |
| Disclosure of new standards and amendments in standards [text block] | New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Company The Company has adopted the following amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):Standard/Interpretation Description Effective date IFRS 15 Revenue from Contracts with Customers 1 January 2018IFRS 2 Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions. 1 January 2018IAS 40 Amendments to IAS 40 Transfers of investment property. 1 January 2018IFRIC 22 Foreign Currency Transactions and Advance consideration. 1 January 2018IFRS 1 and IAS 28 Annual Improvements 2016 to IFRS 2014- 2016 cycle. 1 January 2018The adoption of the relevant new and amended standards and interpretations applicable to the Company did not have any significant impact on these interim condensed financial information. | 2 |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial information are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they are effective. IFRS 16 - “Leases”, applicable for the period beginning on or after 1 January 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The Company has decided not to early adopt this new standard.IFRS 17- “Insurance Contracts”, applicable for the period beginning on or after 1 January 2021, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption is permitted if both IFRS 15 “Revenue form Contracts with Customers” and IFRS 9 “Financial Instruments” have also been applied. The Company has decided not to early adopt this new standard.IFRS 9 – “Financial Instruments”, 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. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. 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 2021.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 has decided to defer the implementation of IFRS 9.The Company believes that IFRS 9 would have an impact on the classification of financial instruments required to be measured mandatorily at fair value. At present it is not possible to provide a reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review. | 2 |
| Disclosure of other general disclosures about reporting entity [text block] | 1. ORGANIZATION AND PRINCIPAL ACTIVITIESAllied Cooperative Insurance Group (“the Company”) is a Saudi Joint Stock Company registered in the Kingdom of Saudi Arabia under Commercial Registration No. 4030171999 dated 9 Shabaan 1428H, corresponding to 22 August 2007. Registered Office address of the Company was Al Ruwais District, P. O. Box 7076, Jeddah 21462, Kingdom of Saudi Arabia.As per the shareholders resolution dated 13 May 2014, the registered office address of the Company has changed from Jeddah to Al Malka District P.O. Box 40523 Riyadh 11511, Kingdom of Saudi Arabia. The legal formalities to change the registered office address of the Company have been completed during the year 2014 and accordingly new Commercial Registration No. 1010417178 has been obtained and Articles of Association has been amended.The activities of the Company are to transact cooperative insurance operations and related activities in the Kingdom of Saudi Arabia. On 4 April 2009, the Company received a license from the Saudi Arabian Monetary Authority (“SAMA”) to engage in insurance in Saudi Arabia. The Company commenced its commercial operations on 1 July 2009. The Company was listed on the Saudi Stock Exchange (Tadawul) on 27 August 2007. There are 3 registered branches as set out below:Branch Commercial Registration Number Place of issuance DateBranch of ACIG 2051043671 Al Khobar 12 Ramadan 1439 HBranch of ACIG 5855035150 Khamis Mushayt 12 Ramadan 1439 HBranch of ACIG 4030204059 Jeddah 12 Ramadan 1439 HThe Board of Directors on 7 March 2017 approved the study of a possibility of merger with Malath Cooperative Insurance Company (Malath). During the quarter ended 31 March 2018, the Board approved to extend the previously announced period by six months to sign a non-binding memorandum of understanding to conduct the technical, financial and legal studies necessary for the merger process and to present the results of the studies to the Board of Directors of the two companies. However, on 12 July 2018, the Board of Directors of ACIG decided not to continue the merger due to the failure to reach a preliminary agreement with Malath regarding the methodology used in evaluating the two companies. | 1 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments in available-for-sale investments [text block] | 6. AVAILABLE-FOR-SALE INVESTMENTSShareholders’ operations 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Investment in sukuk 25,000 25,000Quoted securities 23,848 16,800Unquoted securities 1,923 1,923 50,771 43,723As at 30 June 2018 – (Unaudited) Balance at the beginning of the period Net movement during the period Change in fair value for the period Balance at the end of the period SR’000 SR’000 SR’000 SR’000Investment in sukuk 25,000 - - 25,000Quoted securities 16,800 7,015 33 23,848Investment in Najm for Insurance Services Company 1,923 - - 1,923 43,723 7,015 33 50,771As at 31 December 2017 – (Audited) Balance at the beginning of the year Net movement during the year Change in fair value for the year Balance at the end of the year SR’000 SR’000 SR’000 SR’000Investment in sukuk 25,000 - - 25,000Quoted securities 20,759 (773) (3,186) 16,800Investment in Najm for Insurance Services Company 1,923 - - 1,923 47,682 (773) (3,186) 43,7236. AVAILABLE-FOR-SALE INVESTMENTS – (continued)Investment in Najm for Insurance Services Company are held at cost and is classified under level 3. Investments in mutual funds and GACA Sukuk are classified under level 2. There is no movement in levels of investments. | 6 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 1. PREMIUMS AND REINSURERS’ RECEIVABLE, NET 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Due from policyholders 83,728 60,263Due from policyholders – related parties 2,116 2,234Due from Brokers and agents 28,091 24,642Receivables from reinsurers 4,579 5,592Provision for doubtful debts (7,043) (5,806) 111,471 86,925Movement in provision for doubtful debts is as follows: 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Balance at the beginning of the period / year 5,806 6,214Release of provision during the period / year - (408)Additional provision during the period / year 1,237 -Balance at the end of the period / year 7,043 5,806 | 5 |
| Disclosure of cash and cash equivalents [text block] | 1. CASH AND CASH EQUIVALENTS 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000Insurance operations Cash in hand and at banks 66,422 44,283 66,422 44,283 Shareholders’ operations Cash in hand and at banks 19,032 33,315 19,032 33,315Cash at banks are placed with counterparties who have good credit ratings.The carrying amounts disclosed above reasonably approximate fair value at the reporting date.2. TERM DEPOSITS 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000Insurance Operations Term deposits 134,631 147,249Shareholders’ Operations Term deposits 50,369 37,751The term deposits are held with the commercial banks. These term deposits are denominated in Saudi Arabian Riyals and have been an original maturity of more than three months and less than twelve months. The carrying amounts of these term deposits reasonably approximate their fair values at the reporting date. | 3 |
| Disclosure of statutory deposit [text block] | 7. STATUTORY DEPOSIT 30 June2018 31 December 2017 (Unaudited) (Audited)Shareholders’ Operations SR’000 SR’000 Statutory deposit 20,000 20,000 As required by Saudi Arabian Insurance Regulations, the Company deposited 10% of its paid up capital, amounting to SR 20 million in a bank designated by the Saudi Arabian Monetary Authority (SAMA). The Company cannot withdraw this deposit without SAMA’s approval. | 7 |
| Disclosure of gross unearned premiums/ contributions [text block] | 1. UNEARNED PREMIUMS, NET 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Unearned premiums 246,293 239,754Reinsurance share of unearned premiums (24,707) (29,476) 221,586 210,278 | 8 |
| Disclosure of gross outstanding claims/ benefits [text block] | 9. TECHNICAL RESERVES, NET 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Outstanding claims 38,118 37,425Claims incurred but not reported 54,176 50,683Other technical reserves 60 60 92,354 88,168Less: Reinsurers’ share of outstanding claims (9,512) (15,574)Less: Reinsurers’ share of claims incurred but not reported (6,525) (6,599) 76,317 65,995 | 9 |
| Disclosure of zakat [text block] | 10. ZAKAT AND INCOME TAXZakat and Income TaxThe Zakat and income tax payable by the Company has been calculated based on the best estimates of the management. The movement in the Zakat payable is as follows: 30 June2018(Unaudited) SR’000 31 December 2017(Audited)SR’000 Balance at the beginning of the period / year 2,128 1,510Charge for the current period / year 3,546 2,148Paid during the period / year (2,781) (1,530)Balance at the end of the period / year 2,893 2,128The differences between the financial and the zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Zakat base has been computed based on the Company’s understanding of the Zakat regulations enforced in the Kingdom of Saudi Arabia. The Zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the GAZT could be different from the declarations filed by the Company.Income TaxForeign shareholder, being Islamic Development Bank (IDB) is exempted from income tax.Status of assessment:Zakat and income tax returns have been filed with the General Authority of Zakat and Tax (“GAZT”) for the years ended up to 31 December 2016. Final certificate has been received from GAZT for the year ended 31 December 2008. However, GAZT has raised an additional assessment in respect of the returns filed for the years ended 31 December 2008, 2009 and 2010 amounting to SR 1.86 million which has been paid. | 10 |
| Disclosure of classes of share capital [text block] | 1. SHARE CAPITALThe authorized, issued and paid up share capital of the Company is SR 200 million at period end consisting of 20 million shares of SR 10 each. 30 June 2018 31 December 2017 (Unaudited) (Audited) % holding SR’000 % holding SR’000 Founding shareholders 40 80,000 40 80,000General public 60 120,000 60 120,000Balance at the end of the period / year 100 200,000 100 200,000 | 10 |
| Disclosure of statutory reserve [text block] | 1. STATUTORY RESERVEAs required by Saudi Arabian Insurance Regulations, 20% of the net shareholders’ income shall be set aside as a statutory reserve until this reserve amounts to 100% of paid capital. No appropriation has been made as the Company has accumulated losses at the end of the period. | 13 |
| Disclosure of earnings per share [text block] | 12. BASIC AND DILUTED EARNINGS PER SHAREEarnings per share for the period has been calculated by dividing the net income for the period by the weighted average number of issued and outstanding shares for the period. | 12 |
| Disclosure of related party transactions [text block] |
1. BALANCES AND TRANSACTIONS WITH RELATED PARTIES
Major related party transactions during the period and the related balances at the end of the period / year are as follows:
Related party | Nature of transaction | Amount of transactions six-months period ended | Closing balance Receivable / (Payable) | | | | 30 June 2018 | 30 June 2017 |
|
30 June 2018 | 31 December 2017 |
|
| (Unaudited) | (Unaudited) |
| (Unaudited) | (Audited) |
|
| SR’000 | SR’000 |
| SR’000 | SR’000 | Abiat (Affiliate) | Premiums written | | |
| | |
| Claims paid | | |
| | | Fuji Saudi Arabia (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | GEEC (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Mayar Holding (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Saudi Drip (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Taya Feed Mill Factory (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Taya Real Estate (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Taya Holding (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | GCP Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Al Huda Charity Trust (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Saudi Wings Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Taya Agriculture Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Bakri and sons Holding Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Saudi Drip Irrigation system Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Red sea Marine services Co. (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Solaiman A.El Khereiji consultant (SAK) (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | M/s Arabian Gulf Co. For Maintenance & Contracting (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Abdullah Al Rayes EST (Affiliate) |
Premiums Written | | |
| | |
| Claims paid | | |
| | | M/s Al Bihar International Company Limited (Affiliate) |
Premiums written | | |
| | |
| Claims paid | | |
| | | Board and audit committee |
Meetings fee | | |
| | |
|
|
|
|
|
| Key management personnel | Short term benefits | | |
| | |
|
|
|
|
|
| Long term benefits | | |
| | | | | | | | | | |
| 14 |
| Disclosure of entity's operating segments [text block] | 1. SEGMENTAL INFORMATION
Consistent with the Company’s internal reporting process, operating segments have been approved by the management in respect of the Company’s activities, assets and liabilities as stated below.
Segment results do not include general and administrative expenses, provision for doubtful debts and other income.
Segment assets do not include cash and cash equivalents, investments, prepayments and other receivables, and property and equipment, net.
Segment liabilities do not include reinsurance payables, accrued expenses and other liabilities, due to shareholders’ operations and employees’ terminal benefits.
15. SEGMENTAL INFORMATION - (continued) For three-months period ended 30 June 2018 (Unaudited) | | | | | | |
|
|
| | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 38,395 | 71,164 | 1,548 | 3,011 | 114,118 | Less: Premiums ceded |
|
|
|
|
| - Local | (764) | - | (21) | (340) | (1,125) | - Foreign | (5,571) | (84) | (448) | (2,265) | (8,368) | Excess of loss premiums | - | (1,350) | (240) | (88) | (1,678) | Net written premiums | | | | | | Changes in net unearned premiums | (5,513) | 3,716 | 1,329 | 4 | (464) | Net premiums earned | | | | | | Other underwriting Income | - | 2,544 | - | - | 2,544 | Reinsurance commission earned | - | - | 171 | 516 | 687 | Net revenue | | | | | | Underwriting Costs and expenses |
|
|
|
|
| Gross claims paid and loss adjustment expenses | 25,458 | 50,242 | 232 | 53 | 75,985 | Less: Reinsurers’ share | | | | | | Net claims paid | 16,922 | 46,673 | 232 | 1 | 63,828 | Changes in outstanding claims, net | 2,037 | 696 | 332 | 60 | 3,125 | Changes in incurred but not reported, net | | | | | | Net claims incurred | 20,251 | 49,119 | 564 | 61 | 69,995 | Policy acquisition cost | 2,472 | 4,022 | 227 | 199 | 6,920 | Other underwriting expense | 345 | 347 | - | - | 692 | Total underwriting costs and expenses | | | | | | Net underwriting income | 3,479 | 22,502 | 1,548 | 578 | 28,107 | General and administrative expenses |
|
|
|
| (22,815) | Realized gain on available for sale investments |
|
|
|
| 500 | Allowance for doubtful debts |
|
|
|
| (576) | Investment income |
|
|
|
| 1,132 | Impairment on available for sale investments |
|
|
|
| | Total other operating (expenses) |
|
|
|
| | Total Net income for the period |
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|
|
| |
15. SEGMENTAL INFORMATION - (continued) For three-months period ended 30 June 2017 (Unaudited) | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 31,561 | 62,154 | 3,763 | 4,818 | 102,296 | Less: Premiums ceded |
|
|
|
|
| - Local | (757) | - | (15) | (377) | (1,149) | - Foreign | (7,131) | - | (1,041) | (4,157) | (12,329) | Excess of loss premiums | - | (850) | (156) | (95) | (1,101) | Net written premiums | | | | | | Changes in net unearned premiums | 6,730 | (7,752) | 483 | (103) | (642) | Net premiums earned | | | | | | Other underwriting Income | 977 | 2,338 | - | - | 3,315 | Reinsurance commission earned | - | 2 | 281 | 452 | 735 | Net revenue | | | | | | Underwriting Costs and expenses |
|
|
|
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| Gross claims paid and loss adjustment expenses | 25,766 | 45,837 | 1,290 | 31 | 72,924 | Less: Reinsurers’ share | | | | | | Net claims paid | 17,575 | 45,615 | 274 | 15 | 63,479 | Changes in outstanding claims, net | (1,123) | (165) | 307 | 71 | (910) | Changes in incurred but not reported, net | | | | | | Net claims incurred | 16,408 | 42,149 | 581 | 86 | 59,224 | Policy acquisition cost | 3,030 | 4,388 | 251 | 149 | 7,818 | Other underwriting expense | (150) | 269 | - | - | 119 | Total underwriting costs and expenses | | | | | | Net underwriting (loss)/income | 12,092 | 9,086 | 2,483 | 303 | 23,964 | General and administrative expenses |
|
|
|
| (18,257) | Realized gain on available for sale investments |
|
|
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| 1,557 | Allowance for doubtful debts |
|
|
|
| (794) | Investment income |
|
|
|
| 602 | Other income |
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|
|
| 144 | Total other operating (expenses) |
|
|
|
| | Total Net income for the period |
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|
|
| |
15. SEGMENTAL INFORMATION - (continued) For six-months period ended 30 June 2018 (Unaudited) | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 79,946 | 140,538 | 4,938 | 4,659 | 230,081 | Less: Premiums ceded |
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|
|
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| - Local | (1,653) | - | (31) | (498) | (2,182) | - Foreign | (11,668) | (84) | (1,958) | (3,305) | (17,015) | Excess of loss premiums | - | (2,700) | (479) | (176) | (3,355) | Net written premiums | | | | | | Changes in net unearned premiums | (17,495) | 4,347 | 2,020 | (179) | (11,307) | Net premiums earned | | | | | | Other underwriting Income | 2,416 | 5,083 | - | - | 7,499 | Reinsurance commission earned | - | 4 | 295 | 958 | 1,257 | Total revenues | | | | | | Underwriting Costs and expenses |
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|
|
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| Gross claims paid and loss adjustment expenses | 48,773 | 101,911 | 263 | 367 | 151,314 | Less: Reinsurers’ share | | | | | | Net claims paid | 33,076 | 98,157 | 251 | 41 | 131,525 | Changes in outstanding claims, net | 4,991 | (1,258) | 635 | (4) | 4,364 | Changes in incurred but not reported, net | | | | | | Net claims incurred | 39,397 | 99,136 | 886 | 37 | 139,456 | Policy acquisition cost | 4,762 | 8,543 | 452 | 361 | 14,118 | Other underwriting expense | 415 | 576 | - | - | 991 | Total underwriting costs and expenses | | | | | | Net underwriting income | 6,972 | 38,933 | 3,447 | 1,061 | 50,413 | General and administrative expenses |
|
|
|
| (43,433) | Realized gain on available for sale investments |
|
|
|
| 1,076 | Allowance for doubtful debts |
|
|
|
| (1,237) | Investment income |
|
|
|
| 2,165 | Impairment on available for sale investments |
|
|
|
| (2,797) | Other income |
|
|
|
| | Total other operating expenses |
|
|
|
| | Total Net income for the period |
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|
|
| |
15. SEGMENTAL INFORMATION - (continued) For six-months period ended 30 June 2017 (Unaudited) | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 55,956 | 108,585 | 10,801 | 8,727 | 184,069 | Less: Premiums ceded |
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|
|
|
| - Local | (1,672) | - | (22) | (570) | (2,264) | - Foreign | (12,813) | (106) | (4,126) | (7,712) | (24,757) | Excess of loss premiums | - | (1,700) | (312) | (190) | (2,202) | Net written premiums | | | | | | Changes in net unearned premiums | 23,822 | 8,719 | (836) | (99) | 31,606 | Net premiums earned | | | | | | Other underwriting Income | 976 | 3,962 | - | - | 4,938 | Reinsurance commission earned | - | 8 | 634 | 909 | 1,551 | Total revenues | | | | | | Underwriting Costs and expenses |
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|
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| Gross claims paid and loss adjustment expenses | 51,411 | 107,676 | 1,360 | 31 | 160,478 | Less: Reinsurers’ share | | | | | | Net claims paid | 35,215 | 107,454 | 336 | (2) | 143,003 | Changes in outstanding claims, net | (709) | 4,145 | 429 | 72 | 3937 | Changes in incurred but not reported, net | | | | | | Net claims incurred | 34,462 | 95,802 | 765 | 70 | 131,099 | Policy acquisition cost | 6,556 | 9,636 | 525 | 273 | 16,990 | Other underwriting expense | 541 | 512 | - | - | 1,053 | Total underwriting costs and expenses | | | | | | Net underwriting income | 24,710 | 13,518 | 4,849 | 722 | 43,799 | General and administrative expenses |
|
|
|
| (35,958) | Realized gain on available for sale investments |
|
|
|
| 2,758 | Release of doubtful debts |
|
|
|
| 419 | Investment income |
|
|
|
| 1,359 | Other income |
|
|
|
| | Total other operating (expenses) |
|
|
|
| | Total Net income for the period |
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|
|
| |
15. SEGMENTAL INFORMATION - (continued)
As At 30 June 2018 (Unaudited) | | | | | Total – Insurance operation | | | | | |
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| Assets |
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| Cash and cash equivalents | - | - | - | - | 66,422 | 19,032 | 85,454 | Term Deposits | - | - | - | - | 134,631 | 50,369 | 185,000 | Premiums and reinsurers’ receivable - net | - | - | - | - | 111,471 | - | 111,471 | Reinsurers’ share of unearned premiums | 11,926 | - | 2,850 | 9,931 | 24,707 | - | 24,707 | Reinsurers’ share of outstanding claims | 4,835 | 2,324 | 1,749 | 604 | 9,512 | - | 9,512 | Reinsurers’ share of claims Incurred but not reported | 2,738 | - | 1,574 | 2,213 | 6,525 | - | 6,525 | Deferred policy acquisition costs | 5,058 | 6,205 | 1,066 | 290 | 12,619 | - | 12,619 | Unallocated assets | - | - | - | - | 37,475 | 78,011 | 115,486 | Total Assets | | | | | | | | Liabilities |
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| Policyholders claims payable | - | - | - | - | 6,969 | - | 6,969 | Reinsurers' balances payable | - | - | - | - | 16,537 | - | 16,537 | Unearned reinsurance commission | - | - | 343 | 256 | 599 | - | 599 | Unearned premiums | 68,945 | 149,252 | 17,550 | 10,546 | 246,293 | - | 246,293 | Other technical reserves | - | - | - | 60 | 60 | - | 60 | Outstanding claims | 17,430 | 15,582 | 4,343 | 763 | 38,118 | - | 38,118 | Claims incurred but not reported | 9,587 | 39,383 | 2,852 | 2,354 | 54,176 | - | 54,176 | Unallocated liabilities and equity | - | - | - | - | 40,610 | 147,412 | 188,022 | Total liabilities | | | | | | | |
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15. SEGMENTAL INFORMATION - (continued) As at 31 December 2017 (Audited) | | | | | Total – Insurance operation | | | | | |
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| Assets |
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| Cash and cash equivalents | - | - | - | - | 44,283 | 33,315 | 77,598 | Term deposits | - | - | - | - | 147,249 | 37,751 | 185,000 | Premiums and reinsurers’ receivable - net | 31,670 | 30,240 | 315 | 24,700 | 86,925 | - | 86,925 | Reinsurers’ share of unearned premiums | 11,954 | 20 | 3,065 | 14,437 | 29,476 | - | 29,476 | Reinsurers’ share of outstanding claims | 3,816 | 4,228 | 1,632 | 5,898 | 15,574 | - | 15,574 | Reinsurers’ share of claims Incurred but not reported | 2,812 | - | 1,574 | 2,213 | 6,599 | - | 6,599 | Deferred policy acquisition costs | 3,964 | 9,884 | 1,217 | 271 | 15,336 | - | 15,336 | Unallocated assets | - | - | - | - | 42,887 | 70,402 | 113,289 | Total Assets | | | | | | | | Liabilities |
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| Policyholders claims payable | - | - | - | - | 2,517 | - | 2,517 | Reinsurers' balances payable | - | - | - | - | 23,731 | - | 23,731 | Unearned reinsurance commission | - | 4 | 343 | 473 | 820 | - | 820 | Unearned premiums | 51,478 | 153,618 | 19,786 | 14,872 | 239,754 | - | 239,754 | Other technical reserves | - | - | - | 60 | 60 | - | 60 | Outstanding claims | 11,420 | 16,352 | 3,591 | 6,062 | 37,425 | - | 37,425 | Claims incurred but not reported | 8,331 | 37,146 | 2,852 | 2,354 | 50,683 | - | 50,683 | Unallocated liabilities and equity | - | - | -- | - | 33,339 | 141,468 | 174,807 | Total liabilities | | | | | | | |
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| 15 |
| Disclosure of commitments and contingencies, general [text block] | 17. CONTINGENT LIABILITYAs at 30 June2018, the Company has a letter of guarantee amounting to SR 1.83 million (31 December 2017: SR 1.83 million) in favor of GAZT (See Note 10). A margin of SR 1.83 million (31 December 2017: SR 1.83 million) being deposited with a bank for this purpose and is included in prepayments and other receivables in the interim statement of financial position. The Company has paid the assessment amount and requested for release of above mentioned guarantee amount. | 17 |
| Disclosure of comparative figures [text block] | 18. COMPARATIVE FIGURESCertain of the prior year amounts have been reclassified to conform to the presentation in the current year. | 18 |
| Disclosure of board of director's approval of the financial statements [text block] | 17. APPROVAL OF INTERIM CONDENSED FINANCIAL INFORMATIONThese interim condensed financial information have been approved by the board of directors on 24 July 2018 corresponding to 11 Dhual – Qa’dah 1439H. | 19 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | SUPPLEMENTARY INFORMATION
| | 31 December 2017 (Audited) | Interim condensed statement of financial position
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| Assets |
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| Cash and cash equivalents | 66,422 | 19,032 | 85,454 | 44,283 | 33,315 | 77,598 | Term deposits | 134,631 | 50,369 | 185,000 | 147,249 | 37,751 | 185,000 | Premiums and reinsurers’ receivable - net | 111,471 | - | 111,471 | 86,925 | - | 86,925 | Reinsurers’ share of unearned premium | 24,707 | - | 24,707 | 29,476 | - | 29,476 | Reinsurers’ share of outstanding claims | 9,512 | - | 9,512 | 15,574 | - | 15,574 | Reinsurers’ share of claims Incurred but not reported | 6,525 | - | 6,525 | 6,599 | - | 6,599 | Deferred policy acquisition cost | 12,619 | - | 12,619 | 15,336 | - | 15,336 | Due from related party | 1,805 | - | 1,805 | 2,247 | - | 2,247 | Prepaid expenses and other receivables | 28,560 | 5,983 | 34,543 | 33,230 | 5,527 | 38,757 | Property and equipment, net | 7,110 | - | 7,110 | 7,410 | - | 7,410 | Available for sale Investments | - | 50,771 | 50,771 | - | 43,723 | 43,723 | Accrued income on statutory deposit | - | 1,257 | 1,257 | - | 1,152 | 1,152 | Statutory deposit | | | | | | | TOTAL ASSETS | | | | | | |
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| Liabilities |
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| Policyholders claims payable | 6,969 | - | 6,969 | 2,517 | - | 2,517 | Accrued and other payables | 26,003 | 703 | 26,706 | 20,444 | 254 | 20,698 | Reinsurers' balances payable | 16,537 | - | 16,537 | 23,731 | - | 23,731 | Unearned reinsurance commission income | 599 | - | 599 | 820 | - | 820 | Unearned premiums | 246,293 | - | 246,293 | 239,754 | - | 239,754 | Other technical reserves | 60 | - | 60 | 60 | - | 60 | Outstanding claims | 38,118 | - | 38,118 | 37,425 | - | 37,425 | Claims incurred but not reported | 54,176 | - | 54,176 | 50,683 | - | 50,683 | Employees’ terminal benefits | 9,147 | - | 9,147 | 8,287 | - | 8,287 | Surplus distribution payable | 5,460 | - | 5,460 | 4,608 | - | 4,608 | Zakat and income tax | - | 2,893 | 2,893 | - | 2,128 | 2,128 | Accrued commission on statutory deposit payable to SAMA | | | | | | | TOTAL LIABILITIES | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
| | 31 December 2017 (Audited) |
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| SHAREHOLDERS’ EQUITY |
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| Share capital | - | 200,000 | 200,000 | - | 200,000 | 200,000 | Accumulated losses | - | (56,032) | (56,032) | - | (57,827) | (57,827) | Fair value reserve on investments | - | (1,409) | (1,409) | - | (4,239) | (4,239) | Total shareholders’ equity | | | | | | | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued) Interim condensed statement of income | | | For three-months period ended 30 June (Unaudited) | | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 114,118 | - | 114,118 | 102,296 | - | 102,296 | Less: Premiums ceded |
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| - Local | (1,126) | - | (1,126) | (1,149) | - | (1,149) | - Foreign | (8,367) | - | (8,367) | (12,329) | - | (12,329) | Excess of loss premiums | (1,678) | - | (1,678) | (1,101) | - | (1,101) | Net written premiums | | | | | | | Changes in net unearned premiums | (464) | - | (464) | (642) | - | (642) | Net premiums earned | | | | | | | Other underwriting Income | 2,544 | - | 2,544 | 3,315 | - | 3,315 | Reinsurance commission earned | 687 | - | 687 | 735 | - | 735 | Total revenues | | | | | | | Underwriting Costs and expenses |
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| Gross claims paid | 75,985 | - | 75,985 | 72,924 | - | 72,924 | Less: Reinsurers’ share of claims paid | | | | | | | Net claims and other benefits paid | 63,828 | - | 63,828 | 63,479 | - | 63,479 | Changes in outstanding claims, net | 3,125 | - | 3,125 | (910) | - | (910) | Changes in incurred but not reported, net | | | | | | | Net claims and other benefits incurred | 69,995 | - | 69,995 | 59,224 | - | 59,224 | Policy acquisition cost | 6,920 | - | 6,920 | 7,818 | - | 7,818 | Other underwriting expense | 692 | - | 692 | 119 | - | 119 | Total underwriting costs and expenses | | | | | | | Net underwriting income | 28,107 | - | 28,107 | 23,964 | - | 23,964 | General and administrative expenses | (22,314) | (501) | (22,815) | (17,746) | (511) | (18,257) | Realized gain on available for sale investments | - | 500 | 500 | - | 1,557 | 1,557 | Allowance for doubtful debts | (576) | - | (576) | (794) | - | (794) | Investment income | 936 | 196 | 1,132 | 463 | 139 | 602 | Impairment on available for sale investments | - | (2,797) | (2,797) | - | - | - | Other income | | | | | | | Total other operating (expenses) / income | (21,954) | (2,602) | (24,556) | (17,933) | 1,185 | (16,748) | Net Surplus | 6,153 | (2,602) | 3,551 | 6,031 | 1,185 | 7,216 | Surplus transferred to Shareholders | | | | | | | Net result after transfer of surplus to shareholders | | | | | | |
| | | For three-months period ended 30 June (Unaudited) | | | | | | | |
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| Earnings per share (Expressed in SAR per share) |
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| Basic EPS | | | | | | |
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| Interim statement of comprehensive income |
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| SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Shareholders’ absorption of deficit/ (Surplus transferred to Shareholders) | 615 | 2,936 | 3,551 | 603 | 6,613 | 7,216 |
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| Other comprehensive income/(loss) |
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| Items that are or may be reclassified to consolidated statement of income in subsequent periods: |
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| Impairment on available for sale investments | - | 2,797 | 2,797 | - | - | - | Net change in fair value of available for sale investments | | | | | | | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
16. SUPPLEMENTARY INFORMATION (continued) Interim condensed statement of income | | | For six-months period ended 30 June (Unaudited) | | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 230,081 | - | 230,081 | 184,069 | - | 184,069 | Less: Premiums ceded |
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| - Local | (2,182) | - | (2,182) | (2,264) | - | (2,264) | - Foreign | (17,015) | - | (17,015) | (24,757) | - | (24,757) | Excess of loss premiums | (3,355) | - | (3,355) | (2,202) | - | (2,202) | Net written premiums | | | | | | | Changes in net unearned premiums | (11,307) | - | (11,307) | 31,606 | - | 31,606 | Net premiums earned | | | | | | | Other underwriting Income | 7,499 | - | 7,499 | 4,938 | - | 4,938 | Reinsurance commission earned | 1,257 | - | 1,257 | 1,551 | - | 1,551 | Total revenues | | | | | | | Underwriting Costs and expenses |
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| Gross claims paid | 151,314 | - | 151,314 | 160,478 | - | 160,478 | Less: Reinsurers’ share of claims paid | | | | | | | Net claims and other benefits paid | 131,525 | - | 131,525 | 143,003 | - | 143,003 | Changes in outstanding claims, net | 4,364 | - | 4,364 | 3,937 | - | 3,937 | Changes in incurred but not reported, net | | | | | | | Net claims and other benefits incurred | 139,456 | - | 139,456 | 131,099 | - | 131,099 | Policy acquisition cost | 14,118 | - | 14,118 | 16,990 | - | 16,990 | Other underwriting expense | 991 | - | 991 | 1,053 | - | 1,053 | Total underwriting costs and expenses | | | | | | | Net underwriting income | 50,413 | - | 50,413 | 43,799 | - | 43,799 | General and administrative expenses | (42,452) | (981) | (43,433) | (34,985) | (973) | (35,958) | Realized gain on available for sale investments | - | 1076 | 1076 | - | 2,758 | 2758 | Release of doubtful debts | (1,237) | - | (1,237) | 419 | - | 419 | Investment income | 1,790 | 375 | 2,165 | 1,029 | 330 | 1,359 | Impairment on available for sale investments | - | (2,797) | (2,797) |
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| Other income | | | | | | | Total other operating (expenses) / income | (41,893) | (2,327) | (44,220) | (33,352) | 2,115 | (31,237) | Net Surplus | 8,520 | (2,327) | 6,193 | 10,447 | 2,115 | 12,562 | Surplus transferred to Shareholders | | | | | | | Net result after transfer of surplus to shareholders | | | | | | |
| | | For six-months period ended 30 June (Unaudited) | | | | | | | |
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| Earnings per share (Expressed in SAR per share) |
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| Basic EPS | | | | | | |
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| Interim condensed statement of comprehensive income |
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| SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Shareholders’ absorption of deficit/ (Surplus transferred to Shareholders) | 852 | 5,341 | 6,193 | 1,045 | 11,517 | 12,562 |
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| Other comprehensive income/(loss) |
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| Items that are or may be reclassified to consolidated statement of income in subsequent periods: |
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| Impairment on available for sale investment | - | 2,797 | 2,797 |
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| Net change in fair value of available for sale investments | | | | | | | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
16. SUPPLEMENTARY INFORMATION (continued)
Interim condensed statement of cash flow | | | For six-months period ended 30 June (Unaudited) | | | | | | | |
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| SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | CASH FLOWS FROM OPERATING ACTIVITIES |
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| Net profit for the period | 852 | 5,341 | 6,193 | 1,045 | 11,517 | 12,562 | Adjustments for non-cash items: |
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| Depreciation | 1,185 | - | 1,185 | 1,316 | - | 1,316 | Employees’ terminal benefits | 1,118 | - | 1,118 | 916 | - | 916 | Allowance for/(Reversal of) doubtful debts | 1,237 | - | 1,237 | (419) | - | (419) | Impairment on available for sale investments | - | 2,797 | 2,797 |
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| Realized gain on available for sale investments | - | (1,076) | (1,076) | - | (2,758) | (2,758) |
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| Changes in operating assets and liabilities: |
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| Premiums and reinsurers’ receivable | (25,783) | - | (25,783) | 1,641 | - | 1,641 | Reinsurers’ share of unearned premiums | 4,769 | - | 4,769 | 3,424 | - | 3,424 | Reinsurers’ share of outstanding claims | 6,063 | - | 6,063 | (1,375) | - | (1,375) | Reinsurers’ share of claims Incurred but not reported | 73 | - | 73 | (1) | - | (1) | Deferred policy acquisition cost | 2,717 | - | 2,717 | 3,434 | - | 3,434 | Due from related party | - | - | - | (1,147) | - | (1,147) | Prepayments and other receivables | 4,670 | (456) | 4,214 | (2,778) | (343) | (3,121) | Policyholders claim payable | 4,452 | - | 4,452 | 297 | - | 297 | Due to related party | 442 |
| 442 | - | - | - | Reinsurance payable | (7,194) | - | (7,194) | (4,636) | - | (4,636) | Unearned commission income | (221) | - | (221) | 94 | - | 94 | Unearned premiums | 6,539 | - | 6,539 | (35,030) | - | (35,030) | Outstanding claims | 693 | - | 693 | 5,306 | - | 5,306 | Claims incurred but not reported | 3,493 | - | 3,493 | (15,840) | - | (15,840) | Accrued and other payables | | | | | | |
| 10,664 | 7,055 | 17,719 | (39,935) | 8,294 | (31,641) | End-of-service indemnities paid | (258) | - | (258) | (134) | - | (134) | Surplus paid to policy holders | - | - | - | (1,087) | - | (1,087) | Zakat and income tax paid | | | | | | | Net cash (used in) /generated from operating activities | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
| | | For six-months period ended 30 June (Unaudited) | | | | | | | |
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| SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | CASH FLOWS FROM INVESTING ACTIVITIES |
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| Purchase of property and equipment | (887) | - | (887) | (842) | - | (842) | Proceed from sale of property and equipment | 2 | - | 2 | - | - | - | Purchases of available for sale investments | - | (7,128) | (7,128) | - | (6,126) | (6,126) | Proceed from sale of available for sale investments | - | 1,189 | 1,189 | - | 4,877 | 4,877 | Sale/(Purchase) of investment | 12,617 | (12,617) | - | - | - | - | Net cash generated from/(used in) investing activities | | | | | | |
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| Net changes in cash and cash equivalents | 22,138 | (14,282) | 7,856 | (41,998) | 5,515 | (36,483) | Cash and cash equivalents at the beginning of the period | 44,283 | 33,315 | 77,598 | 204,500 | 55,035 | 259,535 | Cash and cash equivalents at the end of the period | | | | | | |
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| 16 |
