| 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] | 2. 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 2018.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 interim condensed 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 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 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. BASIS OF PREPARATION – (continued)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 16 Leases 1 January 2019IFRS 16 ‘Leases’ replaces IAS 17 ‘Leases’ along with three Interpretations (IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘Operating Leases-Incentives’ and SIC 27‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’). The new Standard has been applied using the modified retrospective approach, with the cumulative effect of adopting IFRS 16 being recognised in equity as an adjustment to the opening balance of retained earnings for the current period. Prior periods have not been restated.For contracts in place at the date of initial application, the Company has elected to apply the definition of a lease from IAS 17 and IFRIC 4 and has not applied IFRS 16 to arrangements that were previously not identified as lease under IAS 17 and IFRIC 4.The Company has elected not to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence at the date of initial application of IFRS 16, being 1 January 2019. At this date, the Company has also elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition.Instead of performing an impairment review on the right-of-use assets at the date of initial application, the Company has relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of IFRS 16.On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets the Company has applied the optional exemptions to not recognise right-of-use assets but to account for the lease expense on a straight line basis over the remaining lease term.For those leases previously classified as finance leases, the right-of-use asset and lease liability are measured at the date of initial application at the same amounts as under IAS 17 immediately before the date of initial application.On transition to IFRS 16 the weighted average incremental borrowing rate applied to lease liabilities recognised under IFRS 16 was 4%.The Company has benefited from the use of hindsight for determining lease term when considering options to extend and terminate leases.The following is a reconciliation of total operating lease commitments at 31 December 2018 to the lease liabilities recognised at 1 January 2019: SRTotal operating lease commitments as at 31 December 2018 14,258,600Discounted using the lessee's incremental borrowing rate at date of initial application (2,543,765)Less: short-term leases recognised on a straight-line basis as expenses (1,729,600)Total lease liabilities recognised under IFRS 16 at 1 January 2019 9,985,235 2. BASIS OF PREPARATION – (continued)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 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.The registered office address of the Company was situated at Al Malka District District, P. O. Box 40523, Riyadh 11511, Kingdom of Saudi Arabia. However, as per the Board of Directors resolution dated 30 January 2018, the registered office address of the Company has been changed to Al Heteen 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 period ended 30 September 2018 and accordingly new Commercial Registration No. 1010417178 has been obtained.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] | 1. AVAILABLE-FOR-SALE INVESTMENTS
Shareholders’ operations
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 |
|
|
| Investment in sukuk | 25,000 | 25,000 | Quoted securities | 21,326 | 20,712 | Unquoted securities | 1,923 | 1,923 | Units in quoted local real estate fund | 9,926 | 10,099 |
| | |
As at 31 March 2019 – (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’000 | Investment in Najm for Insurance Services Company | 1,923 | - | - | 1,923 | Investment in sukuk | 10,099 | - | (173) | 9,926 | Units in quoted local real estate fund | 25,000 | - | - | 25,000 | Quoted securities | 20,712 | (1,459) | 2,073 | 21,326 |
| | | | |
| 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 | As at 31 December 2018 – (Audited) | SR’000 | SR’000 | SR’000 | SR’000 | Investment in Najm for Insurance Services Company | 1,923 | - | - | 1,923 | Units in quoted local real estate fund | - | 9,992 | 107 | 10,099 | Investment in sukuk | 25,000 | - | - | 25,000 | Quoted securities | 16,800 | 6,728 | (2,816) | 20,712 |
| | | | |
6. AVAILABLE-FOR-SALE INVESTMENTS – (continued)
Investment in Najm for Insurance Services Company 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 REINSURERES’ RECEIVABLE, NET
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 |
|
|
| Due from policyholders | 80,611 | 75,050 | Due from policyholders – related parties | 3,767 | 3,752 | Due from Brokers and agents | 27,725 | 22,590 | Receivables from reinsurers | 8,477 | 5,891 | Provision for doubtful debts | | |
| | |
Movement in provision for doubtful debts is as follows:
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 |
|
|
| Balance at the beginning of the period / year | 13,305 | 5,806 | Provisions made during the period / year | 118 | 7,499 | Balance at the end of the period / year | | |
| 5 |
| Disclosure of cash and cash equivalents [text block] |
1. CASH AND CASH EQUIVALENTS
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 | Insurance operations |
|
| Cash in hand and at banks | 92,130 | 83,409 |
| | |
|
|
| Shareholders’ operations |
|
| Cash in hand and at banks | 5,759 | 10,086 |
| | |
Cash at banks are placed with counterparties who have good credit ratings. The carrying amounts disclosed above reasonably approximate fair value at the statement of interim financial position date.
2. TERM DEPOSITS
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 | Insurance Operations |
|
| Term deposits | | |
Shareholders’ Operations |
|
| Term deposits | | |
The 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] | 1. STATUTORY DEPOSIT 31 March2019 31 December 2018 (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 31 March2019(Unaudited) SR’000 31 December 2018(Audited)SR’000 Unearned premiums 266,793 252,007Reinsurance share of unearned premiums (28,206) (22,738) 238,587 229,269 | 8 |
| Disclosure of gross outstanding claims/ benefits [text block] | 1. TECHNICAL RESERVES, NET 31 March2019(Unaudited) SR’000 31 December 2018(Audited)SR’000 Outstanding claims 49,313 42,419Claims incurred but not reported 55,763 55,769Additional premium deficiency reserves 1,980 2,020Other technical reserves 1,838 1,796 108,894 102,004Less: Reinsurers’ share of outstanding claims (11,810) (10,543)Less: Reinsurers’ share of claims incurred but not reported (6,773) (6,004) 90,311 85,457 | 9 |
| Disclosure of zakat [text block] | 1. ZAKAT AND INCOME TAX
Zakat and Income Tax
The 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:
| 31 March 2019 (Unaudited) SR’000 | 31 December 2018 (Audited) SR’000 |
|
|
| Balance at the beginning of the period / year | 5,086 | 2,103 | Charge for the current period / year | 983 | 5,764 | Paid during the period / year | - | (2,781) | Balance at the end of the period / year | | | Balance at the end of the period / year for income tax | | | Total Zakat and income tax payable | | |
The 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 Tax
Foreign 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 2017. Company is in the process of submitting Zakat and income tax returns for the year ended 31 December 2018. 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. The major difference of additional assessment relates to disallowance of a portion of pre incorporation expenses and withholding tax. The Company has filed an objection against this additional assessment with the preliminary tax objection Committee subsequent to the year end, as adverse decision was received from the preliminary Tax Objection Committee, upon which the Company filed appeal with the Higher Objection Committee. The high appeal committee issued its decision in favour of the Company with respect to Zakat and rejected the appeal related to withholding tax. The Company has referred the matter to the board of grievance. In this regard, the Company has issued a letter of guarantee amounting to SAR 1.83 million in favour of GAZT (see contingency and commitment notes). And they have paid the amount of tax SAR 1.3 million. The company has raised an objection for unfavourable assessment raised by GAZT for the years 31 December 2013 till 2015 with the amount of SAR 4.98 million. The objection is currently under review by GAZT. | 10 |
| Disclosure of classes of share capital [text block] |
1. SHARE CAPITAL
The 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.
| 31 March 2019 | 31 December 2018 |
| | |
| % holding | SR’000 | % holding | SR’000 |
|
|
|
|
| Founding shareholders | 40 | 80,000 | 40 | 80,000 | General public | 60 | 120,000 | 60 | 120,000 | Balance at the end of the period / year | | | | |
| 11 |
| Disclosure of statutory reserve [text block] | 13. 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 Three-months period ended | Closing balance Receivable / (Payable) | | | | 31 March 2019 | 31 March 2018 |
|
31 March 2019 | 31 December 2018 |
|
| (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 Edama Co Medical |
Premiums written | | |
| | |
| Claims paid | | |
| | | M/s Nama Real Estate |
Premiums written | | |
| | |
| Claims paid | | |
| | | M/s Valie Real Estate |
Premiums written | | |
| | |
| Claims paid | | |
| | | Mr. Hesham Mohammed Abdullah Al Shareef and family | Premiums written | | |
| | |
| Claims paid | | |
| | | ACIG Bahrain (Shareholder) |
Claims paid on behalf of ACIG Bahrain | | |
| | | 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 31 March 2019 (Unaudited) | | | | | | |
|
|
| | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 34,738 | 97,585 | 3,384 | 8,686 | 144,393 | Less: Premiums ceded |
|
|
|
|
| - Local | (679) | - | (75) | (517) | (1,271) | - Foreign | (5,904) | - | (1,744) | (7,297) | (14,945) | Less: Excess of loss premium |
|
|
|
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| - Local | - | (525) | (198) | (53) | (776) | - Foreign | - | (787) | (8) | (79) | (874) | Net written premiums | | | | | | Changes in net unearned premiums | 4,593 | (14,304) | 764 | (371) | (9,318) | Net premiums earned | | | | | | Other underwriting Income | - | 421 | - | - | 421 | Reinsurance commission earned | - | 4 | 153 | 718 | 875 | Total revenues | | | | | | Underwriting Costs and expenses |
|
|
|
|
| Gross claims paid and loss adjustment expenses | 33,033 | 60,459 | 119 | 75 | 93,686 | Less: Reinsurers’ share | | | | | | Net claims paid | 25,099 | 58,884 | 61 | 15 | 84,059 | Changes in outstanding claims, net | 1,796 | 3,585 | 112 | 136 | 5,629 | Changes in incurred but not reported, net | 1,487 | (2,261) |
|
| (774) | Change in unallocated loss adjustment expense | | | | | | Net claims incurred | 28,403 | 60,228 | 173 | 151 | 88,955 | Change in premium deficiency reserves | (40) | - |
|
| (40) | Policy acquisition cost | 2,669 | 3,865 | 235 | 256 | 7,025 | Other underwriting expense | 390 | 1,208 | - | - | 1,598 | Total underwriting costs and expenses | | | | | | Net underwriting income | 1,326 | 17,093 | 1,869 | 679 | 20,967 | General and administrative expenses |
|
|
|
| (20,540) | Realized gain on available for sale investments |
|
|
|
| 346 | Provision of doubtful debts |
|
|
|
| (118) | Investment income |
|
|
|
| 1,522 | Total other operating expenses |
|
|
|
| | Net Surplus |
|
|
|
| | Surplus transferred to Shareholders’ |
|
|
|
| | Net result after transfer of surplus to shareholders’ |
|
|
|
| |
15. SEGMENTAL INFORMATION - (continued)
For three-months period ended 31 March 2018 (Unaudited) | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 41,552 | 69,374 | 3,390 | 1,648 | 115,964 | Less: Premiums ceded |
|
|
|
|
| - Local | (888) | - | (10) | (158) | (1,056) | - Foreign | (6,098) | - | (1,510) | (1,040) | (8,648) | Less: Excess of loss premium |
|
|
|
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| - Local | - | (540) | (231) | (35) | (806) | - Foreign | - | (810) | (9) | (53) | (872) | Net written premiums | | | | | | Changes in net unearned premiums | (11,981) | 630 | 691 | (183) | (10,843) | Net premiums earned | | | | | | Other underwriting Income | 2,416 | 2,539 | - | - | 4,955 | Reinsurance commission earned | - | 4 | 124 | 443 | 571 | Total revenues | | | | | | Underwriting Costs and expenses |
|
|
|
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| Gross claims paid and loss adjustment expenses | 23,315 | 51,669 | 30 | 315 | 75,329 | Less: Reinsurers’ share | | | | | | Net claims paid | 16,154 | 51,484 | 18 | 42 | 67,698 | Changes in outstanding claims, net | 2,953 | (1,954) | 303 | (63) | 1,239 | Changes in incurred but not reported, net | | | | | | Net claims incurred | 19,145 | 50,017 | 321 | (21) | 69,462 | Policy acquisition cost | 2,290 | 4,521 | 224 | 163 | 7,198 | Other underwriting expense | 70 | 229 | - | - | 299 | Total underwriting costs and expenses | | | | | | Net underwriting (loss)/income | 3,496 | 16,430 | 1,900 | 480 | 22,306 | General and administrative expenses |
|
|
|
| (20,604) | Realized gain on available for sale investments |
|
|
|
| 576 | Release of doubtful debts |
|
|
|
| (661) | Investment income |
|
|
|
| 1,032 | Other income |
|
|
|
| | Total operating (expenses)/income |
|
|
|
| | Net Surplus |
|
|
|
| | Surplus transferred to Shareholders |
|
|
|
| | Net result after transfer of surplus to shareholders |
|
|
|
| |
15. SEGMENTAL INFORMATION - (continued)
As at 31 March 2019 (Unaudited) | | | | | Total – Insurance operation | | | | | |
| | |
|
| Assets |
|
|
|
|
|
|
| Cash and cash equivalents | - | - | - | - | 92,130 | 5,759 | 97,889 | Premiums and reinsurers’ receivable - net | - | - | - | - | 107,157 | - | 107,157 | Reinsurers’ share of unearned premiums | 10,711 | 8 | 3,464 | 14,023 | 28,206 | - | 28,206 | Reinsurers’ share of outstanding claims | 4,416 | 2,869 | 4,055 | 470 | 11,810 | - | 11,810 | Reinsurers’ share of claims Incurred but not reported | 4,261 | - | 1,054 | 1,458 | 6,773 | - | 6,773 | Deferred policy acquisition costs | 4,242 | 6,505 | 954 | 596 | 12,297 | - | 12,297 | Investments | - | - | - | - | 133,816 | 56,435 | 190,251 | Unallocated assets | - | - | - | - | 58,340 | 86,781 | 145,121 | Total Assets | | | | | | | | Liabilities |
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|
|
|
|
|
| Policyholders claims payable | - | - | - | - | 6,092 | - | 6,092 | Reinsurers' balances payable | - | - | - | - | 18,896 | - | 18,896 | Unearned premiums | 58,301 | 178,821 | 14,741 | 14,930 | 266,793 | - | 266,793 | Unearned reinsurance commission |
| 2 | 482 | 1,408 | 1,892 | - | 1,892 | Outstanding claims | 20,594 | 21,108 | 6,830 | 781 | 49,313 | - | 49,313 | Claims incurred but not reported | 17,331 | 34,537 | 2,322 | 1,573 | 55,763 | - | 55,763 | Other technical reserves | 1,980 | - | - | - | 1,980 | - | 1,980 | Loss Adjustment Expenses Reserve | 190 | 1,391 | 201 | 56 | 1,838 | - | 1,838 | Unallocated liabilities | - | - | - | - | 47,962 | 148,975 | 196,937 | Total liabilities | | | | | | | |
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15. SEGMENTAL INFORMATION - (continued)
As at 31 December 2018 | | | | | Total – Insurance operation | | | | | |
| | |
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| Assets |
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|
|
|
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|
| Cash and cash equivalents | - | - | - | - | 83,409 | 10,086 | 93,495 | Premiums and reinsurers’ receivable - net | - | - | - | - | 93,978 | - | 93,978 | Reinsurers’ share of unearned premiums | 9,074 | 29 | 2,701 | 10,934 | 22,738 | - | 22,738 | Reinsurers’ share of outstanding claims | 4,120 | 2,869 | 3,027 | 527 | 10,543 | - | 10,543 | Reinsurers’ share of claims Incurred but not reported | 3,492 | - | 1,054 | 1,458 | 6,004 | - | 6,004 | Deferred policy acquisition costs | 4,824 | 5,874 | 964 | 388 | 12,050 | - | 12,050 | Investments | - | - | - | - | 138,256 | 48,983 | 187,239 | Unallocated assets | - | - | - | - | 40,447 | 85,722 | 126,169 | Total Assets | | | | | | | | Liabilities |
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|
|
|
|
|
| Policyholders claims payable | - | - | - | - | 8,741 | - | 8,741 | Reinsurers' balances payable | - | - | - | - | 11,505 | - | 11,505 | Unearned premiums | 61,257 | 164,538 | 14,742 | 11,470 | 252,007 | - | 252,007 | Unearned reinsurance commission | - | 6 | 356 | 904 | 1,266 | - | 1,266 | Outstanding claims | 18,504 | 17,523 | 5,690 | 702 | 42,419 | - | 42,419 | Claims incurred but not reported | 15,075 | 36,798 | 2,323 | 1,573 | 55,769 | - | 55,769 | Other technical reserves | 2,188 | 1,371 | 201 | 56 | 3,816 | - | 3,816 | Unallocated liabilities | - | - | - | - | 31,902 | 144,791 | 176,693 | Total liabilities | | | | | | | |
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15. SEGMENTAL INFORMATION - (continued)
Gross written premium – For three months period ended 31 March 2019 | | | | | | Retail | 3,092 | 94,230 | 1,320 | - | 98,642 | Very Small | 4,917 | 471 | 664 | - | 6,052 | Small | 10,107 | 1,069 | 3,040 | - | 14,216 | Medium | 4,478 | 1,059 | 661 | - | 6,198 | Large | 12,144 | 756 | 6,385 | - | 19,285 | Total | | | | | |
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| Gross written premium – For three months period ended 31 March 2018 | | | | | | Retail | - | 66,334 | 1,619 | - | 67,953 | Very Small | 814 | 138 | 610 | - | 1,562 | Small | 6,156 | 871 | 2,178 | - | 9,205 | Medium | 7,643 | 301 | 541 | - | 8,485 | Large | 26,939 | 1,730 | 90 | - | 28,759 | Total | | | | | |
| 15 |
| 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] | 19. APPROVAL OF INTERIM CONDENSED FINANCIAL INFORMATIONThese interim condensed financial information have been approved by the board of directors on 30 April 2019 corresponding to 25 shaaban 1440H. | 19 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | SUPPLEMENTARY INFORMATION,
| | | Interim statement of financial position As at 31 March | | | | | | | |
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| | |
| Assets |
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| Cash and cash equivalents | 92,130 | 5,759 | 97,889 | 83,409 | 10,086 | 93,495 | Term deposits | 133,816 | 56,435 | 190,251 | 138,256 | 48,983 | 187,239 | Premiums and reinsurers’ receivable – net | 107,157 | - | 107,157 | 93,978 | - | 93,978 | Reinsurers’ share of unearned premium | 28,206 | - | 28,206 | 22,738 | - | 22,738 | Reinsurers’ share of outstanding claims | 11,810 | - | 11,810 | 10,543 | - | 10,543 | Reinsurers’ share of claims Incurred but not reported | 6,773 | - | 6,773 | 6,004 | - | 6,004 | Deferred policy acquisition cost | 12,297 | - | 12,297 | 12,050 | - | 12,050 | Due from related party | 2,391 | - | 2,391 | 2,391 | - | 2,391 | Prepaid expenses and other receivables | 36,450 | 7,154 | 43,604 | 28,047 | 6,602 | 34,649 | Property and equipment, net | 10,194 | - | 10,194 | 10,009 | - | 10,009 | Right of use asset, net | 9,305 | - | 9,305 | - | - | - | Available for sale Investments | - | 58,175 | 58,175 | - | 57,734 | 57,734 | Accrued income on statutory deposit | - | 1,452 | 1,452 | - | 1,386 | 1,386 | Statutory deposit | | | | | | | TOTAL ASSETS | | | | | | |
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| Liabilities |
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| Policyholders claims payable | 6,092 | - | 6,092 | 8,741 | - | 8,741 | Accrued and other payables | 23,843 | 525 | 24,368 | 17,016 | 286 | 17,302 | Reinsurers' balances payable | 18,896 | - | 18,896 | 11,505 | - | 11,505 | Unearned reinsurance commission income | 266,793 | - | 266,793 | 252,007 | - | 252,007 | Unearned premiums | 1,892 | - | 1,892 | 1,266 | - | 1,266 | Other technical reserves | 3,818 | - | 3,818 | 3,816 | - | 3,816 | Outstanding claims | 49,313 | - | 49,313 | 42,419 | - | 42,419 | Claims incurred but not reported | 55,763 | - | 55,763 | 55,769 | - | 55,769 | Lease Liability | 8,650 | - | 8,650 | - | - | - | Employees’ terminal benefits | 10,174 | - | 10,174 | 9,789 | - | 9,789 | Surplus distribution payable | 5,655 | - | 5,655 | 5,457 | - | 5,457 | Accrued zakat and income tax | - | 6,094 | 6,094 | - | 5,111 | 5,111 | Accrued commission on statutory deposit payable to SAMA | | | | | | | TOTAL LIABILITIES | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
| | | As at 31 March | | | | | | | |
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| EQUITY |
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| Share capital | - | 200,000 | 200,000 | - | 200,000 | 200,000 | Accumulated losses | - | (60,237) | (60,237) | - | (61,233) | (61,233) | Fair value reserve on investments | | | | | | | Total shareholders’ equity | - | 140,904 | 140,904 | - | 138,008 | 138,008 | Actuarial Reserve For Employee Benefits | (360) | - | (360) | (360) | - | (360) | Total equity | | | | | | | TOTAL LIABILITIES AND EQUITY | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued) Interim statement of income | | | For three-months period ended 31 March (Unaudited) | | | | | | | Revenue | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | SR ‘000 | Gross premiums written | 144,393 | - | 144,393 | 115,964 | - | 115,964 | Less: Premiums ceded |
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| - Local | (1,271) | - | (1,271) | (1,056) | - | (1,056) | - Foreign | (14,945) | - | (14,945) | (8,648) | - | (8,648) | Less: Excess of loss premium |
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| - Local | (776) | - | (776) | (806) | - | (806) | - Foreign | (874) | - | (874) | (872) | - | (872) | Net written premiums | | | | | | | Changes in net unearned premiums | (9,318) | - | (9,318) | (10,843) | - | (10,843) | Net premiums earned | | | | | | | Other underwriting Income | 421 | - | 421 | 4,955 | - | 4,955 | Reinsurance commission earned | 875 | - | 875 | 571 | - | 571 | Total revenues | | | | | | | Underwriting Costs and expenses |
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| Gross claims paid | 93,686 | - | 93,686 | 75,329 | - | 75,329 | Less: Reinsurers’ share | | | | | | | Net claims and other benefits paid | 84,059 | - | 84,059 | 67,698 | - | 67,698 | Changes in outstanding claims, net | 5,629 | - | 5,629 | 1,239 | - | 1,239 | Changes in incurred but not reported, net | (774) | - | (774) | 525 | - | 525 | Change in unallocated loss adjustment expense, net | | | | | | | Net claims and other benefits incurred | 88,955 | - | 88,955 | 69,462 | - | 69,462 | Change in premium deficiency reserve | (40) | - | (40) | - | - | - | Policy acquisition cost | 7,025 | - | 7,025 | 7,198 | - | 7,198 | Other underwriting expense | 1,598 | - | 1,598 | 299 | - | 299 | Total underwriting costs and expenses | | | | | | | Net underwriting (loss)/income | 20,967 | - | 20,967 | 22,306 | - | 22,306 | General and administrative expenses | (20,048) | (492) | (20,540) | (20,139) | (465) | (20,604) | Realized gain on available for sale investments | - | 346 | 346 | - | 576 | 576 | Provision of doubtful debts | (118) | - | (118) | (661) | - | (661) | Investment income | 1,184 | 338 | 1,522 | 853 | 179 | 1,032 | Other income | | | | | | | Total other operating (expenses) / income | (18,982) | 192 | (18,790) | (19,940) | 290 | (19,650) | Net Surplus | 1,985 | 192 | 2,177 | 2,366 | 290 | 2,656 | Surplus transferred to Shareholders | | | | | | | Net result after transfer of surplus to shareholders | | | | | | |
| | | For three-months period ended 31 March (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) | 198 | 1,979 | 2,177 | 237 | 2,419 | 2,656 |
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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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| Net change in fair value of available for sale investments | | | | | | | TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
16. SUPPLEMENTARY INFORMATION (continued)
Interim statement of cash flow | | | For three-months period ended 31 March (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 | 198 | 1,979 | 2,177 | 237 | 2,419 | 2,656 | Adjustments for non-cash items: |
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| Depreciation | 765 | - | 765 | 536 | - | 536 | Employees’ terminal benefits | 424 | - | 424 | 625 | - | 625 | Allowance for/(Reversal of) doubtful debts | 118 | - | 118 | 661 | - | 661 | Realized (gain) on available for sale investments | - | (346) | (346) | - | (576) | (576) |
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| Changes in operating assets and liabilities: |
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| Premiums and reinsurers’ receivable | (13,297) | - | (13,297) | (22,554) | - | (22,554) | Reinsurers’ share of unearned premiums | (5,468) | - | (5,468) | 1,959 | - | 1,959 | Reinsurers’ share of outstanding claims | (1,267) | - | (1,267) | 5,987 | - | 5,987 | Reinsurers’ share of claims Incurred but not reported | (769) | - | (769) | 60 | - | 60 | Deferred policy acquisition cost | (247) | - | (247) | 1,334 | - | 1,334 | Prepayments and other receivables | (8,403) | (552) | (8,955) | 5,599 | (262) | 5,337 | Increase in right of use asset | (9,305) | - | (9,305) | - | - | - | Increase in lease liability | 8,650 | - | 8,650 | - | - | - | Policyholders claim payable | (2,649) | - | (2,649) | 1,089 | - | 1,089 | Reinsurance payable | 7,391 | - | 7,391 | (7,803) | - | (7,803) | Unearned commission income | 626 | - | 626 | (142) | - | (142) | Unearned premiums | 14,786 | - | 14,786 | 8,884 | - | 8,884 | Outstanding claims | 6,894 | - | 6,894 | (2,355) | - | (2,355) | Claims incurred but not reported | (4) | - | (4) | 464 | - | 464 | Accrued and other payables | | | | | | |
| 5,270 | 1,320 | 6,590 | (2,939) | 1,894 | (1,045) | End-of-service indemnities paid | (39) | - | (39) | (275) | - | (275) | Zakat and income tax paid | | | | | | | Net cash (used in) /generated from operating activities | | | | | | |
16. SUPPLEMENTARY INFORMATION (continued)
| | | For three-months period ended 31 March (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 | (75) | - | (75) | (425) | - | (425) | Purchase of Intangible | (875) | - | (875) | - | - | - | Increase in term deposits | 4,440 | (7,452) | (3,012) | - | - | - | Purchases of available for sale investments | - | (1,723) | (1,723) | - | (6,919) | (6,919) | Proceed from sale of available for sale investments | - | 3,528 | 3,528 | - | 662 | 662 | Net cash generated from/(used in) investing activities | | | | | | |
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| Net (decrease) in cash and cash equivalents | 8,721 | (4,327) | 4,394 | (3,639) | (4,920) | (8,559) | Cash and cash equivalents at the beginning of the period | 83,409 | 10,086 | 93,495 | 44,283 | 33,315 | 77,598 | Cash and cash equivalents at the end of the period | | | | | | |
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17. CONTINGENT LIABILITY
As at 31 March 2019, the Company has a letter of guarantee amounting to SR 1.83 million (31 December 2018: 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 releasing of above mentioned guarantee amount. | 16 |
