| 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 measurement [text block] | (a)(b) BASIS OF PREPARATION Statement of complianceThe interim condensed financial statements of the Company as at and for the period ended 31 March 2022 have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) as endorsed in Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).Basis of preparation and measurementThe Company incurred loss for the three months period ended 31 March 2022 of SAR 28 million (31 March 2021: Profit for three- month period ended was SAR 2 million) and, as of that date, the accumulated losses of the Company as at 31 March 2022 are 49% of its share capital (82%: 31 December 2022) and the solvency margin of the Company reached to 91 % (31 December 2021: -117%). The reason for these losses is primarily attributed to unexpected increase in the number of motor accidents and the average motor claims cost (including policy acquisition cost) across the Kingdom of Saudi Arabia. Owing to these factors, the Company has recorded premium deficiency reserve and claims incurred but not reported as at period end for motor line of business, amounting to SAR 40.1 million (31 December 2021: SAR 35.7 million) and SAR 50 million (31 December 2021: SAR 53.1 million) respectively, along with its policy acquisition cost of SAR 18.6 million during the current period as compared to SAR 9.4 million during the compared period.These events and conditions indicate material uncertainties on the Company’s ability to continue as going concern. Considering the above, various strategic options including capital restructuring were considered by the Board of Directors to ensure appropriateness of the Company’s going concern assumption as at year end. Amongst such strategic options, the Board of Directors approved a business plan for 2022 on 21 December 2021. The plan is based on the adjusted prices for motor line of business for improving the net premium written and control over expenses and loss ratios . Moreover, the Shareholders, in an extraordinary general assembly meeting held on 29 December 2021, resolved to increase the share capital by SAR 150 million (representing 15 million shares) by way of right issue to further strength its liquidity position. The above right issue process was completed in tranches during the three-month period ended 31 March 2022 and the resulting total proceeds from the right issue was received on 7 March 2022 (Refer to Note 15).The above plan demonstrates that the Company will be able to continue as a going concern for foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. (b) Basis of preparation and measurement-(Continued)These interim condensed financial statements have been prepared under going concern basis and historical cost convention except for the measurement at fair value of investments held as fair value through other comprehensive income and employees’ defined benefit obligations which is recognized at the present value of future obligations using the projected unit credit method. The Company’s statement of financial position is not presented using a current/non- current classification. However, the following balances would generally be classified as current: cash and cash equivalents, short term deposits, premiums and reinsurers’ receivable - net, reinsurers’ share of unearned premiums, deferred policy acquisition costs, deferred excess of loss premiums, prepayments and other assets, policyholders payable, reinsurers balances payable, accrued and other liabilities, unearned premiums, unearned reinsurance commission, outstanding claims, claims incurred but not reported, premium deficiency reserve, other technical reserves and Zakat and income tax payable. All other financial statement line items would generally be classified as non-current, unless stated otherwise. The Company presents its statement of financial position in order of liquidity. 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 statements accordingly (Note 18). 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, comprehensive income and cash flows of the insurance operations and shareholders’ operations which are presented in Note 18 of the interim condensed financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. 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 statements in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances and transactions, if any, are eliminated in full. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.As per the by-laws of the Company, surplus arising from the Insurance Operations is distributed as follows: Transfer to Shareholders’ operationsTransfer to Policyholders’ operations 90%10%100% In case of deficit arising from the insurance operations, the entire deficit is allocated and transferred to the shareholders’ operations in full.In accordance with Article 70 of SAMA implementing regulations, the Company proposes to distribute, subject to the approval of SAMA, its annual netpolicyholders’ surplus directly to policyholders at a time, and according to criteria, as set by its Board of Directors. (c)d)e) Functional and presentation currencyThese interim condensed financial statements have been presented in Saudi Arabian Riyals (“SAR”), which is also the functional currency of the Company. All financial information presented in SAR has been rounded to the nearest thousands, except where otherwise indicated.Fiscal yearThe Company’s fiscal year is aligned with the calendar year i.e. it begins at 1 January and ends at 31 December.Critical accounting judgments, estimates and assumptionsThe preparation of condensed interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. e) Critical accounting judgments, estimates and assumptions-(Continued)In preparing this interim condensed financial information, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2021. | 2 |
| Disclosure of other general disclosures about reporting entity [text block] | ORGANIZATION AND PRINCIPAL ACTIVITIESAllied Cooperative Insurance Group (“the Company” or “ACIG”) is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia under Commercial Registration No. 1010417178 dated Shabaan 9,1428H, corresponding to 22 August 2007. The registered office of the Company is situated at Hteen district, Prince Turki bin Abdulaziz Road, Riyadh.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 Central Bank (“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.The Company has 3 registered branches as set out below: BranchBranch of ACIG Branch of ACIGBranch of ACIG Commercial RegistrationNumber205104367158550351504030204059 Place of issuanceAl KhobarKhamis MushaytJeddah Date12 Ramadan 1439 H12 Ramadan 1439 H12 Ramadan 1439 H | 1 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | 3 SIGNIFICANT ACCOUNTING POLICIESThe accounting policies, estimates and assumptions used in the preparation of the interim condensed financial information are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2021, except for the new standards and adoption of the amendments to existing standards which have had either insignificant effect or no financial impact on the interim condensed financial information of the Company on the current period or prior periods and are expected to have an insignificant effect in future period.A STANDARDS ISSUED BUT NOT YET EFFECTIVE IFRS 9 - Financial InstrumentsThis standard was published on 24 July 2014 and has replaced IAS 39. The new standard addresses the following items related to financialinstruments:a) Classification and measurement:IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both: the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met: the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale; and the contractual terms of cash flows are SPPIDebt financial assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset, both debt and equity instrument at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.b) Impairment:The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c) Hedge Accounting:IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project. IFRS 9 - Financial Instruments-"(Continued)" Effective date:The published effective date of IFRS 9 was 1 January 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on 12 September 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 –Insurance Contracts) becomes effective. The amendments introduce two alternative options:1) Apply a temporary exemption from implementing IFRS 9 until the earlier of a. the effective date of a new insurance contract standard; orb. annual reporting periods beginning on or after 1 January 2021. On 17 March 2020, the International Accounting Standards Board (“IASB”) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from 1 January 2021 to 1 January 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2. Adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the year, additional disclosures are required.The Company has performed a detailed assessment beginning 1 January 2017: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s annual financial statements for the year ended31 December 2021.Impact assessmentOverall, the Company expects some impact of applying the impairment requirements of IFRS 9 on the financial statements of the Company. However, the impact of the same is not expected to be significant. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 - “Insurance Contracts”OverviewThis standard has been published on 18 May 2017, it establishes the principles for the recognition, measurement, presentation and disclosure ofinsurance contracts and supersedes IFRS 4 – Insurance contractsThe new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:a. embedded derivatives, if they meet certain specified criteria;b. distinct investment components; andc. any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15).MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models: (A SAUDI JOINT STOCK COMPANY)NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED) FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 20223 SIGNIFICANT ACCOUNTING POLICIES-(CONTINUED)A STANDARDS ISSUED BUT NOT YET EFFECTIVE-(CONTINUED)IFRS 17 - “Insurance Contracts”-(Continued)Measurement-(Continued)The General model is based on the following “building blocks”:a. the fulfilment cash flows (FCF), which comprise: probability-weighted estimates of future cash flows; an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows; and a risk adjustment for non-financial risk.b. the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of: the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date; and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted in addition to adjustment under general model;I. changes in the entity’s share of the fair value of underlying items; andII. changes in the effect of the time value of money and financial risks not relating to the underlying items.Effective dateThe Company intends to apply the Standard on its effective date i.e. 1 January 2023. Earlier application is permitted if both IFRS 15 – Revenue from Contractswith Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends to apply this standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures.Impact:The Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company expects a material impact on measurement and disclosure of insurance and cession that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. (A SAUDI JOINT STOCK COMPANY)NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED) FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 20223 SIGNIFICANT ACCOUNTING POLICIES-(CONTINUED)A STANDARDS ISSUED BUT NOT YET EFFECTIVE-(CONTINUED)IFRS 17 - “Insurance Contracts”-(Continued)Impact:-(Continued)The Company has started its implementation process and has set up a project team, supervised by an IFRS executive management committee. Impact area Summary of Impact Financial impact The Company has ascertained the financial impact on reported balances of year 2018. As the Company's mostof insurance contracts are short-termed and short tailed entitling for premium allocation approach (PAA) which is largely similar to current accounting practice, no significant impact is expected. The Company has also successfully finalized the reassessment of 2020 results as part of the 1st Dry-Run orchestrated by the regulator and submitted on 30 November 2021 to SAMA.Based on the conducted simulation, the financial impact of applying IFRS 17 compared to IFRS 4 was also not significant. The Company will solidify its view on the financial impact while completing the 2nd and 3rd dry-runs, planned before the end of 2022.Data impact IFRS 17 has additional data requirements (e.g. premium due date for initial recognition, premium receipt datafor the LFRC, RI contracts held breakdown in to risk attaching or loss incurring for assessing contract boundaries, lower granularity to meet level of aggregation requirements and data for additional disclosures as per IFRS 17). Further extensive exercise has carried out to ensure the required data is available. No major data deficiencies or shortfalls were reported during the completion of the 1st –dry-run simulation.IT systems impact Detailed assessment has been carried out of existing systems capabilities for IFRS 17 calculations, storage andreporting and whether new systems / calculation engines should be implemented.The tool has been implemented successfully and used for processing and extracting the simulated results for the 1st dry-run. In coordination with the Company’s appointed advisor and appointed actuary, the Steering Committee is actively working to close any identified gaps before the due date of the 2nd dry-run simulation.Process impact The Company has carried out an operational impact assessment exercise to assess the operational impact ofimplementing IFRS 17. Since, majority of the Company’s contracts would be measured under the premium allocation approach, the process impact is expected to be moderate.No major process impact was reported during the completion of the 1st dry-run simulation.Impact on Reinsurancearrangements(RI) Further assessment has carried out to confirm measurement approach for reinsurance arrangements where RIgross premium ceded does not automatically qualify for PAAImpact on policies and controlframeworks The Company's policies and procedures needs updation to accommodate the changes in the Company'sprocesses and systems related to IFRS 17 implementation. Detailed exercise for the purpose has been carried out after ascertaining financial and operational gaps assessment. (A SAUDI JOINT STOCK COMPANY)NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED) FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 20223 SIGNIFICANT ACCOUNTING POLICIES-(CONTINUED)A STANDARDS ISSUED BUT NOT YET EFFECTIVE-(CONTINUED)IFRS 17 - “Insurance Contracts”-(Continued)Impact:-(Continued)The Company is currently in design phase of IFRS 17 implementation which requires developing and designing new processes and procedures for the business including any system developments required under IFRS 17 and detailed assessment of business requirements. Following are the main areas under design phase and status of the progress is as follows:Major areas of design phase Summary of progressGovernance and controlframework The Company has put in place a comprehensive IFRS 17 governance program which includes establishing oversightsteering committee for monitoring the progress of implementation and assigning roles and responsibilities to various stakeholders.Operational area The Company is in progress of designing operational aspects of the design phase which includes establishingcomprehensive data policy and data dictionary. Also the Company is finalizing architectural designs for various sub- systems. The Company has progressed through assessment of business requirements and currently working on vendor selection while finalizing various process needed for transition and assessment of new resources needed.Technical and financial area The Company has completed various policy papers encompassing various technical and financial matters after concluding on policy decisions required under the IFRS 17 standard. The policy decisions are taken after due deliberations among various stakeholders. Currently majority of policy papers have been approved by the Company's IFRS 17 project steering committee.Assurance plan The Company is working along with other stakeholders to finalize the assurance plan for transitional and post- implementation periods.The Company has started its implementation process and has set up a project team, supervised by Company's CEO. Furthermore, to assess financial and operational impact of IFRS 17, the Company has hired SHMA Consulting as their consultants.The effective interpretations/improvement/amendments do not have material impact on these financial statements of the Company. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of leases [text block] | RIGHT OF USE ASSETS, NETSAR’000 31 March 2022 31 December 2021 Cost: (Unaudited) (Audited) At beginning of the period / year 10,091 10,073Additions 2,747 18As at end of period / year 12,838 10,091Accumulated amortizationAt beginning of the period / year (6,862) (4,851)Charge for the period / year (646) (2,011)As at end of period / year (7,508) (6,862)Net book value 5,330 3,229 10 LEASE LIABILITIESSAR’000 31 March 2022 31 December 2021 (Unaudited) (Audited) Liabilities:At beginning of the period / year 10,736 10,593Finance cost 2,747 143As at end of period / year 13,483 10,736Payments:At beginning of the period / year (7,753) (5,619) Paid during the period / year (1,869) (2,134) As at end of period / year (9,622) (7,753)Total lease liabilities | 3 |
| Disclosure of investments in available-for-sale investments [text block] | 7 AVAILABLE-FOR-SALE INVESTMENTS All available-for-sale investments are in shareholders’ operations and comprise the following :a) Investment securities are classified as follows: SAR’000 31 March 2022 31 December 2021 (Unaudited) (Audited) Investment in Sukuk 20,000 20,000Quoted securities 13,839 11,508Unquoted securities 1,923 1,923Quoted local real estate fund 16,805 17,290 52,567 50,721 7 AVAILABLE-FOR-SALE INVESTMENTS (CONTINUED)b) Movements in available-for-sale investments are as follows:SAR’000 Investment inSukuk Quoted securities Unquoted securities Units in quoted localreal estate fund Total As at 01 January 2022 – (audited) 20,000 11,508 1,923 17,290 50,721Changes in fair value of investments - 2,331 - (485) 1,846As at 31 March 2022– (unaudited) 20,000 13,839 1,923 16,805 52,567SAR’000 Investment inSukuk Quoted securities Unquoted securities Units in quoted local real estate fund Total As at 01 January 2021 –(audited) 20,000 11,177 1,923 16,159 49,259Changes in fair value of investments - 331 - 1,131 1,462 As at 31 December 2021 – (audited) 20,000 11,508 1,923 17,290 50,721 | 7 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | PREMIUM AND REINSURERS' RECEIVABLE, NETReceivables comprise amounts due from the following:SAR’000 31 March 2022 (Unaudited) 31 December 2021 (Audited) Due from policyholdersDue from policyholders – related parties – (note 13)Due from brokers and agentsReceivables from reinsurersLess: Allowance for doubtful debts (note 6.1)Premium and reinsurers’ receivable – net 72,795 56,009- 1,82044,177 44,6466,304 6,447123,276 108,922(11,506) (10,507) 111,770 98,415 6.1 As at 31 March 2022, the movement in allowance for doubtful debts during the period / year was as follows:SAR’000 31 March 2022 (Unaudited) 31 December 2021 (Audited) Balance at the beginning of the period / yearProvided / (released) during the period / yearBalance at end of period / year 10,507 8,723999 1,784 11,506 10,507 | 6 |
| Disclosure of cash and cash equivalents [text block] | CASH AND CASH EQUIVALENTSCash and cash equivalents included in the statement of cash flows comprise the following:SAR’000 Insurance operations 31 March 2022 (Unaudited) 31 December 2021 (Audited) Bank balances and cashDeposits maturing within 3 month from the acquisition dateShareholders’ operationsBank balances and cashDeposits maturing within 3 month from the acquisition date 97,310 49,9284.1 4,450 3,045101,760 52,97385,819 -4.1 - -85,819 -187,579 52,973 4.1 These deposits earn commission at an average rate of 1.2% per annum as at 31 March, 2022 (31 December 2021: 1.2%). 5 TERM DEPOSITS SAR’000 31 March 2022 (Unaudited) 31 December 2021 (Audited) Insurance operationsTerm depositsShareholders’ operationsTerm deposits 5.1 182,846 182,367182,846 182,3675.1 - -- -182,846 182,367 5.1 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. These deposit earn commission at an average of 1.48% per annum as at 31 March 2022 (31 December 2021: 1.07%) . | 4 |
| Disclosure of statutory deposit [text block] | STATUTORY DEPOSIT SAR’000 31 March 2022 31 December 2021 (Unaudited) (Audited) Shareholders’ operationsStatutory deposit 30,000 30,000As required by Saudi Arabian Insurance Regulations, the Company had deposited 15% of its initial pre-reduction paid up capital of SAR 200 million (Note 15), in a bank designated by the Saudi Central Bank (SAMA). The Company cannot withdraw this deposit without SAMA’s approval and commission accruing on this deposit is payable to SAMA. | 11 |
| Disclosure of gross unearned premiums/ contributions [text block] | TECHNICAL RESERVES (INSURANCE OPERATIONS) 8.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: SAR’000 31 March 2022 31 December 2021 (Unaudited) (Audited) Outstanding claims 40,525 34,605 40,525 34,605Claims incurred but not reported 76,366 80,865Premium deficiency reserve 40,046 35,727Other technical reserves 1,764 1,798 158,701 152,995Less: Reinsurers’ share of outstanding claims (15,699) (12,955)Reinsurers’ share of claims incurred but not reported (8,384) (8,498) (24,083) (21,453)Net outstanding claims and reserves 134,618 131,542 8 TECHNICAL RESERVES (INSURANCE OPERATIONS)-(CONTINUED)8.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following:For the three month period ended March 31, 2021 (Unaudited)SAR’000Gross Reinsurance NetBalance as at the beginning of the period 301,744 (34,703) 267,041Premium written during the period 177,838 (25,979) 151,859Premium earned during the period (148,491) 18,297 (130,194)Balance as at the end of the period 331,091 (42,385) 288,706For the year ended December 31, 2021 (Audited)SAR’000Gross Reinsurance NetBalance as at the beginning of the year 264,469 (27,393) 237,076Premium written during the year 592,588 (78,531) 514,057Premium earned during the year (555,313) 71,221 (484,092) Balance as at the end of the year 301,744 (34,703) 267,041 | 8 |
| Disclosure of income tax [text block] | 14 ZAKAT AND INCOME TAX SAR’000 31 March 2022 (Unaudited) 31 December 2021 (Audited) Balance at the beginning of the period / year 16,888 8,630Provided/reversed during the period / year (1,500) 10,576Payments during the period / year - (2,318) Balance at the end of the period / year 15,388 16,888The 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 ZATCA could be different from the declarations filed by the Company.Income tax:SAR’000 31 March 2022 (Unaudited) 31 December 2021 (Audited) Balance at the beginning of the period / year 25 25Balance at the end of the period / year 25 25Total zakat and income tax 15,413 16,913Status of assessmentsZakat and income tax returns have been filed with the Zakat, Tax and Custom Authority (the “ZATCA ”) for the years ended up to 31 December 2020. Final certificate has been received from the ZATCA for the year ended 31 December 2020. However, the ZATCA has raised an additional assessment in respect of the returns filed for the years ended 31 December 2008, 2009 and 2010 amounting to total SAR 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, an adverse decision was received from the Preliminary Tax Objection Committee, upon which the Company filed appeal with the Higher Objection Committee. The Higher Objection 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 for the case of the withholding tax and raised a letter of guarantee in the amount of 1.83 million and also paid the amount of tax SAR 1.27 million.The Company has raised an objection for an unfavourable assessment raised by the ZATCA for the years ended 31 December2013 till 2015 with the amount of SAR 4.98 million. The objection is currently under study by the ZATCA. The Company received a claim from the ZATCA for an amount of SAR 5.18 million representing withholding tax. The Company raised an objection against the claim with the General Secretariat of Tax Committee (GSTC) which has been also rejected and now is under appeal with the Appeal Committee for Tax Violation and Disputes.During 2020, the ZATCA issued an assessment for the years 2016 to 2018 claiming additional liability of SAR 7.83 million. The Company has raised an objection against such assessments which has been rejected by the ZATCA. The Company raised the objection to the GSTC and it is currently under study by the committee.During 2021, the ZATCA issued an assessment for the years 2019 to 2020 claiming additional liability of SAR 3.73 million. As at 31 March, 2022, the Company is still in the process of decising whether an objection against such assessments needs to be made or not.Income tax:Islamic Development Bank (IDB) being a foreign shareholder, is exempted from income tax. | 13 |
| Disclosure of deferred tax [text block] | VALUE ADDED TAX (VAT)On September 28, 2020, the Company received from ZATCA VAT assessments for the years ended December 31, 2018 and 2019 claiming additional liability of SAR 1.78 million and SAR 1.98 million for VAT resepctively and SAR 2.85 million and SAR 1.78 million for related penalties respectively. Management has filled an objection against the said assessments and is confident of receiving a favourable outcome. However, as required by the ZATCA regulation, the Company has paid the amount of the tax and was relieved from the penalties in accordance with ZATCA initiative to support the private sector. | |
| Disclosure of classes of share capital [text block] | 15 SHARE CAPITALAs at 31 March, 2022 , the authorized, subscribed and paid up share capital of the Company was SAR 291 million, divided into 29.1 million shares ofSAR 10 each. (31 December 2021: SAR 141 million share capital dividend into 14.1 million shares of SAR 10 each).On January 16, 2020, the Company’s Board of Directors had recommended to reduce the Company’s share capital from SR 200 million to SR 141 million – represented by 5.9 million share - by off-setting with accumulated losses. In an extra-ordinary general meeting held on Muharram 21, 1441H corresponding to August 26, 2020, the shareholders of the Company approved the above recommendation and required changes in the Company by-law relating to the reduction. Accordingly, the share capital and accumulated losses have been reduced to SAR 141 million.The capital reduction is through the reduction of 1 share for every 3.3898 shares held by the shareholders. The purpose of capital reduction is to restructure the capital position of the Company in order to comply with the Companies Law. There is no impact of reduction in capital on the Company’s financial obligations.On Jamad Al-Awwal 21, 1441H corresponding to January 16, 2020, the Board of Directors had recommended an increased in the Company’s capital through right issue with a total value of SR 150 million. On Safar 14, 1442H corresponding to October 1, 2020, the Company obtained approval from SAMA. On Safar 27, 1443H , corresponding to 20 September, 2021 the Capital Market authority (CMA) approved the said capital increase. The extra ordinary general meeting of shareholders was held on 29 December, 2021 (corresponding to Jumada Al-Awwal, 26, 1443H), to approve the aforementioned capital increase and procedures for the issuance of right shares.Following the Shareholders’ approval, on 01 January, 2022, the Company announced trading of 15 million right shares starting from 03 January 2022 (corresponding to Jumada Al-Awwal, 30, 1443H) to 10 January 2022 (corresponding to Jumada ath- Thaniyah 07, 1443) The closing date for the subscription of new shares was set at 13 January, 2022 (corresponding to Jumada ath- Thaniyah 09, 1443)Out of 15 Million right shares, 13.3 million shares consisting approximately 89 % of total right shares offer, were subscribed by the existing shareholders. Unsubscribed fraction of shares constituting 16.7 million were sold in market at average share price of SAR 19.02 per share.The Company has fullfilled all the regulatory requirements | 15 |
| Disclosure of earnings per share [text block] | LOSS PER SHARELoss per share for the year has been calculated by dividing the net income for the year by the weighted average number of issued and outstanding shares at year end. FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 202216 LOSS PER SHARE (CONTINUED) B) The basic and diluted loss per share is calculated as follows: SAR’000 31 March 2022 31 December (Unaudited) 2021 Net loss for the year (28,082) 2,428 Weighted average number of ordinary shares outstanding 17,933 14,100 Basic (loss) per share (SAR) (1.57) 0.17 | 16 |
| Disclosure of related party transactions [text block] | RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. Thefollowing are the details of the major related party transactions during the period and the related balances: Related parties Nature of transaction Transactions for the three months period ended Balance receivable / (payable) as at 31 March 2022 31 March 2022 31 March 2022 31 December, 2022(Unaudited) (Unaudited) (Unaudited) (Audited)SAR’000Board of directors Premuim written - 145 - -Affiliates Premuim written - 305 - 1,881Claims paid/ paymentreceived - - (187) (811) ACIG Bahrain(Shareholder)Board and audit committee Claims paid on behalfof ACIG Bahrain - - 1,985 1,985Attendance fees 41 92 - - The compensation of the key management personnel during the three month period are as follows;SAR’00031 March 2022 31 March 2021 (Unaudited) (Unaudited)Salaries and other allowances 990 1,368Employees’ terminal benefits 70 101 1,060 1,469 | 13 |
| Disclosure of entity's operating segments [text block] | 12 SEGMENTAL INFORMATIONOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance.Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the income statement. Segment assets and liabilities comprise operating assets and liabilities.Segment results do not include general and administrative expenses, allowance for doubtful debts and other income. Segment assets do not include cash and cash equivalents, term deposits, available-for-sale investments, prepayments and other receivables, due from a related party property and equipment, net, intangible assets and right of use assets, net. Segment liabilities do not include reinsurance payables, accrued expenses and other liabilities, due to shareholders’ operations and employees’ terminal benefits.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at 31 March 2022 and 31 December 2021, its total revenues, expenses, and net income for the period then ended, are as follows: NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED)FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 202212 SEGMENTAL INFORMATION (CONTINUED)As at 31 March 2022 (Unaudited) Medical Motor GeneralAccident Others Total - Insurance Operations Shareholders’Operations Total SAR’000 Assets Cash and cash equivalents - - - - 101,760 85,819 187,579Term deposits - - - - 182,846 - 182,846Premiums and reinsurers’ receivable - net - - - - 111,770 - 111,770Reinsurers’ share of unearned premiums 26,728 - 5,257 10,400 42,385 - 42,385Reinsurers’ share of outstanding claims 7,379 3,399 3,090 1,831 15,699 - 15,699Reinsurers’ share of claims incurred but notreported 7,604 - 324 456 8,384 - 8,384Deferred policy acquisition costs 4,775 39,319 918 512 45,524 - 45,524Available-for-sale investmentsUnallocated assets - - - - 52,567- - - - 31,338 - 52,56789,178 120,516Total assets 46,486 42,718 9,589 13,199 592,273 174,997 767,270Liabilities Policyholders claim payable - - - - 8,784 - 8,784Reinsurers' balances payableUnearned premiumsUnearned commission income - - - - 33,86489,305 209,816 20,788 11,182 331,091- - 398 971 1,369 - 33,864- 331,091- 1,369Outstanding claims 20,337 10,487 8,666 1,035 40,525 - 40,525Claims incurred but not reported Premium deficiency reserves Other technical reserves Unallocated liabilities and equity 21,301 50,007 4,468 590 76,366- 40,046 - - 40,046279 1,259 201 25 1,764- - - - 58,464 - 76,366- 40,046- 1,764174,997 233,461 Total liabilities and insurance operations`surplus 131,222 311,615 34,521 13,803 592,273 174,997 767,270 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED)FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 202212 SEGMENTAL INFORMATION (CONTINUED)As at 31 December 2021 (Audited) Medical Motor GeneralAccident Others Total - Insurance Operations Shareholders’Operations Total SAR’000 Assets Cash and cash equivalents - - - - 52,973 - 52,973Term Deposits 182,367 - 182,367Premiums and reinsurers’ receivable - net - - - - 98,415 - 98,415Reinsurers’ share of unearned premiums 17,798 - 5,309 11,596 34,703 - 34,703Reinsurers’ share of outstanding claims 6,089 3,399 1,464 2,003 12,955 - 12,955Reinsurers’ share of claims Incurred but not 7,719 - 324 455 8,498 - 8,498Deferred policy acquisition costs 3,858 38,906 728 561 44,053 - 44,053Available-for-sale investmentsUnallocated assets - - - - 50,721- - - - 23,439 - 50,72187,476 110,915Total assets 35,464 42,305 7,825 14,615 508,124 87,476 595,600Liabilities Policyholders claim payable - - - - 20,789 - 20,789Reinsurers' balances payableUnearned premiumsUnearned commission income - - - - 24,74970,575 200,688 17,944 12,537 301,744- - 320 941 1,261 - 24,749- 301,744- 1,261Outstanding claims 17,670 8,149 7,569 1,217 34,605 - 34,605Claims incurred but not reported Premium deficiency reserves Other technical reserves 22,679 53,128 4,468 590 80,865- 35,727 - - 35,727279 1,303 188 28 1,798 - 80,865- 35,727- 1,798Unallocated liabilities and equity - - - - 6,586 87,476 94,062 Total liabilities and insurance operations`surplus 111,203 298,995 30,489 15,313 508,124 87,476 595,600 FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2022 12 SEGMENTAL INFORMATION (CONTINUED) For the three-month period ended 31 March 2022Total Medical Motor GeneralAccident OthersSAR’000 InsuranceOperations Shareholders’Operations Total OTHER OPERATING (EXPENSES) / INCOMENET RESULT AFTER TRANSFER OF SURPLUS TOSHAREHOLDERS - NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED)FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2022 12 SEGMENTAL INFORMATION For the three-months period ended 31 March 2021Total Medical Motor GeneralAccident Others InsuranceOperations Shareholders’Operations Total SAR’000 REVENUES Gross premiums written 46,306 93,094 5,001 7,746 152,147 - 152,147Reinsurance premiums ceded -Local (102) - (33) (417) (552) - (552)-Foreign (11,245) - (1,532) (6,654) (19,431) - (19,431) (11,347) - (1,565) (7,071) (19,983) - (19,983)Excess of loss premiums -Local - (470) (2) (44) (516) - (516)-Foreign - (705) (2) (68) (775) - (775) - (1,175) (4) (112) (1,291) - (1,291)Net premiums written 34,959 91,919 3,432 563 130,873 - 130,873Changes in unearned premiums, net (7,902) (10,107) (638) (218) (18,865) - (18,865)Net premiums earned 27,057 81,812 2,794 345 112,008 - 112,008Reinsurance commission income - - 146 1,335 1,481 - 1,481Other underwriting income 57 - 221 - 278 - 278TOTAL REVENUES 27,114 81,812 3,161 1,680 113,767 - 113,767UNDERWRITING COSTS AND EXPENSES Gross claims paid 31,134 62,623 319 87 94,163 - 94,163Reinsurers’ share of claims paid (9,225) - (8) (36) (9,269) - (9,269)Net claims paid 21,909 62,623 311 51 84,894 - 84,894Changes in outstanding claims, net (620) (897) 609 (5) (913) - (913)Changes in claims incurred but not reported, net 1,429 1,048 - - 2,477 - 2,477Net claims incurred 22,718 62,774 920 46 86,458 - 86,458Change in other technical reserve 22 23 19 8 72 - 72Changes in premium deficiency reserve (905) (3,706) - - (4,611) - (4,611)Policy acquisition costs 2,245 6,657 193 329 9,424 - 9,424Other underwriting expenses 8 229 - - 237 - 237TOTAL UNDERWRITING COSTS AND EXPENSES 24,088 65,977 1,132 383 91,580 - 91,580NET UNDERWRITING INCOME 3,026 15,835 2,029 1,297 22,187 - 22,187OTHER OPERATING (EXPENSES) / INCOME Release of doubtful debts (595) - (595)General and administrative expenses (18,395) (459) (18,854)Commission income on deposits 366 102 468Investment incomeOther income -29 493 493- 29TOTAL OTHER OPERATING EXPENSES, NET (18,595) 136 (18,459)Loss for the period 3,728Zakat charge for the period (1,300)Net profit for the period 2,428NET INCOME ATTRIBUTED TO THEINSURANCE OPERATIONS (359)NET PROFIT ATTRIBUTABLE TO THESHAREHOLDERS 2,069 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS-(CONTINUED) FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 202212 SEGMENTAL INFORMATION (CONTINUED)For the three-month period ended 31 March 2022Medical Motor Properties and accidentSAR’000Gross premiums writtenIndividual 632 104,453 4,930 110,015Micro enterprise 25,823 1,242 277 27,342Small 10,771 911 988 12,670Medium 2,986 196 3,659 6,841Large 18,626 152 2,192 20,970TOTAL GROSS PREMIUMS WRITTEN 58,838 106,954 12,046 177,838For the three-months period ended 31 March 2021Medical Motor Properties and accidentSAR’000Gross premiums writtenIndividual 1,415 91,428 2,475 95,318Micro enterprise 16,512 1,283 471 18,266Small 14,816 341 958 16,115Medium 6,738 42 3,011 9,791Large 6,825 - 5,832 12,657TOTAL GROSS PREMIUMS WRITTEN 46,306 93,094 12,747 152,147 | 12 |
| Disclosure of board of director's approval of the financial statements [text block] | APPROVAL OF THE FINANCIAL STATEMENTSThese financial statements have been approved by the Board of Directors on 16 May, 2022 (Corresponding to Shawwal 15, 1443 AH). | 21 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 18 SUPPLEMANTARY INFORMATION STATEMENT OF FINANCIAL POSITION 31 March 2022 (Unaudited) SAR ’000 31 December 2021 (Audited) Insurance operations Shareholders’operations Total Insurance operations Shareholders’operations Total ASSETSCash and cash equivalents 101,760 85,819 187,579 52,973 - 52,973Term deposits 182,846 - 182,846 182,367 - 182,367Premiums and reinsurers’ receivable, net 111,770 - 111,770 98,415 - 98,415Reinsurers’ share of unearned premiums 42,385 - 42,385 34,703 - 34,703Reinsurers’ share of outstanding claims 15,699 - 15,699 12,955 - 12,955Reinsurers’ share of claims incurred but not reported 8,384 - 8,384 8,498 - 8,498Deferred policy acquisition costs 45,524 - 45,524 44,053 - 44,053Due from a related party 1,985 - 1,985 1,985 - 1,985Due from shareholder's operation - - - 31,249 - 31,249Property and equipment, net 5,419 - 5,419 5,411 - 5,411Intangible assets, net 5,982 - 5,982 5,585 - 5,585Right-of-use asset, net 5,330 - 5,330 3,229 - 3,229Available-for-sale investments - 52,567 52,567 - 50,721 50,721Prepayments and other receivables 65,189 4,709 69,898 57,950 2,539 60,489Statutory deposit - 30,000 30,000 - 30,000 30,000Accrued commission on statutory deposit - 1,902 1,902 - 1,871 1,871TOTAL ASSETS 592,273 174,997 767,270 539,373 85,131 624,504LIABILITIES Policyholders claim payable 8,784 - 8,784 20,789 - 20,789Accrued and other payables 37,094 345 37,439 17,430 1,525 18,955Reinsurances’ balances payable 33,864 - 33,864 24,749 - 24,749Unearned commission income 1,369 - 1,369 1,261 - 1,261Unearned premiums 331,091 - 331,091 301,744 - 301,744Premium deficiency reserve 40,046 - 40,046 35,727 - 35,727Other technical reserve 1,764 - 1,764 1,798 - 1,798Outstanding claims 40,525 - 40,525 34,605 - 34,605Claims incurred but not reported 76,366 - 76,366 80,865 - 80,865Employees’ terminal benefits 13,055 - 13,055 12,968 - 12,968Lease liabilities 3,861 - 3,861 2,983 - 2,983Due to insurance operations - - - - 31,249 31,249Surplus distribution payable 5,991 - 5,991 5,991 - 5,991Zakat and income tax - 15,413 15,413 - 16,913 16,913Accrued commission on statutory deposit payable toSAMA - 1,902 1,902 - 1,871 1,871 593,810 17,660 611,470 540,910 51,558 592,468EQUITY Share capital - 291,000 291,000 - 141,000 141,000Accumulated losses - (144,097) (144,097) - (116,015) (116,015)Fair value reserve on investments - 10,434 10,434 - 8,588 8,588TOTAL SHAREHOLDER’S EQUITY - 157,337 157,337 - 33,573 33,573Re-measurement reserve of employees’ terminal benefits (1,537) - (1,537) (1,537) - (1,537)TOTAL EQUITY (1,537) 157,337 155,800 (1,537) 33,573 32,036TOTAL LIABILITIES AND EQUITY 592,273 174,997 767,270 539,373 85,131 624,504 SAR ’0 0 0 For the three months period ended 31 March 202231 March, 2022 31 March, 2021 REVENUES Insurance operations Shareholders’operations Total Insurance operations Shareholders’operations Total Gross written Premuim 177,838 - 177,838 152,147 - 152,147Reinsurance premiums ceded-Local (1,140) - (1,140) (552) - (552)-Foreign (24,373) - (24,373) (19,431) - (19,431)(25,513) - (25,513) (19,983) - (19,983)Excess of loss expensesOTHER OPERATING (EXPENSES) / INCOME SAR ’0 0 0 For the three months period ended 31 March 202231 March, 2022 31 March, 2021 Insurance operations Shareholders’operations Total Insurance operations Shareholders’operations Total (Deficit)/ Surplus transferred to Shareholders 31,331 (31,331) - (3,233) 3,233 -Net result after transfer of surplus to shareholders Loss for the period - (28,082) (28,082) 359 2,069 2,428 Net result after transfer of surplus to shareholders - (28,082) (28,082) 359 2,069 2,428 Weighted average number of shares 17,933 17,933 17,933 14,100 14,100 14,100LOSS PER SHARE (EXPRESSED IN SAR PER SHARE) - (1.57) (1.57) 0.02 0.15 0.17OTHER COMPREHENSIVE INCOME / (LOSS)ITEMS THAT ARE OR MAY BE RECLASSIFIED TO STATEMENTS OF INCOME IN SUBSEQUENT PERIODAvailable-for-sale investments:-Net change in fair value 1,846 1,846 - 2,073 2,073 TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE PERIOD - (26,236) (26,236) 359 4,142 4,501 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTSFOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2022 18 SUPPLEMANTARY INFORMATION (CONTINUED) STATEMENT OF CASH FLOWS Insurance operations Shareholders’operations Total SAR ’000 Insurance operations Shareholders’operations Total Cash and cash equivalents, end of the period 101,760 85,819 187,579 66,344 16,718 83,062 (A SAUDI JOINT STOCK COMPANY)NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTSFOR THE THREE-MONTH PERIOD ENDED 31 MARCH 202219 COMPARATIVE FIGURESCertain prior period figures have been reclassified to conform to current period presentation (if applicable).20 IMPACT OF COVID-19On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“COVID-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews.In response to the spread of the Covid-19 virus in the GCC and other territories (to be tailored based on company’s operations) where the Company operates and its consequential disruption to the social and economic activities in those markets, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure: the health and safety of its employees and the wider community where it is operating the continuity of its business throughout the Kingdom is protected and kept intact.The major impact of Covid-19 pandemic was seen in medical and motor line of business. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected.The management of the Company believes that any potential lockdown measures being reintroduced will not materially affect the underlying demand for the Company’s insurance products and forecast. Further, the Company continues to monitor the surge of the new variant closely although at this time management is not aware of any factors that are expected to change the impact of the pandemic on the Company’s operations during 2022 or beyond.However, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’sreported results for the three months period ended 31 March 2022. | 18 |
