| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] |
General - Legal status and principal activities
Al Sagr Cooperative Insurance Company (the “Company") is a Saudi Joint Stock Company established in Dammam, Kingdom of Saudi Arabia and incorporated on 26 Muharram 1429H (corresponding to February 4, 2008) under commercial registration (“CR”) number 1010243765 which was later amended to 2051036871 dated 22 Rabi' I 1429H (corresponding to March 30, 2008). The Company has been licensed to conduct cooperative insurance business in the Kingdom of Saudi Arabia under cooperative principles in accordance with Royal Decree number 60/M dated 18 Ramadan 1427H (corresponding to October 11, 2006), pursuant to Council of Ministers resolution number 233 dated 16 Ramadan 1427H (corresponding to October 9, 2006). The Company’s registered address is P.O. Box 3501, Dammam 32241, Kingdom of Saudi Arabia.
The purpose of the Company is to transact in cooperative insurance and reinsurance operations and all related activities in accordance with the Law on Supervision of Cooperative Insurance Companies in the Kingdom of Saudi Arabia (the “Law") and its implementing regulations. The Company obtained license from the Saudi Central Bank (formerly known as Saudi Arabian Monetary Authority) (“SAMA”) to practice general and health insurance and reinsurance business in the Kingdom of Saudi Arabia vide license number TMN/13/20083, dated 23 Rabi' I 1429H (corresponding to March 31, 2008). The Company commenced insurance operations on 4 Muharram 1430H (corresponding to January 1, 2009). On 11 Ramadan 1436H (corresponding to June 28, 2015), the Company received approval from SAMA to cancel its reinsurance license. In accordance with the requirements of Implementing Regulations for Co-operative Insurance Companies (the “Regulations”) issued by SAMA and as per the by-laws of the Company, shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising from insurance operations is transferred to the shareholders’ operations in full. | |
| Disclosure of basis of preparation of financial statements [text block] |
Basis of preparation
Statement of compliance
The interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting’ (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia, and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).
The interim condensed statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders’ operations which are presented on pages 45 to 58 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 clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the interim condensed statements of financial position, income, comprehensive income and cash flows prepared for the insurance operations and shareholders’ operations, as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.
In preparing the Company’s financial information in compliance with IAS 34, as endorsed in the Kingdom of Saudi Arabia, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances. 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 management of the Company and the Board of Directors.
In accordance with the requirements of Implementing Regulations for Co-operative Insurance Companies (the “Regulations”) issued by SAMA and as per the by-laws of the Company, shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising from insurance operations is transferred to the shareholders’ operations in full.
Basis of measurement
The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement of employee benefit obligations, financial assets at fair value through profit or loss and available-for-sale investments.
Basis of presentation
The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as current: cash and cash equivalents, premiums and insurers’ balances receivable - net, prepaid expenses and other assets, available-for-sale investments, financial assets at fair value through profit or loss, accrued commission income on statutory deposit, accounts payable, accrued and other liabilities, reinsurers’ balances payable, due to a related party, outstanding claims, claims incurred but not reported (“IBNR”), additional premium reserves, other technical reserves, zakat payable, reinsurers’ share of outstanding claims, reinsurers’ share of claims incurred but not reported, accrued commission income payable to SAMA, dividend payable and surplus distribution payable. The following balances would generally be classified as non-current: long-term deposits, property and equipment, intangible assets, goodwill, statutory deposit and employee benefit obligations. The balances which are of mixed in nature i.e. include both current and non-current portions include reinsurers’ share of unearned premiums, deferred policy acquisition costs, unearned premiums and unearned reinsurance commission.
The inclusion of separate information of the insurance operations with the interim condensed financial information of the Company in the interim condensed statements of financial position, income, comprehensive income and cash flows as well as certain relevant notes to the financial information represents additional supplementary information as required by the Implementing Regulations.
The interim condensed financial information does not include all the information required for the annual financial statements and should be read in conjunction with the annual financial statements as of and for the year ended December 31, 2020.
Functional and presentation currency
This interim condensed financial information is expressed in Saudi Arabian Riyals (“Saudi Riyals”) which is the functional and presentation currency of the Company.
Critical accounting judgments, estimates and assumptions
The preparation of interim condensed financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this interim condensed financial information, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as of and for the year ended December 31, 2020.
On March 11, 2020, the World Health Organization (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread globally. 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 Covid-19. The Kingdom of Saudi Arabia also implemented closure of borders, released social distancing guidelines and enforced country-wide lockdowns and curfews.
In response to the spread of Covid-19 in the Kingdom of Saudi Arabia and its consequential disruption to social and economic activities, the Company’s management has assessed its impact on the Company’s operations and continues to take a series of proactive and preventive measures to ensure:
-the health and safety of its employees and the wider community where it is operating; and - the continuity of its business throughout the Kingdom of Saudi Arabia is protected and remains intact.
Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:
Impact of Covid-19
Medical technical reserves
The Company’s management believes that the Saudi Arabian government initiative of providing free healthcare to infected and suspected patients has helped in reducing any unfavorable impact. During the period of lockdowns and curfews as implemented by the Saudi Arabian government, the Company experienced a decline in medical reported claims (mainly elective and non-chronic treatment claims) which resulted in a decrease in claims experience which could have resulted from the deferral of certain medical treatments. Accordingly, the Company’s management duly considered the impact of such deferral of medical claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. Based on the results, the management believes that no additional IBNR is required to be maintained as at June 30, 2021, for the issued medical policies to account for the above explained deferral (December 31, 2020: Nil).
Motor technical reserves
In response to the Covid-19 pandemic, SAMA issued a circular 189 (the “Circular”) dated May 8, 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the Circular instructed the insurance companies to extend the period of validity of all existing retail motor insurance policies by two months as well as providing two months of additional coverage for all new retail motor insurance policies written within one month of the date of the Circular.
Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and the Company prospectively assessed the sufficiency of its unexpired risk reserves in relation to those existing retail Motor policies impacted by the Circular. For new retail motor policies issued as per the above Circular, the premium is earned over the period of twelve months as the impact of earnings over the period of coverage i.e. fourteen months is not considered significant by management for the period ended June 30, 2021 and subsequent periods. The Company’s management duly considered the impact of such existing and new retail motor policies impacted by the Circular on claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. As a result, the Company has maintained a premium deficiency reserve of Saudi Riyals 2.7 million on such policies as at June 30, 2021 (December 31, 2020: Saudi Riyals 6.3 million).
Financial assets - investments and loans and receivables
For held-to-maturity investments and financial assets designated as loans and receivables, the Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets is impaired. These include factors such as significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. For available-for-sale investments and at fair value through profit or loss, the Company has performed an assessment to determine whether there is a significant decline in the fair value of these investments to below cost along with other qualitative factors such as prolonged decline in the value of investments for equity instruments and / or occurrence of a credit default event in case of debt instruments. Based on these assessments, the Company believes that the Covid-19 pandemic has had no material effect on the Company’s reported results for the three-month and six-month periods ended June 30, 2021. The Company continues to monitor the situation closely.
Liability arising from claims under insurance contracts
Considerable judgement by management is required in the estimation of amounts due to policyholders arising from claims made under insurance policies. Such estimates are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities.
In particular, estimates have to be made both for the expected ultimate cost of claims reported at the date of statement of financial position and for the expected ultimate cost of IBNR claims at the reporting date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past claim settlement trends to predict future claims settlement trends.
Claims requiring court or arbitration decisions, if any, are estimated individually. Independent loss adjusters normally estimate property claims. Management reviews its provisions for claims incurred and claims incurred but not reported, on a quarterly basis.
The Company is exposed to disputes with, and possibility of defaults by, its reinsurers. The Company monitors on a quarterly basis the evolution of disputes with and the strength of its reinsurers.
Impairment of premiums and insurance balances receivable and goodwill
An estimate of the uncollectible amount of premiums receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.
The recoverable amount of goodwill is estimated based on the present value of the future cash flows expected to be derived from the asset. In case, the recoverable amount is less than carrying value, the difference is charged to statement of income as impairment loss.
Impairment of investments
The Company treats investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments.
Seasonality of operations
There are no seasonal changes that may affect insurance operations of the Company. The interim results may not represent a proportionate share of the annual results due to cyclical variability in premiums and uncertainty of claims occurrences. | |
| Disclosure of accounting framework used in preparation of financial statements [text block] |
The interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting’ (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia, and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”). | |
| Disclosure of statement of compliance [text block] |
Statement of compliance
The interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting’ (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia, and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).
The interim condensed statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders’ operations which are presented on pages 45 to 58 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 clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the interim condensed statements of financial position, income, comprehensive income and cash flows prepared for the insurance operations and shareholders’ operations, as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.
In preparing the Company’s financial information in compliance with IAS 34, as endorsed in the Kingdom of Saudi Arabia, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances. 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 management of the Company and the Board of Directors.
In accordance with the requirements of Implementing Regulations for Co-operative Insurance Companies (the “Regulations”) issued by SAMA and as per the by-laws of the Company, shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising from insurance operations is transferred to the shareholders’ operations in full. | |
| Disclosure of issued IFRS not yet adopted [text block] |
New standards, amendments and interpretations not yet applied by the Company
In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized or at fair value through other comprehensive income, if certain conditions are met. Assets not meeting either of the above categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss.
Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle-based approach.
In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2023. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.
The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9.
For detailed impact assessment of IFRS 9 adoption, refer to Note 3.1 to the annual financial statements for the year ended December 31, 2020. Applicable for the period beginning on or after January 1, 2023 and will supersede IFRS 4. Earlier adoption is permitted if IFRS 9 has also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance contracts that will affect the interim condensed statements of financial position, income and comprehensive income. The Company has decided not to early adopt this new standard.
For detailed impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended December 31, 2020 should be made as mentioned above. | |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] |
Critical accounting judgments, estimates and assumptions
The preparation of interim condensed financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this interim condensed financial information, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as of and for the year ended December 31, 2020.
On March 11, 2020, the World Health Organization (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread globally. 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 Covid-19. The Kingdom of Saudi Arabia also implemented closure of borders, released social distancing guidelines and enforced country-wide lockdowns and curfews.
In response to the spread of Covid-19 in the Kingdom of Saudi Arabia and its consequential disruption to social and economic activities, the Company’s management has assessed its impact on the Company’s operations and continues to take a series of proactive and preventive measures to ensure:
-the health and safety of its employees and the wider community where it is operating; and - the continuity of its business throughout the Kingdom of Saudi Arabia is protected and remains intact.
Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:
Impact of Covid-19
Medical technical reserves
The Company’s management believes that the Saudi Arabian government initiative of providing free healthcare to infected and suspected patients has helped in reducing any unfavorable impact. During the period of lockdowns and curfews as implemented by the Saudi Arabian government, the Company experienced a decline in medical reported claims (mainly elective and non-chronic treatment claims) which resulted in a decrease in claims experience which could have resulted from the deferral of certain medical treatments. Accordingly, the Company’s management duly considered the impact of such deferral of medical claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. Based on the results, the management believes that no additional IBNR is required to be maintained as at June 30, 2021, for the issued medical policies to account for the above explained deferral (December 31, 2020: Nil).
Motor technical reserves
In response to the Covid-19 pandemic, SAMA issued a circular 189 (the “Circular”) dated May 8, 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the Circular instructed the insurance companies to extend the period of validity of all existing retail motor insurance policies by two months as well as providing two months of additional coverage for all new retail motor insurance policies written within one month of the date of the Circular.
Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and the Company prospectively assessed the sufficiency of its unexpired risk reserves in relation to those existing retail Motor policies impacted by the Circular. For new retail motor policies issued as per the above Circular, the premium is earned over the period of twelve months as the impact of earnings over the period of coverage i.e. fourteen months is not considered significant by management for the period ended June 30, 2021 and subsequent periods. The Company’s management duly considered the impact of such existing and new retail motor policies impacted by the Circular on claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. As a result, the Company has maintained a premium deficiency reserve of Saudi Riyals 2.7 million on such policies as at June 30, 2021 (December 31, 2020: Saudi Riyals 6.3 million).
Financial assets - investments and loans and receivables
For held-to-maturity investments and financial assets designated as loans and receivables, the Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets is impaired. These include factors such as significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. For available-for-sale investments and at fair value through profit or loss, the Company has performed an assessment to determine whether there is a significant decline in the fair value of these investments to below cost along with other qualitative factors such as prolonged decline in the value of investments for equity instruments and / or occurrence of a credit default event in case of debt instruments. Based on these assessments, the Company believes that the Covid-19 pandemic has had no material effect on the Company’s reported results for the three-month and six-month periods ended June 30, 2021. The Company continues to monitor the situation closely.
Liability arising from claims under insurance contracts
Considerable judgement by management is required in the estimation of amounts due to policyholders arising from claims made under insurance policies. Such estimates are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities.
In particular, estimates have to be made both for the expected ultimate cost of claims reported at the date of statement of financial position and for the expected ultimate cost of IBNR claims at the reporting date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past claim settlement trends to predict future claims settlement trends.
Claims requiring court or arbitration decisions, if any, are estimated individually. Independent loss adjusters normally estimate property claims. Management reviews its provisions for claims incurred and claims incurred but not reported, on a quarterly basis.
The Company is exposed to disputes with, and possibility of defaults by, its reinsurers. The Company monitors on a quarterly basis the evolution of disputes with and the strength of its reinsurers.
Impairment of premiums and insurance balances receivable and goodwill
An estimate of the uncollectible amount of premiums receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.
The recoverable amount of goodwill is estimated based on the present value of the future cash flows expected to be derived from the asset. In case, the recoverable amount is less than carrying value, the difference is charged to statement of income as impairment loss.
Impairment of investments
The Company treats investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments.
Seasonality of operations
There are no seasonal changes that may affect insurance operations of the Company. The interim results may not represent a proportionate share of the annual results due to cyclical variability in premiums and uncertainty of claims occurrences. | |
| Disclosure of basis of measurement [text block] |
Basis of measurement
The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement of employee benefit obligations, financial assets at fair value through profit or loss and available-for-sale investments. | |
| Disclosure of functional and presentation currency [text block] |
Functional and presentation currency
This interim condensed financial information is expressed in Saudi Arabian Riyals (“Saudi Riyals”) which is the functional and presentation currency of the Company. | |
| Disclosure of going concern [text block] |
The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement of employee benefit obligations, financial assets at fair value through profit or loss and available-for-sale investments. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] |
Significant Accounting Policies
The accounting policies, estimates and assumptions used in the preparation of this interim condensed financial information are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2020. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of transfer of portfolio [text block] |
The Company commenced its insurance operations on January 1, 2009. The Company’s General Assembly approved on February 1, 2009 for the Company to enter into an agreement whereby it acquired the entire business (net identifiable assets) of Al Sagr Saudi Insurance Company with effect from January 1, 2009 at a goodwill of Saudi Riyals 39 million as set forth in SAMA’s letter in this respect after completing the related procedures as required under SAMA’s letter on November 10, 2008. | |
| Disclosure of investments [text block] |
Investments
Investments are classified as follows:
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
|
| Financial assets at fair value through profit or loss | 20,182,450 | 26,064,650 | 72,639,046 | 74,400,053 | Available-for-sale investments |
18,312,924 | 13,938,299 |
38,152,360 | 30,146,945 |
|
|
|
|
|
| 38,495,374 | 40,002,949 | 110,791,406 | 104,546,998 |
Category wise investment analysis is as follows:
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
Quoted | 17,068,496 | 12,693,871 | 96,339,597 | 85,349,399 | Unquoted | 21,426,878 | 27,309,078 | 14,451,809 | 19,197,599 |
| 38,495,374 | 40,002,949 | 110,791,406 | 104,546,998 |
The analysis of the composition of investments is as follows:
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
| Mutual funds | 92,821,496 | 100,464,703 | Ordinary shares | 56,465,284 | 44,085,244 | Total | 149,286,780 | 144,549,947 |
Management has performed a review of the available-for-sale investments to assess whether impairment has occurred in the value of these investments. Based on specific information, management is of the view that no impairment is required in respect of the available-for-sale investments.
All investments are denominated in Saudi Riyals and United States Dollars. As at the reporting date investments amounting to Saudi Riyals 92.8 million (December 31, 2020: Saudi Riyals 100.5 million) are denominated in United States Dollars.
Movement in financial assets at fair value through profit or loss is as follows:
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
|
| At the beginning of the period / year | 26,064,650 | 30,535,530 | 74,400,053 | 67,576,336 | Acquisitions during the period / year | - | - | 2,171,620 | 285,113 | Disposals during the period / year | (1,119,131) | (5,198,676) | (12,293,589) | - | Changes in fair value - net | (4,763,069) | (381,612) | 8,360,962 | 6,538,604 | Realised gains on disposal | - | 1,109,408 | - | - | At the end of period / year | 20,182,450 | 26,064,650 | 72,639,046 | 74,400,053 |
Movement in available-for-sale investments is as follows:
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
|
| At the beginning of the period / year | 13,938,299 | 12,608,045 |
30,146,945 | 26,485,637 | Acquisitions during the period / year | 18,272,713 | 33,622,654 |
6,773,607 | 9,368,427 | Disposals during the period / year | (18,244,758) | (33,633,515) |
(6,613,902) | (9,774,328) | Unrealised gains | 899,408 | 656,683 | 5,840,448 | 2,332,167 | Realised gains on disposal | 3,447,262 | 684,432 | 2,005,262 | 1,735,042 | At the end of period / year | 18,312,924 | 13,938,299 | 38,152,360 | 30,146,945 |
Geographical concentration:
The maximum exposure to credit and price risk for financial assets at fair value through profit or loss and available-for-sale investments at the reporting date by geographic region is as follows:
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
|
| Kingdom of Saudi Arabia | 34,721,008 | 30,411,589 | 38,152,360 | 30,146,945 | Singapore | 3,774,366 | 9,591,360 | - | - | United States of America | - | - | 14,451,809 | 19,197,599 | United Arab Emirates | - | - | 58,187,237 | 55,202,454 |
| 38,495,374 | 40,002,949 | 110,791,406 | 104,546,998 |
| |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] |
Premiums and insurers’ balances receivable - net
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
| Policyholders | 75,983,595 | 68,918,023 | Premiums receivable from related parties | 12,817,696 | 11,480,291 | Receivable from insurance and reinsurance companies | 9,852,376 | 19,715,565 |
| 98,653,667 | 100,113,879 |
|
|
| Less: allowance for doubtful debts | (38,861,976) | (36,275,368) |
| 59,791,691 | 63,838,511 |
Movement in the allowance for doubtful debts is as follows:
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
| At the beginning of period / year | 36,275,368 | 36,192,110 | Charge for the period / year | 2,586,608 | 83,258 | At the end of period / year | 38,861,976 | 36,275,368 |
| |
| Disclosure of cash and cash equivalents [text block] |
Cash and cash equivalents
| Insurance operations | Shareholders’ operations |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
|
| Cash in hand | 37,013 | 31,930 | - | - | Cash at banks - current accounts |
35,606,443 | 26,468,936 |
174,867 | 333,635 | Time deposits | - | - | - | 48,750,000 | Money market fund | 102,823,543 | 123,029,039 | 95,903,390 | 144,723,538 |
| 138,466,999 | 149,529,905 | 96,078,257 | 193,807,173 |
Cash at banks and units in money market funds are placed with counterparties that have investment grade credit ratings. | |
| Disclosure of statutory deposit [text block] |
Statutory deposit
The statutory deposit represents 10% of the paid-up share capital which is maintained in accordance with the Law on Supervision of Cooperative Insurance Companies in the Kingdom of Saudi Arabia. SAMA is entitled to the earnings of this statutory deposit and it cannot be withdrawn without its consent. | |
| Disclosure of gross unearned premiums/ contributions [text block] |
Movement in net unearned premiums
Movement in net unearned premiums comprise of the following:
| Six-month period ended June 30, 2021 (Unaudited) |
| Gross | Reinsurance | Net |
|
|
|
| Balance as at the beginning of the period | 171,428,813 | (18,949,044) | 152,479,769 | Balance as at the end of the period | 148,075,297 | (7,799,739) | 140,275,558 | Changes in unearned premiums | 23,353,516 | (11,149,305) | 12,204,211 |
|
|
|
| Premium written during the period | 153,247,242 | (8,262,270) | 144,984,972 | Excess of loss premiums |
|
|
| | - | (7,385,758) | (7,385,758) | | - | (2,732,095) | (2,732,095) | Net premiums earned | 176,600,758 | (29,529,428) | 147,071,330 |
|
|
|
|
Movement in net unearned premiums
| Year ended December 31, 2020 (Audited) |
| Gross | Reinsurance | Net |
|
|
|
| Balance as at the beginning of the year | 230,733,866 | (15,100,022) | 215,633,844 | Balance as at the end of the year | 171,428,813 | (18,949,044) | 152,479,769 | Changes in unearned premiums | 59,305,053 | 3,849,022 | 63,154,075 |
|
|
|
| Premium written during the year | 379,113,658 | (39,914,907) | 339,198,751 | Excess of loss premiums |
|
|
| | - | (21,292,607) | (21,292,607) | | - | (3,738,264) | (3,738,264) | Net premium earned | 438,418,711 | (61,096,756) | 377,321,955 |
|
|
| |
| |
| Disclosure of gross outstanding claims/ benefits [text block] |
Net outstanding claims and reserves comprise of the following:
|
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
|
|
|
| Gross outstanding claims |
| 81,322,806 | 106,553,198 | Gross claims incurred but not reported |
| 66,666,601 | 76,121,056 | Less: |
|
|
| Reinsurers’ share of outstanding claims |
| (32,269,048) | (26,901,755) | Reinsurers’ share of claims incurred but not reported |
| (10,354,686) | (12,002,373) | Net outstanding claims |
| 105,365,673 | 143,770,126 |
|
|
|
| Additional premium reserves: |
|
|
| Premium deficiency reserve |
| 14,995,459 | 14,025,166 |
|
|
|
| Other technical reserves: |
|
|
| Non-proportional reinsurance accrual reserve |
| 771,054 | 524,909 | Unallocated loss adjustment expense reserve |
| 5,450,268 | 5,603,766 |
|
| 6,221,322 | 6,128,675 | Net outstanding claims and reserves |
| 126,582,454 | 163,923,967 |
|
|
|
|
| |
| Disclosure of zakat [text block] |
Zakat
Zakat charge for the period
The charge for the period for zakat is as follows:
| Six-month period ended June 30, 2021 (Unaudited) | Six-month period ended June 30, 2020 (Unaudited) |
|
|
| Charge for the period | 2,500,000 | 4,000,000 |
Zakat base
The principal elements of zakat base are as follows:
| June 30, 2021 | December 31, 2020 |
| (Unaudited) | (Audited) |
|
|
| Opening shareholders’ equity | 287,782,257 | 395,447,533 | Non-current assets | 141,207,861 | 137,670,009 | Goodwill | 25,513,750 | 25,513,750 | Loss for the period / year before zakat | (49,395,330) | (105,979,227) |
The difference between the financial results and adjusted net income is mainly due to adjustments for certain costs based on relevant regulations.
Movement in the provision for zakat during the period / year
| June 30, 2021 | December 31, 2020 |
| (Unaudited) | (Audited) |
|
|
| At the beginning of the period / year | 46,857,518 | 45,730,348 | Provision for the period / year | 2,500,000 | 6,500,000 | Paid during the period / year | (5,975,210) | (5,372,830) | At the end of the period / year | 43,382,308 | 46,857,518 |
Shareholding subject to zakat
The following is the shareholding percentage subject to zakat in the interim condensed financial information and financial statements as at the end of the period/year:
| June 30, 2021 | December 31, 2020 |
| (Unaudited) | (Audited) |
|
|
| Shareholding subject to zakat | 100% | 100% |
Zakat assessments
During the year ended December 31, 2020, the Company received final zakat assessments for the years from 2012 to 2018. Total additional zakat liability as per the assessments amounted to Saudi Riyals 36.3 million for such years. The Company had filed an appeal with General Secretariat of Zakat Committees (high committees) against the assessments and in-parallel had submitted a settlement request with the Zakat, Tax and Customs Authority (“ZATCA”)-Settlement committee. During the period ended June 30, 2021, the ZATCA-Settlement committee offered to decrease the zakat assessments to Saudi Riyals 36.2 million, which the Company did not accept and, accordingly, continued with the appeal filed with General Secretariat of Zakat Committees (high committees), which also issued the decision and the final additional zakat liability was assessed at Saudi Riyals 36.2 million. The Company is currently in the process of filing an appeal with the Appellate Committee for the resolution of tax disputes against the assessment. Management is of the view that ZATCA will reconsider the assessments and will allow for certain deductions from the zakat base, and believes that the level of the existing provision for zakat maintained by the Company is presently sufficient to cover such uncertain zakat position. Subsequent to the period ended June 30, 2021, the Company has received preliminary inquiries for the years 2019 and 2020, which are being responded to by the Company and management believes that no material additional liabilities will arise upon resolution of such preliminary inquiries. | |
| Disclosure of classes of share capital [text block] |
Share capital
The authorized, issued and paid up share capital of the Company was Saudi Riyals 400 million at June 30, 2021, consisting of 40 million shares (December 31, 2020: Saudi Riyals 400 million consisting of 40 million shares) of Saudi Riyals 10 each. | |
| Disclosure of statutory reserve [text block] |
Statutory reserve
In accordance with the By-laws of the Company and Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to transfer not less than 20% of its annual profits, after adjusting accumulated losses, to a statutory reserve until such reserve amounts to 100% of the paid-up share capital of the Company. This reserve is not available for distribution to the shareholders until the liquidation of the Company. Also see Note 1.
| |
| Disclosure of compensation to key management personnel [text block] |
The compensation of key management personnel during the period is as follows:
| Three-month period ended June 30, 2021 (Unaudited) | Three -month period ended June 30, 2020 (Unaudited) | Six-month period ended June 30, 2021 (Unaudited) | Six-month period ended June 30, 2020 (Unaudited) | |
|
|
|
|
| | Salaries and benefits | 2,541,896 | 3,242,017 | 5,197,161 | 5,311,217 | Employee benefit obligations | 140,430 | 115,507 | 302,246 | 251,013 |
| 2,682,326 | 3,357,524 | 5,499,407 | 5,562,230 |
| |
| Disclosure of earnings per share [text block] |
Basic and diluted (loss) earnings per share
Basic and diluted loss per share for the three-month and six-month periods ended June 30, 2021 and 2020 is calculated by dividing total loss for the period attributable to the shareholders by the weighted average number of outstanding shares during the period.
| For the three-month period ended June 30, |
| 2021 | 2020 |
|
|
| Total (loss) income for the period attributable to the shareholders | (10,517,157) | 10,271,839 | Weighted average number of ordinary shares for basic and diluted loss per share | 40,000,000 | 40,000,000 |
|
|
| Basic and diluted (loss) earnings per share | (0.26) | 0.26 |
| For the six-month period ended June 30, |
| 2021 | 2020 |
|
|
| Total loss for the period attributable to the shareholders | (51,895,330) | (50,151,855) | Weighted average number of ordinary shares for basic and diluted loss per share | 40,000,000 | 40,000,000 | Basic and diluted loss per share | (1.30) | (1.25) |
| |
| Disclosure of related party transactions [text block] |
Related party transactions and balances
Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors.
The following are the details of major related party transactions during the period and year ended, and the related balances at the end of the period/year:
| Transactions for the three-month period ended | Transactions for the six-month period ended |
| June 30, 2021 (Unaudited) | June 30, 2020 (Unaudited) | June 30, 2021 (Unaudited) | June 30, 2020 (Unaudited) | Shareholders |
|
|
|
| Gross premiums written | 2,766,791 | 2,913,811 | 4,332,352 | 4,653,742 | Rent expense | (292,099) | (288,588) | (581,234) | (583,867) | Consultancy services | - | (220,911) | - | (441,822) | Reinsurance commission income | 24,035 | 23,819 | 28,085 | 31,653 | Reinsurance share of claims paid | 47,036 | 157,762 | 70,794 | 172,404 | Reinsurance premium ceded | (268,568) | (145,606) | (349,474) | (176,231) | Claims incurred | (1,248,573) | (1,207,768) | (3,236,334) | (3,023,021) |
| Balances receivable (payable) as at |
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | Shareholders |
|
| Premiums receivable from related parties | 12,817,696 | 11,480,291 | Directors’ remuneration and meeting fee payable | (3,836,667) | (3,836,667) | Gross outstanding claims | (1,977,796) | (1,550,137) | Reinsurance premium payable | (395,582) | (616,386) |
The compensation of key management personnel during the period is as follows:
| Three-month period ended June 30, 2021 (Unaudited) | Three -month period ended June 30, 2020 (Unaudited) | Six-month period ended June 30, 2021 (Unaudited) | Six-month period ended June 30, 2020 (Unaudited) | |
|
|
|
|
| | Salaries and benefits | 2,541,896 | 3,242,017 | 5,197,161 | 5,311,217 | Employee benefit obligations | 140,430 | 115,507 | 302,246 | 251,013 |
| 2,682,326 | 3,357,524 | 5,499,407 | 5,562,230 |
(c) Due to a related party
Due to a related party represents amounts payable to Al Sagr Saudi Insurance Company (B.S.C).
(d) The transactions with related parties are carried out at commercial terms and conditions. Compensation to key management personnel is on employment terms and as per the by-laws of the Company. | |
| Disclosure of entity's operating segments [text block] |
Segmental information
Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance.
There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2020.
Segment results do not include general and administration expenses, allowances for doubtful debts, investment and commission income, changes in fair value of financial assets at fair value through profit or loss - net, realized gain (loss) on available-for-sale investments and other income.
Segment assets do not include cash and cash equivalents, term deposits, premiums and insurers’ balances receivable - net, investments, prepaid expenses and other assets, property and equipment, intangible assets, goodwill, statutory deposits, accrued commission income on statutory deposit and, accordingly, they are included in unallocated assets.
Segment liabilities do not include accounts payable, accrued and other liabilities, reinsurer’s balances payable, due to a related party, employee benefit obligations, zakat payable, accrued commission income payable to SAMA, dividend payable and surplus distribution payable and, accordingly, they are included in unallocated liabilities.
These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.
For management purposes, the Company is organized into business units based on their products and services and has the following reportable segments:
-Medical -Motor -Property and casualty and -Protection and savings
Segment performance is evaluated based on profit or loss which, in certain respects, is measured differently from profit or loss in the financial statements.
Where intersegment transactions were to occur, transfer prices between operating segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment income, expense and results will then include those transfers between operating segments, which will then be eliminated at the level of financial statements of the Company.
The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at June 30, 2021 and December 31, 2020, its total revenues, expenses, and net income/loss for the three-month and six-month periods ended June 30, 2021 and June 30, 2020, is as follows: Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | For the three-month period ended June 30, 2021 (Unaudited) |
|
|
|
|
|
|
| REVENUES |
|
|
|
|
|
|
| Gross premiums written | 19,352,758 | 58,675,764 | 6,464,729 | - | 84,493,251 | - | 84,493,251 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| | (77,108) | - | (5,368,690) | - | (5,445,798) | - | (5,445,798) | | - | (35,671) | (76,799) | - | (112,470) | - | (112,470) | Excess of loss premiums: |
|
|
|
|
|
|
| | (3,253,572) | (961,856) | (295,132) | - | (4,510,560) | - | (4,510,560) | | (840,002) | (495,542) | (81,238) | - | (1,416,782) | - | (1,416,782) | Net premiums written | 15,182,076 | 57,182,695 | 642,870 | - | 73,007,641 |
| 73,007,641 |
|
|
|
|
|
|
|
| Changes in unearned premiums | 24,943,051 | (27,088,561) | 4,369,136 | - | 2,223,626 | - | 2,223,626 | Changes in reinsurers’ share of unearned premiums | 47,499 | (31,513) | (4,195,129) | - |
(4,179,143) | - |
(4,179,143) | Net premiums earned | 40,172,626 | 30,062,621 | 816,877 | - | 71,052,124 | - | 71,052,124 |
|
|
|
|
|
|
|
| Reinsurance commissions | 4,886 | 13,437 | 653,038 | - | 671,361 | - | 671,361 |
|
|
|
|
|
|
|
| Total revenues | 40,177,512 | 30,076,058 | 1,469,915 | - | 71,723,485 | - | 71,723,485 |
|
|
|
|
|
|
| (Continued) |
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid | (74,760,801) | (25,657,897) | (764,354) | - | (101,183,052) | - | (101,183,052) | Reinsurers' share of claims paid | 3,414,329 | (36,993) | 592,238 | - | 3,969,574 | - | 3,969,574 | Claims handling expenses | (1,769,518) | (3,211,757) | - | - | (4,981,275) | - | (4,981,275) | Net claims and other benefits paid |
(73,115,990) |
(28,906,647) |
(172,116) |
- |
(102,194,753) |
- |
(102,194,753) |
|
|
|
|
|
|
|
| Changes in outstanding claims | 29,664,655 | (3,470,252) | (2,560,274) | - | 23,634,129 | - | 23,634,129 | Changes in reinsurers’ share of outstanding claims |
(2,007,473) |
667,350 |
2,699,806 | - |
1,359,683 | - |
1,359,683 | Changes in claims incurred but not reported |
10,103,988 |
5,022,264 |
1,398,130 |
- |
16,524,382 |
- |
16,524,382 | Changes in reinsurers’ share of claims incurred but not reported |
1,463,579 |
(1,540,065) |
(1,282,993) |
- |
(1,359,479) |
- |
(1,359,479) | Net claims and other benefits incurred |
(33,891,241) |
(28,227,350) |
82,553 |
- |
(62,036,038) |
- |
(62,036,038) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Policy acquisition costs | (2,339,012) | (1,418,098) | (1,064,702) | - | (4,821,812) | - | (4,821,812) | Changes in additional premium reserves | 6,124,274 | (5,062,791) | (251,032) | - | 810,451 | - | 810,451 | Changes in other technical reserves | (604,102) | 171,498 | 127,719 | - | (304,885) | - | (304,885) | Other underwriting expenses, net | (844,122) | (1,410,288) | (108,245) | - | (2,362,655) | - | (2,362,655) | Total underwriting costs and expenses, net | (31,554,203) | (35,947,029) | (1,213,707) | - | (68,714,939) | - | (68,714,939) | NET UNDERWRITING INCOME (LOSS) |
8,623,309 |
(5,870,971) |
256,208 |
- |
3,008,546 |
- |
3,008,546 |
|
|
|
|
|
|
| (Continued) |
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| Allowance for doubtful debts |
|
|
|
| (438,663) | - | (438,663) | General and administrative expenses |
|
|
|
| (17,677,097) | (473,230) | (18,150,327) | Investment and commission income |
|
|
|
| (76,539) | 1,467,907 | 1,391,368 | Changes in fair value of financial assets at fair value through profit or loss - net |
|
|
|
| (5,048,429) | 6,875,615 | 1,827,186 | Realized gain on available-for-sale investments |
|
|
|
| 1,965,860 | 915,873 | 2,881,733 | Other expenses |
|
|
|
| (37,000) | - | (37,000) | Total other operating (expenses) income, net |
|
|
|
| (21,311,868) | 8,786,165 | (12,525,703) |
|
|
|
|
|
|
|
| Total (loss) income for the period before surplus attribution and zakat |
|
|
|
| (18,303,322) | 8,786,165 | (9,517,157) | Surplus transferred to the insurance operations |
|
|
|
| - | - | - | Total (loss) income for the period before zakat |
|
|
|
| (18,303,322) | 8,786,165 | (9,517,157) |
|
|
|
|
|
|
|
| Zakat expense |
|
|
|
| - | (1,000,000) | (1,000,000) |
|
|
|
|
|
|
|
| Total (loss) income for the period attributed to the shareholders |
|
|
|
| (18,303,322) | 7,786,165 | (10,517,157) |
Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | For the three-month period ended June 30, 2020 (Unaudited) |
|
|
|
|
|
|
| REVENUES |
|
|
|
|
|
|
| Gross premiums written | 27,752,775 | 61,640,928 | 7,599,618 | - | 96,993,321 | - | 96,993,321 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| | (18,462) | - | (5,772,299) | - | (5,790,761) | - | (5,790,761) | | - | (56,766) | (160,573) | - | (217,339) | - | (217,339) | Excess of loss premiums: |
|
|
|
|
|
|
| | (7,462,244) | (139,292) | (256,215) | - | (7,857,751) | - | (7,857,751) | | - | (164,465) | - | - | (164,465) | - | (164,465) | Net premiums written | 20,272,069 | 61,280,405 | 1,410,531 | - | 82,963,005 | - | 82,963,005 |
|
|
|
|
|
|
|
| Changes in unearned premiums | 49,730,604 | (39,165,559) | 2,554,261 | - | 13,119,306 | - | 13,119,306 | Changes in reinsurers’ share of unearned premiums | (2,399) | (60,321) | (2,542,852) | - | (2,605,572) | - | (2,605,572) | Net premiums earned | 70,000,274 | 22,054,525 | 1,421,940 | - | 93,476,739 | - | 93,476,739 |
|
|
|
|
|
|
|
| Reinsurance commissions | 6,019 | 23,417 | 1,286,847 | - | 1,316,283 | - | 1,316,283 |
|
|
|
|
|
|
|
| Total revenues | 70,006,293 | 22,077,942 | 2,708,787 | - | 94,793,022 | - | 94,793,022 |
|
|
|
|
|
|
| (Continued) |
Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid | (99,166,803) | (7,320,734) | (11,943,439) | - | (118,430,976) | - | (118,430,976) | Reinsurers' share of claims paid | 7,987,977 | 75,588 | 11,811,202 | - | 19,874,767 | - | 19,874,767 | Claims handling expenses | (3,077,103) | (12,603) | - | - | (3,089,706) | - | (3,089,706) | Net claims and other benefits paid | (94,255,929) | (7,257,749) | (132,237) | - | (101,645,915) | - | (101,645,915) |
|
|
|
|
|
|
|
| Changes in outstanding claims | 25,090,571 | 2,524,863 | 10,850,635 | - | 38,466,069 | - | 38,466,069 | Changes in reinsurers’ share of outstanding claims | 2,051,936 | 729,784 | (10,715,538) | - | (7,933,818) | - | (7,933,818) | Changes in claims incurred but not reported | 7,891,254 | (3,660,435) | (154,244) | - | 4,076,575 | - | 4,076,575 | Changes in reinsurers’ share of claims incurred but not reported | (651,028) | (8,114) | (88,372) | - | (747,514) | - | (747,514) | Net claims and other benefits incurred | (59,873,196) | (7,671,651) | (239,756) | - | (67,784,603) | - | (67,784,603) |
|
|
|
|
|
|
|
| Policy acquisition costs | (4,232,676) | (789,165) | (729,351) | - | (5,751,192) | - | (5,751,192) | Changes in additional premium reserves | 6,458,055 | (7,342,695) | (73,339) | - | (957,979) | - | (957,979) | Changes in other technical reserves | (453,166) | (455,037) | (277,203) | - | (1,185,406) | - | (1,185,406) | Other underwriting expenses, net | (2,551,272) | (1,306,716) | (128,286) | - | (3,986,274) | - | (3,986,274) | Total underwriting costs and expenses, net | (60,652,255) | (17,565,264) | (1,447,935) | - | (79,665,454) | - | (79,665,454) |
|
|
|
|
|
|
|
| NET UNDERWRITING INCOME | 9,354,038 | 4,512,678 | 1,260,852 | - | 15,127,568 | - | 15,127,568 |
|
|
|
|
|
|
| (Continued) |
Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| Reversal of allowance for doubtful debts |
|
|
|
| 71,172 | - | 71,172 | General and administrative expenses |
|
|
|
| (16,551,998) | (522,485) | (17,074,483) | Investment and commission income |
|
|
|
| 1,691,566 | 2,255,459 | 3,947,025 | Changes in fair value of financial assets at fair value through profit or loss - net |
|
|
|
| 328,125 | 6,623,644 | 6,951,769 | Realized (loss) gain on available-for-sale investments |
|
|
|
| (767,806) | 319,594 | (448,212) | Other income |
|
|
|
| 3,697,000 | - | 3,697,000 | Total other operating (expenses) income, net |
|
|
|
| (11,531,941) | 8,676,212 | (2,855,729) |
|
|
|
|
|
|
|
| Total income for the period before surplus attribution and zakat |
|
|
|
| 3,595,627 | 8,676,212 | 12,271,839 | Surplus attributed to the insurance operations |
|
|
|
| - | - | - | Total income for the period before zakat |
|
|
|
| 3,595,627 | 8,676,212 | 12,271,839 |
|
|
|
|
|
|
|
| Zakat expense |
|
|
|
| - | (2,000,000) | (2,000,000) |
|
|
|
|
|
|
|
| Total income for the period attributable to the shareholders |
|
|
|
| 3,595,627 | 6,676,212 | 10,271,839 |
|
|
|
|
|
|
|
|
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | For the six-month period ended June 30, 2021 (Unaudited) |
|
|
|
|
|
|
| REVENUES |
|
|
|
|
|
|
| Gross premiums written | 47,800,048 | 94,940,542 | 10,506,652 | - | 153,247,242 | - | 153,247,242 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| | (132,577) | - | (7,806,286) | - | (7,938,863) | - | (7,938,863) | | - | (124,506) | (198,901) | - | (323,407) | - | (323,407) | Excess of loss premiums: |
|
|
|
|
|
|
| | (5,617,403) | (1,279,309) | (489,046) | - | (7,385,758) | - | (7,385,758) | | (2,155,315) | (495,542) | (81,238) | - | (2,732,095) | - | (2,732,095) | Net premiums written | 39,894,753 | 93,041,185 | 1,931,181 | - | 134,867,119 | - | 134,867,119 |
|
|
|
|
|
|
|
| Changes in unearned premiums | 43,939,856 | (31,734,738) | 11,148,398 | - | 23,353,516 | - | 23,353,516 | Changes in reinsurers’ share of unearned premiums | 80,733 | (10,563) | (11,219,475) | - | (11,149,305) | - | (11,149,305) | Net premiums earned | 83,915,342 | 61,295,884 | 1,860,104 | - | 147,071,330 | - | 147,071,330 |
|
|
|
|
|
|
|
| Reinsurance commissions | 8,554 | 27,014 | 2,261,300 | - | 2,296,868 | - | 2,296,868 |
|
|
|
|
|
|
|
| Total revenues | 83,923,896 | 61,322,898 | 4,121,404 | - | 149,368,198 | - | 149,368,198 |
|
|
|
|
|
|
| (Continued) |
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid | (149,493,990) | (48,290,063) | (1,055,839) | - | (198,839,892) | - | (198,839,892) | Reinsurers' share of claims paid | 8,314,041 | 54,195 | 772,233 | - | 9,140,469 | - | 9,140,469 | Claims handling expenses | (3,675,380) | (5,175,371) | - | - | (8,850,751) | - | (8,850,751) | Net claims and other benefits paid | (144,855,329) | (53,411,239) | (283,606) | - | (198,550,174) | - | (198,550,174) |
|
|
|
|
|
|
|
| Changes in outstanding claims | 36,160,064 | (3,202,148) | (7,727,524) | - | 25,230,392 | - | 25,230,392 | Changes in reinsurers’ share of outstanding claims | (2,788,852) | 983,789 | 7,172,356 | - | 5,367,293 | - | 5,367,293 | Changes in claims incurred but not reported | 5,348,984 | 2,273,586 | 1,831,885 | - | 9,454,455 | - | 9,454,455 | Changes in reinsurers’ share of claims incurred but not reported | 1,748,880 | (1,606,812) | (1,789,755) | - | (1,647,687) | - | (1,647,687) | Net claims and other benefits incurred | (104,386,253) | (54,962,824) | (796,644) | - | (160,145,721) | - | (160,145,721) |
|
|
|
|
|
|
|
| Policy acquisition costs | (5,194,969) | (2,669,505) | (2,027,392) | - | (9,891,866) | - | (9,891,866) | Changes in additional premium reserves | 2,040,024 | (2,818,200) | (192,117) | - | (970,293) | - | (970,293) | Changes in other technical reserves | 499,487 | 164,045 | (756,179) | - | (92,647) | - | (92,647) | Other underwriting expenses, net | (1,738,515) | (2,242,409) | (161,904) | - | (4,142,828) | - | (4,142,828) | Total underwriting costs and expenses, net | (108,780,226) | (62,528,893) | (3,934,236) | - | (175,243,355) | - | (175,243,355) | NET UNDERWRITING (LOSS) INCOME | (24,856,330) | (1,205,995) | 187,168 | - | (25,875,157) | - | (25,875,157) |
|
|
|
|
|
|
| (Continued) |
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| Allowance for doubtful debts |
|
|
|
| (2,586,608) | - | (2,586,608) | General and administrative expenses |
|
|
|
| (32,758,168) | (995,817) | (33,753,985) | Investment and commission income |
|
|
|
| 837,704 | 2,625,376 | 3,463,080 | Changes in fair value of financial assets at fair value through profit or loss - net |
|
|
|
| (4,763,069) | 8,360,962 | 3,597,893 | Realized gain on available-for-sale investments |
|
|
|
| 3,447,262 | 2,005,262 | 5,452,524 | Other income |
|
|
|
| 306,923 | - | 306,923 | Total other operating (expenses) income, net |
|
|
|
| (35,515,956) | 11,995,783 | (23,520,173) |
|
|
|
|
|
|
|
| Total (loss) income for the period before surplus attribution and zakat |
|
|
|
| (61,391,113) | 11,995,783 | (49,395,330) | Surplus transferred to the insurance operations |
|
|
|
| - | - | - | Total (loss) income for the period before zakat |
|
|
|
| (61,391,113) | 11,995,783 | (49,395,330) |
|
|
|
|
|
|
|
| Zakat expense |
|
|
|
| - | (2,500,000) | (2,500,000) |
|
|
|
|
|
|
|
| Total (loss) income for the period attributed to the shareholders |
|
|
|
| (61,391,113) | 9,495,783 | (51,895,330) |
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | For the six-month period ended June 30, 2020 (Unaudited) |
|
|
|
|
|
|
| REVENUES |
|
|
|
|
|
|
| Gross premiums written | 87,718,956 | 90,164,363 | 16,617,566 | - | 194,500,885 | - | 194,500,885 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| | (49,087) | - | (12,388,757) | - | (12,437,844) | - | (12,437,844) | | - | (127,239) | (454,951) | - | (582,190) | - | (582,190) | Excess of loss premiums: |
|
|
|
|
|
|
| | (7,898,089) | (415,661) | (465,176) | - | (8,778,926) | - | (8,778,926) | | (1,265,155) | (164,465) | (48,650) | - | (1,478,270) | - | (1,478,270) | Net premiums written | 78,506,625 | 89,456,998 | 3,260,032 | - | 171,223,655 | - | 171,223,655 |
|
|
|
|
|
|
|
| Changes in unearned premiums | 79,201,552 | (52,618,777) | 3,090,849 | - | 29,673,624 | - | 29,673,624 | Changes in reinsurers’ share of unearned premiums | 8,516 | (130,272) | (3,766,448) | - | (3,888,204) | - | (3,888,204) | Net premiums earned | 157,716,693 | 36,707,949 | 2,584,433 | - | 197,009,075 | - | 197,009,075 |
|
|
|
|
|
|
|
| Reinsurance commissions | 13,853 | 51,502 | 2,566,260 | - | 2,631,615 | - | 2,631,615 |
|
|
|
|
|
|
|
| Total revenues | 157,730,546 | 36,759,451 | 5,150,693 | - | 199,640,690 | - | 199,640,690 |
|
|
|
|
|
|
| (Continued) |
Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid | (166,363,018) | (19,387,018) | (37,537,642) | - | (223,287,678) | - | (223,287,678) | Reinsurers' share of claims paid | 12,136,426 | 129,592 | 37,190,595 | - | 49,456,613 | - | 49,456,613 | Claims handling expenses | (6,686,580) | (44,992) | - | - | (6,731,572) | - | (6,731,572) | Net claims and other benefits paid | (160,913,172) | (19,302,418) | (347,047) | - | (180,562,637) | - | (180,562,637) |
|
|
|
|
|
|
|
| Changes in outstanding claims | (6,644,411) | 4,310,199 | 36,309,937 | - | 33,975,725 | - | 33,975,725 | Changes in reinsurers’ share of outstanding claims | (768,396) | 715,903 | (36,512,240) | - | (36,564,733) | - | (36,564,733) | Changes in claims incurred but not reported | (11,064,548) | (6,635,548) | 1,664,414 | - | (16,035,682) | - | (16,035,682) | Changes in reinsurers’ share of claims incurred but not reported | 912,826 | 28,882 | (1,971,033) | - | (1,029,325) | - | (1,029,325) | Net claims and other benefits incurred | (178,477,701) | (20,882,982) | (855,969) | - | (200,216,652) | - | (200,216,652) |
|
|
|
|
|
|
|
| Policy acquisition costs | (9,207,219) | (1,437,376) | (1,391,881) | - | (12,036,476) | - | (12,036,476) | Changes in additional premium reserves | 5,995,456 | (8,623,814) | 75,952 | - | (2,552,406) | - | (2,552,406) | Changes in other technical reserves | (816,466) | (688,613) | (251,851) | - | (1,756,930) | - | (1,756,930) | Other underwriting expenses, net | (4,097,395) | (1,359,944) | (222,588) | - | (5,679,927) | - | (5,679,927) | Total underwriting costs and expenses, net | (186,603,325) | (32,992,729) | (2,646,337) | - | (222,242,391) | - | (222,242,391) |
|
|
|
|
|
|
|
| NET UNDERWRITING (LOSS) INCOME | (28,872,779) | 3,766,722 | 2,504,356 | - | (22,601,701) | - | (22,601,701) |
|
|
|
|
|
|
| (Continued) |
Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| Allowance for doubtful debts |
|
|
|
| (4,584,356) | - | (4,584,356) | General and administrative expenses |
|
|
|
| (31,614,971) | (944,301) | (32,559,272) | Investment and commission income |
|
|
|
| 3,514,969 | 5,065,999 | 8,580,968 | Changes in fair value of financial assets at fair value through profit or loss - net |
|
|
|
| 571,875 | 1,272,122 | 1,843,997 | Realized (loss) gain on available-for-sale investments |
|
|
|
| (1,222,815) | 664,561 | (558,254) | Other income |
|
|
|
| 3,726,763 | - | 3,726,763 | Total other operating (expenses) income, net |
|
|
|
| (29,608,535) | 6,058,381 | (23,550,154) |
|
|
|
|
|
|
|
| Total (loss) income for the period before surplus attribution and zakat |
|
|
|
| (52,210,236) | 6,058,381 | (46,151,855) | Surplus attributed to the insurance operations |
|
|
|
| - | - | - | Total (loss) income for the period before zakat |
|
|
|
| (52,210,236) | 6,058,381 | (46,151,855) |
|
|
|
|
|
|
|
| Zakat expense |
|
|
|
| - | (4,000,000) | (4,000,000) |
|
|
|
|
|
|
|
| Total (loss) income for the period attributable to the shareholders |
|
|
|
| (52,210,236) | 2,058,381 | (50,151,855) |
|
|
|
|
|
|
|
|
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | June 30, 2021 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Reinsurers’ share of unearned premiums |
109,271 |
113,018 |
7,577,450 |
- |
7,799,739 | - |
7,799,739 | Reinsurers’ share of outstanding claims |
2,943,522 |
1,868,289 |
27,457,237 |
- |
32,269,048 | - |
32,269,048 | Reinsurers' share of claims incurred but not reported |
4,888,941 |
(1,497,745) |
6,963,490 |
- |
10,354,686 | - |
10,354,686 | Deferred policy acquisition costs | 2,760,139 | 3,578,821 | 326,944 | - | 6,665,904 | - | 6,665,904 | Segmental assets | 10,701,873 | 4,062,383 | 42,325,121 | - | 57,089,377 | - | 57,089,377 | Unallocated assets |
|
|
|
| 283,344,617 | 353,795,858 | 637,140,475 | Total assets |
|
|
|
| 340,433,994 | 353,795,858 | 694,229,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
|
|
|
|
|
| Unearned premiums | 54,528,704 | 83,816,805 | 9,729,788 | - | 148,075,297 | - | 148,075,297 | Unearned reinsurance commission | 18,030 | 22,604 | 858,887 | - | 899,521 | - | 899,521 | Outstanding claims | 41,176,971 | 6,897,061 | 33,248,774 | - | 81,322,806 | - | 81,322,806 | Claims incurred but not reported | 46,985,368 | 11,631,246 | 8,049,987 | - | 66,666,601 | - | 66,666,601 | Additional premium reserves | 4,835,715 | 9,134,237 | 1,025,507 | - | 14,995,459 | - | 14,995,459 | Other technical reserves | 1,311,703 | 3,036,149 | 1,873,470 | - | 6,221,322 | - | 6,221,322 | Segmental liabilities | 148,856,491 | 114,538,102 | 54,786,413 | - | 318,181,006 | - | 318,181,006 | Unallocated liabilities and equity |
|
|
|
| 83,644,101 | 292,404,745 | 376,048,846 | Total liabilities and equity |
|
|
|
| 401,825,107 | 292,404,745 | 694,229,852 |
|
|
|
|
|
|
|
|
4.Segmental information (continued)
| Medical | Motor | Property and casualty | Protection and savings | Total | Shareholders’ operations | Total | December 31, 2020 (Audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Reinsurers’ share of unearned premiums | 28,538 | 123,581 | 18,796,925 | - | 18,949,044 | - | 18,949,044 | Reinsurers’ share of outstanding claims | 5,732,374 | 884,500 | 20,284,881 | - | 26,901,755 | - | 26,901,755 | Reinsurers' share of claims incurred but not reported | 3,140,061 | 109,067 | 8,753,245 | - | 12,002,373 | - | 12,002,373 | Deferred policy acquisition costs | 5,394,124 | 1,695,533 | 1,935,805 | - | 9,025,462 | - | 9,025,462 | Segment assets | 14,295,097 | 2,812,681 | 49,770,856 | - | 66,878,634 | - | 66,878,634 | Unallocated assets |
|
|
|
| 291,837,173 | 445,285,314 | 737,122,487 | Total assets |
|
|
|
| 358,715,807 | 445,285,314 | 804,001,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
|
|
|
|
|
| Unearned premiums | 98,468,560 | 52,082,067 | 20,878,186 | - | 171,428,813 | - | 171,428,813 | Unearned reinsurance commission | 4,709 | 24,716 | 3,165,645 | - | 3,195,070 | - | 3,195,070 | Outstanding claims | 77,337,035 | 3,694,913 | 25,521,250 | - | 106,553,198 | - | 106,553,198 | Claims incurred but not reported | 52,334,352 | 13,904,832 | 9,881,872 | - | 76,121,056 | - | 76,121,056 | Additional premium reserves | 6,875,739 | 6,316,037 | 833,390 | - | 14,025,166 | - | 14,025,166 | Other technical reserves | 1,811,190 | 3,200,194 | 1,117,291 | - | 6,128,675 | - | 6,128,675 | Segmental liabilities | 236,831,585 | 79,222,759 | 61,397,634 | - | 377,451,978 | - | 377,451,978 | Unallocated liabilities and equity |
|
|
|
| 84,763,322 | 341,785,821 | 426,549,143 | Total liabilities and equity |
|
|
|
| 462,215,300 | 341,785,821 | 804,001,121 |
4.1Gross premiums written - categorization
| Three-month period ended June 30, 2021 (Unaudited) |
| Medical | Motor | Property and casualty | Protection and savings | Total |
|
|
|
|
|
| Large corporates | 3,133,187 | 4,392,376 | 2,818,316 | - | 10,343,879 | Medium corporates | 4,895,524 | 2,747,155 | 3,107,157 | - | 10,749,836 | Small enterprises | 8,317,852 | 1,656,817 | 429,958 | - | 10,404,627 | Micro enterprises | 2,392,229 | 174,892 | - | - | 2,567,121 | Retail | 613,966 | 49,704,524 | 109,298 | - | 50,427,788 |
| 19,352,758 | 58,675,764 | 6,464,729 | - | 84,493,251 |
|
|
|
|
|
|
| Three-month period ended June 30, 2020 (Unaudited) |
| Medical | Motor | Property and casualty | Protection and savings | Total |
|
|
|
|
|
| Large corporates | 711,988 | 2,109,100 | 4,717,643 | - | 7,538,731 | Medium corporates | 5,013,725 | 2,534,130 | 309,728 | - | 7,857,583 | Small enterprises | 13,826,334 | 1,109,458 | 1,620,667 | - | 16,556,459 | Micro enterprises | 8,190,480 | 75,270 | 340,752 | - | 8,606,502 | Retail | 10,248 | 55,812,970 | 610,828 | - | 56,434,046 |
| 27,752,775 | 61,640,928 | 7,599,618 | - | 96,993,321 |
|
|
|
|
|
|
| Six-month period ended June 30, 2021 (Unaudited) |
| Medical | Motor | Property and casualty | Protection and savings | Total |
|
|
|
|
|
| Large corporates | 8,136,829 | 10,361,653 | 4,456,337 | - | 22,954,819 | Medium corporates | 8,822,018 | 5,826,376 | 3,961,978 | - | 18,610,372 | Small enterprises | 19,572,780 | 4,106,043 | 1,646,145 | - | 25,324,968 | Micro enterprises | 10,556,557 | 286,656 | 14,198 | - | 10,857,411 | Retail | 711,864 | 74,359,814 | 427,994 | - | 75,499,672 |
| 47,800,048 | 94,940,542 | 10,506,652 | - | 153,247,242 |
|
|
|
|
|
|
| Six-month period ended June 30, 2020 (Unaudited) |
| Medical | Motor | Property and casualty | Protection and savings | Total |
|
|
|
|
|
| Large corporates | 9,744,428 | 6,132,199 | 12,044,243 | - | 27,920,870 | Medium corporates | 14,962,763 | 5,951,267 | 672,786 | - | 21,586,816 | Small enterprises | 36,925,882 | 3,191,994 | 2,106,990 | - | 42,224,866 | Micro enterprises | 24,001,901 | 355,183 | 341,097 | - | 24,698,181 | Retail | 2,083,982 | 74,533,720 | 1,452,450 | - | 78,070,152 |
| 87,718,956 | 90,164,363 | 16,617,566 | - | 194,500,885 |
| |
| Disclosure of commitments and contingencies, general [text block] |
Commitments and contingencies
Legal proceedings
The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business relating to policyholders’ insurance claims. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have material impact on the Company’s results or financial position. Also see Note 1.
Capital commitments
At June 30, 2021, the Company had outstanding commitment of Saudi Riyals 8.8 million in respect of purchase of investments relating to a mutual fund and costs towards implementation of new software (December 31, 2020: Saudi Riyals 3.3 million related to purchase of investments relating to a mutual fund). | |
| Disclosure of fair value of financial assets and liabilities [text block] |
Fair value of financial instruments
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:
-Level 1 - quoted (unadjusted) market prices in active markets for identical assets or liabilities; -Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and -Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The following table shows the fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value.
| June 30, 2021 (Unaudited) |
| Level 1 | Level 2 | Level 3 | Total | Financial assets measured at fair value |
|
|
|
| Mutual funds - financial assets at fair value through profit or loss | - | 92,821,496 | - | 92,821,496 | Ordinary shares - available-for-sale | 55,220,856 | - | 1,244,428 | 56,465,284 |
| 55,220,856 | 92,821,496 | 1,244,428 | 149,286,780 |
| December 31, 2020 (Audited) |
| Level 1 | Level 2 | Level 3 | Total | Financial assets measured at fair value |
|
|
|
| Mutual funds - financial assets at fair value through profit or loss | - | 100,464,703 | - | 100,464,703 | Ordinary shares - available-for-sale | 42,840,816 | - | 1,244,428 | 44,085,244 |
| 42,840,816 | 100,464,703 | 1,244,428 | 144,549,947 |
During the period, there have been no transfers between level 1, level 2 and level 3.
The valuation of publicly traded investments classified under level 1 is based upon the closing market price of that security as of the valuation date, less a discount if the security is restricted. Fair values of private mutual funds classified in Level 2 are determined based on the investees’ latest reported net assets values as at the date of interim condensed statement of financial position taking into account the fair value of underlying investments by the fund. The fair value of Level 2 fixed income investments and funds are taken from the holding statements issued by the respective fund managers. Fair values of other investments classified in Level 3 are, where applicable, determined based on discounted cash flows, which incorporate assumptions regarding an appropriate credit spread. Level 3 available-for-sale investment also comprises equity investment of 4,444 shares of Najm for Insurance Services (Najm) (December 31, 2020: 4,444 shares) and 80,000 shares of Saudi NextCare (December 31, 2020: 80,000 shares), respectively. As at June 30, 2021 and December 31, 2020, such investment is carried at cost as management considers that the recent available information is insufficient to determine fair value and the cost represents the best estimate of fair value in the current circumstances. Cash and cash equivalents, short-term deposits, premiums and insurers’ balances receivable - net, reinsurers’ share of outstanding claims, statutory deposit, accrued commission income on statutory deposits and the financial labilities except employee benefit obligations are measured at amortized | |
| Disclosure of board of director's approval of the financial statements [text block] |
Approval of the interim condensed financial information
The interim condensed financial information has been approved by the Board of Directors on 18 Rabi’ II 1443H (corresponding to November 23, 2021). | |
| Disclosure of other notes relevant to understanding of financial statements [text block] |
Supplementary information
As required by the SAMA Implementing Regulations, the interim condensed statement of financial position, interim condensed statement of income, interim condensed statement of comprehensive income and interim condensed statement of cash flows are separately disclosed for both insurance operations and shareholders’ operations as follows:
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
|
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents | 5 | 138,466,999 | 96,078,257 | 234,545,256 | 149,529,905 | 193,807,173 | 343,337,078 | Premiums and insurers’ balances receivable - net | 7 | 59,791,691 | - | 59,791,691 | 63,838,511 | - | 63,838,511 | Reinsurers’ share of unearned premiums | 8 | 7,799,739 | - | 7,799,739 | 18,949,044 | - | 18,949,044 | Reinsurers’ share of outstanding claims | 8 | 32,269,048 | - | 32,269,048 | 26,901,755 | - | 26,901,755 | Reinsurers’ share of claims incurred but not reported | 8 | 10,354,686 | - | 10,354,686 | 12,002,373 | - | 12,002,373 | Deferred policy acquisition costs |
| 6,665,904 | - | 6,665,904 | 9,025,462 | - | 9,025,462 | Financial assets at fair value through profit or loss | 9 | 20,182,450 | 72,639,046 | 92,821,496 | 26,064,650 | 74,400,053 | 100,464,703 | Available-for-sale investments | 9 | 18,312,924 | 38,152,360 | 56,465,284 | 13,938,299 | 30,146,945 | 44,085,244 | Prepaid expenses and other assets |
| 26,105,211 | 689,926 | 26,795,137 | 21,369,302 | 843,890 | 22,213,192 | Long-term deposits | 6 | 11,250,000 | 75,000,000 | 86,250,000 | 11,250,000 | 75,000,000 | 86,250,000 | Property and equipment |
| 4,158,716 | - | 4,158,716 | 3,983,519 | - | 3,983,519 | Intangible assets |
| 5,076,626 | - | 5,076,626 | 1,862,987 | - | 1,862,987 | Goodwill | 10 | - | 25,513,750 | 25,513,750 | - | 25,513,750 | 25,513,750 | Statutory deposit | 11 | - | 40,000,000 | 40,000,000 | - | 40,000,000 | 40,000,000 | Accrued commission income on statutory deposit | 11 | - | 5,722,519 | 5,722,519 | - | 5,573,503 | 5,573,503 | Amounts due from shareholders |
| 61,391,113 | - | 61,391,113 | 103,499,493 | - | 103,499,493 | TOTAL ASSETS |
| 401,825,107 | 353,795,858 | 755,620,965 | 462,215,300 | 445,285,314 | 907,500,614 | Less: inter-operations elimination |
| (61,391,113) | - | (61,391,113) | (103,499,493) | - | (103,499,493) | TOTAL ASSETS |
| 340,433,994 | 353,795,858 | 694,229,852 | 358,715,807 | 445,285,314 | 804,001,121 |
|
|
|
|
|
|
| (continued) |
Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION (continued)
|
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | LIABILITIES |
|
|
|
|
|
|
| Accounts payable |
| 5,700,481 | - | 5,700,481 | 7,791,663 | - | 7,791,663 | Accrued and other liabilities |
| 24,017,362 | 3,857,795 | 27,875,157 | 26,063,288 | 3,857,795 | 29,921,083 | Reinsurers’ balances payable |
| 4,242,124 | - | 4,242,124 | 2,702,094 | - | 2,702,094 | Unearned premiums | 8 | 148,075,297 | - | 148,075,297 | 171,428,813 | - | 171,428,813 | Unearned reinsurance commission |
| 899,521 | - | 899,521 | 3,195,070 | - | 3,195,070 | Outstanding claims | 8 | 81,322,806 | - | 81,322,806 | 106,553,198 | - | 106,553,198 | Claims incurred but not reported | 8 | 66,666,601 | - | 66,666,601 | 76,121,056 | - | 76,121,056 | Additional premium reserves | 8 | 14,995,459 | - | 14,995,459 | 14,025,166 | - | 14,025,166 | Other technical reserves | 8 | 6,221,322 | - | 6,221,322 | 6,128,675 | - | 6,128,675 | Due to a related party | 12 | - | 1,123,750 | 1,123,750 | - | 1,123,750 | 1,123,750 | Employee benefit obligations |
| 9,785,776 | - | 9,785,776 | 9,207,307 | - | 9,207,307 | Zakat payable | 13 | - | 43,382,308 | 43,382,308 | - | 46,857,518 | 46,857,518 | Accrued commission income payable to SAMA | 11 | - | 5,722,519 | 5,722,519 | - | 5,573,503 | 5,573,503 | Dividend payable |
| - | 370,743 | 370,743 | - | 370,743 | 370,743 | Amounts due to insurance operations |
| - | 61,391,113 | 61,391,113 | - | 103,499,493 | 103,499,493 | Surplus distribution payable |
| 35,219,205 | - | 35,219,205 | 35,219,225 | - | 35,219,225 | TOTAL LIABILITIES |
| 397,145,954 | 115,848,228 | 512,994,182 | 458,435,555 | 161,282,802 | 619,718,357 | Less: inter-operations elimination |
| - | (61,391,113) | (61,391,113) | - | (103,499,493) | (103,499,493) | TOTAL LIABILITIES |
| 397,145,954 | 54,457,115 | 451,603,069 | 458,435,555 | 57,783,309 | 516,218,864 |
|
|
|
|
|
|
| (continued) |
Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION (continued)
|
| June 30, 2021 (Unaudited) | December 31, 2020 (Audited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| EQUITY |
|
|
|
|
|
|
| Share capital | 14 | - | 400,000,000 | 400,000,000 | - | 400,000,000 | 400,000,000 | Accumulated losses |
| - | (174,467,205) | (174,467,205) | - | (122,571,875) | (122,571,875) | Remeasurement reserve of employee benefit obligations |
| 2,296,547 | - | 2,296,547 | 2,296,547 | - | 2,296,547 | Fair value reserve on investments |
| 2,382,606 | 12,414,835 | 14,797,441 | 1,483,198 | 6,574,387 | 8,057,585 | NET EQUITY |
| 4,679,153 | 237,947,630 | 242,626,783 | 3,779,745 | 284,002,512 | 287,782,257 | TOTAL LIABILITIES AND EQUITY |
| 401,825,107 | 292,404,745 | 694,229,852 | 462,215,300 | 341,785,821 | 804,001,121 |
|
|
|
|
|
|
|
|
Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF INCOME FOR THE THREE-MONTH PERIOD ENDED JUNE 30,
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | REVENUES |
|
|
|
|
|
|
| Gross written premiums |
| 84,493,251 | - | 84,493,251 | 96,993,321 | - | 96,993,321 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| |
| (5,445,798) | - | (5,445,798) | (5,790,761) | - | (5,790,761) | |
| (112,470) | - | (112,470) | (217,339) | - | (217,339) | Excess of loss premiums: |
|
|
|
|
|
|
| |
| (4,510,560) | - | (4,510,560) | (7,857,751) | - | (7,857,751) | |
| (1,416,782) | - | (1,416,782) | (164,465) | - | (164,465) | Net premiums written |
| 73,007,641 | - | 73,007,641 | 82,963,005 | - | 82,963,005 |
|
|
|
|
|
|
|
| Changes in unearned premiums |
| 2,223,626 | - | 2,223,626 | 13,119,306 | - | 13,119,306 | Changes in reinsurers’ share of unearned premiums |
| (4,179,143) | - | (4,179,143) | (2,605,572) | - | (2,605,572) | Net premiums earned | 8 | 71,052,124 | - | 71,052,124 | 93,476,739 | - | 93,476,739 |
|
|
|
|
|
|
|
| Reinsurance commissions |
| 671,361 | - | 671,361 | 1,316,283 | - | 1,316,283 |
|
|
|
|
|
|
|
| Total revenues |
| 71,723,485 | - | 71,723,485 | 94,793,022 | - | 94,793,022 |
|
|
|
|
|
|
|
| UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid |
| (101,183,052) | - | (101,183,052) | (118,430,976) | - | (118,430,976) | Reinsurers’ share of claims paid |
| 3,969,574 | - | 3,969,574 | 19,874,767 | - | 19,874,767 | Claims handling expenses |
| (4,981,275) | - | (4,981,275) | (3,089,706) | - | (3,089,706) | Net claims and other benefits paid |
| (102,194,753) | - | (102,194,753) | (101,645,915) | - | (101,645,915) |
|
|
|
|
|
|
| (Continued) |
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Changes in outstanding claims | 8 | 23,634,129 | - | 23,634,129 | 38,466,069 | - | 38,466,069 | Changes in reinsurers’ share of outstanding claims | 8 | 1,359,683 | - | 1,359,683 | (7,933,818) | - | (7,933,818) | Changes in claims incurred but not reported | 8 | 16,524,382 | - | 16,524,382 | 4,076,575 | - | 4,076,575 | Changes in reinsurers’ share of claims incurred but not reported | 8 | (1,359,479) | - | (1,359,479) | (747,514) | - | (747,514) | Net claims and other benefits incurred |
| (62,036,038) | - | (62,036,038) | (67,784,603) | - | (67,784,603) |
|
|
|
|
|
|
|
| Policy acquisition costs |
| (4,821,812) | - | (4,821,812) | (5,751,192) | - | (5,751,192) | Changes in additional premium reserves |
| 810,451 | - | 810,451 | (957,979) | - | (957,979) | Changes in other technical reserves |
| (304,885) | - | (304,885) | (1,185,406) | - | (1,185,406) | Other underwriting expenses, net |
| (2,362,655) | - | (2,362,655) | (3,986,274) | - | (3,986,274) | Total underwriting costs and expenses, net |
| (68,714,939) | - | (68,714,939) | (79,665,454) | - | (79,665,454) |
|
|
|
|
|
|
|
| NET UNDERWRITING INCOME |
| 3,008,546 | - | 3,008,546 | 15,127,568 | - | 15,127,568 |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| (Allowance for) reversal of allowance for doubtful debts | 7 | (438,663) | - | (438,663) | 71,172 | - | 71,172 | General and administrative expenses |
| (17,677,097) | (473,230) | (18,150,327) | (16,551,998) | (522,485) | (17,074,483) | Investment and commission income |
| (76,539) | 1,467,907 | 1,391,368 | 1,691,566 | 2,255,459 | 3,947,025 | Changes in fair value of financial assets at fair value through profit or loss - net | 9 | (5,048,429) | 6,875,615 | 1,827,186 | 328,125 | 6,623,644 | 6,951,769 | Realized gain (loss) on available-for-sale investments | 9 | 1,965,860 | 915,873 | 2,881,733 | (767,806) | 319,594 | (448,212) | Other (expenses) income |
| (37,000) | - | (37,000) | 3,697,000 | - | 3,697,000 |
|
|
|
|
|
|
| (Continued) |
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Total other operating expenses, net |
| (21,311,868) | 8,786,165 | (12,525,703) | (11,531,941) | 8,676,212 | (2,855,729) |
|
|
|
|
|
|
|
| Total (loss) income for the period before surplus attribution and zakat |
| (18,303,322) | 8,786,165 | (9,517,157) | 3,595,627 | 8,676,212 | 12,271,839 | Zakat expense |
| - | (1,000,000) | (1,000,000) | - | (2,000,000) | (2,000,000) | Total (loss) income for the period |
| (18,303,322) | 7,786,165 | (10,517,157) | 3,595,627 | 6,676,212 | 10,271,839 |
|
|
|
|
|
|
|
| Deficit transferred to the shareholders’ operations |
| 18,303,322 | (18,303,322) | - | (3,595,627) | 3,595,627 | - | Total (loss) income for the period after transfer of deficit |
| - | (10,517,157) | (10,517,157) | - | 10,271,839 | 10,271,839 | Weighted average number of outstanding shares | 16 |
| 40,000,000 |
|
| 40,000,000 |
| (Loss) earnings per share (expressed in Saudi Riyals per share) |
|
|
|
|
|
|
| Basic (loss) earnings per share | 16 |
| (0.26) |
|
| 0.26 |
| Diluted (loss) earnings per share | 16 |
| (0.26) |
|
| 0.26 |
|
Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED JUNE 30, (continued)
|
| 2021 (Unaudited) | 2020 (Unaudited) |
|
| Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Total (loss) income for the period attributable to the shareholders |
| - | (10,517,157) | (10,517,157) | - | 10,271,839 | 10,271,839 |
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
| - | - | - | - | - | - |
|
|
|
|
|
|
|
| Items that will be reclassified to interim condensed statement of income in subsequent periods |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net change in fair value of available-for-sale investments |
| 259,675 | 3,839,308 | 4,098,983 | 1,320,061 | 2,079,754 | 3,399,815 |
|
|
|
|
|
|
|
| TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD |
| 259,675 | (6,677,849) | (6,418,174) | 1,320,061 | 12,351,593 | 13,671,654 |
|
|
|
|
|
|
|
|
21.Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF INCOME FOR THE SIX-MONTH PERIOD ENDED JUNE 30,
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | REVENUES |
|
|
|
|
|
|
| Gross written premiums |
| 153,247,242 | - | 153,247,242 | 194,500,885 | - | 194,500,885 | Reinsurance premiums ceded: |
|
|
|
|
|
|
| |
| (7,938,863) | - | (7,938,863) | (12,437,844) | - | (12,437,844) | |
| (323,407) | - | (323,407) | (582,190) | - | (582,190) | Excess of loss premiums: |
|
|
|
|
|
|
| |
| (7,385,758) | - | (7,385,758) | (8,778,926) | - | (8,778,926) | |
| (2,732,095) | - | (2,732,095) | (1,478,270) | - | (1,478,270) | Net premiums written |
| 134,867,119 | - | 134,867,119 | 171,223,655 | - | 171,223,655 |
|
|
|
|
|
|
|
| Changes in unearned premiums |
| 23,353,516 | - | 23,353,516 | 29,673,624 | - | 29,673,624 | Changes in reinsurers’ share of unearned premiums |
| (11,149,305) | - | (11,149,305) | (3,888,204) | - | (3,888,204) | Net premiums earned | 8 | 147,071,330 | - | 147,071,330 | 197,009,075 | - | 197,009,075 |
|
|
|
|
|
|
|
| Reinsurance commissions |
| 2,296,868 | - | 2,296,868 | 2,631,615 | - | 2,631,615 |
|
|
|
|
|
|
|
| Total revenues |
| 149,368,198 | - | 149,368,198 | 199,640,690 | - | 199,640,690 |
|
|
|
|
|
|
|
| UNDERWRITING COSTS AND EXPENSES |
|
|
|
|
|
|
| Gross claims paid |
| (198,839,892) | - | (198,839,892) | (223,287,678) | - | (223,287,678) | Reinsurers’ share of claims paid |
| 9,140,469 | - | 9,140,469 | 49,456,613 | - | 49,456,613 | Claims handling expenses |
| (8,850,751) | - | (8,850,751) | (6,731,572) | - | (6,731,572) | Net claims and other benefits paid |
| (198,550,174) | - | (198,550,174) | (180,562,637) | - | (180,562,637) |
|
|
|
|
|
|
| (Continued) | |
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Changes in outstanding claims | 8 | 25,230,392 | - | 25,230,392 | 33,975,725 | - | 33,975,725 | Changes in reinsurers’ share of outstanding claims | 8 | 5,367,293 |
| 5,367,293 | (36,564,733) | - | (36,564,733) | Changes in claims incurred but not reported | 8 | 9,454,455 | - | 9,454,455 | (16,035,682) | - | (16,035,682) | Changes in reinsurers’ share of claims incurred but not reported | 8 | (1,647,687) |
| (1,647,687) | (1,029,325) | - | (1,029,325) | Net claims and other benefits incurred |
| (160,145,721) | - | (160,145,721) | (200,216,652) | - | (200,216,652) |
|
|
|
|
|
|
|
| Policy acquisition costs |
| (9,891,866) | - | (9,891,866) | (12,036,476) | - | (12,036,476) | Changes in additional premium reserves |
| (970,293) | - | (970,293) | (2,552,406) | - | (2,552,406) | Changes in other technical reserves |
| (92,647) | - | (92,647) | (1,756,930) | - | (1,756,930) | Other underwriting expenses, net |
| (4,142,828) | - | (4,142,828) | (5,679,927) | - | (5,679,927) |
|
|
|
|
|
|
|
| Total underwriting costs and expenses, net |
| (175,243,355) | - | (175,243,355) | (222,242,391) | - | (222,242,391) |
|
|
|
|
|
|
|
| NET UNDERWRITING LOSS |
| (25,875,157) | - | (25,875,157) | (22,601,701) | - | (22,601,701) |
|
|
|
|
|
|
|
| OTHER OPERATING (EXPENSES) INCOME |
|
|
|
|
|
|
| Allowance for doubtful debts | 7 | (2,586,608) | - | (2,586,608) | (4,584,356) | - | (4,584,356) | General and administrative expenses |
| (32,758,168) | (995,817) | (33,753,985) | (31,614,971) | (944,301) | (32,559,272) | Investment and commission income |
| 837,704 | 2,625,376 | 3,463,080 | 3,514,969 | 5,065,999 | 8,580,968 | Changes in fair value of financial assets at fair value through profit or loss - net | 9 | (4,763,069) | 8,360,962 | 3,597,893 | 571,875 | 1,272,122 | 1,843,997 | Realized gains (losses) on available-for-sale investments | 9 | 3,447,262 | 2,005,262 | 5,452,524 | (1,222,815) | 664,561 | (558,254) | Other income |
| 306,923 | - | 306,923 | 3,726,763 | - | 3,726,763 |
|
|
|
|
|
|
| (Continued) |
|
| 2021 (Unaudited) | 2020 (Unaudited) |
| Note | Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Total other operating expenses, net |
| (35,515,956) | 11,995,783 | (23,520,173) | (29,608,535) | 6,058,381 | (23,550,154) |
|
|
|
|
|
|
|
| Total (loss) income for the period before surplus attribution and zakat |
| (61,391,113) | 11,995,783 | (49,395,330) | (52,210,236) | 6,058,381 | (46,151,855) | Zakat expense |
| - | (2,500,000) | (2,500,000) | - | (4,000,000) | (4,000,000) | Total (loss) income for the period |
| (61,391,113) | 9,495,783 | (51,895,330) | (52,210,236) | 2,058,381 | (50,151,855) |
|
|
|
|
|
|
|
| Deficit transferred to the shareholders’ operations |
| 61,391,113 | (61,391,113) | - | 52,210,236 | (52,210,236) | - | Total loss for the period after transfer of deficit |
| - | (51,895,330) | (51,895,330) | - | (50,151,855) | (50,151,855) | Weighted average number of outstanding shares | 16 |
| 40,000,000 |
|
| 40,000,000 |
| Loss per share (expressed in Saudi Riyals per share) |
|
|
|
|
|
|
| Basic loss per share | 16 |
| (1.30) |
|
| (1.25) |
| Diluted loss per share | 16 |
| (1.30) |
|
| (1.25) |
|
21.Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIOD ENDED JUNE 30, (continued)
|
| 2021 (Unaudited) | 2020 (Unaudited) |
|
| Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Total loss for the period attributable to the shareholders |
| - | (51,895,330) | (51,895,330) | - | (50,151,855) | (50,151,855) |
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will be reclassified to interim condensed statement of income in subsequent periods |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net change in fair value of available-for-sale investments |
| 899,408 | 5,840,448 | 6,739,856 | (767,295) | (1,651,576) | (2,418,871) |
|
|
|
|
|
|
|
| TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD |
| 899,408 | (46,054,882) | (45,155,474) | (767,295) | (51,803,431) | (52,570,726) |
|
|
|
|
|
|
|
|
21.Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30,
| 2021 (Unaudited) | 2020 (Unaudited) |
| Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
| Total loss for the period before surplus attribution and zakat | - | (49,395,330) | (49,395,330) | - | (46,151,855) | (46,151,855) | Adjustments for non-cash items: |
|
|
|
|
|
| Depreciation of property and equipment | 395,969 | - | 395,969 | 563,311 | - | 563,311 | Amortization of intangible assets | 318,880 | - | 318,880 | 308,722 | - | 308,722 | Provision for employee benefit obligations | 1,119,886 | - | 1,119,886 | 1,236,334 | - | 1,236,334 | Changes in fair value of financial assets at fair value through profit or loss | 4,763,069 | (8,360,962) | (3,597,893) | (571,875) | (1,272,122) | (1,843,997) | Realized (gains) losses on available-for-sale investments | (3,447,262) | (2,005,262) | (5,452,524) | 1,222,815 | (664,561) | 558,254 | Allowance for doubtful debts | 2,586,608 | - | 2,586,608 | 4,584,356 | - | 4,584,356 |
|
|
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Unearned premiums | (23,353,516) | - | (23,353,516) | (29,673,624) | - | (29,673,624) | Premiums and insurers’ balances receivable - net | 1,460,212 | - | 1,460,212 | 8,965,727 | - | 8,965,727 | Reinsurers' share of unearned premiums | 11,149,305 | - | 11,149,305 | 3,888,204 | - | 3,888,204 | Reinsurers' share of outstanding claims | (5,367,293) | - | (5,367,293) | 36,564,733 | - | 36,564,733 | Reinsurers’ share of claims incurred but not reported | 1,647,687 | - | 1,647,687 | 1,029,325 | - | 1,029,325 | Deferred policy acquisition costs | 2,359,558 | - | 2,359,558 | 3,634,338 | - | 3,634,338 | Prepaid expenses and other assets | (4,735,909) | 153,964 | (4,581,945) | (1,821,821) | (1,616,293) | (3,438,114) | Accounts payable | (2,091,182) | - | (2,091,182) | (412,923) | - | (412,923) | Accrued and other liabilities | (2,045,926) | - | (2,045,926) | (5,067,037) | (2,183,113) | (7,250,150) | Reinsurers’ balances payable | 1,540,030 | - | 1,540,030 | (1,425,779) | - | (1,425,779) | Unearned reinsurance commission | (2,295,549) | - | (2,295,549) | (602,790) | - | (602,790) |
|
|
|
|
|
| (Continued) |
21.Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, (continued)
|
| 2021 (Unaudited) | 2020 (Unaudited) |
|
| Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total | Outstanding claims |
| (25,230,392) | - | (25,230,392) | (32,150,725) | - | (32,150,725) | Claims incurred but not reported |
| (9,454,455) | - | (9,454,455) | 16,035,682 | - | 16,035,682 | Additional premium reserves |
| 970,293 | - | 970,293 | 2,552,406 | - | 2,552,406 | Other technical reserves |
| 92,647 | - | 92,647 | 1,756,930 | - | 1,756,930 | Employee benefit obligations paid |
| (541,417) | - | (541,417) | (370,709) | - | (370,709) | Zakat paid |
| - | (5,975,210) | (5,975,210) | - | - | - | Surplus paid to policy holders |
| (20) | - | (20) | - | - | - | Accrued commission income payable to SAMA |
| - | 149,016 | 149,016 | - | 451,520 | 451,520 | Amounts due to (from) insurance operations |
| (61,391,113) | 61,391,113 | - | (105,021,618) | 105,021,618 | - | Amounts due (from) to shareholders’ operations |
| 103,499,493 | (103,499,493) | - | 71,925,702 | (71,925,702) | - | Net cash utilized in operating activities |
| (8,050,397) | (107,542,164) | (115,592,561) | (22,850,316) | (18,340,508) | (41,190,824) |
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
| Placement in short-term deposits |
| - | - | - | (50,000,000) | - | (50,000,000) | Liquidation of short-term deposits |
| - | - | - | 50,030,556 | 20,100,000 | 70,130,556 | Accrued commission income on statutory deposit |
| - | (149,016) | (149,016) | - | (451,520) | (451,520) | Purchases of property and equipment |
| (571,166) | - | (571,166) | (318,538) | - | (318,538) | Purchases of intangible assets |
| (3,532,519) | - | (3,532,519) | (356,500) | - | (356,500) | Additions in financial assets at fair value through profit or loss |
| - | (2,171,620) | (2,171,620) | - | (136,854) | (136,854) | Proceeds from disposal of financial assets at fair value through profit or loss |
| 1,119,131 | 12,293,589 | 13,412,720 | 1,453,909 | - | 1,453,909 | Proceeds from disposal of available-for-sale investments |
| 18,244,758 | 6,613,902 | 24,858,660 | 15,564,124 | 4,175,077 | 19,739,201 | Proceeds from disposal of investments held to maturity |
| - | - | - | - | 80,000,000 | 80,000,000 | Purchase of available-for-sale investments |
| (18,272,713) | (6,773,607) | (25,046,320) | (16,226,182) | (4,382,523) | (20,608,705) | Net cash (utilized in) generated from investing activities |
| (3,012,509) | 9,813,248 | 6,800,739 | 147,369 | 99,304,180 | 99,451,549 |
|
|
|
|
|
|
| (Continued) |
|
| 2021 (Unaudited) | 2020 (Unaudited) |
|
| Insurance operations | Shareholders’ operations | Total | Insurance operations | Shareholders’ operations | Total |
|
|
|
|
|
|
|
| Net change in cash and cash equivalents |
| (11,062,906) | (97,728,916) | (108,791,822) | (22,702,947) | 80,963,672 | 58,260,725 | Cash and cash equivalents, beginning of the period |
| 149,529,905 | 193,807,173 | 343,337,078 | 144,629,779 | 110,474,629 | 255,104,408 |
|
|
|
|
|
|
|
| Cash and cash equivalents, end of the period |
| 138,466,999 | 96,078,257 | 234,545,256 | 121,926,832 | 191,438,301 | 313,365,133 |
|
|
|
|
|
|
|
| Supplemental non-cash information: |
|
|
|
|
|
|
| Net change in fair value reserve for available-for-sale investments |
| 899,408 | 5,840,448 | 6,739,856 | (767,295) | (1,651,576) | (2,418,871) | Surplus distribution payable adjusted against insurance premium receivable from policyholders |
| - | - | - | 26,131 | - | 26,131 | Settlement of premium receivable from a shareholder through rent due to shareholder |
| - | - | - | 582,600 | - | 582,600 | Settlement of premium receivable from a shareholder through outstanding claims |
| - | - | - | 1,825,000 | - | 1,825,000 |
| |
