| 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] | United Cooperative Assurance (“the Company”) is a Saudi Joint Stock Company registered in the Kingdom of Saudi Arabia under Commercial Registration No. 4030179955 dated 6 Jamad-al-Thani 1429H, corresponding to 6 June 2008. Registered Office address of the Company is Al-Mukmal Centre (1st and 4th floor) Prince Saud Al Faisal Street, Khalediya District, P. O. Box 5019, Jeddah 21422, Kingdom of Saudi Arabia.The activities of the Company are to transact cooperative insurance and reinsurance operations and related activities in the Kingdom of Saudi Arabia. On 29 Rabi Al Thani 1429H (5 May 2008), the Company received a license from the Saudi Arabian Monetary Agency (“SAMA”) to engage in insurance and reinsurance in Saudi Arabia. The Company started the operations on 1 January 2009.The Company received the approval letters from the Saudi Arabian Monetary Authority and Ministry of Commerce and Investment regarding the amendment of the Company’s by-laws to be in accordance with the new company’s regulations. The Company’s extraordinary general assembly was held on 10 August 2017 corresponding to 18 Thul Qeadah 1438H and accordingly the new by-laws was approved. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATIONa. Statement of ComplianceThe interim condensed financial statements for the three-months and nine-months periods ended 30 September 2019 have 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 Saudi Organization of Certified Public Accountants (SOCPA), pursuant to SAMA circular dated 17 July 2019.Until the period ended 31 March 2019, the interim condensed financial statements of the Company were prepared in accordance with the International Accounting Standard – Interim Financial Reporting (“IAS 34”) as modified by SAMA for the accounting of Zakat and income tax.As mentioned above, the basis of preparation has been changed for the period ended 30 June 2019 onwards as a result of the issuance of latest instructions from SAMA. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively.The Company changed its accounting policy for zakat and income tax as mandated by International Accounting Standard 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”). The effects of this change are disclosed in note 18 to the interim condensed financial statements.b. Basis of presentationThe interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement of investments (excluding held-to-maturity) at their fair value. The Company’s interim condensed statement of financial position is presented in order of liquidity. Except for property and equipment, statutory deposit, End-of-service indemnities, outstanding claims, claims incurred but not reported, all other assets and liabilities are of short-term nature, unless, stated otherwise.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. Similarly, in the past, the Company’s interim condensed and annual financial statements presented separately the statements of financial position, income, comprehensive income and cash flows for the insurance operations and shareholders operations. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors. | 2 |
| Disclosure of accounting framework used in preparation of financial statements [text block] | BASIS OF PREPARATION – (continued)b. Basis of presentation – continuedThe interim condensed statement of financial position, statements of income and statement of comprehensive income and cash flows of the insurance operations and shareholders’ operations which are presented on pages 35 to 45 of the financial statements have been provided as supplementary financial information and to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the interim condensed statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.In preparing the Company-level financial statements in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, 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.The inclusion of separate information of the insurance operations with the financial information of the Company in the interim condensed statements of financial position, statement of income, statement of comprehensive income, statement of cash flows as well as certain relevant notes to the financial statements represents additional supplementary information required as by the implementing regulations.The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements as of and for the year ended 31 December 2018. The interim condensed financial statements may not be considered indicative of the expected results for the full year.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.c. Judgment and estimatesThe preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing these interim condensed financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2018. d. Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company.d. Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company. | 2 |
| Disclosure of statement of compliance [text block] | a. Statement of ComplianceThe interim condensed financial statements for the three-months and nine-months periods ended 30 September 2019 have 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 Saudi Organization of Certified Public Accountants (SOCPA), pursuant to SAMA circular dated 17 July 2019.Until the period ended 31 March 2019, the interim condensed financial statements of the Company were prepared in accordance with the International Accounting Standard – Interim Financial Reporting (“IAS 34”) as modified by SAMA for the accounting of Zakat and income tax.As mentioned above, the basis of preparation has been changed for the period ended 30 June 2019 onwards as a result of the issuance of latest instructions from SAMA. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively.The Company changed its accounting policy for zakat and income tax as mandated by International Accounting Standard 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”). The effects of this change are disclosed in note 18 to the interim condensed financial statements. | 2 |
| Disclosure of new standards and amendments in standards [text block] | a. New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe Company has adopted the following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):Standard/Amendments DescriptionIFRS 16 Leases (refer below)IFRS 16 - LeasesIFRS 16 replaces IAS 17 ‘Leases’, IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘Operating Leases-Incentives’ and SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’.IFRS 16 ‘Leases’ introduces a single, on-balance sheet accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are optional exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operating leases.On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets the Company has applied the optional exemptions to not recognize right-of-use assets but to account for the lease expense on a straight line basis over the remaining lease term. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they are effective.Standard/Interpretation Description Effective from periods beginning on or after the following dateIFRS 9 Financial Instruments Refer belowIFRS 17 Insurance Contracts (note below) 1 January 2022IFRS 9 and IFRS 17In 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 (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income. IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well we finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach. | 3 |
| Disclosure of basis of measurement [text block] | These imterim condensed financial ststements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearst thousands | 2 |
| Disclosure of functional and presentation currency [text block] | These imterim condensed financial ststements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearst thousands | 2 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | 3. SIGNIFICANT ACCOUNTING POLICIESThe accounting policies adopted by the Company for the preparation of these interim condensed financial statements are in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia and are consistent with those used for the preparation of the annual financial statements for the year ended 31 December 2018 and new amended IFRS and International Financial Reporting Interpretations Committee Interpretations (IFRIC) as mentioned in note 3(a) which had no impact on the financial position or financial performance of the Company. Certain comparative amounts have been reclassified / regrouped to conform with the current period’s presentation. This did not have any impact on interim condensed statement of changes in shareholders’ equity for the period.a. New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe Company has adopted the following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):Standard/Amendments DescriptionIFRS 16 Leases (refer below)IFRS 16 - LeasesIFRS 16 replaces IAS 17 ‘Leases’, IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘Operating Leases-Incentives’ and SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’.IFRS 16 ‘Leases’ introduces a single, on-balance sheet accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are optional exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operating leases.On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets the Company has applied the optional exemptions to not recognize right-of-use assets but to account for the lease expense on a straight line basis over the remaining lease term.b. Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they are effective.Standard/Interpretation Description Effective from periods beginning on or after the following dateIFRS 9 Financial Instruments Refer belowIFRS 17 Insurance Contracts (note below) 1 January 2022IFRS 9 and IFRS 17In 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 (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income. IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well we finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39. 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 2022. 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.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2022.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements 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. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | 4. CASH AND CASH EQUIVALENTSCash and cash equivalents included in the statement of cash flows comprise the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Insurance operations Bank balances and cash 83,409 88,477 Shareholders’ operations Bank balances and cash 13,556 1,056 | 4 |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 5. PREMIUMS AND REINSURERS’ RECEIVABLE – NETReceivables comprise amounts due from the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Policyholders 98,604 83,432Brokers and agents 19,370 15,288Related parties (note 12) 87,650 134,622Receivables from reinsurers’ 32,828 23,059 238,452 256,401Provision for doubtful receivables (82,727) (86,665)Premiums and reinsurers’ receivable – net 155,725 169,736Movement in the allowance for doubtful premiums receivable during the period was as follows: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Balance at beginning of the period / year 86,665 75,689Provision made during the period / year - 11,080Release of provision during the period / year (3,938) -Written-off during the year - (104)Balance at end of the period / year 82,727 86,665 | 5 |
| Description of accounting policy for zakat [text block] | 13. ZAKAT AND INCOME TAXa. Charge for the yearThe differences between the financial and the Zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Movements in provision during the year 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000Balance at the beginning of the period / year 22,488 23,708Charge for the period / year 3,000 4,000Paid during the period / year (1,552) (5,220)Balance at the end of the period / year 23,936 22,488The differences between the financial and the zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the GAZT could be different from the declarations filed by the Company.b. Status of zakat assessmentsThe Company has filed its zakat declarations for the years ended 31 December 2009 to 2018 and obtained restricted zakat certificates until 31 December 2018.During 2017, the Company received the zakat assessments for the years 2005 to 2008 from the General Authority of Zakat and Income Tax (GAZT) with regards to the portfolio transferred from the old company claiming zakat liability amounting to SR 6.01 million and with-holding tax liability amounting to SR 16.09 million. The management believes that the existing provision for zakat and with-holding tax is sufficient. The Management has filed an objection against the above assessments and is confident of receiving a favourable ruling. However, during the year, the Company has issued a bank guarantee in favour of GAZT amounting to SR 22.096 million (note 9).GAZT has not yet raised assessments for the years from 2012 to 2018. The Zakat is applicable on 99% of the shareholders while Income Tax on 1% of the shareholders. | 13 |
| Description of accounting policy for fair value measurement [text block] | 10. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantageous accessible market for the asset or liabilityThe fair values on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed (consolidated) financial information.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and 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.FAIR VALUES OF FINANCIAL INSTRUMENTS – (continued)a. Carrying amounts and fair value30 September 2019 (Unaudited) Fair value Level 1 Level 2 Level 3 Total SR’ 000 SR’ 000 SR’ 000 SR’ 000 Financial assets measured at fair value Equity securities - Insurance operations - 226 - 226- Shareholders’ operations - 20,201 1,923 22,124 Financial assets not measured at fair value Debt securities Insurance operations - Insurance operations 79,414 - - 79,414- Shareholders’ operations - - - - 79,414 20,427 1,923 101,76431 December 2018 (Audited) Fair value Level 1 Level 2 Level 3 Total SR’ 000 SR’ 000 SR’ 000 SR’ 000 Financial assets measured at fair value Equity securities - Insurance operations - 222 - 222- Shareholders’ operations - 11,319 1,923 13,242 Financial assets not measured at fair value Debt securities Insurance operations - Insurance operations 3,672 - - 3,672- Shareholders’ operations 13,035 - - 13,035 16,707 11,541 1,923 30,171 | 10 |
| Description of accounting policy for segment reporting [text block] | 11. OPERATING SEGMENTSOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the income statement. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since 31 December 2018.Segment assets do not include cash and cash equivalents, term deposits, net premiums and reinsurers’ receivable, net, prepayments and other receivables, investments, furniture, fittings and office equipment. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders’ claims, reinsurance payables, accruals and other payables and employees’ end of service indemnities. 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.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at 30 September 2019 and 31 December 2018, its total revenues, expenses, and net income for the three-months and nine-months periods then ended | 11 |
| Description of accounting policy for financial assets [text block] | 10. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantageous accessible market for the asset or liabilityThe fair values on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed (consolidated) financial information.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and 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. | 10 |
| Description of accounting policy for financial liabilities [text block] | 10. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantageous accessible market for the asset or liabilityThe fair values on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed (consolidated) financial information.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and 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. | 10 |
| Description of accounting policy for statutory deposit [text block] | 8. STATUTORY DEPOSITAs required by the Saudi Arabian Insurance Regulations, the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SAR 73.5 million in a bank designated by the Saudi Arabian Monetary Authority (“SAMA”). This statutory deposit cannot be withdrawn without the consent of SAMA and commission accruing on this deposit is payable to SAMA. During 2018, the Company has reduced its share capital by SAR 90 million but has not withdrawn the surplus statutory deposit of SAR 13.5 million as of 31 December 2018.During the three-months period ended 30 September 2019, the Company obtained approval from SAMA for withdrawal of SAR. 13.5 million. | 8 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 6. INVESTMENTSInvestment are classified as follows:Insurance operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 - Available for sale (note 6.1) 79,640 3,894- Held to maturity (note 6.3) 77,890 156,265Total 157,530 160,1596.1 Available-for-sale investmentsMovement in available-for-sale investment balance is as follows:Insurance’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Opening balance 3,894 104,262Purchases during the period / year 20,000 -Disposals during the period / year (23,905) (690)Transfer to shareholders' operations 78,464 (100,000)Realized gain on investments 156 -Changes in fair value of investments 1,031 322Closing balance 79,640 3,894Insurance’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Investment in bonds 79,414 3,672Investment in mutual funds 226 222 79,640 3,894INVESTMENTS – (continued)Shareholders’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 - Available for sale (note 6.2) 22,124 26,277- Held to maturity (note 6.3) 198,460 198,319Total 220,584 224,5966.2 Available-for-sale investmentsMovement in available-for-sale investment balance is as follows:Shareholders’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Opening balance 26,277 36,624Purchases during the period / year 19,318 -Disposals during the period / year (24,582) (11,283)Realized gain / (loss) on investments 280 (2,430)Changes in fair value of investments 831 3,366Closing balance 22,124 26,277 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Investment in equity shares 1,923 1,923Investment in bonds - 13,035Investment in mutual funds 20,201 11,319 22,124 26,277 INVESTMENTS –6.3 Held to maturity investmentsMovement in held to maturity investment balance is as follows:Insurance operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Opening balance 156,265 156,060Transfer to shareholders’ operations (78,464) -Amortization of held to maturity investments 89 205Closing balance 77,890 156,265Shareholders’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Opening balance 198,319 98,131Transfer from insurance operations - 100,000Amortization of held to maturity investments 141 188Closing balance 198,460 198,319 | 6 |
| Disclosure of investments held-to-maturity [text block] | Held to maturity investmentsMovement in held to maturity investment balance is as follows:Insurance operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Opening balance 156,265 156,060Transfer to shareholders’ operations (78,464) -Amortization of held to maturity investments 89 205Closing balance 77,890 156,265Shareholders’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Opening balance 198,319 98,131Transfer from insurance operations - 100,000Amortization of held to maturity investments 141 188Closing balance 198,460 198,319 | 6.3 |
| Disclosure of investments in available-for-sale investments [text block] | Available-for-sale investmentsMovement in available-for-sale investment balance is as follows:Insurance’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Opening balance 3,894 104,262Purchases during the period / year 20,000 -Disposals during the period / year (23,905) (690)Transfer to shareholders' operations 78,464 (100,000)Realized gain on investments 156 -Changes in fair value of investments 1,031 322Closing balance 79,640 3,894Insurance’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Investment in bonds 79,414 3,672Investment in mutual funds 226 222 79,640 3,894Available-for-sale investmentsMovement in available-for-sale investment balance is as follows:Shareholders’ operations 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Opening balance 26,277 36,624Purchases during the period / year 19,318 -Disposals during the period / year (24,582) (11,283)Realized gain / (loss) on investments 280 (2,430)Changes in fair value of investments 831 3,366Closing balance 22,124 26,277 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Investment in equity shares 1,923 1,923Investment in bonds - 13,035Investment in mutual funds 20,201 11,319 22,124 26,277 | 6 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 5. PREMIUMS AND REINSURERS’ RECEIVABLE – NETReceivables comprise amounts due from the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Policyholders 98,604 83,432Brokers and agents 19,370 15,288Related parties (note 12) 87,650 134,622Receivables from reinsurers’ 32,828 23,059 238,452 256,401Provision for doubtful receivables (82,727) (86,665)Premiums and reinsurers’ receivable – net 155,725 169,736Movement in the allowance for doubtful premiums receivable during the period was as follows: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Balance at beginning of the period / year 86,665 75,689Provision made during the period / year - 11,080Release of provision during the period / year (3,938) -Written-off during the year - (104)Balance at end of the period / year 82,727 86,665 | 5 |
| Disclosure of due from related parties [text block] | 12. RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Nature of transactions Transactions for the period ended Balance receivable / (payable) as at 30 September 30 September 30 September 31 December 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Haji Hussien Ali Reza Premium written 5,718 4,711 Payments received and claims paid (4,274) (2,521) 11,107 9,663Saudi Bin Laden – Group Premium written 38,706 55,638 Payments received and claims paid (89,420) (68,261) 54,959 105,673CPC Premium written 6,899 4,201 Payments received and claims paid (4,821) (2,993) 21,304 19,226 UCA Lebanon Payment received - (203) - - Associates Najm for insurance services - - (270) (270) Entities controlled, jointly controlled or significantly influenced by related parties United Commercial Agencies Premium written - 45 Payment made on behalf of company 26 - 847 821UCA Workshop Premium written - 36 Payments received and claims paid / Payment made (1) (5,500) - Claims settled - - - Payment made - - (4) (3)Law Office of Hassan Mahassni Premium written 432 456 Payments received and claims paid (212) (328) 280 60Middle East Group Premium written - 9 Payments received and claims paid - (47) - 1The above balances are included in premiums receivables-net, prepayments and other assets, payable to policyholders’ and accrued expenses and other liabilities.The compensation of key management personnel during the period is as follows: 30 September 2019(Unaudited) 30 September 2018(Unaudited) SAR’000Salaries and other allowances 3,834 4,012End of service indemnities 143 226 3,977 4,238 Remuneration to those charged with governance 612 870 | 12 |
| Disclosure of cash and cash equivalents [text block] | 4. CASH AND CASH EQUIVALENTSCash and cash equivalents included in the statement of cash flows comprise the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Insurance operations Bank balances and cash 83,409 88,477 Shareholders’ operations Bank balances and cash 13,556 1,056 | 4 |
| Disclosure of statutory deposit [text block] | 8. STATUTORY DEPOSITAs required by the Saudi Arabian Insurance Regulations, the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SAR 73.5 million in a bank designated by the Saudi Arabian Monetary Authority (“SAMA”). This statutory deposit cannot be withdrawn without the consent of SAMA and commission accruing on this deposit is payable to SAMA. During 2018, the Company has reduced its share capital by SAR 90 million but has not withdrawn the surplus statutory deposit of SAR 13.5 million as of 31 December 2018.During the three-months period ended 30 September 2019, the Company obtained approval from SAMA for withdrawal of SAR. 13.5 million. | 8 |
| Disclosure of employees' end of service benefits [text block] | The compensation of key management personnel during the period is as follows: 30 September 2019(Unaudited) 30 September 2018(Unaudited) SAR’000Salaries and other allowances 3,834 4,012End of service indemnities 143 226 3,977 4,238 Remuneration to those charged with governance 612 870 | 12 |
| Disclosure of gross unearned premiums/ contributions [text block] | 7.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Nine-months period ended 30 September 2019(Unaudited) Gross Reinsurance Net SAR’000Balance as at the beginning of the period 141,051 (94,750) 46,301Premium written during the period 267,579 (226,874) 40,705Premium earned during the period (269,390) 207,725 (61,665)Balance as at the end of the period 139,240 (113,899) 25,341 Year ended 31 December 2018(Audited) Gross Reinsurance Net SAR’000Balance as at the beginning of the year 270,374 (204,792) 65,582Premium written during the year 391,968 (288,368) 103,600Premium earned during the year (521,291) 398,410 (122,881)Balance as at the end of the year 141,051 (94,750) 46,301 | 7 |
| Disclosure of gross outstanding claims/ benefits [text block] | 7.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Outstanding claims 94,378 111,586Claims incurred but not reported 149,190 209,481 243,568 321,067Premium deficiency reserve 17,021 16,454Other technical reserves 29,950 36,539 290,539 374,060Less: - Reinsurers’ share of outstanding claims (74,634) (88,169)- Reinsurers’ share of claims Incurred but not reported (99,957) (135,637) (174,591) (223,806)Net outstanding claims and reserves 115,948 150,254 | 7 |
| Disclosure of reinsurance/ retakaful balance payable [text block] | 5. PREMIUMS AND REINSURERS’ RECEIVABLE – NETReceivables comprise amounts due from the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Policyholders 98,604 83,432Brokers and agents 19,370 15,288Related parties (note 12) 87,650 134,622Receivables from reinsurers’ 32,828 23,059 238,452 256,401Provision for doubtful receivables (82,727) (86,665)Premiums and reinsurers’ receivable – net 155,725 169,736Movement in the allowance for doubtful premiums receivable during the period was as follows: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000 Balance at beginning of the period / year 86,665 75,689Provision made during the period / year - 11,080Release of provision during the period / year (3,938) -Written-off during the year - (104)Balance at end of the period / year 82,727 86,665 | 5 |
| Disclosure of due to related parties [text block] | 12. RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Nature of transactions Transactions for the period ended Balance receivable / (payable) as at 30 September 30 September 30 September 31 December 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Haji Hussien Ali Reza Premium written 5,718 4,711 Payments received and claims paid (4,274) (2,521) 11,107 9,663Saudi Bin Laden – Group Premium written 38,706 55,638 Payments received and claims paid (89,420) (68,261) 54,959 105,673CPC Premium written 6,899 4,201 Payments received and claims paid (4,821) (2,993) 21,304 19,226 UCA Lebanon Payment received - (203) - - Associates Najm for insurance services - - (270) (270) Entities controlled, jointly controlled or significantly influenced by related parties United Commercial Agencies Premium written - 45 Payment made on behalf of company 26 - 847 821UCA Workshop Premium written - 36 Payments received and claims paid / Payment made (1) (5,500) - Claims settled - - - Payment made - - (4) (3)Law Office of Hassan Mahassni Premium written 432 456 Payments received and claims paid (212) (328) 280 60Middle East Group Premium written - 9 Payments received and claims paid - (47) - 1The above balances are included in premiums receivables-net, prepayments and other assets, payable to policyholders’ and accrued expenses and other liabilities.The compensation of key management personnel during the period is as follows: 30 September 2019(Unaudited) 30 September 2018(Unaudited) SAR’000Salaries and other allowances 3,834 4,012End of service indemnities 143 226 3,977 4,238 Remuneration to those charged with governance 612 870 | 12 |
| Disclosure of zakat [text block] | 13. ZAKAT AND INCOME TAXa. Charge for the yearThe differences between the financial and the Zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Movements in provision during the year 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000Balance at the beginning of the period / year 22,488 23,708Charge for the period / year 3,000 4,000Paid during the period / year (1,552) (5,220)Balance at the end of the period / year 23,936 22,488The differences between the financial and the zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the GAZT could be different from the declarations filed by the Company.b. Status of zakat assessmentsThe Company has filed its zakat declarations for the years ended 31 December 2009 to 2018 and obtained restricted zakat certificates until 31 December 2018.During 2017, the Company received the zakat assessments for the years 2005 to 2008 from the General Authority of Zakat and Income Tax (GAZT) with regards to the portfolio transferred from the old company claiming zakat liability amounting to SR 6.01 million and with-holding tax liability amounting to SR 16.09 million. The management believes that the existing provision for zakat and with-holding tax is sufficient. The Management has filed an objection against the above assessments and is confident of receiving a favourable ruling. However, during the year, the Company has issued a bank guarantee in favour of GAZT amounting to SR 22.096 million (note 9).GAZT has not yet raised assessments for the years from 2012 to 2018. The Zakat is applicable on 99% of the shareholders while Income Tax on 1% of the shareholders. | 13 |
| Disclosure of income tax [text block] | 13. ZAKAT AND INCOME TAXa. Charge for the yearThe differences between the financial and the Zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Movements in provision during the year 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000Balance at the beginning of the period / year 22,488 23,708Charge for the period / year 3,000 4,000Paid during the period / year (1,552) (5,220)Balance at the end of the period / year 23,936 22,488The differences between the financial and the zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the GAZT could be different from the declarations filed by the Company.b. Status of zakat assessmentsThe Company has filed its zakat declarations for the years ended 31 December 2009 to 2018 and obtained restricted zakat certificates until 31 December 2018.During 2017, the Company received the zakat assessments for the years 2005 to 2008 from the General Authority of Zakat and Income Tax (GAZT) with regards to the portfolio transferred from the old company claiming zakat liability amounting to SR 6.01 million and with-holding tax liability amounting to SR 16.09 million. The management believes that the existing provision for zakat and with-holding tax is sufficient. The Management has filed an objection against the above assessments and is confident of receiving a favourable ruling. However, during the year, the Company has issued a bank guarantee in favour of GAZT amounting to SR 22.096 million (note 9).GAZT has not yet raised assessments for the years from 2012 to 2018. The Zakat is applicable on 99% of the shareholders while Income Tax on 1% of the shareholders. | 13 |
| Disclosure of statutory reserve [text block] | 8. STATUTORY DEPOSITAs required by the Saudi Arabian Insurance Regulations, the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SAR 73.5 million in a bank designated by the Saudi Arabian Monetary Authority (“SAMA”). This statutory deposit cannot be withdrawn without the consent of SAMA and commission accruing on this deposit is payable to SAMA. During 2018, the Company has reduced its share capital by SAR 90 million but has not withdrawn the surplus statutory deposit of SAR 13.5 million as of 31 December 2018.During the three-months period ended 30 September 2019, the Company obtained approval from SAMA for withdrawal of SAR. 13.5 million. | 8 |
| Disclosure of gross premiums/ contributions written [text block] | 7.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Nine-months period ended 30 September 2019(Unaudited) Gross Reinsurance Net SAR’000Balance as at the beginning of the period 141,051 (94,750) 46,301Premium written during the period 267,579 (226,874) 40,705Premium earned during the period (269,390) 207,725 (61,665)Balance as at the end of the period 139,240 (113,899) 25,341 Year ended 31 December 2018(Audited) Gross Reinsurance Net SAR’000Balance as at the beginning of the year 270,374 (204,792) 65,582Premium written during the year 391,968 (288,368) 103,600Premium earned during the year (521,291) 398,410 (122,881)Balance as at the end of the year 141,051 (94,750) 46,301 | 7 |
| Disclosure of net premiums/ contributions earned [text block] | 7.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Nine-months period ended 30 September 2019(Unaudited) Gross Reinsurance Net SAR’000Balance as at the beginning of the period 141,051 (94,750) 46,301Premium written during the period 267,579 (226,874) 40,705Premium earned during the period (269,390) 207,725 (61,665)Balance as at the end of the period 139,240 (113,899) 25,341 Year ended 31 December 2018(Audited) Gross Reinsurance Net SAR’000Balance as at the beginning of the year 270,374 (204,792) 65,582Premium written during the year 391,968 (288,368) 103,600Premium earned during the year (521,291) 398,410 (122,881)Balance as at the end of the year 141,051 (94,750) 46,301 | 7 |
| Disclosure of gross claims/ benefits paid [text block] | 7.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Outstanding claims 94,378 111,586Claims incurred but not reported 149,190 209,481 243,568 321,067Premium deficiency reserve 17,021 16,454Other technical reserves 29,950 36,539 290,539 374,060Less: - Reinsurers’ share of outstanding claims (74,634) (88,169)- Reinsurers’ share of claims Incurred but not reported (99,957) (135,637) (174,591) (223,806)Net outstanding claims and reserves 115,948 150,254 | 7 |
| Disclosure of net claims/ benefits incurred [text block] | 7.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Outstanding claims 94,378 111,586Claims incurred but not reported 149,190 209,481 243,568 321,067Premium deficiency reserve 17,021 16,454Other technical reserves 29,950 36,539 290,539 374,060Less: - Reinsurers’ share of outstanding claims (74,634) (88,169)- Reinsurers’ share of claims Incurred but not reported (99,957) (135,637) (174,591) (223,806)Net outstanding claims and reserves 115,948 150,254 | 7 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 7.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Outstanding claims 94,378 111,586Claims incurred but not reported 149,190 209,481 243,568 321,067Premium deficiency reserve 17,021 16,454Other technical reserves 29,950 36,539 290,539 374,060Less: - Reinsurers’ share of outstanding claims (74,634) (88,169)- Reinsurers’ share of claims Incurred but not reported (99,957) (135,637) (174,591) (223,806)Net outstanding claims and reserves 115,948 150,2547.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Nine-months period ended 30 September 2019(Unaudited) Gross Reinsurance Net SAR’000Balance as at the beginning of the period 141,051 (94,750) 46,301Premium written during the period 267,579 (226,874) 40,705Premium earned during the period (269,390) 207,725 (61,665)Balance as at the end of the period 139,240 (113,899) 25,341 Year ended 31 December 2018(Audited) Gross Reinsurance Net SAR’000Balance as at the beginning of the year 270,374 (204,792) 65,582Premium written during the year 391,968 (288,368) 103,600Premium earned during the year (521,291) 398,410 (122,881)Balance as at the end of the year 141,051 (94,750) 46,301 | 7 |
| Disclosure of earnings per share [text block] | 16. BASIC AND DILUTED EARNINGS / (LOSS) PER SHAREEarnings / (loss) per share for the period has been calculated by dividing the net income / (loss) for the period by the weighted average number of issued and outstanding shares for the period. The Company has decreased its share capital by offsetting with accumulated losses (note 14), as a result the weighted average number of ordinary shares issued and outstanding in the prior year has been restated to 40 million shares and accordingly loss per share is restated. | 16 |
| Disclosure of related party transactions [text block] | 12. RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Nature of transactions Transactions for the period ended Balance receivable / (payable) as at 30 September 30 September 30 September 31 December 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Haji Hussien Ali Reza Premium written 5,718 4,711 Payments received and claims paid (4,274) (2,521) 11,107 9,663Saudi Bin Laden – Group Premium written 38,706 55,638 Payments received and claims paid (89,420) (68,261) 54,959 105,673CPC Premium written 6,899 4,201 Payments received and claims paid (4,821) (2,993) 21,304 19,226 UCA Lebanon Payment received - (203) - - Associates Najm for insurance services - - (270) (270) Entities controlled, jointly controlled or significantly influenced by related parties United Commercial Agencies Premium written - 45 Payment made on behalf of company 26 - 847 821UCA Workshop Premium written - 36 Payments received and claims paid / Payment made (1) (5,500) - Claims settled - - - Payment made - - (4) (3)Law Office of Hassan Mahassni Premium written 432 456 Payments received and claims paid (212) (328) 280 60Middle East Group Premium written - 9 Payments received and claims paid - (47) - 1The above balances are included in premiums receivables-net, prepayments and other assets, payable to policyholders’ and accrued expenses and other liabilities.The compensation of key management personnel during the period is as follows: 30 September 2019(Unaudited) 30 September 2018(Unaudited) SAR’000Salaries and other allowances 3,834 4,012End of service indemnities 143 226 3,977 4,238 Remuneration to those charged with governance 612 870 | 12 |
| Disclosure of entity's operating segments [text block] | 11. OPERATING SEGMENTSOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the income statement. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since 31 December 2018.Segment assets do not include cash and cash equivalents, term deposits, net premiums and reinsurers’ receivable, net, prepayments and other receivables, investments, furniture, fittings and office equipment. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders’ claims, reinsurance payables, accruals and other payables and employees’ end of service indemnities. 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.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at 30 September 2019 and 31 December 2018, its total revenues, expenses, and net income for the three-months and nine-months periods then ended, are as follows: As at 30 September 2019(Unaudited)Insurance operationsSR’000 Medical Motor Energy Engineering Others TotalInsurance operations Shareholders’ operations TotalAssets Reinsurers’ share of unearned premiums 5,773 8,120 32,996 40,200 26,810 113,899 - 113,899Reinsurers’ share of outstanding claims 2,503 5,193 49 8,753 58,136 74,634 - 74,634Reinsurers’ share of claims Incurred but not reported 2,970 11,388 17,832 28,034 39,733 99,957 - 99,957Deferred policy acquisition costs 423 713 - 2,058 1,257 4,451 - 4,451Unallocated assets 449,422 378,988 828,410Total assets 742,363 378,988 1,121,351 Liabilities Unearned premiums 11,887 19,690 33,574 42,704 31,385 139,240 - 139,240Unearned reinsurance commission - 1,735 - 10,549 5,837 18,121 - 18,121Outstanding claims 4,479 17,596 50 9,558 62,695 94,378 - 94,378Claims incurred but not reported 6,275 48,758 18,145 30,862 45,150 149,190 - 149,190Premium deficiency reserve 5,774 11,108 64 - 75 17,021 - 17,021Other technical reserves 23,010 5,553 29 360 998 29,950 - 29,950Unallocated liabilities 277,383 396,068 673,451Total liabilities 725,283 396,068 1,121,351 As at 31 December 2018(Audited)Insurance operationsSR’000 Medical Motor Energy Engineering Others TotalInsurance operations Shareholders’ operations TotalAssets Reinsurers’ share of unearned premiums 7,528 28,047 - 46,766 12,409 94,750 - 94,750Reinsurers’ share of outstanding claims 9,124 4,301 254 12,842 61,648 88,169 - 88,169Reinsurers’ share of claims Incurred but not reported 12,835 21,763 11,703 55,287 34,049 135,637 - 135,637Deferred policy acquisition costs 883 1,926 - 2,277 613 5,699 - 5,699Unallocated assets 466,097 381,565 847,662Total assets 790,352 381,565 1,171,917 Liabilities Unearned premiums 18,756 56,498 - 49,982 15,815 141,051 - 141,051Unearned reinsurance commission - 5,481 - 10,816 2,998 19,295 - 19,295Outstanding claims 13,546 17,948 257 13,317 66,518 111,586 - 111,586Claims incurred but not reported 15,653 84,587 11,923 58,758 38,560 209,481 - 209,481Premium deficiency reserve 4,740 5,561 - 3,731 2,422 16,454 - 16,454Other technical reserves 27,887 5,921 298 1,469 964 36,539 - 36,539Unallocated liabilities 251,246 386,265 637,511Total liabilities 785,652 386,265 1,171,917 For the three-months period ended 30 September 2019 (Unaudited) Medical Motor Energy Engineering Others Total SR'000 SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Individual 3 2,108 - - 250 2,361- Micro enterprises 973 426 - 337 2,362 4,098- Small enterprises 3,165 2,391 - 2,023 4,240 11,819- Medium enterprises 3,392 608 - 782 4,462 9,244- Large enterprises 52 1,011 30,898 2,849 4,619 39,429 7,585 6,544 30,898 5,991 15,933 66,951Reinsurance premiums ceded - Local - (327) - (680) (784) (1,791)- Foreign (3,801) (2,273) (30,366) (4,494) (11,972) (52,906) (3,801) (2,600) (30,366) (5,174) (12,756) (54,697)Excess of loss expenses - Local - (17) - - (46) (63)- Foreign - (95) - - (420) (515) - (112) - - (466) (578) Net premiums written 3,784 3,832 532 817 2,711 11,676Changes in unearned premiums, net 479 4,617 46 570 (354) 5,358Net premiums earned 4,263 8,449 578 1,387 2,357 17,034Reinsurance commissions earned - 1,387 486 4,835 3,655 10,363Other underwriting income - - - - - -TOTAL REVENUES 4,263 9,836 1,064 6,222 6,012 27,397 UNDERWRITING COSTS AND EXPENSES Gross claims paid 8,953 13,711 - 6,408 780 29,852Reinsurers’ share of claims paid (4,748) (5,505) - (6,082) (478) (16,813)Net claims paid 4,205 8,206 - 326 302 13,039Changes in outstanding claims, net (1,046) (4,820) - (16) (239) (6,121)Changes in claims incurred but not reported, net - (937) 23 53 232 (629)Net claims incurred 3,159 2,449 23 363 295 6,289Policy acquisition costs 275 640 - 943 748 2,606Other underwriting expenses 124 76 154 129 94 577TOTAL UNDERWRITING COSTS AND EXPENSES 3,558 3,165 177 1,435 1,137 9,472NET UNDERWRITING RESULT 705 6,671 887 4,787 4,875 17,925 For the three-months period ended 30 September 2019 (Unaudited) For the nine-months period ended 30 September 2019 (Unaudited) Medical Motor Energy Engineering Others Total SR’000 SR’000 SR’000 SR’000 SR’000 SR’000OTHER OPERATING (EXPENSES) / INCOME General and administrative expenses (73,526)Allowance for doubtful debts 3,938Board remuneration (612)Amortization of held to maturity investments 230Commission income on deposits 9,181Realized gain on investments 436Other income 2,103TOTAL OTHER OPERATING EXPENSES (58,250) INCOME FOR THE PERIOD 9,936 Net income for the period attributable to insurance operations (615) Net income for the period attributable to the shareholders before zakat and income tax 9,321 Zakat for the period (2,850)Income tax for the period (150) (3,000)Medical Motor Energy Engineering Others Total SR’000 SR’000 SR’000 SR’000 SR’000 SR’000OTHER OPERATING (EXPENSES) / INCOME General and administrative expenses (18,806)Allowance for doubtful debts 5,734Board remuneration (184)Amortization of held to maturity investments 111Commission income on investments 2,785Other income 611TOTAL OTHER OPERATING EXPENSES (9,749) INCOME FOR THE PERIOD 8,176 Net income for the period attributable to insurance operations (615) Net income for the period attributable to the shareholders’ before zakat and income tax 7,561 Zakat for the period (950)Income tax for the period (50) (1,000) NET INCOME FOR THE PERIOD 6,561*11.1 Additional information For the three-months period ended 30 September 2019 (Unaudited) Medical Motor Property and casualty Protection and savings Total SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Individual 3 2,108 250 - 2,361- Micro enterprises 973 426 2,699 - 4,098- Small enterprises 3,165 2,391 6,263 - 11,819- Medium enterprises 3,392 608 5,244 - 9,244- Large enterprises 52 1,011 38,366 - 39,429 7,585 6,544 52,822 - 66,951 For the nine-months period ended 30 September 2019 (Unaudited) Medical Motor Energy Engineering Others Total SR'000 SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Individual 3 10,283 - - 436 10,722- Micro enterprises 3,601 3,731 - 1,032 4,623 12,987- Small enterprises 4,589 5,000 - 4,847 10,091 24,527- Medium enterprises 12,018 5,938 - 10,958 35,014 63,928- Large enterprises 1,503 4,931 100,887 28,760 19,334 155,415 21,714 29,883 100,887 45,597 69,498 267,579Reinsurance premiums ceded - Local - (894) - (9,952) (3,899) (14,745)- Foreign (10,893) (10,967) (99,150) (32,716) (56,669) (210,395) (10,893) (11,861) (99,150) (42,668) (60,568) (225,140)Excess of loss expenses - Local - (51) - - (138) (189)- Foreign - (285) - - (1,260) (1,545) - (336) - - (1,398) (1,734) Net premiums written 10,821 17,686 1,737 2,929 7,532 40,705Changes in unearned premiums, net 5,114 16,881 (578) 710 (1,166) 20,961Net premiums earned 15,935 34,567 1,159 3,639 6,366 61,666Reinsurance commissions earned - 6,117 1,587 9,656 11,562 28,922Other underwriting income - - - - - -TOTAL REVENUES 15,935 40,684 2,746 13,295 17,928 90,588 UNDERWRITING COSTS AND EXPENSES Gross claims paid 35,761 55,562 - 8,235 6,073 105,631Reinsurers’ share of claims paid (21,303) (24,061) - (7,802) (4,904) (58,070)Net claims paid 14,458 31,501 - 433 1,169 47,561Changes in outstanding claims, net (2,446) (1,245) (3) 330 (309) (3,673)Changes in claims incurred but not reported, net 488 (25,454) 93 (643) 905 (24,611)Net claims incurred 12,500 4,802 90 120 1,765 19,277Premium deficiency reserve 1,033 5,547 64 (3,731) (2,346) 567Other technical reserves (4,877) (368) (269) (1,109) 35 (6,588)Policy acquisition costs 1,111 2,444 - 1,653 1,933 7,141Other underwriting expenses 475 323 503 335 369 2,005TOTAL UNDERWRITING COSTS AND EXPENSES 10,242 12,748 388 (2,732) 1,756 22,402NET UNDERWRITING RESULT 5,693 27,936 2,358 16,027 16,172 68,186 For the nine-months period ended 30 September 2019 (Unaudited) Medical Motor Energy Engineering Others Total SR’000 SR’000 SR’000 SR’000 SR’000 SR’000OTHER OPERATING (EXPENSES) / INCOME General and administrative expenses (73,526)Allowance for doubtful debts 3,938Board remuneration (612)Amortization of held to maturity investments 230Commission income on deposits 9,181Realized gain on investments 436Other income 2,103TOTAL OTHER OPERATING EXPENSES (58,250) INCOME FOR THE PERIOD 9,936 Net income for the period attributable to insurance operations (615) Net income for the period attributable to the shareholders before zakat and income tax 9,321 Zakat for the period (2,850)Income tax for the period (150) (3,000)NET INCOME FOR THE PERIOD 6,321 For the nine-months period ended 30 September 2019 (Unaudited) Medical Motor Property and casualty Protection and savings Total SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Individual 3 10,283 436 - 10,722- Micro enterprises 3,601 3,731 5,655 - 12,987- Small enterprises 4,589 5,000 14,938 - 24,527- Medium enterprises 12,018 5,938 45,972 - 63,928- Large enterprises 1,503 4,931 148,981 - 155,415 21,714 29,883 215,982 - 267,579 For the three-months period ended 30 September 2018 (Unaudited)(Restated) Medical Motor Energy Engineering Others Total SR'000 SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Direct 16,283 37,551 24,647 36,061 6,383 120,925- Reinsurance - - - - - - 16,283 37,551 24,647 36,061 6,383 120,925Reinsurance premiums ceded - Local - (1,872) - (1,061) (246) (3,179)- Foreign (6,567) (16,758) (24,223) (32,654) (4,427) (84,629) (6,567) (18,630) (24,223) (33,715) (4,673) (87,808)Excess of loss expenses - Local - (26) - - (42) (68)- Foreign - (179) - - (379) (558) - (205) - - (421) (626) Net premiums written 9,716 18,716 424 2,346 1,289 32,491Changes in unearned premiums, net 258 (2,985) 37 (613) 868 (2,435)Net premiums earned 9,974 15,731 461 1,733 2,157 30,056Reinsurance commissions earned - 3,003 584 1,697 2,207 7,491TOTAL REVENUES 9,974 18,734 1,045 3,430 4,364 37,547 UNDERWRITING COSTS AND EXPENSES Gross claims paid 20,603 20,842 - 227 3,387 45,059Reinsurers’ share of claims paid (16,415) (10,216) - (159) (2,060) (28,850)Net claims paid 4,188 10,626 - 68 1,327 16,209Changes in outstanding claims, net 2,304 1,069 - (62) (1,271) 2,040Changes in claims incurred but not reported, net (1,203) (2,984) 46 152 146 (3,843)Net claims incurred 5,289 8,711 46 158 202 14,406Premium deficiency reserve (154) 2,279 95 (3,694) (1,164) (2,638)Other technical reserves - (57) 27 28 (8) (10)Policy acquisition costs 1,269 1,019 - 329 393 3,010Other underwriting expenses 388 150 123 48 62 771TOTAL UNDERWRITING COSTS AND EXPENSES 6,792 12,102 291 (3,131) (515) 15,539NET UNDERWRITING RESULT 3,182 6,632 754 6,561 4,879 22,008 F For the three-months period ended 30 September 2018 (Unaudited)(Restated) Medical Motor Energy Engineering Others Total SR'000 SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Direct 16,283 37,551 24,647 36,061 6,383 120,925- Reinsurance - - - - - - 16,283 37,551 24,647 36,061 6,383 120,925Reinsurance premiums ceded - Local - (1,872) - (1,061) (246) (3,179)- Foreign (6,567) (16,758) (24,223) (32,654) (4,427) (84,629) (6,567) (18,630) (24,223) (33,715) (4,673) (87,808)Excess of loss expenses - Local - (26) - - (42) (68)- Foreign - (179) - - (379) (558) - (205) - - (421) (626) Net premiums written 9,716 18,716 424 2,346 1,289 32,491Changes in unearned premiums, net 258 (2,985) 37 (613) 868 (2,435)Net premiums earned 9,974 15,731 461 1,733 2,157 30,056Reinsurance commissions earned - 3,003 584 1,697 2,207 7,491TOTAL REVENUES 9,974 18,734 1,045 3,430 4,364 37,547 UNDERWRITING COSTS AND EXPENSES Gross claims paid 20,603 20,842 - 227 3,387 45,059Reinsurers’ share of claims paid (16,415) (10,216) - (159) (2,060) (28,850)Net claims paid 4,188 10,626 - 68 1,327 16,209Changes in outstanding claims, net 2,304 1,069 - (62) (1,271) 2,040Changes in claims incurred but not reported, net (1,203) (2,984) 46 152 146 (3,843)Net claims incurred 5,289 8,711 46 158 202 14,406Premium deficiency reserve (154) 2,279 95 (3,694) (1,164) (2,638)Other technical reserves - (57) 27 28 (8) (10)Policy acquisition costs 1,269 1,019 - 329 393 3,010Other underwriting expenses 388 150 123 48 62 771TOTAL UNDERWRITING COSTS AND EXPENSES 6,792 12,102 291 (3,131) (515) 15,539NET UNDERWRITING RESULT 3,182 6,632 754 6,561 4,879 22,008or the three-months period ended 30 September 2018 (Unaudited)(Restated) Medical Motor Energy Engineering Others Total SR'000 SR'000 SR'000 SR'000 SR'000 SR'000REVENUES Gross premiums written - Direct 16,283 37,551 24,647 36,061 6,383 120,925- Reinsurance - - - - - - 16,283 37,551 24,647 36,061 6,383 120,925Reinsurance premiums ceded - Local - (1,872) - (1,061) (246) (3,179)- Foreign (6,567) (16,758) (24,223) (32,654) (4,427) (84,629) (6,567) (18,630) (24,223) (33,715) (4,673) (87,808)Excess of loss expenses - Local - (26) - - (42) (68)- Foreign - (179) - - (379) (558) - (205) - - (421) (626) Net premiums written 9,716 18,716 424 2,346 1,289 32,491Changes in unearned premiums, net 258 (2,985) 37 (613) 868 (2,435)Net premiums earned 9,974 15,731 461 1,733 2,157 30,056Reinsurance commissions earned - 3,003 584 1,697 2,207 7,491TOTAL REVENUES 9,974 18,734 1,045 3,430 4,364 37,547 UNDERWRITING COSTS AND EXPENSES Gross claims paid 20,603 20,842 - 227 3,387 45,059Reinsurers’ share of claims paid (16,415) (10,216) - (159) (2,060) (28,850)Net claims paid 4,188 10,626 - 68 1,327 16,209Changes in outstanding claims, net 2,304 1,069 - (62) (1,271) 2,040Changes in claims incurred but not reported, net (1,203) (2,984) 46 152 146 (3,843)Net claims incurred 5,289 8,711 46 158 202 14,406Premium deficiency reserve (154) 2,279 95 (3,694) (1,164) (2,638)Other technical reserves - (57) 27 28 (8) (10)Policy acquisition costs 1,269 1,019 - 329 393 3,010Other underwriting expenses 388 150 123 48 62 771TOTAL UNDERWRITING COSTS AND EXPENSES 6,792 12,102 291 (3,131) (515) 15,539NET UNDERWRITING RESULT 3,182 6,632 754 6,561 4,879 22,008 | 11 |
| Disclosure of capital management [text block] | 15. CAPITAL MANAGEMENTObjectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximize shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares.In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period. | 15 |
| Disclosure of commitments and contingencies, general [text block] | 9. COMMITMENTS AND CONTINGENCIESa. The Company’s commitments and contingencies are as follows: 30 September2019(Unaudited)SAR’000 31 December 2018(Audited)SAR’000Letters of guarantee issued in favour of GAZT 22,096 22,096Total 22,096 22,096b. There were no capital commitments outstanding as at 30 September 2019 (31 December 2018: Nil).c. As at 30 September 2019, the Company has a letter of guarantee amounting to SR 22.096 million (31 December 2018: SR 22.096 million) in favour of General Authority of Zakat and Tax (GAZT) (see note 13). A margin of SR 22.096 million (31 December 2018: SR 22.096 million) being deposited with a bank for this purpose and is included in prepayments and other assets in the statement of financial position. | 9 |
| Disclosure of fair value of financial assets and liabilities [text block] | 10. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantageous accessible market for the asset or liabilityThe fair values on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed (consolidated) financial information.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and 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.FAIR VALUES OF FINANCIAL INSTRUMENTS – (continued)a. Carrying amounts and fair value30 September 2019 (Unaudited) Fair value Level 1 Level 2 Level 3 Total SR’ 000 SR’ 000 SR’ 000 SR’ 000 Financial assets measured at fair value Equity securities - Insurance operations - 226 - 226- Shareholders’ operations - 20,201 1,923 22,124 Financial assets not measured at fair value Debt securities Insurance operations - Insurance operations 79,414 - - 79,414- Shareholders’ operations - - - - 79,414 20,427 1,923 101,76431 December 2018 (Audited) Fair value Level 1 Level 2 Level 3 Total SR’ 000 SR’ 000 SR’ 000 SR’ 000 Financial assets measured at fair value Equity securities - Insurance operations - 222 - 222- Shareholders’ operations - 11,319 1,923 13,242 Financial assets not measured at fair value Debt securities Insurance operations - Insurance operations 3,672 - - 3,672- Shareholders’ operations 13,035 - - 13,035 16,707 11,541 1,923 30,171 | 10 |
| Disclosure of comparative figures [text block] | Certain prior period figures have been reclassified to conform to current period presentation. | 18 |
| Disclosure of board of director's approval of the financial statements [text block] | The interim condensed financial statements have been approved by the Board of Directors, on 07 Rabi Al Awwal 1441H, corresponding to 4 November 2019. | 19 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 18. COMPARATIVE FIGURESCertain prior period figures have been reclassified to conform to current period presentation.a. Zakat:As mentioned under note 2, the basis of preparation has changed as a result of the issuance on the new Circular by SAMA. The change in the accounting treatment for Zakat (as explained in note 3) has the following impact on the line items of the statements of income, comprehensive income and changes in shareholders’ equity | 18 |
