| 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, Al Khalidiyah 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 Dhul Qaedah 1438H and accordingly the new by-laws was approved. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | a.Basis of presentation and measurementThe interim condensed financial statements for the three-months period ended 31 March 2020 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.The interim condensed financial statements of the Company as at and for the three-months period ended 31 March 2019 was prepared in compliance with IAS 34 as modified by SAMA for the accounting of Zakat and income tax (relating to application of IAS 12 – “Income Taxes” and IFRS 21 – “Levies” so far as these relate to Zakat and income tax.Accordingly, beginning period ended 30 June 2019, the Company has updated its accounting policy to account for zakat and income taxes in the interim condensed statement of income based on the instructions issued by SAMA on 23 July 2019 to insurance companies in the Kingdom of Saudi Arabia. This aligns with the IFRS and its interpretations as issued by the International Accounting Standards Board (“IASB”) and as endorsed in the Kingdom of Saudi Arabia and with the other standards and pronouncements that are issued by the Saudi Organization for Certified Public Accountants (“SOCPA”) (“collectively referred to as “IFRS as endorsed in KSA”). Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8 - Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”). The effects of this change are disclosed in note 18 of the interim condensed financial statements.These interim condensed financial statements have been prepared under the going concern basis and historical cost convention except for the measurement for held-to-maturity investments, available-for-sale investment and employees’ defined benefit obligations which are recognized at amortised cost, fair value and present value of future obligations using the projected unit credit method respectively. 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.The 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 41 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 2019.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.b.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 2019. | 2 |
| Disclosure of accounting framework used in preparation of financial statements [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 2019 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. Further, the Company has considered the following:On 11 March 2020, the World Health Organization (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews.In response to the spread of the Covid-19 virus in the GCC and other territories where the Company operates and its consequential disruption to the social and economic activities, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure:-the health and safety of its employees and the wider community where it is operating-the continuity of its business throughout the Kingdom is protected and kept intact.Also refer subsequent event note 19 in relation to SAMA Circular 189 issued on 8 May 2020 in response to the Covid-19 pandemic.a.New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (“IASB”) have been effective from 1 January 2020 and accordingly adopted by the Company, as applicable:Standard/AmendmentsDescriptionAmendments to IAS 1 & IAS 8Definition of MaterialAmendments to IFRS 3Definition of a BusinessConceptual FrameworkAmendments to References to Conceptual Framework in IFRS StandardsThe adoption of the relevant amended standards and interpretations applicable to the Company did not have any significant impact on these interim condensed financial statements.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/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 9Financial InstrumentsRefer belowIFRS 17Insurance Contracts (note below)1 January 2022IFRS 9 - Financial InstrumentsThis standard was published on July 24, 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a)Classification and measurement:IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows andthe contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale andthe contractual terms of cash flows are SPPI,Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset 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 liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss.b)Impairment:The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c)Hedge accounting:IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1.apply a temporary exemption from implementing IFRS 9 until the earlier ofthe effective date of a new insurance contract standard; or annual reporting periods beginning on or after January 1, 2021. The IASB is proposing to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 to January 1, 2022. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2.adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.The Company has performed a detailed assessment beginning Jan 01, 2017: 1.The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and 2.the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements. Impact assessmentAs at December 31, 2019, the Company has total financial assets and insurance related assets amounting to SR 978.57 million and SR 751.94 million, respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents and certain other receivables amounting to SR 295.41 million (2018: SR 136.73 million). Other financial assets consist of available for sale investments amounting to SR 184.32 million (2018: SR 30.17. million). The Company expect to use the FVOCI classification of these financial assets based on the business model of the Company for debt securities and strategic nature of equity investments. However, the Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. Investment in funds classified under available for sale investments will be at FVSI under IFRS 9.As at December 31, 2019 these debt securities are measured at fair value of SR 164.206 million with changes in fair value during the year of SR 6.6 million. Other financial assets have a fair value of SR 24.59 million as at December 31, 2019 with a fair value change during the year of SR 1.02 million. Credit risk exposure, concentration of credit risk and credit quality of these financial assets are mentioned in note 31. The Company financial assets have low credit risk as at December 31, 2019 and 2018. The above is based on high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects some effect of applying the impairment requirements of IFRS 9: However, the impact of the same is not expected to be significant. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 – Insurance ContractsOverviewThis standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:a.embedded derivatives, if they meet certain specified criteria;b.distinct investment components; andc.any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15).MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The General model is based on the following “building blocks”:a.the fulfilment cash flows (FCF), which comprise:probability-weighted estimates of future cash flows,an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows,and a risk adjustment for non-financial risk;b.the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model;I.changes in the entity’s share of the fair value of underlying items,II.changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4, is currently January 1, 2021. Under the current exposure draft, it is proposed to amend the IFRS 17 effective date to reporting periods beginning on or after January 1, 2022. This is a deferral of 1 year compared to the previous date of January 1, 2021. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures.ImpactThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key areas of Gaps are as follows:Impact AreaSummary of impactFinancial ImpactThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company.Data ImpactIFRS 17 has additional data requirements and Company has majority of data available and currently is in the process of building data warehouse to accommodate any extra data requirements and consolidate the data in one place coming from its various IT systems..IT SystemsThe Company is already in the process of implementing a new upgraded IT system which will facilitate the implementation of IFRS 17.Process ImpactThe process impact is under evaluation, but no significant process changes are anticipated.Impact on RI ArrangementsThe Company’s reinsurance arrangements are currently under testing to determine the suitable measurement approach.Impact on Policies & Control FrameworksThe Company is currently working with an external consultant to review and modify the current policy control framework.Human resourcesThe Company needs to recruit suitably qualified personnel who have a comprehensive understanding of IFRS 17.The Company has started with their implementation process and have set up an implementation committee. | 3 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| 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:31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operationsBank balances and cash79,762216,199Shareholders’ operationsBank balances and cash1,58741,454Total cash and cash equivalents81,349257,6534.(b) SHORT TERM DEPOSIT31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operationsShort term deposits23,49623,496a.Short term deposits represent deposits with local banks that have investment grade credit rating and have an original maturity of more than three months from the date of acquisition.b.These deposits earn commission at an average rate of 2.35% per annum as at 31 March 2020 (31 December 2019: 2.35%) | 4 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 6.INVESTMENTSInvestment are classified as follows:Insurance operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000- Available for sale (note 6.1)119,524227- Held to maturity (note 6.3)--Total119,524227INVESTMENTS – (continued)Shareholders’ operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000- Available for sale (note 6.2)231,920190,721- Held to maturity (note 6.3)--Total231,920190,721 | 6 |
| Disclosure of investments held-to-maturity [text block] | Held to maturity investmentsMovement in held to maturity investment balance is as follows:Insurance operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Opening balance-156,265Transfer to available-for-sale investments*-(78,486)Disposals during the period / year-(81,099)Realized gain / (loss) on investments-3,209Amortization of held to maturity investments-111Closing balance--Shareholders’ operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Opening balance-198,319Disposals during the period / year-(42,355)Transfer to available-for-sale investments*-(157,585)Realized gain / (loss) on investments-1,446Amortization of held to maturity investments-175Closing balance-- | 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’ operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Opening balance2273,894Purchases during the period / year111,14220,000Disposals during the period / year-(103,391)Transfer from held to maturity investments during the period / year*-78,486Changes in fair value of investments8,1551,238Closing balance119,524227Insurance’ operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Investment in bonds119,297-Investment in mutual funds227227119,524227Available-for-sale investmentsMovement in available-for-sale investment balance is as follows:Shareholders’ operations31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Opening balance190,72126,277Purchases during the period / year38,76023,576Transfer from held to maturity investments during the period / year*-157,585Disposals during the period / year-(24,613)Changes in fair value of investments2,4397,896Closing balance231,920190,72131 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Investment in equity shares5,9356,613Investment in bonds205,469164,205Investment in mutual funds20,51619,903231,920190,721*During 2019, the company had sold few held to maturity investments before the maturity dates. Hence, the Company reclassified all of its held to maturity portfolio into available-for-sale investment. | 6.2 |
| Disclosure of other receivables, net [text block] | 5.PREMIUMS AND REINSURERS’ RECEIVABLE – NETReceivables comprise amounts due from the following:31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Policyholders162,648117,353Brokers and agents9,872210Related parties (note 12)236,636146,671Receivables from reinsurers’22,75922,138431,915286,372Provision for doubtful receivables(79,607)(83,920)Premiums and reinsurers’ receivable – net352,308202,452Movement in the allowance for doubtful premiums receivable during the period was as follows:31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Balance at the beginning of the period / year83,92086,665Release of provision during the period / year(4,313)(2,745)Balance at the end of the period / year79,60783,920 | 5 |
| 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:31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operationsBank balances and cash79,762216,199Shareholders’ operationsBank balances and cash1,58741,454Total cash and cash equivalents81,349257,6534.(b) SHORT TERM DEPOSIT31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operationsShort term deposits23,49623,496a.Short term deposits represent deposits with local banks that have investment grade credit rating and have an original maturity of more than three months from the date of acquisition.b.These deposits earn commission at an average rate of 2.35% per annum as at 31 March 2020 (31 December 2019: 2.35%) | 4 |
| Disclosure of statutory deposit [text block] | 8.STATUTORY DEPOSIT31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Shareholders’ OperationsStatutory deposit60,00060,000As 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. | 8 |
| Disclosure of general reserve [text block] | 7.TECHNICAL RESERVES7.1Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:31 March2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Outstanding claims55,18366,652Claims incurred but not reported 167,020162,673222,203229,325Premium deficiency reserve21,41918,760Other technical reserves8,7409,604252,362257,689Less:- Reinsurers’ share of outstanding claims(36,195)(45,581)- Reinsurers’ share of claims Incurred but not reported(119,915)(112,881)(156,110)(158,462)Net outstanding claims and reserves96,25299,2277.2Movement in unearned premiumsMovement in unearned premiums comprise of the following:Three-months period ended 31 March 2020(Unaudited)GrossReinsuranceNetSAR’000Balance as at the beginning of the period163,093(137,914)25,179Premium written during the period240,646(185,249)55,397Premium earned during the period(64,992)50,521(14,471)Balance as at the end of the period338,747(272,642)66,105Year ended 31 December 2019(Audited)GrossReinsuranceNetSAR’000Balance as at the beginning of the year141,051(94,750)46,301Premium written during the year420,292(366,014)54,278Premium earned during the year(398,250)322,850(75,400)Balance as at the end of the year163,093(137,914)25,179 | 7 |
