| 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 Company (“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 Authority (“SAMA”) to engage in insurance and reinsurance in Saudi Arabia. The Company started its operations on 1 January 2009. On 11 February 2020 corresponding to 17 Jamad-ul-Thani 1441H, the Company has received the SAMA approval upon the Company’s request for the cancellation of its Reinsurance License. From the date of SAMA Approval, the Company has not assumed any reinsurance business. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2.BASIS OF PREPARATION(a)Statement of complianceThe interim condensed financial statements for the three-months and six-months periods ended 30 June 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 for Certified Public Accountants (SOCPA).These interim condensed financial statements have been prepared under the going concern basis and historical cost convention except for the measurement of available-for-sale investments and employees’ defined benefit obligations which are recognized at 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, right-of-use assets, statutory deposit, employees’ defined benefit obligations, outstanding claims, claims incurred but not reported, lease liabilities, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations (the Implementation Regulations), the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim 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 in note 19 have been provided as supplementary financial information and to comply with the requirements of the guidelines issued by SAMA Implementing Regulations and is not required by International Financial Reporting Standards (IFRS). SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ 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 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. | 2.1 |
| Disclosure of statement of compliance [text block] | BASIS OF PREPARATION – (continued)(a)Statement of compliance – (continued)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)Critical accounting judgments estimates and assumptionsThe 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 expenses. 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. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. For further details, please see note 21 to these interim condensed financial statements. Management will continue to assess the situation and reflect any required changes in future reporting periods.(c)Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company. | 2 |
| Description of initial application of standards or interpretations [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 IFRS Interpretations Committee Interpretations (IFRIC) as mentioned in note 3(a) which had no significant impact on the financial position or financial performance of the Company. (a)New IFRS, 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”), as endorsed in the Kingdom of Saudi Arabia 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. | 3 |
| Disclosure of new standards and amendments in standards [text block] | SIGNIFICANT ACCOUNTING POLICIES – (continued)(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 2023IFRS 9 - Financial InstrumentsThis standard was published on 24 July 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.Debt financial assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset, both debt and equity instrument at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income | 3 |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | IFRS 9 - Financial Instruments – (continued)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 1 January 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on 12 September 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1.apply a temporary exemption from implementing IFRS 9 until the earlier ofthe effective date of a new insurance contract standard; orannual reporting periods beginning on or after 1 January 2023. On 17 March 2020, the International Accounting Standards Board (“IASB”) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from 1 January 2021 to 1 January 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or;2.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 1 January 2017: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s annual financial statements for the year ended 31 December 2019.Impact assessmentOverall, the Company expects some impact of applying the impairment requirements of IFRS 9 on the financial statements of the Company. However, the impact of the same is not expected to be significant. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review. | 3 |
| Disclosure of basis of measurement [text block] | b.Standards issued but not yet effective – (continued)IFRS 17 – Insurance ContractsOverviewThis standard has been published on 18 May 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.Measurement – (continued)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 Company intends to apply the Standard on its effective date i.e. 1 January 2023. The IASB issued an Exposure Draft Amendments to IFRS 17 proposing certain amendments to IFRS 17 during June 2019 and received comments from various stakeholders. On 17 March 2020, the IASB completed its discussions on the amendments to IFRS 17 Insurance Contracts that were proposed for public consultation in June 2019. It decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1 January 2023. The IASB expects to issue the amendments to IFRS 17 in the second quarter of 2020. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied.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 interim condensed financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company expects a material impact on measurement and disclosure of insurance and cession that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard.The Company has started with their implementation process and have set up an implementation committee. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 6.INVESTMENTSAvailable-for-sale investments30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operations (note 6.1)117,086227Shareholders’ operations (note 6.2)174,199190,721291,285190,9486.1Insurance operationsMovement during the period / year is as follows:30 June2020(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-78,486Realized gain on investments-1,136Changes in fair value of investments5,717102Closing balance117,086227Investment in sukuks116,857-Investment in mutual funds229227117,0862276.2Shareholders’ operationsMovement during the period / year is as follows:30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Opening balance190,72126,277Purchases during the period / year38,75823,576Transfer from held to maturity investments during the period / year (note 6.3)-157,585Disposals during the period / year(61,831)(24,613)Realized gain on investments4,246311Changes in fair value of investments2,3057,585Closing balance174,199190,721Investment in equity shares (Note 6.4)6,2476,613Investment in sukuks146,981164,205Investment in mutual funds20,97119,903174,199190,7216.3During 2019, the Company had sold few held to maturity investments before the maturity dates. Hence, the Company reclassified all of its held to maturity investments into available-for-sale investments category.6.4 This includes 3.85% (31 December 2019: 3.85%) shareholding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. In the absence of reliable financial information, management believes that fair values cannot be ascertained reliably. | 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 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Policyholders182,437117,361Brokers and agents9,402210Related parties (note 14)236,425146,663Receivables from reinsurers27,06522,138455,329286,372Provision for doubtful receivables(93,407)(83,920)Premiums and reinsurers’ receivable – net361,922202,452Movement in the provision for doubtful receivables during the period / year was as follows:30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Balance at the beginning of the period / year83,92086,665Provision charged / (released) during the period / year9,487(2,745)Balance at the end of the period / year93,40783,920 | 5 |
| Disclosure of cash and cash equivalents [text block] | 4.CASH AND CASH EQUIVALENTS AND SHORT TERM DEPOSITS4.1 CASH AND CASH EQUIVALENTSCash and cash equivalents included in the statement of cash flows comprise the following:30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Insurance operationsBank balances and cash162,284216,199Shareholders’ operationsBank balances and cash4,04941,454Total cash and cash equivalents166,333257,6534.2 SHORT TERM DEPOSITS30 June2020(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 30 June 2020 (31 December 2019: 2.35%) | 4 |
| Disclosure of statutory deposit [text block] | 10.STATUTORY DEPOSIT30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Statutory deposit60,00060,000In compliance with Article 58 of the Implementing Regulations of the Saudi Arabian Monetary Authority ("SAMA"), the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SAR 60 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.In accordance with instructions received from SAMA vide their circular dated 1 March 2016; the Company has disclosed the commission due on the statutory deposit as an asset and a liability in these interim condensed financial statements. | 10 |
| Disclosure of gross outstanding claims/ benefits [text block] | 7.TECHNICAL RESERVES7.1Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:30 June2020(Unaudited)SAR’00031 December 2019(Audited)SAR’000Outstanding claims61,90666,652Claims incurred but not reported 162,355162,673224,261229,325Premium deficiency reserve21,30718,760Other technical reserves10,8889,604256,456257,689Less:- Reinsurers’ share of outstanding claims(41,125)(45,581)- Reinsurers’ share of claims incurred but not reported(119,657)(112,881)(160,782)(158,462)Net outstanding claims and reserves95,67499,2277.2Movement in unearned premiumsMovement in unearned premiums comprise of the following:Six-months period ended 30 June 2020(Unaudited)GrossReinsuranceNetSAR’000Balance as at the beginning of the period163,093(137,914)25,179Premium written / (ceded) during the period389,157(271,205)117,952Premium earned during the period(166,857)123,455(43,402)Balance as at the end of the period385,393(285,664)99,729Year ended 31 December 2019(Audited)GrossReinsuranceNetSAR’000Balance as at the beginning of the year141,051(94,750)46,301Premium written / (ceded) 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 |
| Disclosure of zakat [text block] | 15.ZAKAT AND INCOME TAXa.Provision for zakat and income taxThe zakat and income tax payable by the Company has been calculated in accordance with zakat and income tax regulations in the Kingdom of Saudi Arabia.The movement in the zakat and income tax payable is as follows:Movements in zakat provision during the period / year30 June 2020(Unaudited)31 December 2019(Audited)SAR’000Balance at the beginning of the period / year28,13621,788Charge for the period / year3,8007,900Paid during the period / year-(1,552)Balance at the end of the period / year31,93628,136The movement in the income tax payable is as follows:Movements in income tax provision during the period / year30 June 2020(Unaudited)31 December 2019(Audited)SAR’000Balance at the beginning of the period / year800700Charge for the period / year200100Balance at the end of the period / year1,000800The differences between the financial and the zakatable/taxable 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 General Authority of Zakat and Tax (GAZT) could be different from the declarations filed by the Company. 15.ZAKAT AND INCOME TAX – (continued)b.Status of zakat assessmentsThe Company has filed its zakat and income tax declarations for the years ended 31 December 2009 to 2018 and obtained restricted zakat and tax certificates.During 2017, the Company received the zakat assessments for the years 2005 to 2008 from the GAZT with regards to the portfolio transferred from the old company claiming zakat liability amounting to SAR 6.01 million and withholding tax liability amounting to SAR 16.09 million. Management has filed an objection against the above assessments and is confident of receiving a favorable outcome. Further, the Company has issued a bank guarantee in favor of GAZT amounting to SAR 22.09 million (2019: SAR 22.09 million) against such assessments (see note 11).During the six-months period ended 30 June 2020, GAZT issued an amended assessment based on the decision of the Preliminary Objection Committee and claimed additional delay fine amounting to SAR 2.4 million relating to 2009 to 2011. During 2019, GAZT had issued assessment for the years 2012 and 2013 claiming additional zakat and income tax liability amounting to SAR 15.84 million. However, the Company objected against the assessments and is planning to meet the Dispute Resolution Committee to assign a date and reach a final settlement. The management believes that the existing provision for zakat and tax is sufficient.Subsequent to 30 June 2020, GAZT issued an assessment for the years 2014, 2015 and 2018 claiming additional zakat in addition to the delay fine amounting to SAR 25.65 million and withholding tax for the years 2016, 2017 and 2018 amounting to SAR 29.82 million. The Company intends to object against these assessments.The Zakat is applicable on 99% of the shareholders while income tax on 1% of the shareholders. | 15 |
| Disclosure of gross premiums/ contributions written [text block] | Three-months period ended 30 June 2020 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalSAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-63,021145-63,166-Micro enterprises1,6125473,361-5,520-Small enterprises7,5945,9064,812-18,312-Medium enterprises-6,3419,666-16,007-Large enterprises517045,331-45,5069,21175,98563,315-148,511Six-months period ended 30 June 2020 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalSAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-83,283165-83,448-Micro enterprises3,5885,6027,384-16,574-Small enterprises9,67618,07413,084-40,834-Medium enterprises3,94029,418123,173-156,531-Large enterprises1684,40287,200-91,77017,372140,779231,006-389,157 | 13 |
| Disclosure of earnings per share [text block] | 18.BASIC AND DILUTED (LOSS) / EARNINGS PER SHARE(Loss) / earnings per share for the period has been calculated by dividing the net (loss) / earnings for the period by the weighted average number of issued and outstanding shares for the period. | 18 |
| Disclosure of related party transactions [text block] | 14.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. 14.1 TRANSACTIONS WITH RELATED PARTIESThe following are the details of the significant related parties’ transactions during the period:Nature of transactionsThree-months period ended30 JuneSix-months period ended 30 June2020201920202019SAR’000SAR’000SAR’000SAR’000(Unaudited)(Unaudited)(Unaudited)(Unaudited)Major shareholdersHaji Hussien Ali RezaPremium written1,9031,2224,6554,593Payments received and claims paid(3)(3,042)(3,265)(3,829)Saudi Bin Laden – GroupPremium written2,9426,330106,86534,854Payments received and claims paid(5,272)(13,612)(23,672)(24,031)Construction Product CompanyPremium written1,4751,5547,0316,096Payments received and claims paid(1,580)(1,127)(2,186)(2,838)Entities controlled, jointly controlled or significantly influenced by related partiesUnited Commercial AgenciesPayment made on behalf of company1502615023Law Office of Hassan MahassniPremium written4554521,109452Payments received and claims paid(642)(212)(784)(212)Middle East GroupPremium written22-22-Payments received and claims paid(12)-(12)-14.2 RELATED PARTIES BALANCESBalance receivable / (payable) as at30 June 2020(Unaudited)31 December 2019(Audited)SAR’000Haji Hussien Ali Reza11,74510,355Saudi Bin Laden – Group200,194117,001Construction Product Company24,01819,174United Commercial Agencies697847UCA Workshop(3)(3)Law Office of Hassan Mahassni457132Middle East Group111The above balances are included in premiums receivables-net, prepayments and other assets, policyholders payables and accrued expenses and other liabilities.14.RELATED PARTY TRANSACTIONS AND BALANCES – (continued)Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer and the Chief Financial Officer of the Company.The following table shows the annual salaries, remuneration and allowances obtained by the key management personnel for the period ended 30 June 2020 and 30 June 2019:30 June 2020(Unaudited)30 June 2019(Unaudited)SAR’000Salaries and other allowances2,6002,568End of service indemnities106712,7062,639Remuneration to those charged with governance475428 | 14 |
| Disclosure of entity's operating segments [text block] | 13.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 of Directors 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 2019.Segment assets do not include cash and cash equivalents, term deposits, net premiums and reinsurers’ receivable, prepaid expenses and other receivables, investments, property and equipment, right-of-use assets and goodwill. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders’ claims payables, reinsurers’ balance payable, lease liabilities, surplus from insurance operations accrued and other liabilities and employees’ defined benefit obligations. 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.Segment performance is evaluated on the basis of underwriting results from each segment and therefore, operating expenses are not allocated to each segment and are monitored at the Company level.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 June 2020 and 31 December 2019, its total revenues, expenses, and net income for the three-months and six-months periods ended 30 June 2020 and 30 June 2019, are as follows: | 13 |
| Disclosure of capital management [text block] | 17.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.The Company’s management has assessed the potential impact of the Covid-19 pandemic by performing stress testing for various variables like: gross premium growth, increase in employee cost, YTD loss ratio, outstanding premium provisions, etc. and the related impact on the revenue, profitability, loss ratio and solvency ratio. As with any forecasts, the projections and likelihoods of occurrence are underpinned by significant judgements and uncertainties and, therefore, the actual outcomes may be different to those projected. As the situation is fluid and rapidly evolving, the Company will continue to reassess its position and the related impact on a regular basis. | 17 |
| Disclosure of fair value of financial assets and liabilities [text block] | 12.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 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.The following table shows the fair values of financial assets, 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 not measured at fair value if the carrying amount is a reasonable approximation to fair value.12.FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)30 June 2020 (Unaudited)Level 1Level 2Level 3TotalSAR’ 000SAR’ 000SAR’ 000SAR’ 000Financial assets measured at fair valueEquity securities-Insurance operations-229-229-Shareholders’ operations4,324-1,9236,247Debt securities-Insurance operations-116,857-116,857-Shareholders’ operations-167,952-167,9524,324285,0381,923291,28531 December 2019 (Audited)Level 1Level 2Level 3TotalSAR’ 000SAR’ 000SAR’ 000SAR’ 000Financial assets measured at fair valueEquity securities-Insurance operations-227-227-Shareholders’ operations4,69019,9021,92326,515Debt securities-Insurance operations-----Shareholders’ operations60,260103,946-164,20664,950124,0751,923190,948 | 12 |
| Disclosure of comparative figures [text block] | 20.COMPARATIVE FIGURESCertain prior period figures have been reclassified to conform to current period presentation. Such reclassifications have not resulted in any additional impact on equity, income or total comprehensive income for comparative periods. | 20 |
| Disclosure of board of director's approval of the financial statements [text block] | 22.APPROVAL OF THE INTERIM CONDENSED FINANCIAL STATEMENTSThe interim condensed financial statements have been approved by the Board of Directors on 17 August 2020 corresponding to 27 Dhul Hijjah 1441H. | 22 |
