| 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 number (NMT/19/200812) from the Saudi Central Bank (“SAMA”) which is currently valid up to 30 Dhul Hijja 1442H corresponding to 9 August 2021 to engage in insurance and reinsurance business 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 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.In accordance with the by-laws of the Company, the surplus arising from the insurance operations is distributed as follows:Transfer to shareholders’ operations90%Transfer to insurance operations10%100%In case of deficit arising from the insurance operations, the entire deficit is allocated and transferred to the shareholders’ operations in full.In accordance with Article 70 of SAMA implementing regulations, the Company proposes to distribute, subject to the approval of SAMA, its annual net policyholders’ surplus directly to policyholders at a time, and according to criteria, as set by its Board of Directors. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2.BASIS OF PREPARATION(a)Statement of complianceThe interim condensed financial statements of the Company 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 pronouncement issued by Saudi Organization for Chartered and Professional Accountants (formerly known as Saudi Organization for Chartered and Professional Accountants (“SOCPA”).(b)Basis of presentation and measurementThese interim condensed financial statements have been prepared under going concern basis and historical cost convention except for the measurement at fair value of investments held as available-for-sale (AFS) and employees’ defined benefit obligations which is recognized at the present value of future obligations using the projected unit credit method. The Company’s statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as current: cash and cash equivalents, short term deposits, premiums and reinsurers’ receivable - net, reinsurers’ share of unearned premiums, deferred policy acquisition costs, deferred excess of loss premiums, prepaid expenses and other assets, policyholders payable, reinsurers balances payable, accrued and other liabilities, unearned premiums, unearned reinsurance commission, outstanding claims, claims incurred but not reported, premium deficiency reserve, other technical reserves and Zakat and income tax payable. All other financial statement line items would generally be classified as non-current unless stated otherwise.The Company presents its statement of financial position broadly in order of liquidity. As required by Saudi Arabian Insurance Regulations “SAMA Implementing Regulations” the Company maintains separate books of accounts for “Insurance operations” and “Shareholders’ operations”. 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 physical custody of all assets related to the insurance operations and shareholders’ operations are held by the Company.The 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 IFRS as endorsed in KSA. 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 interim condensed financial statements in compliance with IAS 34, as endorsed in KSA, 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.On 8 November 2020 corresponding to 22 Rabi Al Awwal 1442H, the Company announced on Tadawul that as on 30 September 2020, the Company’s accumulated losses reached 22% of its share capital. As of 31 March 2021, the Company’s accumulated losses reached 34% of its share capital (2019: 27%). During the three-month period 31 March 2021, the Company incurred net loss attributable to the shareholders amounting to SAR 28.99 million (31 March 2020: SAR 5.09 million) and has negative operating cash flows. These conditions raised uncertainty on the Company’s ability to continue as a going concern. However, management of the Company has prepared a business plan and is confident of having positive outcome of the strategy and believes that the Company’s operations shall continue for foreseeable future under the normal course of business and is satisfied that the going concern basis of preparation of these interim condensed financial statements is appropriate. Accordingly, these interim condensed financial statements have been prepared on the going concern basis.(c)Functional and presentation currencyThese financial statements have been presented in Saudi Arabian Riyals (“SAR”), which is also the functional currency of the Company. All financial information presented in SAR have been rounded off to the nearest thousands, except where otherwise indicated.(d)Fiscal yearThe Company follows a fiscal year ending 31 December.(e)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 2020. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the ongoing 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.(f)Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company. | 2 |
| Disclosure of accounting framework used in preparation of financial statements [text block] | The 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 2020 except for the 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. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | (a)New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Company.A number of amended standards became applicable for the current reporting period. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.(b)Standards issued but not yet effectiveStandards and interpretation 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 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 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: | 3 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | 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.(a)Standards issued but not yet effective – (continued)IFRS 9 - Financial Instruments – (continued)For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.(b)Impairment:The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.(c)Hedge accounting:IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.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 2021. On 17 March 2020, the International Accounting Standards Board (“IASB”) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from 1 January 2021 to 1 January 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2.Adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the 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 2020.3.SIGNIFICANT ACCOUNTING POLICIES – (continued)(a)Standards issued but not yet effective – (continued)IFRS 9 - Financial Instruments – (continued)Impact assessmentAs at 31 March 2021, the Company has total financial assets and insurance related assets amounting to SAR 842.63 million (31 December 2020: SAR 883.82 million) and SAR 604.91 million (31 December 2020: SAR 640.81 million), respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents, premiums and certain other receivables amounting to SAR 341.75 million (31 December 2020: SAR 346.49 million). Other financial assets consist of available for sale investments amounting to SAR 280.43 million (31 December 2020: SAR 288.37 million).As at 31 March 2021, the debt securities measured at fair value are of SAR 253.2 million (31 December 2020: SAR 261 million) with changes in fair value during the period ended 31 March 2021 of SAR 7.79 million (31 December 2020: SAR 4.49 million). Other financial assets have a fair value of SAR 27.22 million (31 December 2020: SAR 27.35 million) as at 31 March 2021 with a fair value change during the period ended 31 March 2021 of SAR 0.14 million (31 December 2020: SAR 0.62 million).The Company’s financial assets have low credit risk as at 31 March 2021 and 31 December 2020. 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 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).Measurement – (continued)In 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; andthe liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.3.SIGNIFICANT ACCOUNTING POLICIES – (continued)(a)Standards issued but not yet effective – (continued)IFRS 17 – Insurance Contracts– (continued)Measurement – (continued)The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted in addition to adjustment under general model;I.changes in the entity’s share of the fair value of underlying items; andII.changes in the effect of the time value of money and financial risks not relating to the underlying items.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 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 during 2020. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends 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 in 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 |
| Description of accounting policy for 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 interim statement of cash flows comprise the following:31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Insurance operationsBank balances18,27451,356Shareholders’ operationsBank balances 5,86210,379Total 24,13661,7354.2 SHORT TERM DEPOSITS31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Insurance operationsShort term deposits-22,656a.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 earned commission at an average rate of Nil as at 31 March 2021 (31 December 2020: 2.35%) | 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:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Policyholders196,100162,637Brokers and agents3,4703,510Related parties (note 14)154,337156,398Receivables from reinsurers9,4816,804363,388329,349Provision for doubtful receivables(92,531)(89,743)Premiums and reinsurers’ receivable – net270,857239,606Movement in the provision for doubtful receivables during the period / year was as follows:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Balance at the beginning of the period / year89,74383,920Provision charged during the period / year2,7885,823Balance at the end of the period / year92,53189,743 | 5 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of leases [text block] | 8.LEASES8.1RIGHT-OF-USE ASSETS – NETBuilding31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Cost:At beginning of the period / year9,608-Additions during the period / year-9,608Deletion during the period / year(86)-At end of the period / year9,5229,608Accumulated depreciation:At beginning of the period / year2,052-Additions during the period / year7982,052Deletions during the period / year(28)-At end of the period / year2,8222,052Net book value6,7007,5568.2LEASE LIABILITIES31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000At beginning of the period / year6,397-Additions during the period / year-9,608Deletions during the period / year(58)-Finance cost62187Payments during period / year(320)(3,398)At end of the period / year6,0816,397 | 8 |
| Disclosure of investments in available-for-sale investments [text block] | 6.INVESTMENTSAvailable-for-sale investments31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Insurance operations (note 6.1)109,603115,088Shareholders’ operations (note 6.2)170,824173,278280,427288,3666.1Insurance operationsMovement during the period / year is as follows:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Opening balance115,088227Purchases during the period / year-111,142Changes in fair value of investments(5,485)3,719Closing balance109,603115,088Investment in sukuks109,374114,859Investment in mutual funds229229109,603115,0886.2Shareholders’ operationsMovement during the period / year is as follows:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Opening balance173,278190,721Purchases during the period / year-38,759Disposals during the period / year-(61,831)Realized gain on investments-4,246Changes in fair value of investments(2,454)1,383Closing balance170,824173,278Investment in equity shares (Note 6.3)6,6396,580Investment in sukuks143,836146,149Investment in mutual funds20,34920,549170,824173,2786.3 This includes 3.85% (31 December 2020: 3.85%) shareholding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company which is carried at cost. In the absence of reliable financial information, management believes that fair values cannot be ascertained reliably. Therefore, this investment has been carried at cost. | 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:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Policyholders196,100162,637Brokers and agents3,4703,510Related parties (note 14)154,337156,398Receivables from reinsurers9,4816,804363,388329,349Provision for doubtful receivables(92,531)(89,743)Premiums and reinsurers’ receivable – net270,857239,606Movement in the provision for doubtful receivables during the period / year was as follows:31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Balance at the beginning of the period / year89,74383,920Provision charged during the period / year2,7885,823Balance at the end of the period / year92,53189,743 | 5 |
| Disclosure of cash and cash equivalents [text block] | CASH AND CASH EQUIVALENTSCash and cash equivalents included in the interim statement of cash flows comprise the following:31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Insurance operationsBank balances18,27451,356Shareholders’ operationsBank balances 5,86210,379Total 24,13661,7354.2 SHORT TERM DEPOSITS31 March 2021 (Unaudited)SAR’00031 December 2020(Audited)SAR’000Insurance operationsShort term deposits-22,656a.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 earned commission at an average rate of Nil as at 31 March 2021 (31 December 2020: 2.35%) | 4 |
| Disclosure of statutory deposit [text block] | 10.STATUTORY DEPOSIT31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Statutory deposit60,00060,000In compliance with Article 58 of the Implementing Regulations of 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 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 unearned premiums/ contributions [text block] | 7.2Movement in unearned premiumsMovement in unearned premiums comprise of the following:Three-months period ended 31 March 2021(Unaudited)GrossReinsuranceNetSAR’000Balance as at the beginning of the period302,452(209,598)92,854Premium written / (ceded) during the period116,140(60,652)55,488Premium earned during the period(126,913)75,900(51,013)Balance as at the end of the period291,679(194,350)97,329Year ended 31 December 2020(Audited)GrossReinsuranceNetSAR’000Balance as at the beginning of the year163,093(137,914)25,179Premium written / (ceded) during the year616,861(416,754)200,107Premium earned during the year(477,502)345,070(132,432)Balance as at the end of the year302,452(209,598)92,854 | 7 |
| Disclosure of gross outstanding claims/ benefits [text block] | 7.1Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:31 March 2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Outstanding claims61,55762,921Claims incurred but not reported168,057169,749229,614232,670Premium deficiency reserve25,50125,748Other technical reserves15,96313,378271,078271,796Less:- Reinsurers’ share of outstanding claims(36,785)(41,720)- Reinsurers’ share of claims incurred but not reported(125,116)(126,264)(161,901)(167,984)Net outstanding claims and reserves109,177103,812 | 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:31 March2021(Unaudited)31 December 2020(Audited)SAR’000Balance at the beginning of the period / year20,85028,136Charge for the current year1,9007,900Charge for the prior years-20,000Paid during the period / year(7,366)(35,186)Balance at the end of the period / year15,38420,850The movement in the income tax payable is as follows:31 March2021 (Unaudited)31 December 2020(Audited)SAR’000Balance at the beginning of the period / year900800Charge for the period / year100100Balance at the end of the period / year1,000900Total16,38421,750The 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 GAZT could be different from the declarations filed by the Company. b.Status of zakat assessmentsThe Zakat is applicable on 99% of the shareholders while income tax on 1% of the shareholders.The Company has filed its zakat and income tax declarations for the years ended 31 December 2009 to 2019 and obtained restricted zakat and tax certificates.Assessment years 2005, 2006, 2007 and 2008During 2017, the Company received the zakat assessments for the years 2005 to 2008 from the GAZT with regards to the insurance operations transferred from UCA Insurance Bahrain BSC 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 (2020: SAR 22.09 million) against such assessments (see note 11). Management is of the view that any additional liability as a result of these assessments will eventually be charged to the shareholders of the UCA Insurance Bahrain BSC.Assessment years to 2009, 2010 and 2011During 2020, GAZT issued an amended assessment based on the decision of the Preliminary Objection Committee and claimed additional delay fine amounting to SAR 2.40 million relating to 2009 to 2011 and the Company is intended to settle this delay fine. Assessment years 2012 and 2013During 2018, GAZT had issued assessments for the years 2012 and 2013 claiming additional zakat and income tax liability amounting to SAR 15.84 million. However, the Company objected to the assessments and is planning to meet the Dispute Resolution Committee of the GAZT to reach a final settlement.Assessment years 2014, 2015, 2016, 2017 and 2018During 2020, GAZT issued an assessment for the years 2014, 2015 and 2018 claiming additional zakat in addition tothe 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 settled the additional zakat amount of SAR 13.82 million and objected against the remaining amount and received a revised assessment for remaining amount of SAR 2.67 million which the Company has also settled during the three-month period ended 31 March 2021. The Company also paid the withholding tax difference of SAR 18.93 million to fully settle against the additional assessment of SAR 29.82 million.Also, during 2020 , GAZT issued an assessment claiming additional zakat, tax and delay fine for the years 2016 and 2017 amounting to SAR 10.38 and SAR 10.27 million, respectively. The Company paid an amount of SAR 12.55 million against these assessments and objected against the remaining amount and received a revised assessment for the remaining amount of SAR 4.69 million which the Company has also settled during the three-month period ended 31 March 2021. VAT assessmentOn 25 August 2020, the Company received an assessment from GAZT to pay additional principal VAT of SAR 12.28 million for the years 2018 and 2019 as well as additional fines of SAR 20.25 million for those years. In order to avoid incurring additional fines the Company paid the principal VAT on 28 October 2020 without prejudice to its position and objected to the items issued for the evaluation. On 20 February 2021, the Company filed an appeal with the General Secretariat of Tax Committees (GSTC) against the decision of the GAZT for which management is confident of a favorable outcome. The objected items are zero rated supplies, self-invoicing, and reinsurance commission.The fines imposed on the assessments amounting to SAR 20.25 million for the years 2018 and 2019 were subsequentlycanceled as the Company has taken advantage of GAZT’s initiative to stabilize the economy and boost the private sector. | 15 |
| Disclosure of earnings per share [text block] | 18.BASIC AND DILUTED LOSS PER SHARELoss per share for the period has been calculated by dividing the net loss 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 ended31 March20212020SAR’000SAR’000(Unaudited)(Unaudited)Major shareholdersHaji Hussien Ali RezaPremium written2,2052,752Payments received and claims paid(3,062)(3,262)Saudi Bin Laden – GroupPremium written3,338103,923Payments received and claims paid(8,687)(18,400)Construction Product CompanyPremium written5,4805,556Payments received and claims paid(1,180)(606)Entities controlled, jointly controlled or significantly influenced by related partiesLaw Office of Hassan MahassniPremium written-654Payments received and claims paid(142)(142)Middle East GroupPayments received and claims paid(13)-14.2 RELATED PARTIES BALANCESBalance receivable / (payable) as at31 March 2021(Unaudited)31 December2020(Audited)SAR’000Premium receivableHaji Hussien Ali Reza7,3308,187Saudi Bin Laden – Group122,026127,375Construction Product Company24,92320,623Law Office of Hassan Mahassni55197Middle East Group316154,337156,398Other balancesUnited Commercial Agencies697697These balances are included under 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 31 March 2021 and 31 March 2020:Three-months period ended31 March20212020SAR’000SAR’000(Unaudited)(Unaudited)Salaries and other allowances1,4541,300End of service indemnities121531,5751,353Remuneration to those charged with governance393270 | 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 2020.Segment assets do not include cash and cash equivalents, short-term deposits, net premiums and reinsurers’ receivable, prepaid expenses and other assets, investments, property and equipment, intangible assets, right-of-use assets and goodwill. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders’ payables, reinsurers’ balance payable, lease liabilities, zakat and income tax payable, 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 31 March 2021 and 31 December 2020, its total revenues, expenses, and net income for the three-months periods ended 31 March 2021 and 31 March 2020, are as follows:13.OPERATING SEGMENTS – (continued)As at 31 March 2021(Unaudited)SAR’000MedicalMotorEnergyEngineeringOthersTotalinsurance operationsShareholders’ operationsTotalAssetsReinsurers’ share of unearned premiums5,88224,60318,501116,11429,250194,350-194,350Reinsurers’ share of outstanding claims3,9523,983-5,68323,16736,785-36,785Reinsurers’ share of claims incurred but not reported1,28516,45621,38040,24845,747125,116-125,116Deferred policy acquisition costs2,8866,612-3,0561,56314,117-14,117Unallocated assets488,410322,757811,167Total assets 858,778322,7571,181,535LiabilitiesUnearned premiums37,17082,03518,821118,12735,526291,679-291,679Unearned reinsurance commission-6,332-19,2444,28329,859-29,859Outstanding claims12,78316,858-6,53425,38261,557-61,557Claims incurred but not reported4,74147,61221,75542,20351,746168,057-168,057Premium deficiency reserve2,99521,836344-32625,501-25,501Other technical reserves1,91610,7455441,1371,62115,963-15,963Unallocated liabilities and insurance operations reserve264,14621,154285,300Total liabilities and insurance operations reserve856,76221,154877,91613.OPERATING SEGMENTS – (continued)As at 31 December 2020(Audited)SAR’000MedicalMotorEnergyEngineeringOthersTotalinsurance operationsShareholders’ operationsTotalAssetsReinsurers’ share of unearned premiums9,67231,837-140,58827,501209,598-209,598Reinsurers’ share of outstanding claims5,6533,844-5,54926,67441,720-41,720Reinsurers’ share of claims incurred but not reported1,65018,67921,39639,76244,777126,264-126,264Deferred policy acquisition costs1,5765,640-3,7311,69812,645-12,645Unallocated assets518,655327,999846,654Total assets 908,882327,9991,236,881LiabilitiesUnearned premiums21,202106,134-142,87032,246302,452-302,452Unearned reinsurance commission-7,512-23,4084,07434,994-34,994Outstanding claims10,27916,810-6,48729,34562,921-62,921Claims incurred but not reported4,53650,69321,77141,94950,800169,749-169,749Premium deficiency reserve2,73422,630--38425,748-25,748Other technical reserves1,8258,2425441,1301,63713,378-13,378Unallocated liabilities and insurance operations reserve264,84127,735292,576Total liabilities and insurance operations reserve874,08327,735901,81813.OPERATING SEGMENTS – (continued)Three-months period ended 31 March 2021 (Unaudited)MedicalMotorEnergyEngineeringOthersTotalSAR'000SAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-1,267--1,267-Micro enterprises6,5605,133--3,14614,839-Small enterprises13,78110,042829995,72630,477-Medium enterprises9,45315,376-3,8356,20134,865-Large enterprises68428424,6312,1666,92734,69230,47832,10225,4606,10022,000116,140Reinsurance premiums ceded-Local(54)(3,291)-(568)(2,025)(5,938)-Foreign(261)(6,185)(25,028)(4,652)(17,019)(53,145)(315)(9,476)(25,028)(5,220)(19,044)(59,083)Excess of loss expenses -Local-(107)--(105)(212)-Foreign-(608)--(749)(1,357)-(715)--(854)(1,569)Net premiums written30,16321,9114328802,10255,488Changes in unearned premiums – net (19,759)16,865(319)270(1,532)(4,475)Net premiums earned10,40438,7761131,15057051,013Reinsurance commissions earned-3,3624255,4842,73112,002TOTAL REVENUES10,40442,1385386,6343,30163,015UNDERWRITING COSTS AND EXPENSESGross claims paid11,44766,455-5214,77183,194Reinsurers’ share of claims paid(5,960)(19,419)-(306)(3,729)(29,414)Net claims paid5,48747,036-2151,04253,780Changes in outstanding claims, net4,20536-(88)(582)3,571Changes in claims incurred but not reported – net 570(858)-(232)(23)(543)Net claims incurred10,26246,214-(105)43756,808Premium deficiency reserve260(794)344-(57)(247)Other technical reserves922,503-7(16)2,586Policy acquisition costs1,1263,199-8729396,136Other underwriting expenses23024812715392850TOTAL UNDERWRITING COSTS AND EXPENSES11,97051,3704719271,39566,133NET UNDERWRITING RESULT(1,566)(9,232)675,7071,906(3,118)13.OPERATING SEGMENTS – (continued)Three-months period ended 31 March 2021 (Unaudited)MedicalMotorEnergyEngineeringOthersTotalSAR’000SAR’000SAR’000SAR’000SAR’000SAR’000OTHER OPERATING (EXPENSES) / INCOMEGeneral and administrative expenses(23,414)Provision for doubtful receivables(2,788)Board remuneration(393)Investments income2,305Other income418TOTAL OTHER OPERATING EXPENSES – NET (23,872)LOSS FOR THE PERIOD(26,990)Net income for the period attributable to insurance operations-Net loss for the period attributable to the shareholders before zakat and income tax(26,990)Zakat(1,900)Income tax(100)NET LOSS FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS(28,990)13.OPERATING SEGMENTS – (continued)*13.1 Additional informationThree-months period ended 31 March 2021 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalSAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-1,267--1,267-Micro enterprises6,5605,1333,146-14,839-Small enterprises13,78110,0426,654-30,477-Medium enterprises9,45315,37610,036-34,865-Large enterprises68428433,724-34,69230,47832,10253,560-116,140Three-months period ended 31 March 2020 (Unaudited)MedicalMotorEnergyEngineeringOthersTotalSAR'000SAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-20,262--2020,282-Micro enterprises1,9765,055-1933,83011,054-Small enterprises2,06612,168-2,9885,28422,506-Medium enterprises3,95623,077-82,56830,939140,540-Large enterprises1634,23233,933(165)8,10146,2648,16164,79433,93385,58448,174240,646Reinsurance premiums ceded-Local(671)(3,240)-(3,170)(2,867)(9,948)-Foreign(3,075)(16,293)(33,349)(80,941)(40,504)(174,162)(3,746)(19,533)(33,349)(84,111)(43,371)(184,110)Excess of loss expenses -Local-(79)--(92)(171)-Foreign-(446)--(522)(968)-(525)--(614)(1,139)Net premiums written4,41544,7365841,4734,18955,397Changes in unearned premiums – net (943)(37,047)(434)(442)(2,060)(40,926)Net premiums earned3,4727,6891501,0312,12914,471Reinsurance commissions earned-9264732,3043,4567,159TOTAL REVENUES3,4728,6156233,3355,58521,630UNDERWRITING COSTS AND EXPENSESGross claims paid5,88012,430-2071,48920,006Reinsurers’ share of claims paid(3,074)(4,375)-(181)(892)(8,522)Net claims paid 2,8068,055-2659711,484Changes in outstanding claims, net(73)(2,456)-207239(2,083)Changes in claims incurred but not reported – net (2,753)(378)166377(2,687)Net claims incurred(20)5,22112991,2136,714Premium deficiency reserve(4,234)7,226--(334)2,658Other technical reserves(2,442)1,490-2762(863)Policy acquisition costs305966-3987412,410Other underwriting expenses1416417076105556TOTAL UNDERWRITING COSTS AND EXPENSES(6,250)14,9671718001,78711,475NET UNDERWRITING RESULT9,722(6,352)4522,5353,79810,155Three-months period ended 31 March 2020 (Unaudited)MedicalMotorEnergyEngineeringOthersTotalSAR’000SAR’000SAR’000SAR’000SAR’000SAR’000OTHER OPERATING (EXPENSES) / INCOMEGeneral and administrative expenses(19,852)Provision for doubtful receivables4,313Board remuneration(270)Investments income1,923Other income641TOTAL OTHER OPERATING EXPENSES – NET (13,245)LOSS FOR THE PERIOD(3,090)Net loss for the period attributable to insurance operations-Net loss for the period attributable to the shareholders before zakat and income tax(3,090)Zakat(1,900)Income tax(100)(2,000)NET LOSS FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS(5,090)*13.1 Additional informationThree-months period ended 31 March 2020 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalSAR'000SAR'000SAR'000SAR'000SAR'000REVENUESGross premiums written-Individual-20,26220-20,282-Micro enterprises1,9765,0554,023-11,054-Small enterprises2,06612,1688,272-22,506-Medium enterprises3,95623,077113,507-140,540-Large enterprises1634,23241,869-46,2648,16164,794167,691-240,646 | 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.The Company manages its capital to ensure that it is able to continue as going concern and comply with the regulators’ capital requirements of the markets in which the Company operates while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of equity attributable to equity holders comprising paid share capital, reserves and retained earnings or accumulated losses. | 17 |
| Disclosure of commitments and contingencies, general [text block] | 11.COMMITMENTS AND CONTINGENCIES31 March2021(Unaudited)SAR’00031 December 2020(Audited)SAR’000Letters of guarantee issued in favour of GAZT22,09622,096Letters of guarantee issued in favour of non-government customers1,4001,400Total23,49623,496a.The Company has capital commitments outstanding as at 31 March 2021 amounting to SAR 19.3 million (31 December 2020: SAR 19.65 million) in respect of software development project.b.As at 31 March 2021, the Company’s bankers have given guarantees to non-government customers amounting to SAR 1.40 million (2020: SAR 1.40 million) in respect of motor insurance and to the General Authority of Zakat and Tax (GAZT) amounting to SAR 22.09 million (2020: SAR 22.09 million) in respect of a disputed assessment order (also see note 15) which is deposited with a bank and is included in prepaid expenses and other assets.c.Refer note 15 for the status of open zakat and tax assessments. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | 12.12.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 of financial instruments are not significantly different from their carrying amounts included in the interim condensed financial statements. 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. The fair value is also the carrying value of thesefinancial assets.31 March 2021 (Unaudited)Level 1Level 2Level 3TotalSAR’ 000SAR’ 000SAR’ 000SAR’ 000Financial assets measured at fair valueEquity securities and mutual funds-Insurance operations229--229-Shareholders’ operations25,065--25,065Debt securities -Insurance operations109,374--109,374-Shareholders’ operations38,143105,693-143,836172,811105,693-278,50431 December 2020 (Audited)Level 1Level 2Level 3TotalSAR’ 000SAR’ 000SAR’ 000SAR’ 000Financial assets measured at fair valueEquity securities and mutual funds-Insurance operations229--229-Shareholders’ operations25,206--25,206Debt securities -Insurance operations114,859--114,859-Shareholders’ operations40,055106,094-146,149180,349106,094-286,443Available-for-sale investment amounting to SAR 1.9 million (31 December 2020: SAR 1.9 million) is carried at cost as its fair value cannot be measured reliably. | 12 |
| Disclosure of board of director's approval of the financial statements [text block] | 21.APPROVAL OF THE INTERIM CONDENSED FINANCIAL STATEMENTSThe interim condensed financial statements have been approved by the Board of Directors on 09 May 2021 corresponding to 27 Ramadan 1442H. | 21 |
