| 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] | Bupa Arabia for Cooperative Insurance Company (the “Company”) is a Saudi Joint Stock Companyincorporated in the Kingdom of Saudi Arabia as per the Ministry of Commerce and Industry’s Resolutionnumber 138/K dated 24 Rabi Thani 1429H (corresponding to 1 May 2008). The Commercial Registrationnumber of the Company is 4030178881 dated 5 Jumad Awwal 1429H (corresponding to 11 May 2008). TheRegistered Office of the Company is situated at:Al-Khalediyah District,Prince Saud Al Faisal Street,Front of Saudi Airlines Cargo Building,P.O. Box 23807, Jeddah 21436,Kingdom of Saudi Arabia.The Company is licensed to conduct insurance business in the Kingdom of Saudi Arabia under cooperativeprinciples in accordance with Royal Decree No. M/74 dated 29 Shabaan 1428H (corresponding to 11 September2007) pursuant to the Council of Ministers’ Resolution No 279 dated 28 Shabaan 1428H (corresponding to 10September 2007).The objective of the Company is to transact cooperative insurance operations and related activities in theKingdom of Saudi Arabia in accordance with its articles of association, and applicable regulations in the Kingdomof Saudi Arabia. The Company underwrites medical insurance only.The Board of Directors approves the distribution of the surplus from insurance operations in accordance with theImplementing Regulations issued by the Saudi Arabian Monetary Authority (“SAMA”), whereby theshareholders of the Company are to receive 90% of the annual surplus from insurance operations and thepolicyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to theshareholders’ operations in full. | 1 |
| Disclosure of statement of compliance [text block] | The interim condensed financial statements of the Company has been prepared in accordance with ‘InternationalAccounting Standard 34 - Interim Financial Reporting ("IAS 34") as modified by SAMA for the accounting ofzakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting StandardsBoard (“IASB”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” andIFRIC 21 - “Levies” so far as these relate to zakat and income tax as modified by SAMA. As per the SAMACircular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarificationsrelating to the accounting for zakat and income tax (“SAMA”), zakat and income tax are to be accrued on aquarterly basis through equity under retained earnings.The interim condensed financial statements are prepared under the going concern basis and the historical costconvention, except for the measurement of investments at their fair value through statement of income (FVSI) andavailable-for-sale investments. The Company’s interim condensed statement of financial position is presented inorder of liquidity. Except for available-for-sale investments, Fixtures, Furniture and Right of use assets, intangibleassets, goodwill, statutory deposit, accrued income on statutory deposit, provision for end-of-service benefits andaccrued income payable to SAMA, 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 Companymaintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. Accordingly,assets, liabilities, revenues and expenses attributable to either operation, are recorded in the respective accounts.Note 21 to these interim condensed financial statements provides the statement of financial position, statements ofincome, comprehensive income and cash flows of the insurance operations and shareholders operations,separately.The interim condensed financial statements do not include all of the information required for full annualfinancial statements and should be read in conjunction with the annual financial statements as of and for the yearended 31 December 2018.The interim condensed financial statements may not be considered indicative of the expected results for the fullyear.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded offto the nearest thousand. | 2.A |
| Disclosure of new standards and amendments in standards [text block] | IFRS 16 – LeasesIFRS 16 supersedes IAS 17 Leases, IFRIC 4- Determining Whether an Agreement Contains a Lease. SIC 15Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of alease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leasesand requires lessees to account for most leases under a single on-balance sheet model. Lessor accounting underIFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating orfinance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases wherethe Company is the lessor.The Company adopted IFRS 16 using the modified retrospective method of adoption with the date of initialapplication of 1 January 2019. In accordance with the modified retrospective method of adoption, the Companyapplied IFRS 16 at the date of initial application with transition impact recognized in the retained earnings.Accordingly, the comparative information in these interim condensed financial statements has not been restated.The Company elected to use the transition practical expedient allowing the standard to be applied only tocontracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application.The Company also elected to use the recognition exemptions for lease contracts that, at the commencement date,have a lease term of 12 months or less and do not contain a purchase option (‘short-term leases’), and leasecontracts for which the underlying asset is of low value (‘low-value assets’). Upon adoption of IFRS 16, theCompany recognised lease liabilities to make lease payments and right-of-use assets representing the right to usethe underlying assets.The effect of adoption IFRS 16 as at 1 January 2019 (increase/ (decrease)) is as follows:2019SAR ‘000AssetsRight of use assets 103,196LiabilitiesLease liabilities 112,096EquityRetained earning (8,900)The Company has lease contracts for its office premises. Before the adoption of IFRS 16, the Company classifiedeach of its leases (as lessee) at the inception date an operating lease. Leases where the lessor retains substantiallyall the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments arerecognised as an expense in the statement of income on a straight-line basis over the lease term.. Any prepaid rentand accrued rent were recognised under prepaid expenses and other assets and accrued and other liabilities,respectively.The lease liabilities as at 1 January 2019 can be reconciled to the operating lease commitments as of 31 December2018 as follows:SAR ‘000Operating leases commitments as of 31 December 2018 150,363Adjustment to the operating lease commitments (24,150)Total Commitments 126,213Weighted average incremental borrowing rate as at 1 January 2019 5%Discounted operating lease commitments at 1 January 2019 112,096Set out below are the new accounting policies of the Company upon adoption of IFRS 16:Right of use assetsThe Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlyingasset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation andimpairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assetsincludes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at orbefore the commencement date less any lease incentives received. Unless the Company is reasonably certain toobtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciatedon a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets aresubject to impairment. Right of use assets are included within Fixtures, Furniture and Right of use assets.Lease liabilitiesAt the commencement date of the lease, the Company recognises lease liabilities measured at the present value oflease payments to be made over the lease term. The lease payments include fixed payments (including insubstancefixed payments) less any lease incentives receivable, variable lease payments that depend on an indexor a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include theexercise price of a purchase option reasonably certain to be exercised by the Company and payments of penaltiesfor terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variablelease payments that do not depend on an index or a rate are recognised as expense in the period on which theevent or condition that triggers the payment occurs.In calculating the present value of lease payments, the Company uses the internal cost of funds as the incrementalborrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest andreduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there isa modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in theassessment to purchase the underlying asset. Lease liabilities are included within the accrued and other liabilities.Where the Company is lesseeAll leases entered into by the Company are operating leases. Payments made under operating leases are charged tothe interim condensed statement of income on a straight-line basis over the period of the lease. When an operatinglease is terminated before the lease period has expired, any payment required to be made to the lessor by way ofpenalty, net of anticipated rental income (if any), is recognised as an expense in the period in which terminationtakes place.Significant judgement in determining the lease term of contracts with renewal optionsThe Company determines the lease term as the non-cancellable term of the lease, together with any periodscovered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by anoption to terminate the lease, if it is reasonably certain not to be exercised.Set out below are the new accounting policies of the Company upon adoption of IFRS 16:Right of use assetsThe Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlyingasset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation andimpairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assetsincludes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at orbefore the commencement date less any lease incentives received. Unless the Company is reasonably certain toobtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciatedon a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets aresubject to impairment. Right of use assets are included within Fixtures, Furniture and Right of use assets.Lease liabilitiesAt the commencement date of the lease, the Company recognises lease liabilities measured at the present value oflease payments to be made over the lease term. The lease payments include fixed payments (including insubstancefixed payments) less any lease incentives receivable, variable lease payments that depend on an indexor a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include theexercise price of a purchase option reasonably certain to be exercised by the Company and payments of penaltiesfor terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variablelease payments that do not depend on an index or a rate are recognised as expense in the period on which theevent or condition that triggers the payment occurs.In calculating the present value of lease payments, the Company uses the internal cost of funds as the incrementalborrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest andreduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there isa modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in theassessment to purchase the underlying asset. Lease liabilities are included within the accrued and other liabilities.Where the Company is lesseeAll leases entered into by the Company are operating leases. Payments made under operating leases are charged tothe interim condensed statement of income on a straight-line basis over the period of the lease. When an operatinglease is terminated before the lease period has expired, any payment required to be made to the lessor by way ofpenalty, net of anticipated rental income (if any), is recognised as an expense in the period in which terminationtakes place.Significant judgement in determining the lease term of contracts with renewal optionsThe Company determines the lease term as the non-cancellable term of the lease, together with any periodscovered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by anoption to terminate the lease, if it is reasonably certain not to be exercised. | 3.A |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effective up to the date of issuance of the Company’s interim condensed financialstatements are listed below. The Company intends to adopt these standards when they become effective.Standard/InterpretationDescriptionEffective from periodsbeginning on or after thefollowing dateIFRS 9 Financial Instruments See note belowAmendments to IFRS 3 Definition of business 1 January 2020Amendments to IAS 1 & IAS 8 Definition of material 1 January 2020IFRS 17 Insurance Contracts 1 January 2022IFRS 9 - Financial InstrumentsIn July 2014, the IASB published IFRS 9 Financial Instruments which replaced IAS 39 Financial Instruments:Recognition and Measurement. The standard incorporates new classification and measurement requirements forfinancial assets, introduces an expected credit loss (ECL) impairment model which replaces the incurred lossmodel of IAS 39, and new hedge accounting requirements under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification willdepend on the business model and the contractual cash flow characteristics of the financial assets. Thestandard retains most of IAS 39’s requirements for financial liabilities except for those designated at fairvalue through profit or loss whereby that part of the fair value changes attributable to own credit is to berecognised in other comprehensive income instead of the statement of income. IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not heldat fair value through statement of income as well as finance lease receivables, together with loancommitments and financial guarantee contracts. The allowance is based on the ECLs associated with theprobability of default in the next twelve months unless there has been a significant increase in credit risksince origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39. The hedge accounting requirements are more closely aligned with risk management practices and follow amore principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accountingconsequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accountingstandard for insurance contracts. The amendments introduce two options for insurers: the deferral approach andthe overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption fromapplying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021. The overlayapproach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that mayoccur before the new insurance contracts standard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activitiespredominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed theimplications and has concluded to defer the implementation of IFRS 9 until a later date which will not be laterthan 1 January 2022.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a largeextent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it isnot possible to fully assess the effect of the adoption of IFRS 9. | 3.B |
| Disclosure of other general disclosures about reporting entity [text block] | Due to the seasonality of operations, higher operating profits are expected in the second half of the year ascompared to the first half of the year. | 2.C |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies, estimates and assumptions used in the preparation of these interim condensed financialstatements are consistent with those used in the preparation of the annual financial statements for the year ended31 December 2018, | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows:31 March 2019 (Unaudited) 31 December 2018 (Audited)InsuranceoperationsShareholders’operations TotalInsuranceoperationsShareholders’operations TotalSAR’000Held as FVSI 296,564 185,504 482,068 249,284 131,110 380,394Available-for-sale 559,559 735,346 1,294,905 560,891 680,206 1,241,097856,123 920,850 1,776,973 810,175 811,316 1,621,491(i) Investments held as FVSI comprise of the following:31 March 2019 (Unaudited)Insurance operations Shareholders’ operationsDomestic International Domestic International TotalSR’000Sukuks 31,025 -- 94,079 -- 125,104Funds 265,539 -- 91,425 -- 356,964296,564 -- 185,504 -- 482,06831 December 2018 (Audited)Insurance operations Shareholders’ operationsDomestic International Domestic International TotalSR’000Sukuks 32,025 -- 95,079 -- 127,104Funds 217,259 -- 36,031 -- 253,290249,284 -- 131,110 -- 380,394(ii) Available-for-sale investments comprise of the following:31 March 2019 (Unaudited)Insurance operations Shareholders’ operationsDomestic International Domestic International TotalSR’000Sukuks 235,050 286,390 253,728 189,594 964,762Funds -- 38,119 109,124 9,258 156,501Investments in discretionaryportfolios----173,642-- 173,642235,050 324,509 536,494 198,852 1,294,90531 December 2018 (Audited)Insurance operations Shareholders’ operationsDomestic International Domestic International TotalSR’000Sukuks 241,784 281,828 280,697 186,924 991,233Funds -- 37,279 109,247 10,536 157,062Investments in discretionaryportfolios -- -- 92,802 -- 92,802241,784 319,107 482,746 197,460 1,241,097The movements in the investments balance are as follows:31 March 2019 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the period 810,175 811,316 1,621,491Purchased during the period 156,000 136,000 292,000Disposed during the period (122,133) (47,377) (169,510)Unrealized gain during the period, net 12,081 20,911 32,992856,123 920,850 1,776,97331 December 2018 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the year 820,776 900,914 1,721,690Purchased during the year 1,033,480 794,544 1,828,024Disposed during the year (1,040,322) (865,503) (1,905,825)Unrealized losses during the year, net (3,759) (18,639) (22,398)810,175 811,316 1,621,491 | 6 |
| Disclosure of investments held-to-maturity [text block] | Term deposits are held with reputable commercial banks and financial institutions. These deposits arepredominately in Murabaha structures with a small allocation in Mudaraba structures. They are mostlydenominated in Saudi Arabian Riyals and have an original maturity of more than three months and yield financialincome at rates ranging from 2.75% to 4.30% per annum (2018: 2.27% to 4.10% per annum). The movements interm deposits during the period ended 31 March 2019 and year ended 31 December 2018, respectively are asfollows:31 March 2019 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the period 3,033,743 1,681,538 4,715,281Matured during the period (668,562) (534,449) (1,203,011)Placed during the period 492,000 492,118 984,1182,857,181 1,639,207 4,496,38831 December 2018 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the year 2,912,577 1,032,806 3,945,383Matured during the year (3,724,883) (829,977) (4,554,860)Placed during the year 3,846,049 1,478,709 5,324,7583,033,743 1,681,538 4,715,281 | 7 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivables amounts due from the following:31 March2019(Unaudited)31 December2018(Audited)SAR’000 SAR’000Policyholders 1,212,422 755,292Brokers 650,706 364,610Related parties (note 14) 5,002 --1,868,130 1,119,902Provision for doubtful receivables (157,107) (169,231)Premiums receivable – net 1,711,023 950,671 | 5 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents comprise of the following:31 March 2019 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Bank balances 179,985 70,375 250,360Term deposit 139,765 -- 139,765319,750 70,375 390,12531 December 2018 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Bank balances 272,527 17,886 290,413The amount payable to/receivable from shareholders’ operations is settled by transfer of cash at each reportingdate. During the three-months period ended 31 March 2019, the insurance operations transferred cash of SR 67million to the shareholders’ operations (31 December 2018: SR 99 million). | 4 |
| Disclosure of statutory deposit [text block] | As required by SAMA Insurance Regulations, the Company deposited an amount equivalent to 10% of its paid upshare capital, amounting to SR 120 million, in a bank designated by SAMA. Accrued income on this deposit ispayable to SAMA and this deposit cannot be withdrawn without approval from SAMA. | 8 |
| Disclosure of zakat [text block] | Status of assessmentsThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2018with the General Authority of Zakat and Tax (the “GAZT”).The Company has received assessments for the fiscal periods 2008 through 2010 raising additional demandsaggregating to SR 9 million, principally on account of disallowance of FVIS investments and statutory depositsfrom the zakat base. The Company has filed appeals against these assessments with the GAZT.For the years 2011 and 2012, the Company has received Preliminary Objection Committee’s decisions in favourof the GAZT for the additional zakat liability of SR 17 million and has filed an appeal with the Higher AppealCommittee.The Company has received final assessments for the fiscal years 2013 through 2016 of additional zakat, corporateincome tax and withholding tax as well as delay fines on the assessed additional corporate income tax andwithholding tax. The differences have mainly arisen due to disallowance of investments and statutory depositsfrom the zakat base as well as not taking into consideration the tax and zakat already settled along with the tax /zakat declarations for the respective years. The Company has filed appeals against these assessments with theGAZT.The Company is also awaiting GAZT’s decision on additional submissions of 2014 relating to the treatment ofthe statutory deposit and the cooperative distribution for the fiscal periods 2008 through 2013.Movements in the Zakat and income tax accrued during the period ended 31 March 2019 and year ended 31December 2018 respectively are as follows:ZakatPayableIncome taxPayableTotal31 March2019(Unaudited)Total31 December2018(Audited)SAR’000 SAR’000 SAR’000 SAR’000Balance at beginning of the year 184,295 15,489 199,784 148,704Provided during the period/year 11,026 7,564 18,590 89,199Payments during the period/year (1,304) (694) (1,998) (38,119)Balance at end of the period/year 194,017 22,359 216,376 199,784 | 15 |
| Disclosure of income tax [text block] | Status of assessmentsThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2018with the General Authority of Zakat and Tax (the “GAZT”).The Company has received assessments for the fiscal periods 2008 through 2010 raising additional demandsaggregating to SR 9 million, principally on account of disallowance of FVIS investments and statutory depositsfrom the zakat base. The Company has filed appeals against these assessments with the GAZT.For the years 2011 and 2012, the Company has received Preliminary Objection Committee’s decisions in favourof the GAZT for the additional zakat liability of SR 17 million and has filed an appeal with the Higher AppealCommittee.The Company has received final assessments for the fiscal years 2013 through 2016 of additional zakat, corporateincome tax and withholding tax as well as delay fines on the assessed additional corporate income tax andwithholding tax. The differences have mainly arisen due to disallowance of investments and statutory depositsfrom the zakat base as well as not taking into consideration the tax and zakat already settled along with the tax /zakat declarations for the respective years. The Company has filed appeals against these assessments with theGAZT.The Company is also awaiting GAZT’s decision on additional submissions of 2014 relating to the treatment ofthe statutory deposit and the cooperative distribution for the fiscal periods 2008 through 2013.Movements in the Zakat and income tax accrued during the period ended 31 March 2019 and year ended 31December 2018 respectively are as follows:ZakatPayableIncome taxPayableTotal31 March2019(Unaudited)Total31 December2018(Audited)SAR’000 SAR’000 SAR’000 SAR’000Balance at beginning of the year 184,295 15,489 199,784 148,704Provided during the period/year 11,026 7,564 18,590 89,199Payments during the period/year (1,304) (694) (1,998) (38,119)Balance at end of the period/year 194,017 22,359 216,376 199,784 | 15 |
| Disclosure of classes of share capital [text block] | The authorised, issued and paid up capital of the Company was SAR 1,200 million at 31 March 2019 (31December 2018: SAR 1,200 million) consisting of 120 million shares (31 December 2018: 120 million shares) ofSAR 10 each.Shareholding structure of the Company is as below:31 March 2019 (Unaudited) 31 December 2018 (Audited)HoldingPercentageSR‘000HoldingPercentageSR‘000Major shareholders 52.3% 628,066 52.3% 628,066General Public 47.7% 571,934 47.7% 571,934100.0% 1,200,000 100.0% 1,200,000 | 16 |
| Disclosure of statutory reserve [text block] | As required by the Saudi Arabian Insurance Regulations, 20% of the shareholders’ income shall be set aside as astatutory reserve until this reserve amounts to 100% of the paid-up share capital. The Company makes thistransfer on an annual basis at 31 December. As at 31 March 2019, SR 609.11 million (31 December 2018: SR609.11 million) had been set aside as a statutory reserve, representing 51% (31 December 2018: 51%) of the paidupshare capital. | 17 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 9.1 Movement in unearned premiumsMovements in unearned premiums are as follows:Three months ended 31 March 2019 (Unaudited)Gross Reinsurance NetSAR’000Balance at 1 January 2019 3,428,131 (6,320) 3,421,811Premium written/(ceded) during the period 2,905,447 (20,669) 2,884,778Premium earned during the period (2,218,182) 20,858 (2,197,324)4,115,396 (6,131) 4,109,265Year ended 31 December 2018 (Audited)Gross Reinsurance NetSAR’000Balance at 1 January 2018 3,091,079 (5,146) 3,085,933Premium written/(ceded) during the year 8,566,648 (80,528) 8,486,120Premium earned during the year (8,229,596) 79,354 (8,150,242)3,428,131 (6,320) 3,421,8119.2 Net outstanding claims and reservesNet outstanding claims and other technical reserves comprise of the following:31 March2019(Unaudited)31 December2018(Audited)SAR’000 SAR’000Outstanding claims 524,632 555,158Claims incurred but not reported 920,548 898,123Claims handling reserves 19,050 19,4001,464,230 1,472,681Less:- Reinsurers’ share of outstanding claims (304) (336)- Reinsurers’ share of claims incurred but not reported (2,669) (2,678)(2,973) (3,014)Net outstanding claims and reserves 1,461,257 1,469,667 | 9 |
| Disclosure of related party transactions [text block] | Related parties represent major shareholders, directors and key management personnel of the Company, andcompanies of which they are principal owners and any other entities controlled, jointly controlled or significantlyinfluenced by them. Pricing policies and terms of these transactions are approved by the Company’s managementand Board of Directors. The following are the details of the major related party transactions during the period andtheir related balances:Related partyNature oftransactionAmount of transactionsfor the period endedReceivable/(payable)balance as at31 March2019(Unaudited)SR’00031 March2018(Unaudited)SR’00031 March2019(Unaudited)SR’00031 December2018(Audited)SR’000Shareholders Insurance premiumwritten143,7211,6515,002(498)**Shareholders ReinsurancePremium ceded4,0331,025(26,911)*(23,242)*Shareholders Claims paid 25,306 711 (2,896)*** (2,784)***Shareholders Medical costscharged byproviders15,7052,559(1,728)***(110)***Shareholders Expenses chargedto/from a relatedparty-net23,739274(236)*(41)*Shareholders Tax equalisation - net 6,131 -- 9,120* 2,988*Shareholders Board members fees 225 -- (225)* (258)*Bupa MiddleEast HoldingsTwo W.L.L.(Related party)Trade mark fee5,5394,886(26,081)*(20,542)** Amounts due to related parties amounted to SR 44,333 thousand (2018: SR 41,095 thousand).** Amounts included in premium receivables.*** Amounts are included in the outstanding claims.The remuneration of the key management personnel during the period ended 31 March is as follows:31 March2019(Unaudited)31 March2018(Unaudited)SAR’000 SAR’000Short-term benefits 6,080 6,034Long-term benefits 1,644 1,6617,724 7,695Short-term benefits include salaries, allowances, annual bonuses and incentives whilst long-term benefits includeemployees’ end of service benefits and the LTIP. | 14 |
| Disclosure of entity's operating segments [text block] | The Company only issues short-term insurance contracts for providing health care services (‘medical insurance’).All the insurance operations of the Company are carried out in the Kingdom of Saudi Arabia. For managementreporting purposes, the operations are monitored in two customer categories, based on the number of memberscovered. Major customers represent members of large corporations, and all others are considered as non-major.Operating segments are reported in a manner consistent with internal reporting provided to the Chief ExecutiveTeam, who is responsible for allocating resources and assessing the performance of operating segments in linewith the strategic decisions.Operating segments do not include shareholders’ operations of the Company.Segment results do not include investment and commission income, other income, selling and marketing expensesand general and administration expenses.Segment assets do not include cash and cash equivalents, term deposits, investments, and prepayments and otherassets. Segment liabilities do not include reinsurance balance payable, accrued expenses and other liabilities, dueto shareholders’ operations, share based payment and policyholders’ share of surplus from insurance operations.Consistent with the Company’s internal reporting, operating segments have been approved by the management inrespect of the Company’s activities, assets and liabilities as stated below:As at 31 March 2019 (Unaudited)Insurance operationsOperating segmentsMajorcustomersNon-majorcustomersTotalInsuranceoperationsShareholders’ operationsTotalSAR’000 SAR’000 SAR’000AssetsPremiums receivable - net 1,005,177 705,846 1,711,023 -- 1,711,023Reinsurers’ share of unearnedpremiums2,3913,7406,131--6,131Reinsurers’ share of outstandingclaims27826304--304Reinsurers’ share of claimsincurred but not reported2,4292402,669--2,669Deferred policy acquisition costs 74,308 47,508 121,816 121,816Unallocated assets 4,229,758 3,138,777 7,368,535Total assets 6,071,701 3,138,777 9,210,478LiabilitiesUnearned premiums2,510,3921,605,0044,115,396--4,115,396Outstanding claims 335,764 188,868 524,632 -- 524,632Claims incurred but not reported 589,151 331,397 920,548 -- 920,548Claims handling reserve 12,192 6,858 19,050 -- 19,050Unallocated liabilities 491,023 468,812 959,835Total liabilities 6,070,649 468,812 6,539,461Three months period ended 31 March 2019(Unaudited)Operating segmentsMajorcustomersNon-majorcustomersTotalSAR’000REVENUESGross written premium 1,789,235 1,116,212 2,905,447Reinsurance premiums ceded – Local (1,771) (724) (2,495)Reinsurance premiums ceded – International (12,904) (5,270) (18,174)Net premiums written 1,774,560 1,110,218 2,884,778Changes in unearned premiums – net (353,864) (333,590) (687,454)Net premiums earned 1,420,696 776,628 2,197,324UNDERWRITING COSTS AND EXPENSESGross claims paid (1,304,798) (627,083) (1,931,881)Reinsurers’ share of claims paid 8,408 4,041 12,449Net claims paid (1,296,390) (623,042) (1,919,432)Changes in outstanding claims 19,537 10,989 30,526Changes in claims incurred but not reported (14,352) (8,073) (22,425)Changes in claims handling reserves 224 126 350Reinsurance share of changes in outstanding claims (28) (4) (32)Reinsurance share of changes in claims incurred but notreported(8)(1)(9)Net claims incurred (1,291,017) (620,005) (1,911,022)Policy acquisition costs (35,055) (22,826) (57,881)TOTAL UNDERWRITING COSTS ANDEXPENSES(1,326,072) (642,831) (1,968,903)NET UNDERWRITING INCOME 94,624 133,797 228,421OTHER OPERATING (EXPENSES)/ INCOMEReversal of allowance for doubtful receivables 11,038Unallocated income 62,617Unallocated expenses (200,615)TOTAL OTHER OPERATING(EXPENSES)/INCOME(126,960)NET INCOME FOR THE PERIOD 101,461Net income attributed to insurance operations (7,339)Net income attributed to the shareholders 94,122Gross Written Premium details Three months periodended 31 March 2019SAR’000Individuals 3,629Micro Enterprises 16,540Small Enterprises 194,009Medium Enterprises 575,026Corporates 2,116,243Total Gross Written Premium 2,905,447 | 13 |
| Disclosure of capital management [text block] | Objectives are set by the Board of Directors of the Company to maintain healthy capital ratios to support itsbusiness objectives and maximise shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capitallevels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditionsand the risk characteristics of the Company’s activities. To maintain or adjust the capital structure, the Companymay 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 regulatory capital requirementsduring the reported financial period. | 19 |
| Disclosure of equity incentive plan [text block] | The Company offers a Long-Term Incentive Plan (LTIP) to certain eligible executives. The purpose of the schemeis to incentivise the senior management team to achieve the Company’s long-term goals and to attract and retaintop performers. The plan provides focus on both current and future performance and enables the participants toshare in the Company’s success, and is measured based on net profit growth and profit margin. The plan vestsover a period of a three years performance cycle. The Company's actual performance is assessed at the end ofeach year during the vesting period.The LTIP scheme is an entirely equity-settled share based scheme under which the approved participants willreceive Bupa Arabia shares after the completion of each three year performance period, the achievement of theperformance measures, the achievement of the participant’s conditions, and the completion of the requiredapprovals. The LTIP scheme is supervised by the Nomination and Remuneration Committee (N&RC) after beingapproved by the Board of Directors.The cost of the plan is recognised over the period in which the service condition is fulfilled, ending on the date onwhich the relevant employees become fully entitled to the plan ('the vesting date'). The expense, recognised forthe plan at each reporting date until the vesting date, reflects the Company's best estimate of the number of equityinstruments that will ultimately vest. The charge or credit for a year represents the movement in cumulativeexpense recognised as at the beginning and end of that year.The total LTIP expense recognised for employees' services received is included in ‘salaries and employee relatedexpenses’ with a corresponding increase in the statement of changes in equity, as per the requirements of IFRS 2‘Share Based Payments’. Any dividend distributions on the award shares during the vesting period areaccumulated and transferred to the participants upon vesting.The Company has a practice to reflect the grant date as the date of completion of the total LTIP shares purchasesfor the relevant cycle each year and to retain the LTIP shares with an investment broker, currently NCB Capital.The LTIP transaction details are provided below:Month/PeriodNumber of sharespurchased /(delivered/disposed) – netThe grant datefair value of thesharesAmount31 March 2019SR’000July 2015 32,110 277 8,901November 2015 18,993 221 4,200December 2015(1) 51,103 - --March 2016 92,669 115 10,693March 2016 (2,814) 139 (390)March 2017 (34,346) 139 (4,761)March 2017 (6,825) 115 (788)June 2017 96,491 115 11,061March 2018 (10,210) 139 (1,416)May 2018 (37,986) 111 (4,200)June 2018(2) (15,378) 139 (2,132)September 2018(3) 121,816 94 11,494November 2018(4) 152,811 - --March 2019(5) (44,867) 77 (3,451)Total 413,567 29,211 1) During December 2015 the Company issued Bonus shares, one per each issued share, and as a resultreceived an additional 51,103 LTIP shares.2) The 2015-2017 LTIP Scheme’s shares have been fully delivered to all entitled executives following theapproval of the Board Nomination and Remuneration Committee.3) The LTIP Scheme shares purchase value for the 2018-2020 cycle was formally approved by the shareholdersin the General Assembly meeting of 31 May 2018 and these LTIP shares purchases were partially completedon 12 June 2018, at an average purchase price per share of SAR 97, and the remaining required LTIP sharespurchases for this cycle were completed on 4 September 2018, at an average purchase price per share of SAR90.4) During November 2018, the Company issued Bonus shares, one for every two issued share, and as a resultreceived an additional 152,811 LTIP shares.5) The 2016-2018 LTIP Scheme’s shares have been partially delivered to the entitled executives following theapproval of the Board Nomination and Remuneration Committee. | 18 |
| Disclosure of commitments and contingencies, general [text block] | a) The Company’s commitments and contingencies are as follows:31 March2019(Unaudited)31 December2018(Audited)SAR’000 SAR’000Letters of guarantee* 28,215 26,346Operating commitments (note 3.a) -- 150,363Total 28,215 176,709b) The Company is subject to legal proceedings in the ordinary course of business. There was no materialchange in the status of legal proceedings from 31 December 2018.* As of 31 March 2019, total Letters of Guarantee issued by banks amounted to SR 97.06 million, of whichSR 28.22 million (2018: SR 26.35 million) is restricted deposits with banks and has been recorded underprepayments and other assets. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date. The fair value measurement is based on the presumptionthat 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 orliability.a) 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 themeasurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for whichall significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.b) Carrying amounts and fair valueThe following table shows the carrying amount and fair value of financial assets and financial liabilities, includingtheir levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fairvalue information for financial assets and financial liabilities not measured at fair value if the carrying amount is areasonable approximation to fair value.Fair valueLevel 1 Level 2 Level 3 TotalCarryingvalueSAR’000 SAR’000 SAR’00031 March 2019 (Unaudited)Financial assets measured at fairvalue- Investments held as FVSI 5,200 476,868 -- 482,068 482,068- Available for sale investments 975,353 319,552 -- 1,294,905 1,294,905980,553 796,420 -- 1,776,973 1,776,973Fair valueLevel 1 Level 2 Level 3 TotalCarryingvalueSAR’000 SAR’000 SAR’00031 December 2018 (Audited)Financial assets measured at fairvalue- Investments held as FVSI 16,021 364,373 -- 380,394 380,394- Available for sale investments 842,262 398,835 -- 1,241,097 1,241,097858,283 763,208 -- 1,621,491 1,621,491c) Measurement of fair valueValuation technique and significant unobservable inputsThe following table shows the valuation techniques used in measuring Level 2 fair value at 31 March 2019 and 31December 2018, as well as the significant unobservable inputs used.Type Valuation techniqueSignificantunobservable inputsInter-relationship betweensignificant unobservableinputs and fair valuemeasurementFloating ratesukuks and mutualfundsValuations are based onquotations as received bythe custodians at the end ofeach period and onpublished net asset value(NAV) closing prices.Not applicable Not applicable | 12 |
| Disclosure of comparative figures [text block] | Certain comparative figures have been reclassified and regrouped to conform with the current period’spresentation.The amounts “due to/from” shareholders and insurance operations which were previously reported separately inthe respective interim condensed statement of financial position, are now eliminated. In addition the 90/10 split ofthe surplus from insurance operations between shareholders and insurance operations are presented separately inthe supplementary information (refer to note 21 above). | 22 |
| Disclosure of board of director's approval of the financial statements [text block] | The interim condensed financial statements have been approved by the Board of Directors, on 8 Ramadan 1440Hcorresponding to 13 May 2019. | 23 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | During 2018 after getting the approval from SAMA, the Company entered into a Third Party Administrationagreement, (TPA) with a customer under which the Company facilitates healthcare services to the employees of acustomer with specific terms and conditions. The services are remunerated against administration fees. Theagreement is effective from 13 Jumada Al-Thani 1439 (corresponding to 1 March 2018).In order to fulfil the commitment relating to this agreement, the Company has received funds in advance from thecustomer to settle anticipated claims from medical service providers. As the Company acts as an agent, therelevant bank balance and outstanding claims at the balance sheet date are offset in the interim condensedstatement of financial position. The assets and liabilities held in fiduciary capacity amounted to SR 145 million asof 31 March 2019 (2018: SR 194.8 million). | 10 |
