| 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’sResolution number 138/K dated 24 Rabi Thani 1429H (corresponding to 1 May 2008). The CommercialRegistration number of the Company is 4030178881 dated 5 Jumad Awwal 1429H (corresponding to11 May 2008). The Registered 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 undercooperative principles in accordance with Royal Decree No. M/74 dated 29 Shabaan 1428H(corresponding to 11 September 2007) pursuant to the Council of Ministers’ Resolution No 279 dated 28Shabaan 1428H (corresponding to 10 September 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 theKingdom of Saudi Arabia. The Company underwrites medical insurance only.The Board of Directors approves the distribution of the surplus from insurance operations in accordancewith the Implementing Regulations issued by the Saudi Arabian Monetary Authority (“SAMA”),whereby the shareholders of the Company are to receive 90% of the annual surplus from insuranceoperations and the policyholders are to receive the remaining 10%. Any deficit arising on insuranceoperations is transferred to the shareholders’ 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‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as modified by SAMAfor the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by theInternational Accounting Standards Board (“IASB”) except for the application of InternationalAccounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakatand income tax as modified by SAMA. As per the SAMA Circular no. 381000074519 dated April 11,2017 and subsequent amendments through certain clarifications relating to the accounting for zakat andincome tax (“SAMA”), zakat and income tax are to be accrued on a quarterly basis through equity underretained earnings.The interim condensed financial statements are prepared under the going concern basis and the historicalcost convention, except for the measurement of investments at their fair value through statement ofincome (FVSI) and available-for-sale investments. The Company’s interim condensed statement offinancial position is presented in order of liquidity. Except for available-for-sale investments, fixtures,furniture and equipment, intangible assets, goodwill, statutory deposit, accrued income on statutorydeposit, provision for end-of-service benefits and accrued income payable to SAMA, all other assets andliabilities 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 therespective accounts. The Company’s interim condensed financial statements until 31 December 2017,presented separately the statement of financial position, statements of income, comprehensive incomeand cash flows for the insurance operations and shareholders’ operations.During the current period, SAMA issued illustrative financial statements for the insurance sector in theKingdom of Saudi Arabia. In preparing the Company level financial statements in compliance with IFRSas modified by SAMA, the balances and transactions of insurance operations are combined with those ofshareholders’ operations. Inter-operation balances and transactions, if any, are eliminated in full. Theaccounting policies adopted for the insurance and shareholders’ operations are uniform for liketransactions and events in similar circumstances.In preparing these interim condensed financial statements comparative amounts were also combined toconform with the current period presentation in line with SAMA requirements and this has no impact onthe previously reported net profit and retained earnings. However, note 22 to these interim condensedfinancial statements provides the statement of financial position, statements of income, comprehensiveincome 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 forthe year ended 31 December 2017.The interim condensed financial statements may not be considered indicative of the expected results forthe full year.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and arerounded off to the nearest thousand. | 2A |
| Disclosure of new standards and amendments in standards [text block] | The following new standards, amendments and revisions to existing standards, which were issued by theInternational Accounting Standards Board (IASB) have been effective from 1 January 2018 andaccordingly adopted by the Company, as applicable:Standard/Amendments DescriptionIFRS 2 Amendments to IFRS 2 Classification and Measurement of share-basedPayment transactions.IAS 40 Amendments to IAS 40 Transfers of investment propertyIFRIC 22 Foreign Currency Transactions and Advance considerationIFRS 15 Revenue from Contracts with Customers (refer below)IFRS 1 and IAS 28 Annual Improvements 2016 to IFRS 2014- 2016 cycle.The adoption of the amended standards and interpretations applicable to the Company did not have anysignificant impact on these interim condensed financial statements.IFRS 15 – Revenue from Contracts with CustomersIFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts withcustomers and supersedes current revenue guidance, which is found currently across several Standardsand Interpretations within the IFRS. IFRS 15 does not apply to “revenue from insurance contracts”.However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurancecontracts).Management assessed and concluded that there is no material impact on the amounts reported at transitionto IFRS 15 on 1 January 2018. | 3A |
| 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 condensedfinancial statements are listed below. The Company intends to adopt these standards when they becomeeffective.Standard/InterpretationDescriptionEffective from periodsbeginning on or after thefollowing dateIFRS 9 Financial Instruments See note belowIFRS 16 Leases 1 January 2019IFRIC 23 Uncertainty over Income Tax Treatments 1 January 2019IFRS 17 Insurance Contracts 1 January 2021IFRS 9 - Financial InstrumentsIn July 2014, the IASB published IFRS 9 Financial Instruments which replaced IAS 39 FinancialInstruments: Recognition and Measurement. The standard incorporates new classification andmeasurement requirements for financial assets, introduces an expected credit loss (ECL) impairmentmodel which replaces the incurred loss model of IAS 39, and new hedge accounting requirements underIFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classificationwill depend on the business model and the contractual cash flow characteristics of the financial assets.The standard retains most of IAS 39’s requirements for financial liabilities except for thosedesignated at fair value through profit or loss whereby that part of the fair value changes attributableto own credit is to be recognised in other comprehensive income instead of the statement of income. IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assetsnot held at fair value through statement of income as well as finance lease receivables, together withloan commitments and financial guarantee contracts. The allowance is based on the ECLs associatedwith the probability of default in the next twelve months unless there has been a significant increasein credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39. The hedge accounting requirements are more closely aligned with risk management practices andfollow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address theaccounting consequences of the application of IFRS 9 to insurers prior to the publication of theforthcoming accounting standard for insurance contracts. The amendments introduce two options forinsurers: the deferral approach and the overlay approach. The deferral approach provides an entity, ifeligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a newinsurance contract standard or 2021. The overlay approach allows an entity to remove from profit or lossthe effects of some of the accounting mismatches that may occur before the new insurance contractsstandard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whoseactivities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Companyhaving assessed the implications and has concluded to defer the implementation of IFRS 9 until a laterdate which will not be later than 1 January 2021.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, toa large extent, have to take into account the interaction with the forthcoming insurance contracts standard.As such, it is not possible to fully assess the effect of the adoption of IFRS 9. | 3B |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The 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 ofassets and liabilities, income and expense. Actual results may differ from these estimates.In preparing these interim condensed financial statements, the significant judgments made bymanagement in applying the Company’s accounting policies, and the key sources of estimationuncertainty including the risk management policies, were the same as those that applied to the annualfinancial statements as at and for the year ended 31 December 2017. | 2B |
| 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 yearas compared to the first half of the year. | 2C |
| 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 condensedfinancial statements are consistent with those used in the preparation of the annual financial statementsfor the year ended 31 December 2017. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows:30 September 2018 (Unaudited) 31 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalInsuranceoperationsShareholders’operations TotalSAR’000Held as FVSI 209,495 199,708 409,203 411,441 495,966 907,407Available-for-sale 553,999 635,584 1,189,583 409,335 404,948 814,283763,494 835,292 1,598,786 820,776 900,9141,721,690(i) Investments held as FVSI comprise of the following:30 September 2018 (Unaudited) 31 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalInsuranceoperationsShareholders’operations TotalSAR’000Sukuks 32,025 95,079 127,104 32,025 95,079 127,104Mutual Funds 177,470 104,629 282,099 379,416 299,987 679,403Investments indiscretionaryportfolio -- -- -- -- 100,900 100,900209,495 199,708 409,203 411,441 495,966 907,407ii) Available-for-sale investments comprise of the following:30 September 2018 (Unaudited) 31 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalInsuranceoperationsShareholders’operations TotalSAR‘000 SAR‘000Sukuks 516,449 414,897 931,346 371,834 388,727 760,561Mutual Funds 37,550 124,367 161,917 37,501 16,221 53,722Investments indiscretionaryportfolio -- 96,320 96,320 -- -- --553,999 635,584 1,189,583 409,335 404,948 814,283The movements in the investments balance are as follows:30 September 2018 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the period 820,776 900,914 1,721,690Purchases during the period 856,128 533,001 1,389,129Disposals during the period (910,742) (587,830) (1,498,572)Unrealized losses during the period (2,668) (10,793) (13,461)763,494 835,292 1,598,78631 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at the beginning of the year544,090 714,330 1,258,420Purchases during the year 958,724 1,462,848 2,421,572Disposals during the year (687,758) (1,281,673) (1,969,431)Unrealized gains during the year 5,720 5,409 11,129820,776 900,914 1,721,690 | 7 |
| 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 yieldfinancial income at rates ranging from 2.25% to 4.00% per annum (2017: 2.15% to 4.00% per annum).The movements in term deposits during the period ended 30 September 2018 and year ended 31December 2017, respectively are as follows:30 September 2018 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at beginning of the period 2,912,577 1,032,806 3,945,383Matured during the period (2,680,311) (698,219) (3,378,530)Placed during the period 2,495,094 1,166,204 3,661,2982,727,360 1,500,791 4,228,15131 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Balance at beginning of the year 3,057,816 987,494 4,045,310Matured during the year (3,057,816) (987,494) (4,045,310)Placed during the year 2,912,577 1,032,806 3,945,3832,912,577 1,032,806 3,945,383 | 5 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivables amounts due from the following:30 September2018(Unaudited)31 December2017(Audited)SAR’000 SAR’000Policyholders 2,044,498 732,557Brokers 462,834 280,873Related parties (note 14) 3,029 2262,510,361 1,013,656Provision for doubtful receivables (232,668) (142,674)Premiums receivable – net 2,277,693 870,982 | 6 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents comprise of the following:30 September 2018 (Unaudited)InsuranceoperationsShareholders’operations TotalSAR‘000Bank balances 229,630 71,722 301,352Term deposit -- 75,000 75,000229,630 146,722 376,35231 December 2017 (Audited)InsuranceoperationsShareholders’operations TotalSAR‘000Bank balances 110,384 119,500 229,884The amount payable to/receivable from shareholders’ operations is settled by transfer of cash at eachreporting date. During the nine-months period ended 30 September 2018, the insurance operationstransferred cash of SR 84.4 million to the shareholders’ operations (31 December 2017: SR 420.5million). | 4 |
| Disclosure of statutory deposit [text block] | As required by SAMA Insurance Regulations, the Company deposited an amount equivalent to 10% ofits paid up share capital, amounting to SR 80 million, in a bank designated by SAMA. Accrued incomeon this deposit is payable 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 theyear 2017 with the General Authority of Zakat and Tax (the “GAZT”).The Company has received final assessments for the fiscal periods 2008 through 2012 and initialassessments for the periods 2013 and 2014 raising additional demands aggregating to SR 40 million,principally on account of disallowance of FVSI investments and statutory deposits from 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 favour of the GAZT for theadditional zakat liability of SR 17 million and has filed an appeal with the Higher Appeal Committee.The Company’s management strongly believes in their stance and expects the decision to be received intheir favour but has also accrued an additional contingent provision for Zakat.The Company is also awaiting the GAZT decision on additional submissions of 2014 relating to thetreatment of the statutory deposit and the cooperative distribution for the fiscal periods 2008 through2013.The GAZT has not yet raised any assessment for the years 2015, 2016 and 2017.Movements in the Zakat and income tax accrued during the period ended 30 September 2018 and yearended 31 December 2017 respectively are as follows:ZakatPayableIncome taxPayableTotal30September2018(Unaudited)Total31 December2017(Audited)SAR’000 SAR’000 SAR’000 SAR’000Balance at beginning of the year 144,325 4,379 148,704 116,953Provided during the period/year 34,036 31,255 65,291 79,229Payments during the period/year (8,257) (19,876) (28,133) (47,478)Balance at end of the period/year 170,104 15,758 185,862 148,704 | 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 theyear 2017 with the General Authority of Zakat and Tax (the “GAZT”).The Company has received final assessments for the fiscal periods 2008 through 2012 and initialassessments for the periods 2013 and 2014 raising additional demands aggregating to SR 40 million,principally on account of disallowance of FVSI investments and statutory deposits from 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 favour of the GAZT for theadditional zakat liability of SR 17 million and has filed an appeal with the Higher Appeal Committee.The Company’s management strongly believes in their stance and expects the decision to be received intheir favour but has also accrued an additional contingent provision for Zakat.The Company is also awaiting the GAZT decision on additional submissions of 2014 relating to thetreatment of the statutory deposit and the cooperative distribution for the fiscal periods 2008 through2013.The GAZT has not yet raised any assessment for the years 2015, 2016 and 2017.Movements in the Zakat and income tax accrued during the period ended 30 September 2018 and yearended 31 December 2017 respectively are as follows:ZakatPayableIncome taxPayableTotal30September2018(Unaudited)Total31 December2017(Audited)SAR’000 SAR’000 SAR’000 SAR’000Balance at beginning of the year 144,325 4,379 148,704 116,953Provided during the period/year 34,036 31,255 65,291 79,229Payments during the period/year (8,257) (19,876) (28,133) (47,478)Balance at end of the period/year 170,104 15,758 185,862 148,704 | 15 |
| Disclosure of classes of share capital [text block] | The authorised, issued and paid up capital of the Company was SAR 800 million at 30 September 2018(31 December 2017: SAR 800 million) consisting of 80 million shares (31 December 2017: 80 millionshares) of SAR 10 each.Shareholding structure of the Company is as below:30 September 2018 (Unaudited)Holding PercentageSAR‘000Major shareholders 52.3% 418,710General Public 47.7% 381,290100.0% 800,00031 December 2017 (Audited)Holding PercentageSAR‘000Major shareholders 52.3% 418,710General Public 47.7% 381,290100.0% 800,000Subsequent to the recommendation of its Board of Directors, to increase the share capital of the Companyby SR 400 million through bonus shares, using the retained earnings, the Company announced receivingSAMA's no-objection for this proposed share capital increase. The Company is in the process ofcompleting the regulatory approvals to complete this share capital increase in due course. | 16 |
| Disclosure of statutory reserve [text block] | As required by the Saudi Arabian Insurance Regulations, 20% of the shareholders’ income shall be setaside as a statutory reserve until this reserve amounts to 100% of the paid-up share capital. The Companymakes this transfer on an annual basis at 31 December. As at 30 September 2018, SR 504.02 million (31December 2017: SR 504.02 million) had been set aside as a statutory reserve, representing 63% (31December 2017: 63%) of the paid-up share capital. | 18 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 9.1 Movement in unearned premiumsMovements in unearned premiums are as follows:Nine months ended 30 September 2018 (Unaudited)Gross Reinsurance NetSAR’000Balance at 1 January 2018 3,091,079 (5,146) 3,085,933Premium written/(ceded) during the period 7,340,649 (61,413) 7,279,236Premium earned during the period (6,065,099) 57,688 (6,007,411)4,366,629 (8,871) 4,357,758Year ended 31 December 2017 (Audited)Gross Reinsurance NetSAR’000Balance at 1 January 2017 3,094,990 (1,356) 3,093,634Premium written/(ceded) during the year 7,732,961 (68,348) 7,664,613Premium earned during the year (7,736,872) 64,558 (7,672,314)3,091,079 (5,146) 3,085,9339.2 Net outstanding claims and reservesNet outstanding claims and other technical reserves comprise of the following:30 September2018(Unaudited)31 December2017(Audited)SAR’000 SAR’000Outstanding claims 576,870 450,249Claims incurred but not reported 843,086 871,998Claims handling reserves 19,289 19,2891,439,245 1,341,536Less:- Reinsurers’ share of outstanding claims (820) (360)- Reinsurers’ share of claims incurred but not reported (2,366) (670)(3,186) (1,030)Net outstanding claims and reserves 1,436,059 1,340,506 | 9 |
| Disclosure of earnings per share [text block] | The basic and diluted earnings per share have been calculated by dividing net income for the period bythe weighted average number of ordinary shares issued and outstanding at the period end.Diluted earnings per share are not applicable to the Company. | 21 |
| Disclosure of related party transactions [text block] | Related 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 orsignificantly influenced by them. Pricing policies and terms of these transactions are approved by theCompany’s management and Board of Directors. The following are the details of the major related partytransactions during the period and their related balances:Related partyNature oftransactionAmount of transactionsfor the period endedReceivable/(payable)balance as at30 September2018(Unaudited)30 September2017(Unaudited)30 September2018(Unaudited)31 December2017(Audited)SR’000 SR’000 SR’000 SR’000Shareholders Insurancepremium written30,70527,9503,029226Shareholders ReinsurancePremium ceded13,71411,262(22,414)*(11,476)*Shareholders Claims paid 12,172 8,821 (1,104) (1,113)Shareholders Medical costscharged byproviders21,5239,728(2,588)(138)Shareholders Expenses chargedto/from a relatedparty-net680388(1,673)* (820)*Shareholders Tax equalisation– net6,131----(1,169)*Shareholders Board memberfees 600 600(600)*(800)*Bupa MiddleEast HoldingsTwo W.L.L.(Relatedparty)Trade mark fee15,141 14,431(15,141)*(19,321)*Board member(related party)Shariah reviewservices-- 113----* Amounts due to related parties amounted to SR 39,828 thousand (2017: SR 33,586 thousand).The remuneration of the key management personnel during the period ended 30 September is as follows:30 September2018(Unaudited)30 September2017(Unaudited)SAR’000 SAR’000Short-term benefits 20,034 19,961Long-term benefits 5,281 4,55625,315 24,517Short-term benefits include salaries, allowances, annual bonuses and incentives whilst long-term benefitsinclude employees’ 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 (‘medicalinsurance’). All the insurance operations of the Company are carried out in the Kingdom of Saudi Arabia.For management reporting purposes, the operations are monitored in two customer categories, based onthe number of members covered. Major customers represent members of large corporations, and all othersare considered as non-major. Operating segments are reported in a manner consistent with internalreporting provided to the Chief Executive Team, who is responsible for allocating resources and assessingthe performance of operating segments in line with 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 marketingexpenses and general and administration expenses.Segment assets do not include cash and cash equivalents, murabaha deposits, investments, andprepayments and other assets. Segment liabilities do not include reinsurance balance payable, accruedexpenses and other liabilities, due to 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 themanagement in respect of the Company’s activities, assets and liabilities as stated below:As at 30 September 2018 (Unaudited)Insurance operationsOperating segmentsMajorcustomersNon-majorcustomersTotal -InsuranceoperationsShareholders’operations TotalSAR’000 SAR’000 SAR’000AssetsPremiums receivable - net 1,338,079 939,614 2,277,693 -- 2,277,693Reinsurers’ share of unearnedpremiums3,4605,4118,871--8,871Reinsurers’ share of outstandingclaims525295820--820Reinsurers’ share of claimsincurred but not reported1,5148522,366--2,366Deferred policy acquisition costs 60,525 39,630 100,155 -- 100,155Unallocated assets -- -- 3,869,166 2,827,654 6,696,820Total assets 6,259,071 2,827,654 9,086,725LiabilitiesUnearned premiums2,663,6441,702,9854,366,629--4,366,629Outstanding claims 369,197 207,673 576,870 -- 576,870Claims incurred but not reported 539,575 303,511 843,086 -- 843,086Claims handling reserve 12,345 6,944 19,289 -- 19,289Unallocated liabilities -- -- 459,256 310,188 769,444Total liabilities 6,265,130 310,188 6,575,318Three months period ended 30 September 2018(Unaudited)Operating segmentsMajorcustomersNon-majorcustomers TotalSAR’000REVENUESGross premiums written 2,217,865 614,016 2,831,881Reinsurance premiums ceded – Local (603) (386) (989)Reinsurance premiums ceded – International (10,136) (6,488) (16,624)Net premiums written 2,207,126 607,142 2,814,268Changes in unearned premiums, net (882,351) 163,710 (718,641)Net premiums earned 1,324,775 770,852 2,095,627UNDERWRITING COSTS AND EXPENSESGross claims paid (1,227,442) (604,563) (1,832,005)Reinsurers’ share of claims paid -- -- --Net claims paid (1,227,442) (604,563) (1,832,005)Changes in outstanding claims, net 114,628 56,459 171,087Changes in claims incurred but not reported, net 19,900 8,778 28,678Net claims incurred (1,092,914) (539,326) (1,632,240)Policy acquisition costs (26,447) (16,946) (43,393)TOTAL UNDERWRITING COSTS ANDEXPENSES(1,119,361) (556,272) (1,675,633)NET UNDERWRITING RESULTS 205,414 214,580 419,994OTHER OPERATING (EXPENSES)/INCOMEAllowance for doubtful receivables (4,098)Unallocated income 48,294Unallocated expenses (194,664)TOTAL OTHER OPERATING(EXPENSES)/INCOME(150,468)NET INCOME FOR THE PERIOD 269,526Net income attributed to insurance operations (24,746)Net income attributed to the shareholders 244,780Nine months period ended 30 September 2018(Unaudited)Operating segmentsMajorcustomersNon-majorcustomers TotalSAR’000REVENUESGross premiums written 4,902,008 2,438,641 7,340,649Reinsurance premiums ceded – Local (4,362) (2,793) (7,155)Reinsurance premiums ceded – International (34,751) (19,507) (54,258)Net premiums written 4,862,895 2,416,341 7,279,236Changes in unearned premiums, net (1,105,149) (166,676) (1,271,825)Net premiums earned 3,757,746 2,249,665 6,007,411UNDERWRITING COSTS AND EXPENSESGross claims paid (3,087,495) (1,727,363) (4,814,858)Reinsurers’ share of claims paid 7,812 4,788 12,600Net claims paid (3,079,683) (1,722,575) (4,802,258)Changes in outstanding claims, net (71,088) (55,073) (126,161)Changes in claims incurred but not reported, net (55,522) 86,130 30,608Net claims incurred (3,206,293) (1,691,518) (4,897,811)Policy acquisition costs (84,393) (55,273) (139,666)TOTAL UNDERWRITING COSTS ANDEXPENSES(3,290,686) (1,746,791) (5,037,477)NET UNDERWRITING RESULTS 467,060 502,874 969,934OTHER OPERATING (EXPENSES)/INCOMEAllowance for doubtful receivables (93,773)Unallocated income 142,417Unallocated expenses (544,807)TOTAL OTHER OPERATING(EXPENSES)/INCOME(496,163)NET INCOME FOR THE PERIOD 473,771Net income attributed to insurance operations (40,780)Net income attributed to the shareholders432,991 | 13 |
| Disclosure of capital management [text block] | Objectives are set by the Board of Directors of the Company to maintain healthy capital ratios to supportits business objectives and maximise shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and requiredcapital levels on a regular basis. Adjustments to current capital levels are made in light of changes inmarket conditions and the risk characteristics of the Company’s activities. To maintain or adjust thecapital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares.In the opinion of the Board of Directors, the Company has fully complied with the regulatory capitalrequirements during the reported financial period. | 20 |
| Disclosure of insurance/ takaful operations surplus and dividends [text block] | On 17 April 2018, the Company’s Board of Directors proposed to pay a dividend, for the year ended 31December 2017, of SR 2 per share totalling SR 160 million to its shareholders (2016: SR120 million).This dividend proposal was presented and approved by the shareholders in the Extraordinary GeneralAssembly meeting, held on 31 May 2018, and accordingly the dividend payment was completed on 11June 2018. | 17 |
| Disclosure of equity incentive plan [text block] | The Company offers a Long-Term Incentive Plan (LTIP), to certain eligible executives and the purposeof the scheme is to incentivise the senior management team to achieve the Company’s long-term goalsand to attract and retain top performers. The plan provides focus on both current and future performanceand enables the participants to share in the Company’s success, and is measured based on net profitgrowth and profit margin. The plan vests over a period of a three years performance cycle. The Company'sactual performance is assessed at the end of each year during the vesting period.The LTIP scheme is an entirely equity-settled share based scheme under which the approved participantswill receive Bupa Arabia shares after the completion of each three year performance period, theachievement of the performance measures, the achievement of the participant’s conditions, and thecompletion of the required approvals. The LTIP scheme is supervised by the Nomination andRemuneration Committee (N&RC) after being approved by the Board of Directors.The cost of the plan is recognised over the period in which the service condition is fulfilled, ending onthe date on which the relevant employees become fully entitled to the plan ('the vesting date'). Theexpense, recognised for the plan at each reporting date until the vesting date, reflects the Company's bestestimate of the number of equity instruments that will ultimately vest. The charge or credit for a yearrepresents the movement in cumulative expense recognised as at the beginning and end of that year.The total LTIP expense recognised for employees' services received is included in the ‘salaries andemployee related expenses’ with a corresponding increase in the statement of changes in equity, as perthe requirements of IFRS 2 ‘Share Based Payments’. Any dividend distributions on the award sharesduring the vesting period are accumulated 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 sharespurchases for 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 grantdate fairvalue of thesharesAmount30 September 2018SR’000July 2015 32,110 277 8,901November 2015 18,993 221 4,200December 2015* 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 11,060March 2018 (10,210) 139 (1,415)May 2018 (37,986) 111 (4,200)June 2018** (15,378) 139 (2,132)Sep 2018*** 121,816 94 11,494 Total 305,623 32,662* During December 2015 the Company issued Bonus shares, one per each issued share, and as a resultreceived an additional 51,103 LTIP shares.** The 2015-2017 LTIP Scheme’s shares have been fully delivered to all entitled executives following theapproval of the Board Nomination and Remuneration Committee.*** The LTIP Scheme shares purchase value for the 2018-2020 cycle was formally approved by theshareholders in the General Assembly meeting of 31 May 2018 and these LTIP shares purchases werepartially completed on 12 June 2018, at an average purchase price per share of SAR 97, and theremaining required LTIP shares purchases for this cycle were completed on 4 September 2018, at anaverage purchase price per share of SAR 90, | 19 |
| 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 orderlytransaction between market participants at the measurement date. The fair value measurement is basedon 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 assetor liability.a) Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financialinstruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access atthe measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques forwhich 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.b) Carrying amounts and fair valueThe following table shows the carrying amount and fair value of financial assets and financial liabilities,including their levels in the fair value hierarchy for financial instruments measured at fair value. It doesnot include fair value information for financial assets and financial liabilities not measured at fair valueif the carrying amount is a reasonable approximation to fair value.Fair valueLevel 1 Level 2 Level 3 TotalCarryingvalueSAR’000 SAR’000 SAR’00030 September 2018 (Unaudited)Financial assets measured atfair value- Investments held as FVSI 5,846 403,357 -- 409,203 409,203- Available for sale investments 767,672 421,911 -- 1,189,583 1,189,583773,518 825,268 -- 1,598,786 1,598,786Fair valueLevel 1 Level 2 Level 3 TotalCarryingvalueSAR’000 SAR’000 SAR’00031 December 2017 (Audited)Financial assets measured at fairvalue- Investments held as FVSI 106,290 801,117 -- 907,407 907,407- Available for sale investments 453,157 361,126 -- 814,283 814,283559,447 1,162,243 -- 1,721,690 1,721,690c) Measurement of fair valueValuation technique and significant unobservable inputsThe following table shows the valuation techniques used in measuring Level 2 fair value at 30 September2018 and 31 December 2017, as well as the significant unobservable inputs used.Type Valuation techniqueSignificantunobservable inputsInter-relationship betweensignificant unobservableinputs and fair valuemeasurementFloating ratesukuks andmutual fundsValuations are based onquotations as received bythe custodians at the endof each 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 as disclosed in note 2 to these interim condensed financial statements.The amounts “due to/from” shareholders and insurance operations which were previously reportedseparately in the respective interim condensed statement of financial position, are now eliminated. Inaddition the 90/10 split of the surplus from insurance operations between shareholders and insuranceoperations are presented separately in the supplementary information (refer to note 22 above). | 23 |
| 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 14 Safar1440H, corresponding to 23 October 2018. | 24 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | During the period ended 30 September 2018 and after getting the approval from SAMA, the Companyentered into a Third Party Administration agreement (TPA) with a customer under which the Companyfacilitates healthcare services to the employees of a customer with specific terms and conditions. Theservices are remunerated against administration fees. The agreement 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 advancefrom the customer to settle anticipated claims from medical service providers. As the Company acts asan agent, the relevant bank balance and outstanding claims at the balance sheet date are offset in theinterim condensed statement of financial position. The assets and liabilities held in fiduciary capacityamounted to SR 167 million as of 30 September 2018 (2017: nil). | 10 |
