| 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 Company incorporated in the Kingdom of Saudi Arabia as per the Ministry of Commerce and Investment’s Resolution number 138/K dated 24 Rabi Thani 1429H (corresponding to 1 May 2008). The Commercial Registration number of the Company is 4030178881 dated 5 Jumad Awwal 1429H (corresponding to 11 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 under cooperative 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 28 Shabaan 1428H (corresponding to 10 September 2007).The objective of the Company is to transact cooperative insurance operations and related activities in the Kingdom of Saudi Arabia in accordance with its articles of association, and applicable regulations in the Kingdom of Saudi Arabia. The Company underwrites medical insurance only. The Board of Directors approves the distribution of the surplus from insurance operations in accordance with 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 insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations 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 endorsed in the Kingdom of Saudi Arabia and other standards and pronouncement issued by Saudi Organisation for Certified Public Accountants (“SOCPA”). The financial statements of the Company as at and for the three-months period ended 31 March 2019 and year ended 31 December 2018, respectively, were prepared in compliance with IAS 34 and ‘International Financial Reporting Standards’ (“IFRS”) respectively, as modified by SAMA for the accounting of zakat and income tax’ (relating to application of IAS 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax). The company has updated its accounting policy to account for zakat and income taxes in the statement of income based on the recent instructions issued. This aligns with the IFRS that are endorsed in the Kingdom of Saudi Arabia and other pronouncements and standards endorsed by Saudi Organization of Certified Public Accountants (“SOCPA”). Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors. The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement of investments at their fair value through statement of income (FVSI) and available-for-sale investments. The Company’s interim condensed statement of financial position is presented in order of liquidity. Except for available-for-sale investments, fixtures, furniture and Right-of-use assets, intangible assets, goodwill, statutory deposit, accrued income on statutory deposit, provision for end-of-service benefits and accrued 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 Company maintains 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 of income, 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 annual financial statements and should be read in conjunction with the annual financial statements as of and for the year ended 31 December 2018. The interim condensed financial statements may not be considered indicative of the expected results for the full year.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest 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 the International Accounting Standards Board (IASB) have been effective from 1 January 2019 and accordingly adopted by the Company, as applicable:Standard / Amendments DescriptionIFRS 16 Leases (see below)IFRIC 23 Uncertainty over Income Tax TreatmentsIAS 28 Long term interests in associates and joint ventures IAS 19 Plan amendments, curtailments or settlements IFRS 3,11 and IAS 12, 23 Annual Improvements to IFRS 2015 - 2017 cycle.The adoption of the amended standards and interpretations applicable to the Company except for adoption of IFRS 16 did not have any significant impact on these interim condensed financial statements.IFRS 16 – Leases IFRS 16 supersedes IAS 17 Leases, IFRIC 4- Determining Whether an Agreement Contains a Lease. SIC 15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for most leases under a single on-balance sheet model. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases where the Company is the lessor.The Company adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of 1 January 2019. In accordance with the modified retrospective method of adoption, the Company applied 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 to contracts 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 lease contracts for which the underlying asset is of low value (‘low-value assets’). Upon adoption of IFRS 16, the Company recognised lease liabilities to make lease payments and Right-of-use assets representing the right to use the underlying assets.The effect of adopting IFRS 16 as at 1 January 2019 (increase/ (decrease)) is as follows: 2019 SAR ‘000Assets Right-of-use assets 103,196 Liabilities Lease liabilities 112,096 Equity Retained earning (8,900)The Company has lease contracts for its office premises. Before the adoption of IFRS 16, the Company classified each of its leases (as lessee) at the inception date as an operating lease. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognised as an expense in the statement of income on a straight-line basis over the lease term. Any prepaid rent and 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 December 2018 as follows: 2019SAR ‘000Operating leases commitments as of 31 December 2018 150,363Adjustment to the operating lease commitments (24,150)Total Commitments 126,213 Weighted 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 assets The Company recognises Right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of Right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised Right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Right-of-use assets are included within Fixtures, Furniture and Right-of-use assets. Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event 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 incremental borrowing 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 and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Lease liabilities are included within the accrued and other liabilities.Where the Company is lessee All leases entered into by the Company are operating leases. Payments made under operating leases are charged to the interim condensed statement of income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty, net of anticipated rental income (if any), is recognised as an expense in the period in which termination takes 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 periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.Amounts recognized in the interim condensed statements of financial position and interim condensed statement of income Set out below, are the movement and carrying amounts of the Company’s Right-of-use assets and lease liabilities. The Company presents Right-of-use assets under Fixtures, Furniture and Right-of-use assets in the interim condensed statement of financial position. Lease liabilities are presented under accrued expenses and other liabilities. Interim condensed statement of financial position Right-of-use assets Lease liabilities SAR’000 SAR’000 As at 1 January 2019 103,196 112,096Amortization of Right-of-use assets (11,858) --Finance cost -- 4,006Lease settlement -- (24,580)As at 30 September 2019 91,338 91,522 | 3.b |
| 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 financial statements are listed below. The Company intends to adopt these standards when they become effective.Standard/Interpretation Description Effective from periods beginning on or after the following date IFRS 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 Instruments In 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 for financial assets, introduces an expected credit loss (ECL) impairment model which replaces the incurred loss model 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 will 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 those designated at fair value through profit or loss whereby that part of the fair value changes attributable to 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 assets not held at fair value through statement of income as well as finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in 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 and follow a more principle based approach. In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2022. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied. Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2022.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a 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. | 3.c |
| 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 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 2018. | 2.b |
| Disclosure of other general disclosures about reporting entity [text block] | Due to the seasonality of operations, operating profits are expected to fluctuate from one perio | 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 condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2018, except for the change in the accounting of zakat and income tax and new IFRS standards, IFRIC interpretations and amendments thereof, adopted by the Company as explained below: | 3 |
| Description of accounting policy for zakat [text block] | As mentioned above, the basis of preparation has been changed for the period ended 30 September 2019 as a result of the issuance of latest instructions from SAMA dated 23 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 23 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively. The change has resulted in increase of reported income of the Company for the period ended 30 September 2018 by The accounting policy for zakat and income tax adopted by the Company is as follows:Zakat and Income Tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. IFRIC Interpretation 23 Uncertainty over Income Tax TreatmentThe Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: Whether an entity considers uncertain tax treatments separately The assumptions an entity makes about the examination of tax treatments by taxation authorities How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Company applies significant judgement in identifying uncertainties over income tax treatments. The Interpretation did not have an impact on the interim condensed financial statements of the Company.Deferred TaxDeferred income tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available and the credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized. Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Impact on the interim financial statementsThe change in the accounting treatment for zakat and income tax has the following impact:As at and for the Nine-month period ended 30 September 2018Financial Statement Impacted Account Before the restatement Effect of restatement After restatement SAR’000 SAR’000 SAR’000 Statement of changes in equity Provision for zakat and income tax (retained earnings) 65,291 (65,291) --Statement of income Zakat and income tax charge -- (62,396) (62,396)Statement of income Earnings per share 3.63 (0.53) 3.10Statement of financial position Deferred tax asset -- 22,056 22,056For the Three-month period ended 30 September 2018Financial Statement Impacted Account Before the restatement Effect of restatement After restatement SAR’000 SAR’000 SAR’000 Statement of income Zakat and income tax charge -- (18,355) (18,355)Statement of income Earnings per share 2.04 (0.15) 1.89 As at 31 December 2018Financial Statement Impacted Account Before the restatement Effect of restatement After restatement SAR’000 SAR’000 SAR’000 Statement of financial position Deferred tax asset -- 25,552 25,552Statement of financial position Retained earnings 811,153 25,552 836,705As at 1 January 2018Financial Statement Impacted Account Before the restatement Effect of restatement After restatement SAR’000 SAR’000 SAR’000 Statement of financial position Deferred tax asset -- 19,161 19,161Statement of financial position Retained earnings 1,030,887 19,161 1,050,048 | 3a |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows: 30 September 2019 (Unaudited) 31 December 2018 (Audited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total SAR’000 Held as FVSI 351,532 126,005 477,537 249,284 131,110 380,394Available-for-sale 507,392 863,912 1,371,304 560,891 680,206 1,241,097Held to maturity -- 131,251 131,251 -- -- -- 858,924 1,121,168 1,980,092 810,175 811,316 1,621,491(i) Investments held as FVSI comprise of the following: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Domestic International Domestic International Total SR’000 Sukuks 30,025 -- 91,079 -- 121,104Funds 321,507 -- 34,926 -- 356,433 351,532 -- 126,005 -- 477,537 31 December 2018 (Audited) Insurance operations Shareholders’ operations Domestic International Domestic International Total SR’000 Sukuks 32,025 -- 95,079 -- 127,104Funds 217,259 -- 36,031 -- 253,290 249,284 -- 131,110 -- 380,394(ii) Available-for-sale investments comprise of the following: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Domestic International Domestic International Total SR’000 Sukuks 239,111 229,932 412,444 172,849 1,054,336Funds -- 38,349 110,841 8,832 158,022Investments in discretionary portfolios -- -- 158,946 -- 158,946 239,111 268,281 682,231 181,681 1,371,304 31 December 2018 (Audited) Insurance operations Shareholders’ operations Domestic International Domestic International Total SR’000 Sukuks 241,784 281,828 280,697 186,924 991,233Funds -- 37,279 109,247 10,536 157,062Investments in discretionary portfolios -- -- 92,802 -- 92,802 241,784 319,107 482,746 197,460 1,241,097(iii) Held to maturity investments comprise of the following: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Domestic International Domestic International Total SR’000 Sukuks -- -- 131,251 -- 131,251 -- -- 131,251 -- 131,251The movements in the investments balance are as follows: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Total SAR‘000 Balance at the beginning of the period 810,175 811,316 1,621,491Purchased during the period 929,365 1,241,650 2,171,015Disposed during the period (910,524) (961,249) (1,871,773)Unrealized gain during the period, net 29,908 29,451 59,359 858,924 1,121,168 1,980,092 31 December 2018 (Audited) Insurance operations Shareholders’ operations Total SAR‘000 Balance 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] | The term deposits are held with reputable commercial banks and financial institutions. These deposits are predominately in Murabaha structure with a small allocation in Mudaraba structure. They are mostly denominated in Saudi Arabian Riyals and have an original maturity from more than Three-month to more than one year and yield financial income at rates ranging from 2.50% to 4.30% per annum. The movements in term deposits during the period ended 30 September 2019 as follows: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Total SAR‘000 Balance at the beginning of the period 3,033,743 1,681,538 4,715,281Matured during the period (1,813,921) (1,047,946) (2,861,867)Placed during the period 1,301,565 760,924 2,062,489 2,521,387 1,394,516 3,915,903 31 December 2018 (Audited) Insurance operations Shareholders’ operations Total SAR‘000 Balance 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 5,324,758 3,033,743 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: 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000 SAR’000 Policyholders 2,014,864 755,292Brokers 539,493 364,610Related parties (note 14) 4,922 -- 2,559,279 1,119,902Provision for doubtful receivables (255,001) (169,231)Premiums receivable – net 2,304,278 950,671 | 5 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents comprise of the following: 30 September 2019 (Unaudited) Insurance operations Shareholders’ operations Total SAR‘000 Bank balances 72,455 119,510 191,965Term deposit 845,946 245,801 1,091,747 918,401 365,311 1,283,712 31 December 2018 (Audited) Insurance operations Shareholders’ operations Total SAR‘000 Bank balances 272,527 17,886 290,413The amount payable to/receivable from shareholders’ operations is settled by transfer of cash at each reporting date. During the nine-months period ended 30 September 2019, the insurance operations transferred cash of SR 63.5 million 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-up share capital, amounting to SR 120 million, in a bank designated by SAMA. Accrued income on this deposit is payable to SAMA and this deposit cannot be withdrawn without approval from SAMA. | 8 |
| Disclosure of zakat [text block] | Breakup of zakat and income tax charge for the Nine-month period ended 30 September 2019 and 2018 are as follows: Nine-month period ended 30 September 2019 (Unaudited) Nine-month period ended 30 September2018 (Unaudited) SAR’000 SAR’000 Current zakat charge 37,458 34,036 Current tax charge 53,431 31,255Deferred tax income (note 15.a) (8,430) (2,895) 45,001 28,360 82,459 62,396a) The reconciliation of deferred tax is as follows: 30 September 2019 31 December 2018 30 September 2018 SAR’000 SAR’000 SAR’000 Opening deferred tax asset 25,552 19,161 19,161Deferred tax income 8,430 6,391 2,895 33,982 25,552 22,056Movements in the Zakat and income tax accrued during the period ended 30 September 2019 and year ended 31 December 2018 respectively are as follows: Zakat Payable Income taxPayable Total 30 September 2019 (Unaudited) Total31 December2018 (Audited) SAR’000 SAR’000 SAR’000 SAR’000 Balance at beginning of the year 184,295 15,489 199,784 148,704Provided during the period/year 37,458 53,431 90,889 89,199Payments during the period/year (10,247) (38,305) (48,552) (38,119)Balance at end of the period/year 211,506 30,615 242,121 199,784Status of assessmentsThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2018 with the General Authority of Zakat and Tax (the “GAZT”).The Company has received assessments for the fiscal periods 2008 through 2010 raising additional demands aggregating to SR 9 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 the additional zakat liability of SR 17 million and has filed an appeal with the Higher Appeal Committee. Status of assessments (continued)The Company has received final assessments for the fiscal years 2013 through 2016 of additional zakat, corporate income tax and withholding tax as well as delay fines on the assessed additional corporate income tax and withholding tax. The differences have mainly arisen due to disallowance of investments and statutory deposits from 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 the GAZT. The Company is also awaiting GAZT’s decision on additional submissions of 2014 relating to the treatment of the statutory deposit and the cooperative distribution for the fiscal periods 2008 through 2013. | 15 |
| Disclosure of income tax [text block] | Breakup of zakat and income tax charge for the Nine-month period ended 30 September 2019 and 2018 are as follows: Nine-month period ended 30 September 2019 (Unaudited) Nine-month period ended 30 September2018 (Unaudited) SAR’000 SAR’000 Current zakat charge 37,458 34,036 Current tax charge 53,431 31,255Deferred tax income (note 15.a) (8,430) (2,895) 45,001 28,360 82,459 62,396a) The reconciliation of deferred tax is as follows: 30 September 2019 31 December 2018 30 September 2018 SAR’000 SAR’000 SAR’000 Opening deferred tax asset 25,552 19,161 19,161Deferred tax income 8,430 6,391 2,895 33,982 25,552 22,056Movements in the Zakat and income tax accrued during the period ended 30 September 2019 and year ended 31 December 2018 respectively are as follows: Zakat Payable Income taxPayable Total 30 September 2019 (Unaudited) Total31 December2018 (Audited) SAR’000 SAR’000 SAR’000 SAR’000 Balance at beginning of the year 184,295 15,489 199,784 148,704Provided during the period/year 37,458 53,431 90,889 89,199Payments during the period/year (10,247) (38,305) (48,552) (38,119)Balance at end of the period/year 211,506 30,615 242,121 199,784Status of assessmentsThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2018 with the General Authority of Zakat and Tax (the “GAZT”).The Company has received assessments for the fiscal periods 2008 through 2010 raising additional demands aggregating to SR 9 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 the additional zakat liability of SR 17 million and has filed an appeal with the Higher Appeal Committee. Status of assessments (continued)The Company has received final assessments for the fiscal years 2013 through 2016 of additional zakat, corporate income tax and withholding tax as well as delay fines on the assessed additional corporate income tax and withholding tax. The differences have mainly arisen due to disallowance of investments and statutory deposits from 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 the GAZT. The Company is also awaiting GAZT’s decision on additional submissions of 2014 relating to the treatment of the statutory deposit and the cooperative distribution for the fiscal periods 2008 through 2013. | 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 30 September 2019 (31 December 2018: SAR 1,200 million) consisting of 120 million shares (31 December 2018: 120 million shares) of SAR 10 each. Shareholding structure of the Company is as below: 30 September 2019 (Unaudited) 31 December 2018(Audited) Holding percentage SR‘000 Holding percentage SR‘000 Major shareholders 52.3% 628,066 52.3% 628,066General Public 47.7% 571,934 47.7% 571,934 100.0% 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 a statutory reserve until this reserve amounts to 100% of the paid-up share capital. The Company makes this transfer on an annual basis at 31 December. As at 30 September 2019, SR 609.11 million (31 December 2018: SR 609.11 million) had been set aside as a statutory reserve, representing 51% (31 December 2018: 51%) of the paid-up share capital. | 18 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | Movement in unearned premiumsMovements in unearned premiums are as follows: Nine-month ended 30 September 2019 (Unaudited) Gross Reinsurance Net SAR‘000 Balance at 1 January 2019 3,428,131 (6,320) 3,421,811Premium written/(ceded) during the period 8,420,692 (71,448) 8,349,244Premium earned during the period (6,909,421) 66,102 (6,843,319) 4,939,402 (11,666) 4,927,736 Year ended 31 December 2018 (Audited) Gross Reinsurance Net SAR‘000 Balance 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: 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000 SAR’000 Outstanding claims 484,364 555,158Claims incurred but not reported 957,545 898,123Claims handling reserves 18,400 19,400 1,460,309 1,472,681Less: - Reinsurers’ share of outstanding claims (884) (336)- Reinsurers’ share of claims incurred but not reported (2,634) (2,678) (3,518) (3,014)Net outstanding claims and reserves 1,456,791 1,469,667 | 9 |
| Disclosure of earnings per share [text block] | The basic earnings per share have been calculated by dividing net income for the period by the weighted average number of ordinary shares issued and outstanding at the period end. Diluted earnings per share are not applicable to the Company.Basic earnings per share has also been revised due to change in accounting policy for the presentation of Zakat and Income tax as explained in note 3(a) to these interim condensed financial statements. | 20 |
| 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 or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and their related balances:Related party Nature of transaction Amount of transactions for the period ended Receivable/(payable) balance as at 30 September 2019(Unaudited)SR’000 30 September 2018(Unaudited)SR’000 30 September 2019(Unaudited)SR’000 31 December 2018(Audited)SR’000Shareholders Insurance premium written 258,033 30,705 4,922 ** (498) **Shareholders Reinsurance Premium ceded 19,436 13,714 (40,432) * (23,242) *Shareholders Claims paid 88,923 12,172 (8,856) *** (2,784) ***Shareholders Medical costs charged by providers 52,116 21,523 (5,733) *** (110) ***Shareholders Expenses charged to/from a related party - net 338 680 (201) * (41) *Shareholders Tax equalisation - net 6,131 6,131 -- 2,988 *Shareholders Board members fees 575 600 (575) * (258) *Bupa Middle East Holdings Two W.L.L. (Related party) Trade mark fee 17,242 15,141 (17,242) * (20,542) * * Amounts due to related parties amounted to SR 58,450 thousand (2018: SR 41,095 thousand).** Amounts included in premium receivables (note 5).*** Amounts are included in the outstanding claims.The remuneration of the key management personnel during the period ended 30 September is as follows: 30 September 2019 (Unaudited) 30 September 2018 (Unaudited) SAR’000 SAR’000 Short-term benefits 18,614 20,034Long-term benefits 10,068 5,281 28,682 25,315 Short-term benefits include salaries, allowances, annual bonuses and incentives whilst long-term benefits include 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 (‘medical insurance’). 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 on the number of members covered. 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 Executive Team, who is responsible for allocating resources and assessing the 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 marketing expenses and general and administration expenses.Segment assets do not include cash and cash equivalents, term deposits, investments, and prepayments and other assets. Segment liabilities do not include reinsurance balance payable, accrued expenses 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 the management in respect of the Company’s activities, assets and liabilities as stated below: As at 30 September 2019 (Unaudited) Insurance operations Operating segments Major customers Non-Major customers Total Insurance operations Shareholders’ operations Total SAR’000 SAR’000 SAR’000Assets Premiums receivable - net 1,353,697 950,581 2,304,278 -- 2,304,278 Reinsurers’ share of unearned premiums 5,296 6,370 11,666 -- 11,666 Reinsurers’ share of outstanding claims 400 484 884 -- 884 Reinsurers’ share of claims incurred but not reported 1,242 1,392 2,634 -- 2,634 Deferred policy acquisition costs 85,601 54,728 140,329 -- 140,329 Unallocated assets 4,521,928 3,420,877 7,942,805Total assets 6,981,719 3,420,877 10,402,596 LiabilitiesUnearned premiums 3,233,925 1,705,477 4,939,402 -- 4,939,402 Outstanding claims 328,719 155,645 484,364 -- 484,364 Claims incurred but not reported 638,261 319,284 957,545 -- 957,545 Claims handling reserve 12,376 6,024 18,400 -- 18,400 Unallocated liabilities 568,197 496,166 1,064,363Total liabilities 6,967,908 496,166 7,464,074 As at 31 December 2018 (Audited) (Restated) Insurance operations Operating segments Major customers Non-Major customers Total Insurance operations Shareholders’ operations Total SAR’000 SAR’000 SAR’000Assets Premiums receivable - net 558,492 392,179 950,671 -- 950,671Reinsurers’ share of unearned premiums 2,465 3,855 6,320 -- 6,320Reinsurers’ share of outstanding claims 306 30 336 -- 336Reinsurers’ share of claims incurred but not reported 2,437 241 2,678 -- 2,678Deferred policy acquisition costs 72,177 46,146 118,323 -- 118,323Unallocated assets 4,285,311 2,933,809 7,219,120Total assets 5,363,639 2,933,809 8,297,448 Liabilities Unearned premiums 2,091,160 1,336,971 3,428,131 -- 3,428,131Outstanding claims 355,301 199,857 555,158 -- 555,158Claims incurred but not reported 574,799 323,324 898,123 -- 898,123Claims handling reserve 12,416 6,984 19,400 -- 19,400Unallocated liabilities 471,416 333,940 805,356Total liabilities 5,372,228 333,940 5,706,168 Three-month period ended 30 September 2019(Unaudited) Operating segments Major customers Non-Major customers Total SAR’000 REVENUES Gross written premium 2,395,160 681,283 3,076,443 Reinsurance premiums ceded – Local (2,513) (170) (2,683)Reinsurance premiums ceded – International (16,534) (1,114) (17,648)Net premiums written 2,376,113 679,999 3,056,112 Changes in unearned premiums – net (827,168) 132,294 (694,874)Net premiums earned 1,548,945 812,293 2,361,238 UNDERWRITING COSTS AND EXPENSES Gross claims paid (1,210,381) (610,060) (1,820,441)Reinsurers’ share of claims paid 8,276 4,173 12,449 Net claims paid (1,202,105) (605,887) (1,807,992)Changes in outstanding claims 47,381 55,912 103,293 Changes in claims incurred but not reported (125,425) (30,814) (156,239)Changes in claims handling reserves (520) 645 125 Reinsurance share of changes in outstanding claims (20) 443 423 Reinsurance share of changes in claims incurred but not reported (1,232) 1,147 (85)Net claims incurred (1,281,921) (578,554) (1,860,475)Policy acquisition costs (32,628) (21,752) (54,380)TOTAL UNDERWRITING COSTS AND EXPENSES (1,314,549) (600,306) (1,914,855) NET UNDERWRITING INCOME 234,396 211,987 446,383 OTHER OPERATING (EXPENSES)/ INCOME Allowance for doubtful receivables (17,429)Unallocated income 64,597 Unallocated expenses (207,573)TOTAL OTHER OPERATING (EXPENSES)/INCOME (160,405) Income before Surplus, Zakat & Income Tax 285,978 Income attributed to insurance operations (transfer to surplus payable) (25,574)Income attributed to the shareholders before zakat and income tax 260,404 Zakat charge (13,307)Income tax charge (20,514)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX 226,583 Gross Written Premium details Three-month period ended 30 September 2019SAR’000Corporates 2,580,080 Medium Enterprises 340,721 Small Enterprises 142,101 Micro Enterprises 11,859 Individuals 1,682 Total Gross Written Premium 3,076,443 Three-month period ended 30 September 2018(Unaudited) (Restated)Operating segments Major customers Non-Major customers Total SAR’000 REVENUES Gross 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 2,095,627 UNDERWRITING COSTS AND EXPENSES Gross 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 114,320 56,307 170,627Changes in claims incurred but not reported 18,078 8,904 26,982Reinsurance share of changes in outstanding claims 314 154 468Reinsurance share of changes in claims incurred but not reported 1,131 557 1,688Net claims incurred (1,093,599) (538,641) (1,632,240)Policy acquisition costs (26,447) (16,946) (43,393)TOTAL UNDERWRITING COSTS AND EXPENSES (1,120,046) (555,587) (1,675,633) NET UNDERWRITING INCOME 204,729 215,265 419,994OTHER OPERATING (EXPENSES)/ INCOME Allowance for doubtful receivables (4,098)Unallocated income 48,294Unallocated expenses (194,664)TOTAL OTHER OPERATING (EXPENSES)/INCOME (150,468) Income before Surplus, Zakat & Income Tax 269,526Income attributed to insurance operations (transfer to surplus payable) (24,746)Income attributed to shareholders operations before zakat and income tax 244,780Zakat charge (8,749)Income tax charge (9,606)NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX 226,425 Gross Written Premium details Three-month period ended 30 September 2018SAR’000Corporates 2,398,321 Medium Enterprises 300,173 Small Enterprises 121,349 Micro Enterprises 8,551 Individuals 3,487 Total Gross Written Premium 2,831,881 Nine-month period ended 30 September 2019(Unaudited) Operating segments Major customers Non-Major customers Total SAR’000 REVENUES Gross written premium 5,650,104 2,770,588 8,420,692 Reinsurance premiums ceded – Local (6,020) (1,753) (7,773)Reinsurance premiums ceded – International (49,319) (14,356) (63,675)Net premiums written 5,594,765 2,754,479 8,349,244Changes in unearned premiums – net (1,139,934) (365,991) (1,505,925)Net premiums earned 4,454,831 2,388,488 6,843,319 UNDERWRITING COSTS AND EXPENSES Gross claims paid (3,774,138) (1,829,595) (5,603,733)Reinsurers’ share of claims paid 25,150 12,196 37,346 Net claims paid (3,748,988) (1,817,399) (5,566,387)Changes in outstanding claims 26,582 44,212 70,794 Changes in claims incurred but not reported (63,462) 4,040 (59,422)Changes in claims handling reserves 40 960 1,000 Reinsurance share of changes in outstanding claims 94 453 547 Reinsurance share of changes in claims incurred but not reported (1,195) 1,151 (44)Net claims incurred (3,786,929) (1,766,583) (5,553,512)Policy acquisition costs (99,442) (66,295) (165,737)TOTAL UNDERWRITING COSTS AND EXPENSES (3,886,371) (1,832,878) (5,719,249) NET UNDERWRITING INCOME 568,460 555,610 1,124,070 OTHER OPERATING (EXPENSES)/ INCOME Allowance for doubtful receivables (90,480)Unallocated income 194,140 Unallocated expenses (603,782) TOTAL OTHER OPERATING (EXPENSES)/INCOME (500,122) Income before Surplus, Zakat & Income Tax 623,948Income attributed to insurance operations (transfer to surplus payable) (53,347)Income attributed to the shareholders before zakat and income tax 570,601 Zakat charge (37,458)Income tax charge (45,001)NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX 488,142 Gross Written Premium details Nine-month period ended 30 September 2019SAR’000Corporates 6,406,586 Medium Enterprises 1,440,768 Small Enterprises 522,888 Micro Enterprises 42,035 Individuals 8,415 Total Gross Written Premium 8,420,692 Nine-month period ended 30 September 2018(Unaudited) (Restated)Operating segments Major customer Non-Major customers Total SAR’000 REVENUES Gross 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 6,007,411 UNDERWRITING COSTS AND EXPENSES Gross 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 (71,347) (55,274) (126,621)Changes in claims incurred but not reported 16,291 12,621 28,912Reinsurance share of changes in outstanding claims 259 201 460Reinsurance share of changes in claims incurred but not reported 956 740 1,696Net claims incurred (3,133,524) (1,764,287) (4,897,811)Policy acquisition costs (84,393) (55,273) (139,666)TOTAL UNDERWRITING COSTS AND EXPENSES (3,217,917) (1,819,560) (5,037,477) NET UNDERWRITING INCOME 539,829 430,105 969,934 OTHER OPERATING (EXPENSES)/ INCOME Allowance for doubtful receivables (93,773)Unallocated income 142,417Unallocated expenses (544,807)TOTAL OTHER OPERATING (EXPENSES)/INCOME (496,163) Income before Surplus, Zakat & Income Tax 473,771Income attributed to insurance operations (transfer to surplus payable) (40,780)Income attributed to the shareholders before zakat and income tax 432,991Zakat charge (34,036)Income tax charge (28,360)NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX 370,595Gross Written Premium details Nine-month period ended 30 September 2018SAR’000Corporates 5,602,322 Medium Enterprises 1,260,878 Small Enterprises 437,902 Micro Enterprises 31,873 Individuals 7,674 Total Gross Written Premium 7,340,649 | 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 its business objectives and maximise 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 the risk characteristics of the Company’s activities. To maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares. In the opinion of the Board of Directors, the Company has fully complied with the regulatory capital requirements during the reported financial period. | 19 |
| Disclosure of insurance/ takaful operations surplus and dividends [text block] | On 30 April 2019, the Company’s Board of Directors proposed to pay a dividend, for the year ended 31 December 2018, of SR 1.5 per share totalling SR 180 million to its shareholders (2017: SR 160 million). This dividend proposal was presented and approved by the shareholders in the Extraordinary General Assembly meeting, held on 30 June 2019, and accordingly the dividend payment was completed on 14 July 2019. | 17 |
| Disclosure of commitments and contingencies, general [text block] | a) The Company’s commitments and contingencies are as follows: 30 September 2019(Unaudited) 31 December 2018(Audited) SAR’000 SAR’000 Letters of guarantee* 19,371 26,346Operating commitments (note 3.b) - 150,363Total 19,371 176,709*As of 30 September 2019, total Letters of Guarantee issued by banks amounted to SR 93.4 million, of which SR 19.37 million (2018: SR 26.35 million) is restricted deposits with banks and has been recorded under prepayments and other assets.b) The Company is subject to legal proceedings in the ordinary course of business. There was no material change in the status of legal proceedings from 31 December 2018. | 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 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 liability.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 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.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 does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value. Fair value Level 1 Level 2 Level 3 Total Carrying value SAR’000 SAR’000 SAR’00030 September 2019 (Unaudited) Financial assets measured at fair value - Investments held as FVSI 38,920 438,617 -- 477,537 477,537- Available-for-sale investments 862,708 508,597 -- 1,371,304 1,371,304 901,628 947,214 -- 1,848,841 1,848,841 Fair value Level 1 Level 2 Level 3 Total Carrying value SAR’000 SAR’000 SAR’00031 December 2018 (Audited) Financial assets measured at fair value - Investments held as FVSI 16,021 364,373 -- 380,394 380,394- Available-for-sale investments 842,262 398,835 -- 1,241,097 1,241,097 858,283 763,208 -- 1,621,491 1,621,491Valuation technique and significant unobservable inputsThe following table shows the valuation techniques used in measuring Level 2 fair value at 30 September 2019 and 31 December 2018, as well as the significant unobservable inputs used. Type Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Floating rate sukuks and mutual funds Valuations are based on quotations as received by the custodians at the end of each period and on published 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’s presentation. The amounts “due to/from” shareholders and insurance operations which were previously reported separately in the respective interim condensed statement of financial position, are now eliminated. In addition the 90/10 split of the surplus from insurance operations between shareholders and insurance operations are presented separately in the 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 6 Rabi' I 1441H corresponding to 3 November 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 Administration agreement, (TPA) with a customer under which the Company facilitates healthcare services to the employees of a customer with specific terms and conditions. The services 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 advance from the customer to settle anticipated claims from medical service providers. As the Company acts as an agent, the relevant bank balance and outstanding claims at the balance sheet date are offset in the interim condensed statement of financial position. The assets and liabilities held in fiduciary capacity amounted to SR 223 million as of 30 September 2019 (2018: SR 194.8 million). | 10 |
