| 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. | |
| Disclosure of basis of preparation of financial statements [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”). | |
| Disclosure of accounting framework used in preparation of financial statements [text block] | 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 20 to these interim condensed financial statements provides the interim condensed statement of financial position, interim condensed statements of income, interim condensed comprehensive income and interim condensed 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 2019. 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. | |
| 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 2020 and accordingly adopted by the Company, as applicable:Standard / AmendmentsDescriptionAmendments to IAS 1 and IAS 8Definition of MaterialAmendments to IFRS 3Definition of a BusinessConceptual FrameworkAmendments to References to Conceptual Framework in IFRS StandardsThe adoption of the amended standards and interpretations applicable to the Company did not have any significant impact on these interim condensed financial statements. | |
| 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/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 17 – Insurance ContractsOverviewThis standard has been published on 18 May 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i)embedded derivatives, if they meet certain specified criteria;ii)distinct investment components; andiii)any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15).MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The General model is based on the following “building blocks”:a)the fulfilment cash flows (FCF), which comprise:probability-weighted estimates of future cash flows,an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows,and a risk adjustment for non-financial risk;b)the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date. IFRS 17 – Insurance Contracts (continued)The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model;i)changes in the entity’s share of the fair value of underlying items,ii)changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4, is currently 1 January 2021. Under the current exposure draft, it is proposed to amend the IFRS 17 effective date to reporting periods beginning on or after January 1, 2023. This is a deferral of 1 year compared to the previous date of 1 January 2021. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures.ImpactThe Company is currently assessing the impact of the application and implementation of IFRS 17. The Company does not expect a significant financial impact from adopting the standard due to the short-term nature of its insurance contracts and the related settlement patterns of its cash flows. The company also does not expect a significant impact on its reinsurance arrangements from adopting the standard, given their immateriality. The Company, however, expects that adopting the standard will likely have an impact on IT systems, data requirements and accounting policies to address additional presentation and disclosure requirements. At the date of publication of these financial statements, it was not practicable to quantify the potential impact of adopting IFRS 17. IFRS 9 - Financial Instruments This standard was published on 24 July 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and;ii)the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale and;ii)the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss.ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was 1 January 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on 12 September 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1)apply a temporary exemption from implementing IFRS 9 until the earlier ofa)the effective date of a new insurance contract standard; orb)annual reporting periods beginning on or after 1 January 2021. The IASB is proposing to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 to 1 January 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or;2)adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.The Company has performed a detailed assessment beginning 1 January 2017: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at 30 June, 2020, the Company has total financial assets and insurance related assets amounting to SR 8,321 million and SR 3,138million, respectively. Financial assets mainly represent investments held to maturity which consist of cash and cash equivalents, term deposits and designated sukuk amounting to SR 4,151 million (2019: SR 5,511 million), Investments held at fair value through statement of income as At 30 June 2020 at SR 2,238 million (2019: SR 270 million) and investments held as available for sale investments amounting to SR 1,932 million (2019: SR 1,440 million). The Company is yet to fully assess changes from the application and implementation of IFRS 9, however at this stage, the Company does not expect the classification and measurement of financial assets to be impacted by IFRS9 implementation. | |
| 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 and the accompanying notes disclosures including disclosure of contingent liabilities. Actual results may differ from these estimates.In preparing these interim condensed financial statements, the significant judgments made by management in applying the Company’s accounting policies, and the key sources of estimation uncertainty including the risk management policies, were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2019. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. Management is unable at this time to reasonably quantify the estimation uncertainties as disclosed in note 21 to these interim condensed financial statements. Management will continue to assess the situation, and reflect any required changes in future reporting periods. | |
| Disclosure of going concern [text block] | 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. | |
| Disclosure of other general disclosures about reporting entity [text block] | 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. | |
| 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 2019, except as metioned below: | |
| Description of accounting policy for seasonality of operations [text block] | Due to the seasonality of operations, operating profits are expected to fluctuate from one period to another. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows:30 June 2020 (Unaudited)31 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR’000Held as FVSI 1,510,013728,0382,238,051161,548107,968269,516Available-for-sale524,9941,407,3751,932,369564,003876,0631,440,066Held to maturity--131,250131,250--131,250131,2502,035,0072,266,6634,301,670725,5511,115,2811,840,832(i)Investments held as FVSI comprise of the following:30 June 2020 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks25,025--78,079--103,104Funds1,477,3767,612627,12322,8362,134,9471,502,4017,612705,20222,8362,238,05131 December 2019 (Audited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks25,025--78,078--103,103Funds136,523--29,890--166,413161,548--107,968--269,516(ii)Available-for-sale investments comprise of the following:30 June 2020 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks253,985235,405888,523142,8911,520,804Funds--35,604112,2895,571153,464Equities----160,535--160,535Investments in discretionary portfolios----97,566--97,566253,985271,0091,258,913148,4621,932,36931 December 2019 (Audited)Insurance operations Shareholders’ operations DomesticInternationalDomesticInternationalTotalSR’000Sukuks238,899287,287461,248180,5451,167,979Funds--37,817112,3147,782157,913Investments in discretionary portfolios ----114,174--114,174238,899325,104687,736188,3271,440,066(iii)Held to maturity investments comprise of the following:30 June 2020 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks----131,250--131,250----131,250--131,25031 December 2019 (Audited)Insurance operations Shareholders’ operations DomesticInternationalDomesticInternationalTotalSR’000Sukuks----131,250--131,250----131,250--131,250The movements in the investments balance are as follows:30 June 2020 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the period725,5511,115,2811,840,832Purchased during the period2,507,6181,678,2564,185,874Disposed during the period(1,199,990)(583,851)(1,783,841)Unrealized gain during the period, net1,82856,97758,8052,035,0072,266,6634,301,67031 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the year810,175811,3161,621,491Purchased during the year2,037,4491,664,7123,702,161Disposed during the year(2,154,358)(1,402,277)(3,556,635)Unrealized gain during the year, net 32,28541,53073,815725,5511,115,2811,840,832 | |
| 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% to 4.3% per annum. The movements in term deposits during the period ended 30 June 2020 as follows:30 June 2020 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the period3,347,9651,716,0115,063,976Matured during the period(1,205,565)(840,894)(2,046,459)Placed during the period369,045300,000669,0452,511,4451,175,1173,686,56231 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the year3,033,7431,681,5384,715,281Matured during the year(2,162,343)(1,126,451)(3,288,794)Placed during the year2,476,5651,160,9243,637,4893,347,9651,716,0115,063,976 | |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivables amounts due from the following:30 June 2020(Unaudited)31 December 2019(Audited)SAR’000SAR’000Policyholders1,423,0981,287,810Brokers1,074,983598,754Related parties (note 14)54,885--2,552,9661,886,564Provision for doubtful receivables (199,156)(197,187)Premiums receivable – net2,353,8101,689,377 | |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents comprise of the following:30 June 2020 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Bank balances77,455255,806333,26177,455255,806333,26131 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalSAR‘000Bank balances 230,946 118,767 349,713Term deposit215,996100,000315,996 446,942 218,767 665,709The amount payable to/receivable from shareholders’ operations is settled by transfer of cash at each reporting date. During the six-month period ended 30 June 2020, the insurance operations transferred cash of SR 239.4 million to the shareholders’ operations (31 December 2019: SR 99 million). | |
| 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. | |
| Disclosure of zakat [text block] | Breakup of zakat and income tax charge for the Six-month period ended 30 June 2020 and 2019 are as follows:Six-month period ended 30 June 2020 (Unaudited)Six-month period ended 30 June2019 (Unaudited)SAR’000SAR’000Current zakat charge 35,465 24,151Current tax charge 45,635 31,096Deferred tax charge (note 15.a)(27)(6,609)45,60824,48781,07348,638a)The reconciliation of deferred tax is as follows:30 June 202031 December 201930 June 2019SAR’000SAR’000SAR’000Opening deferred tax asset 30,21625,55225,552Deferred tax (charge) / income274,6646,60930,24330,21632,161Movements in the Zakat and income tax accrued during the period ended 30 June 2020 and year ended 31 December 2019 respectively are as follows:Zakat payableIncome taxpayableTotal 30 June 2020 (Unaudited)Total31 December2019 (Audited)SAR’000SAR’000SAR’000SAR’000Balance at beginning of the period/year232,44442,265274,709199,784Provided during the period/year35,46545,63581,100123,520Payments during the period/year (23)(10,551)(10,574)(48,595)Balance at end of the period/year267,88677,349345,235274,709Status of assessments The 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, 2013 through 2016 and 2018 of additional zakat, corporate income tax and withholding tax in addition to delay fines on various assessed items. The additional assessed amounts have mainly arisen due to the disallowance of investments and statutory deposits from the zakat base as well as not taking into consideration some taxes and zakats which have been already settled upon the annual declarations. The Company has filed appeals against all assessments raised with the GAZT and the General Secretariat of Tax Committees (the “GSTC”). 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.Following the recent change in Law, the cases were transferred to the GSTC. A hearing is yet to be assigned to review the Company's case. | |
| 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 June 2020 (31 December 2019: SAR 1,200 million) consisting of 120 million shares (31 December 2019: 120 million shares) of SAR 10 each. Shareholding structure of the Company is as below: 30 June 2020 (Unaudited)31 December 2019(Audited)Holding percentageSR‘000Holding percentage SR‘000Major shareholders52.3%628,06652.3%628,066General Public47.7%571,93447.7%571,934100.0%1,200,000100.0%1,200,000 | |
| 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 June 2020 , SR 727.9 million (31 December 2019: SR 727.9 million) had been set aside as a statutory reserve, representing 61% (31 December 2019: 61%) of the paid-up share capital. | |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 9.1 Movement in unearned premiumsMovements in unearned premiums are as follows:Six-month period ended 30 June 2020 (Unaudited)GrossReinsuranceNetSAR‘000Balance at 1 January 20204,376,219(20,625)4,355,594Premium written/(ceded) during the period5,713,196(28,182)5,685,014Premium earned during the period(5,397,683)28,780(5,368,903)4,691,732(20,027)4,671,705Year ended 31 December 2019 (Audited)GrossReinsuranceNetSAR‘000Balance at 1 January 20193,428,131(6,320)3,421,811Premium written/(ceded) during the year10,410,868(105,794)10,305,074Premium earned during the year(9,462,780)91,489(9,371,291)4,376,219(20,625)4,355,5949.2 Net outstanding claims and reservesNet outstanding claims and other technical reserves comprise of the following:30 June 2020(Unaudited)31 December 2019(Audited)SAR’000SAR’000Outstanding claims244,732451,788Claims incurred but not reported 1,267,2421,157,428Premium deficiency Reserve285,653--Claims handling reserves 18,93018,4921,816,5571,627,708Less:- Reinsurers’ share of outstanding claims(932)(1,218)- Reinsurers’ share of claims incurred but not reported(5,377)(3,972)(6,309)(5,190)Net outstanding claims and reserves1,810,2481,622,518 | |
| 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. | |
| 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 partyNature of transactionAmount of transactions for the period ended Receivable/(payable) balance as at30 June 2020(Unaudited)SR’00030 June 2019(Unaudited)SR’00030 June 2020(Unaudited)SR’00031 December 2019(Audited)SR’000ShareholdersInsurance premium written372,145218,73154,885**(285)**ShareholdersReinsurance Premium ceded (19,103)16,988(61,031)*(55,319)*ShareholdersClaims paid12,92675,334(1,423)***(14,010)***ShareholdersMedical costs charged by providers11,92134,106(1,290)***(9,824)***ShareholdersExpenses charged to/from a related party - net268338478*779*ShareholdersTax equalisation - net(1,873)6,131(1,873)*--ShareholdersBoard members fees503450(503)*(700)*Bupa Middle East Holdings Two W.L.L. (Related party)Trade mark fee 13,44811,294(13,448)*(23,608)* * Amounts due to related parties amounted to SR 76,377 thousand (2019: SR 78,848 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 June is as follows: 30 June 2020 (Unaudited)30 June 2019 (Unaudited)SAR’000SAR’000Short-term benefits12,26712,461Long-term benefits5,1242,79417,39115,255Short-term benefits include salaries, allowances, annual bonuses and incentives whilst long-term benefits include employees’ end of service benefits and the LTIP. | |
| 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:At 30 June 2020 (Unaudited)Insurance operationsOperating segmentsMajor customersNon-Major customersTotal Insurance operationsShareholders’ operationsTotalSAR’000SAR’000SAR’000Assets Premiums receivable – net1,382,796971,0142,353,810--2,353,810Reinsurers’ share of unearned premiums11,6978,33020,027--20,027Reinsurers’ share of outstanding claims374558932--932Reinsurers’ share of claims incurred but not reported2,1873,1905,377--5,377Unallocated assets4,817,7974,261,2249,079,021Total assets 7,197,9434,261,22411,459,167LiabilitiesUnearned premiums2,740,4561,951,2764,691,732--4,691,732Outstanding claims173,23271,500244,732--244,732Claims incurred but not reported904,042363,2001,267,242--1,267,242Premium deficiency Reserve198,08487,569285,653--285,653Claims handling reserve13,4525,47818,930--18,930Unallocated liabilities675,660685,6861,361,346Total liabilities 7,183,949685,6867,869,635At 31 December 2019 (Audited)Insurance operationsOperating segments Major customers Non-major customers Total Insurance operationsShareholders’ operationsTotalSR’000SR’000SR’000ASSETS Premiums receivable – net992,461696,9161,689,377--1,689,377Reinsurers’ share of unearned premiums10,8199,80620,625--20,625Reinsurers’ share of outstanding claims5266921,218--1,218Reinsurers’ share of claims incurred but not reported1,2132,7593,972--3,972Deferred policy acquisition costs81,75352,269134,022--134,022Unallocated assets4,742,8823,589,0008,331,882Total assets 6,592,0963,589,00010,181,096LIABILITIESUnearned premiums2,717,3871,658,8324,376,219--4,376,219Outstanding claims327,541124,247451,788--451,788Claims incurred but not reported845,862311,5661,157,428--1,157,428Claims handling reserve13,4605,03218,492--18,492Unallocated liabilities575,665556,6071,132,272Total liabilities 6,579,592556,6077,136,199Three-month period ended 30 June 2020(Unaudited) Operating segments Major customers Non-Major customers TotalSAR’000REVENUESGross written premium 1,357,956885,262 2,243,218 Reinsurance premiums ceded – Local(690)(450) (1,140)Reinsurance premiums ceded – International(5,737)(3,741) (9,478)Net premiums written1,351,529881,071 2,232,600 Changes in unearned premiums – net474,585(10,638) 463,947Net premiums earned1,826,114870,4332,696,547UNDERWRITING COSTS AND EXPENSES Gross claims paid (1,124,215)(473,603)(1,597,818) Reinsurers’ share of claims paid1,878790 2,668 Net claims paid (1,122,337)(472,813)(1,595,150)Changes in outstanding claims142,88054,199 197,079 Changes in claims incurred but not reported(70,403)(45,275) (115,678)Changes in Premium deficiency Reserve(198,084)(87,569)(285,653)Changes in claims handling reserves(203)(318) (521)Reinsurance share of changes in outstanding claims(176)(184) (360)Reinsurance share of changes in claims incurred but not reported36115151Net claims incurred(1,248,287)(551,845)(1,800,132)Policy acquisition costs(38,830)(25,887) (64,717)TOTAL UNDERWRITING COSTS AND EXPENSES(1,287,117)(577,732)(1,864,849)NET UNDERWRITING INCOME538,997292,701831,698OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (26,049)Unallocated income 57,954Unallocated expenses(374,208)TOTAL OTHER OPERATING (EXPENSES)/INCOME(342,303)Income before Surplus, Zakat & Income Tax489,395Income attributed to insurance operations (transfer to surplus payable)(46,337)Income attributed to the shareholders before zakat and income tax443,058Zakat charge(20,495) Income tax charge (34,656)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX387,907Gross Written Premium details Three-month period ended 30 June 2020SAR’000Corporates1,620,432Medium Enterprises 444,667Small Enterprises 163,745Micro Enterprises 12,586Individuals1,788Total Gross Written Premium2,243,218 Three-month period ended 30 June 2019(Unaudited) Operating segments Major customers Non-major customers TotalSAR’000REVENUESGross written premium 1,465,709973,0932,438,802Reinsurance premiums ceded – Local(1,842)(753)(2,595)Reinsurance premiums ceded – International(19,776)(8,078)(27,854)Net premiums written1,444,091964,2622,408,353Changes in unearned premiums – net41,098(164,695)(123,597)Net premiums earned1,485,189799,5672,284,756UNDERWRITING COSTS AND EXPENSESGross claims paid (1,258,959)(592,452)(1,851,411)Reinsurers’ share of claims paid8,4653,98312,448Net claims paid (1,250,494)(588,469)(1,838,963)Changes in outstanding claims(40,336)(22,689)(63,025)Changes in claims incurred but not reported76,31542,927119,242Changes in claims handling reserves336189525Reinsurance share of changes in outstanding claims14115156Reinsurance share of changes in claims incurred but not reported45550Net claims incurred(1,213,993)(568,022)(1,782,015)Policy acquisition costs(32,139)(21,337)(53,476)TOTAL UNDERWRITING COSTS AND EXPENSES(1,246,132)(589,359)(1,835,491)NET UNDERWRITING INCOME239,057210,208449,265OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (84,090)Unallocated income 66,927Unallocated expenses(195,595)TOTAL OTHER OPERATING (EXPENSES)/INCOME(212,758)Income before Surplus, Zakat & Income Tax236,507Income attributed to insurance operations (transfer to surplus payable)(20,433)Income attributed to the shareholders before zakat and income tax216,074Zakat charge(13,125)Income tax charge (16,923)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX186,026Gross Written Premium details Three-month period ended 30 June 2019SAR’000Corporates 1,710,264 Medium Enterprises 525,020 Small Enterprises 186,779 Micro Enterprises 13,635 Individuals 3,104 Total Gross Written Premium2,438,802Six-month period ended 30 June 2020(Unaudited) Operating segments Major customers Non-Major customers TotalSAR’000REVENUESGross written premium 3,673,1632,040,033 5,713,196 Reinsurance premiums ceded – Local(1,462)(808) (2,270)Reinsurance premiums ceded – International(16,684)(9,228) (25,912)Net premiums written3,655,0172,029,997 5,685,014 Changes in unearned premiums – net(22,191)(293,920) (316,111)Net premiums earned3,632,8261,736,0775,368,903 UNDERWRITING COSTS AND EXPENSESGross claims paid (2,795,170)(1,140,698)(3,935,868) Reinsurers’ share of claims paid3,7831,5525,335Net claims paid (2,791,387)(1,139,146)(3,930,533)Changes in outstanding claims154,30952,747207,056 Changes in claims incurred but not reported(58,180)(51,634) (109,814)Changes in Premium deficiency Reserve(198,084)(87,569)(285,653)Changes in claims handling reserves8(446) (438)Reinsurance share of changes in outstanding claims(152)(134) (286)Reinsurance share of changes in claims incurred but not reported9744311,405Net claims incurred(2,892,512)(1,225,751)(4,118,263)Policy acquisition costs(76,577)(51,051)(127,628)TOTAL UNDERWRITING COSTS AND EXPENSES(2,969,089)(1,276,802)(4,245,891)NET UNDERWRITING INCOME663,737459,2751,123,012OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (4,478)Unallocated income 125,105Unallocated expenses(618,072)TOTAL OTHER OPERATING (EXPENSES)/INCOME(497,445)Income before Surplus, Zakat & Income Tax625,567Income attributed to insurance operations (transfer to surplus payable)(56,853)Income attributed to the shareholders before zakat and income tax568,714Zakat charge(35,465)Income tax charge (45,608)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX487,641Gross Written Premium details Six-month period ended 30 June 2020SAR’000Corporates4,235,362Medium Enterprises 1,071,359Small Enterprises 368,175Micro Enterprises 30,666Individuals7,634Total Gross Written Premium5,713,196Six-month period ended 30 June 2019(Unaudited) Operating segments Major customers Non-major customers TotalSAR’000REVENUESGross written premium 3,254,9452,089,3045,344,249Reinsurance premiums ceded – Local(3,613)(1,477)(5,090)Reinsurance premiums ceded – International(32,681)(13,346)(46,027)Net premiums written3,218,6512,074,4815,293,132Changes in unearned premiums – net(312,766)(498,285)(811,051)Net premiums earned2,905,8851,576,1964,482,081UNDERWRITING COSTS AND EXPENSESGross claims paid (2,563,758)(1,219,534)(3,783,292)Reinsurers’ share of claims paid16,8738,02424,897Net claims paid (2,546,885)(1,211,510)(3,758,395)Changes in outstanding claims(20,799)(11,700)(32,499)Changes in claims incurred but not reported61,96334,85496,817Changes in claims handling reserves560315875Reinsurance share of changes in outstanding claims11311124Reinsurance share of changes in claims incurred but not reported37441Net claims incurred(2,505,011)(1,188,026)(3,693,037)Policy acquisition costs(67,194)(44,163)(111,357)TOTAL UNDERWRITING COSTS AND EXPENSES(2,572,205)(1,232,189)(3,804,394)NET UNDERWRITING INCOME333,680344,007677,687OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (73,051)Unallocated income 129,543Unallocated expenses(396,209)TOTAL OTHER OPERATING (EXPENSES)/INCOME(339,717)Income before Surplus, Zakat & Income Tax337,970Income attributed to insurance operations (transfer to surplus payable)(27,773)Income attributed to the shareholders before zakat and income tax310,197Zakat charge(24,151)Income tax charge (24,487)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX261,559Gross Written Premium details Six-month period ended 30 June 2019SAR’000Corporates3,826,506Medium Enterprises 1,100,047Small Enterprises 380,787Micro Enterprises 30,176Individuals6,733Total Gross Written Premium5,344,249 | |
| 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. | |
| Disclosure of commitments and contingencies, general [text block] | a)The Company’s commitments and contingencies are as follows:30 June 2020(Unaudited)31 December 2019(Audited)SAR’000SAR’000Letters of guarantee18,68334,818Operating commitments ----Total18,68334,818i)As of 30 June 2020, total Letters of Guarantee issued by banks amounted to SR 110.3 million (2019: 134.8 million), of which SR 18.7 million (31 December 2019: SR 34.8 million) is restricted deposits with banks and has been recorded under prepayments and other assets.ii)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 2019. | |
| 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 hierarchy"The 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 valueLevel 1Level 2Level 3TotalCarrying valueSAR’000SAR’000SAR’00030 June 2020 (Unaudited)Financial assets measured at fair value- Investments held as FVSI--2,238,051--2,238,0512,238,051- Available-for-sale investments1,239,454692,915--1,932,3691,932,3691,239,4542,930,966--4,170,4204,170,420Fair valueLevel 1Level 2Level 3TotalCarrying valueSAR’000SAR’000SAR’00031 December 2019 (Audited)Financial assets measured at fair value- Investments held as FVSI990268,526--269,516269,516- Available-for-sale investments883,099556,967--1,440,0661,440,066884,089825,493--1,709,5821,709,582c)Measurement of fair valueValuation technique and significant unobservable inputsThe following table shows the valuation techniques used in measuring Level 2 fair value At 30 June 2020 and 31 December 2019, as well as the significant unobservable inputs used. TypeValuation techniqueSignificant unobservable inputsInter-relationship between significant unobservable inputs and fair value measurementFloating 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 applicableNot applicable | |
| 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 28 Dulhija 1441H corresponding to 18 August 2020. | |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 30 June 2020 (Unaudited)31 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000ASSETSCash and cash equivalents 77,455 255,806 333,261 446,942 218,767 665,709 Premiums receivables – net 2,353,810 -- 2,353,810 1,689,377--1,689,377Reinsurers’ share of unearned premiums 20,027 -- 20,027 20,625--20,625Reinsurers’ share of outstanding claims 932 -- 932 1,218--1,218Reinsurers’ share of claims Incurred but not reported5,377 -- 5,3773,972--3,972Deferred policy acquisition costs -- -- -- 134,022--134,022Investments 2,035,007 2,266,663 4,301,670 725,5511,115,2811,840,832Prepaid expenses and other assets193,890 34,159 228,049 222,424 54,219 276,643 Term deposits 2,511,445 1,175,117 3,686,562 3,347,965 1,716,011 5,063,976 Fixtures, Furniture and Right-of-use assets – net -- 212,789 212,789 -- 169,441 169,441 Intangible assets – net -- 56,114 56,114 --56,24556,245Deferred tax asset -- 30,243 30,243 --30,21630,216Goodwill--98,000 98,000 --98,000 98,000 Statutory deposit--120,000 120,000 --120,000 120,000 Accrued income on statutory deposit -- 12,333 12,333 -- 10,820 10,820 TOTAL ASSETS7,197,9434,261,22411,459,167 6,592,096 3,589,000 10,181,096 30 June 2020 (Unaudited)31 December 2019 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000LIABILITIESAccrued and other liabilities400,703146,727547,430352,79895,889448,687Insurance operations’ surplus payable211,465 -- 211,465168,454--168,454Reinsurers’ balances payable63,492 -- 63,49254,413--54,413Unearned premiums4,691,732 -- 4,691,7324,376,219--4,376,219Outstanding claims244,732 -- 244,732451,788--451,788Claims incurred but not reported1,267,242 -- 1,267,2421,157,428--1,157,428Premium deficiency Reserve285,653 -- 285,653------Claims handling reserve18,930 -- 18,93018,492--18,492Due to related parties -- 76,37776,377--78,84878,848Provision for end-of-service benefits -- 105,014105,014--96,34196,341Provision for zakat and income tax -- 345,235345,235--274,709274,709Accrued income payable to SAMA -- 12,33312,333--10,82010,820TOTAL LIABILITIES7,183,949685,6867,869,6356,579,592556,6077,136,199EQUITYShare capital -- 1,200,000 1,200,000 --1,200,0001,200,000Statutory reserve -- 727,871 727,871 --727,871727,871Share based payments -- 23,265 23,265 --25,52525,525Shares held under employees share scheme -- (48,779) (48,779)--(57,538)(57,538)Retained earnings -- 1,614,741 1,614,741 --1,128,9731,128,973Re-measurement reserve of end-of-service benefits -- (10,473) (10,473)--(10,473)(10,473)Investments fair value reserve 13,994 68,913 82,907 12,50418,03530,539TOTAL EQUITY 13,994 3,575,538 3,589,532 12,5043,032,3933,044,897TOTAL LIABILITIES AND EQUITY 7,197,943 4,261,224 11,459,167 6,592,0963,589,000 10,181,096 Three-month period ended 30 June (Unaudited)Six-month period ended 30 June (Unaudited)2020201920202019Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000REVENUESGross premiums written 2,243,218 -- 2,243,218 2,438,802--2,438,802 5,713,196 -- 5,713,196 5,344,249--5,344,249Reinsurance premiums ceded – Local (1,140)-- (1,140)(2,595)--(2,595) (2,270)-- (2,270)(5,090)--(5,090)Reinsurance premiums ceded – International (9,478)-- (9,478)(27,854)--(27,854) (25,912)-- (25,912)(46,027)--(46,027)Net premiums written 2,232,600 -- 2,232,600 2,408,353--2,408,353 5,685,014 -- 5,685,014 5,293,132--5,293,132Changes in unearned premiums – net463,947--463,947(123,597)--(123,597) (316,111)-- (316,111)(811,051)--(811,051)Net premiums earned2,696,547--2,696,5472,284,756--2,284,7565,368,903 --5,368,903 4,482,081--4,482,081UNDERWRITING COSTS AND EXPENSESGross claims paid (1,597,818)--(1,597,818)(1,851,411)--(1,851,411)(3,935,868) --(3,935,868) (3,783,292)--(3,783,292)Reinsurers’ share of claims paid2,668--2,66812,448--12,4485,335--5,33524,897--24,897Net claims paid (1,595,150)--(1,595,150)(1,838,963)--(1,838,963)(3,930,533)(3,930,533)(3,758,395)--(3,758,395)Changes in outstanding claims197,079--197,079(63,025)--(63,025) 207,056 -- 207,056 (32,499)--(32,499)Changes in claims incurred but not reported(115,678)--(115,678)119,242--119,242 (109,814)-- (109,814)96,817--96,817Changes in Premium deficiency Reserve(285,653)--(285,653)------ (285,653)-- (285,653)------Changes in claims handling reserves(521)--(521)525--525 (438)-- (438)875--875Reinsurance share of changes in outstanding claims (360)--(360)156--156 (286)-- (286)124--124Reinsurance share of changes in claims incurred but not reported151--15150--50 1,405 -- 1,405 41--41Net claims incurred(1,800,132)--(1,800,132)(1,782,015)--(1,782,015) (4,118,263)-- (4,118,263)(3,693,037)--(3,693,037)Policy acquisition costs(64,717)--(64,717)(53,476)--(53,476) (127,628)-- (127,628)(111,357)--(111,357)TOTAL UNDERWRITING COSTS AND EXPENSES(1,864,849)--(1,864,849)(1,835,491)--(1,835,491) (4,245,891)-- (4,245,891)(3,804,394)--(3,804,394)NET UNDERWRITING INCOME831,698--831,698449,265--449,265 1,123,012 -- 1,123,012 677,687--677,687Three-month period ended 30 June (Unaudited)Six-month period ended 30 June (Unaudited)2020201920202019Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (26,049)-- (26,049)(84,090)--(84,090) (4,478)--(4,478)(73,051)--(73,051)General and administrative expenses (124,531) (2,944) (127,475)(110,221)(2,323)(112,544) (263,663) (6,039)(269,702)(216,560)(4,588)(221,148)Selling and marketing expenses(246,733)--(246,733)(83,051)--(83,051)(348,370)--(348,370)(175,061)--(175,061)Investment income – net 28,994 21,297 50,291 33,68528,03161,716 63,244 47,852 111,09667,37351,170118,543Other income – net (4) 7,667 7,663 (1,255)6,4665,211 (1,216) 15,225 14,009(2,659)13,65911,000TOTAL OTHER OPERATING (EXPENSES)/ INCOME(368,323) 26,020 (342,303)(244,932)32,174(212,758) (554,483) 57,038 (497,445)(399,958)60,241(339,717)Income before Surplus, Zakat & Income Tax463,37526,020489,395204,33332,174236,507 568,529 57,038 625,567 277,72960,241337,970Transfer of surplus to shareholders (417,038)417,038 -- (183,900)183,900-- (511,676) 511,676 --(249,956)249,956--NET RESULTS FROM OPERATIONS 46,337443,058489,39520,433216,074236,50756,853568,714625,56727,773310,197337,970Zakat charge -- (20,495) (20,495)--(13,125)(13,125)-- (35,465) (35,465)--(24,151)(24,151)Income tax charge-- (34,656) (34,656)--(16,923)(16,923)-- (45,608) (45,608)--(24,487)(24,487)NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX46,337387,907434,24420,433186,026206,45956,853487,641544,49427,773261,559289,332Weighted average number of ordinary outstanding shares (in thousands)119,446119,596119,396119,573Basic earnings per share (Expressed in SAR per share)3.251.564.082.19Three month period ended 30 June (Unaudited)Six month period ended 30 June (Unaudited)2020201920202019Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000Net income attributed to the shareholders after zakat and income tax 46,337387,907434,24420,433186,026206,45956,853487,641544,49427,773261,559289,332Other comprehensive (loss) /incomeItems that are or may be reclassified to interim condensed statement of income in subsequent periods- Net change in fair value of available-for-sale investments 16,93389,296106,2297,9784,33012,3081,49050,87852,36817,61924,96642,585TOTAL COMPREHENSIVE INCOME63,270477,203540,47328,411190,356218,76758,343538,519596,86245,392286,525331,917Reconciliation:Less: Net income attributable to insurance operations transferred to surplus payable(46,337)(20,433) (56,853)(27,773)TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 494,136198,334540,009304,144Six-month period ended 30 June (Unaudited)20202019Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000CASH FLOWS FROM OPERATING ACTIVITIESNet income attributed to the shareholders before zakat and income tax--568,714568,714--310,197310,197Adjustments for non-cash items:Net income attributed to the insurance operations 56,853 -- 56,853 27,773--27,773Depreciation and amortization of Fixtures, Furniture and Right-of-use assets-- 15,998 15,998 15,385--15,385Amortization of intangible assets-- 8,102 8,102 11,119--11,119Provision for LTIP -- 6,499 6,499 --3,5133,513Allowance for doubtful receivables 4,478 -- 4,478 73,051--73,051Unrealized loss / (gains) on investments held as FVSI-- 472 472 (3,096)(1,918)(5,014)Realized (gains) on investments (4,291) (2,618) (6,909)(2,898)(943)(3,841)Provision for end-of-service benefits-- 11,242 11,242 --9,5759,575Finance cost-- 2,698 2,698 ------ 57,040 611,107 668,147 121,334320,424441,758Changes in operating assets and liabilities:Premiums receivable (668,911)-- (668,911)(1,186,356)--(1,186,356)Reinsurers’ share of unearned premiums 598 -- 598 (8,251)--(8,251)Reinsurers’ share of outstanding claims 286 -- 286 (124)--(124)Reinsurers’ share of claims incurred but not reported (1,405)-- (1,405)(41)--(41)Deferred policy acquisition costs 134,022 -- 134,022 (15,233)--(15,233)Prepaid expenses and other assets 28,534 20,060 48,594 (30,304)(2,655)(32,959)Accrued and other liabilities51,857 (3,406) 48,45114,725(856)13,869Reinsurers’ balances payable 9,079 -- 9,079 23,937--23,937Unearned premiums 315,513 -- 315,513 819,302--819,302Outstanding claims (207,056)-- (207,056)32,499--32,499Claims incurred but not reported 109,814 -- 109,814 (96,817)--(96,817)Premium deficiency Reserve 285,653 -- 285,653 ------Claims handling reserve 438 -- 438 (875)--(875)Due to related parties-- (2,471) (2,471)--6,5126,512Due to shareholders’ operations------(23,713)23,713--115,462 625,290 740,752 (349,917)349,850(67)End-of-service benefits paid-- (2,569) (2,569)--(3,676)(3,676)Surplus paid to policyholders (13,842)-- (13,842)(3,820)--(3,820)Zakat and income tax paid -- (10,574) (10,574)--(37,651)(37,651)Net cash generated from/(Used In) operating activities 101,620 612,147 713,767 (330,024)284,810(45,214)Six-month period ended 30 June (Unaudited)20202019Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000CASH FLOWS FROM INVESTING ACTIVITIES Placement in term deposits (369,045) (300,000) (669,045)(1,001,565)(760,924)(1,762,489)Proceeds from maturity of term deposits 1,205,565 840,894 2,046,459 1,460,575993,9472,454,522Additions in investments (2,507,617)(1,678,257)(4,185,874)(510,153)(759,584)(1,269,737)Disposals of investments 1,199,990 583,851 1,783,841 466,954524,168991,122Additions to Fixtures, Furniture and Right-of-use assets-- (5,101) (5,101)--(8,418)(8,418)Disposal of Fixtures, Furniture and Right-of-use assets--------100100Intangible assets acquired-- (7,971) (7,971)--(12,641)(12,641)Net cash (used in)/generated from investing activities (471,107) (566,584)(1,037,691)415,811(23,352)392,459CASH FLOWS FROM FINANCING ACTIVITIESLease liability paid-- (6,651) (6,651)--(16,462)(16,462)Income tax (reimbursed) from non-Saudi shareholders-- (1,873) (1,873)------Net cash (used in) financing activities-- (8,524) (8,524)--(16,462)(16,462)Net change in cash and cash equivalents (369,487) 37,039 (332,448)62,074268,709330,783Cash and cash equivalents at beginning of the period 446,942 218,767 665,709 272,52717,886290,413Cash and cash equivalents at end of the period77,455255,806 333,261 334,601286,595621,196 | |
