| 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’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 Central Bank (“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 basis of preparation of financial statements [text block] | The interim condensed financial statements of the Company have been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncement issued by Saudi Organisation for Chartered and Professional Accountants (“SOCPA”). | 2.A |
| 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 statement of financial position, interim statements of income, interim comprehensive income and interim 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 2021. 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. | 2.A |
| Disclosure of new standards and amendments in standards [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 2021 except as mentioned below:New IFRS Standards, IFRIC interpretations and amendments thereof, adopted by the Company Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients: Require contractual changes or changes to cash flows that are required by the IBOR reform, to be treated as changes to a floating interest rate equivalent to the changes in the market interest rate. Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued. Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component.These amendments had no impact on the interim condensed financial statements of the Company.The Company intends to use the practical expedients in future periods if they become applicable. | 3.A |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effectiveStandards 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/InterpretationIFRS 17IFRS 9Amendments to IAS 37 DescriptionInsurance ContractsFinancial InstrumentsOnerous contracts – Cost of Fulfilling a contractEffective from periods beginning on or after the following dateSee note belowSee note below1January 2023 IFRS 17 – Insurance ContractsOverviewThis standard which was published on May 18, 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 2005, 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 consists of: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, andand 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 of consists of the FCF related to future services and the CSM of the group at that date; andand the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.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 statement of income. 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 statement of income 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;1)changes in the entity’s share of the fair value of underlying items, and2)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, unless the Company chooses to recognise the payments as an expense. 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 effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4, is currently 1 January 2023. 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 select 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 has performed an operational gap assessment which has focused on the impact of IFRS 17 across data, systems, processes and people. The Company is currently assessing the impact of the application and implementation of IFRS 17 and in the process of applying applicable requirements. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The key areas identified to date are as follows: Impact Area Summary of Impact Financial Impact The financial impact of applying IFRS 17 compared to IFRS 4 was not significant based on the assessment conducted in 2020.Data Impact Management is assessing data storage and infrastructure considering systems interfaces and data integrity. However, management believes that the data impact is not likely to be significant. IT Systems Management is assessing the current IT systems and considering the migration to a new system in phases by utilizing the current system capabilities before the migration is carried out ensuring IFRS17 disclosure and reconciliation requirements are met. Process Impact The Company will need to establish new processes to ensure that required line items and additional breakdowns are fed into downstream systems to create the required presentations and disclosures. Impact on RI Arrangements The Company’s reinsurance arrangements are not material (less than 1% of GWP is reinsured). New/enhanced systems would be flexible to account for any changes in the Company’s reinsurance strategy. Impact on Policies & Control Frameworks The Company needs to update the actuarial and accounting policies and develop guidance papers; From governance perspective, management needs to make sure all IFRS17 key decisions and results are appropriately reviewed and signed off by the auditors, appointed actuary, audit committee as well as the board of directors and internal control functions. As of the date of the publication of these financial statements, the Company has already submitted Phase 3 Implementation plan to SAMA, and first unaudited dry run results to SAMA using 2020 data. The Company is planning to perform another dry run using 2021 data which will be submitted to SAMA during the current year.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 statement of income. A financial asset is measured at amortized cost if both:1)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and2)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 statement of income upon sale, if both conditions are met:1)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale; and2)the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through statement of income. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through statement of income 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 statement of income.Additionally, for financial liabilities that are designated as at fair value through statement of income, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.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 of:A-the effective date of a new insurance contract standard; orB-annual reporting periods beginning on or after 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 statement of income 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 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.Impact assessmentAs at March 31, 2022, the Company has total financial assets and insurance related assets amounting to SR 9,530 million and SR 4,492 million, respectively. Financial assets mainly represent: Cash and cash equivalents, Held to maturity investments, Term deposits and designated sukuks amounting to SR 4,344 million (2021: SR 3,094 million). FVSI investments amounting to SR 2,779 million (2021: SR 3,258 million). Other financial assets, including available for sale investments amounting to SR 2,076 million (2021: SR 2,115 million). The Company is still finalizing its assessment to measure the impact of applying and implementing IFRS 9. The Company, however, does not expect IFRS 9 to have a material impact on the classification and measurement of financial assets. | 3.B |
| 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 estimating 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 2021. However, the Company has reviewed the key sources of estimating uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic and implications of the Council of Cooperative Health Insurance’s (“CCHI”) Circular 895 of Article 11 and Circular 965 dated 14 March 2022. For further details, please see note 22 to these interim condensed financial statements. Management will continue to assess the situation, and reflect any required changes in future reporting periods. | 2.B |
| Disclosure of going concern [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 estimating 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 2021. However, the Company has reviewed the key sources of estimating uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic and implications of the Council of Cooperative Health Insurance’s (“CCHI”) Circular 895 of Article 11 and Circular 965 dated 14 March 2022. For further details, please see note 22 to these interim condensed financial statements. Management will continue to assess the situation, and reflect any required changes in future reporting periods. | 2.A |
| Disclosure of other general disclosures about reporting entity [text block] | During the year ended 31 December 2018, after obtaining SAMA’s approvals, the Company entered into a Third Party Administration agreement (TPA) with a customer under which the Company facilitates healthcare services to Customer’s employees with specific terms and conditions. The agreement is effective from 1 March 2018. The services are remunerated against administration fees.In order to fulfil the commitment relating to this agreement, the Company receives 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 reporting date, are excluded from the interim statement of financial position. The assets and liabilities held in fiduciary capacity amounted to SR 407 million as of 31 March 2022 (31 December 2021: SR 260 million). | 10 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| 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. | 2.C |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows:31 March 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR’000Held as FVSI 1,311,819 1,467,467 2,779,286 1,808,1991,449,7363,257,935Available-for-sale 581,583 1,494,500 2,076,083 691,2301,423,3582,114,588Held to maturity 100,000 231,250 331,250 100,000231,250331,2501,993,4023,193,2175,186,6192,599,4293,104,3445,703,773(i)Investments held as FVSI comprise of the following:31 March 2022 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks 11,014 - 36044 - 47,058Funds1,293,597 7,208 1,409,800 21,623 2,732,2281,304,611 7,208 1,445,844 21,623 2,779,28631 December 2021 (Audited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks18,014-55,045-73,059Funds1,782,875 7,3101,372,761 21,9303,184,8761,800,889 7,3101,427,80621,9303,257,935(ii)Available-for-sale investments comprise of the following:31 March 2022 (Unaudited)Insurance operationsShareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks399,058146,745798,319103,0991,447,221Funds - 35,780 147,10216,795199,677Equities - - 366,02311,250377,273 Investments in discretionary portfolios - - 51,912 - 51,912399,058182,5251,363,356131,1442,076,08331 December 2021 (Audited)Insurance operationsShareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks470,858183,613 793,312105,726 1,553,509Funds-36,759127,646 17,287 181,692 Equities--316,82612,372329,198 Investments in discretionary portfolios --50,189-50,189470,858220,3721,287,973 135,3852,114,588(iii)Held to maturity investments comprise of the following:31 March 2022 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSR’000Sukuks 100,000 - 156,250 75,000331,250 100,000 - 156,250 75,000331,25031 December 2021 (Audited)Insurance operations Shareholders’ operations DomesticInternationalDomesticInternationalTotalSR’000Sukuks100,000-156,25075,000331,250100,000-156,25075,000331,250The movements in the investments balance are as follows:31 March 2022 (Unaudited)Insurance operationsShareholders’operationsTotalSAR‘000Balance at the beginning of the period2,599,4293,104,3445,703,773Purchased during the period1,902,3181,703,7443,606,062Disposed during the period(2,495,800)(1,640,345)(4,136,145)Unrealized (losses) / gains during the period, net(12,545)25,47412,9291,993,4023,193,2175,186,61931 December 2021 (Audited)Insurance operationsShareholders’operationsTotalSAR‘000Balance at the beginning of the year3,568,1812,461,2656,029,446Purchased during the year8,132,7607,033,35815,166,118Disposed during the year(9,088,960)(6,452,176)(15,541,136)Unrealized (losses) / gains during the year, net (12,552)61,89749,3452,599,4293,104,3445,703,773 | 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 structures with a small allocation in Mudaraba structures. 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 0.9% to 4.2% per annum (2021: from 1.2% to 4.3% per annum). The movements in term deposits during the period ended 31 March 2022 as follows:31 March 2022 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the period2,007,9221,085,7983,093,720Matured during the period(5,528)(213,245)(218,773)Placed during the period1,250,250200,0001,450,250Commission income earned during the period12,1656,29218,4573,264,8091,078,8454,343,65431 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the year1,645,2921,151,2552,796,547Matured during the year(1,507,552)(466,960)(1,974,512)Placed during the year1,839,000374,3282,213,328Commission income earned during the year31,18227,17558,3572,007,922 1,085,798 3,093,720 | 7 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivable amounts are due from the following:31 March 2022 (Unaudited)31 December 2021(Audited)SAR’000SAR’000Policyholders2,039,676 1,401,823 Brokers1,222,190 590,833 3,261,866 1,992,656Provision for doubtful receivables (262,036)(231,356)Premiums receivable – net 2,999,830 1,761,300 | 5 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents consists of the following:31 March 2022 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Bank balances 378,557 51,744 430,301 Term deposits 460,711 - 460,711 839,268 51,744 891,012 31 December 2021(Audited)Insurance operationsShareholders’ operationsTotalSAR‘000Bank balances430,30030,067460,367Term deposits500,391-500,391930,69130,067960,758The amount payable to/receivable from shareholders’ operations is settled by transfer of cash at each reporting date. During the three-months period ended 31 March 2022, the insurance operations transferred cash of SR 50 million to the shareholders’ operations (31 December 2021: SR 435.3 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 amounting to SR 15.2 million (2021: SR 14.9 million) 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 three-month period ended 31 March 2022 and 2021 are as follows:Three-months period ended 31 March 2022 (Unaudited)Three-months period ended 31 March 2021 (Unaudited)SAR’000SAR’000Current zakat charge 20,33718,318Current tax charge 21,72416,791Deferred tax charge (note 15.a)1,824 40723,54817,19843,88535,516a)The reconciliation of deferred tax is as follows:31 March 2022(Unaudited)31 December 2021(Audited)31 March 2021(Unaudited)SAR’000SAR’000SAR’000Opening deferred tax asset 39,735 37,94137,941Deferred tax (charge) / income(1,824) 1,794(407)37,911 39,73537,534Movements in the Zakat and income tax accrued during the period ended 31 March 2022 and year ended 31 December 2021 respectively are as follows:Zakat payableIncome taxpayableTotal 31 March 2022 (Unaudited)Total31 December2021 (Audited)SAR’000SAR’000SAR’000SAR’000Balance at beginning of the period/year 202,819 33,790 236,609 317,199Provided during the period/year20,33721,72442,061106,925Payments during the period/year -(17,884)(17,884)(187,514)Balance at end of the period/year223,15637,630260,786236,610Status of assessments The Company has filed its zakat and income tax returns for the financial years up to and including the year 2020 with the Zakat, Tax and Custom Authority. The Company has received assessments for the fiscal periods 2008 through 2018 of additional zakat, corporate income tax and withholding tax in addition to delay fines on various assessed items.In February 2021, the Company reached a settlement with Zakat, Tax and Custom Authority on all zakat, corporate income tax and withholding tax for the years 2008 through 2016 and 2018. All settled liabilities were provided for previously in respective year, and, hence, there is no significant financial impact on the Company. For the year 2017 assessments, the Company has escalated the matter to the General Secretariat of Tax Committees (the “GSTC”) and their review is awaited. | 15 |
| Disclosure of income tax [text block] | Breakup of zakat and income tax charge for the three-month period ended 31 March 2022 and 2021 are as follows:Three-months period ended 31 March 2022 (Unaudited)Three-months period ended 31 March 2021 (Unaudited)SAR’000SAR’000Current zakat charge 20,33718,318Current tax charge 21,72416,791Deferred tax charge (note 15.a)1,824 40723,54817,19843,88535,516a)The reconciliation of deferred tax is as follows:31 March 2022(Unaudited)31 December 2021(Audited)31 March 2021(Unaudited)SAR’000SAR’000SAR’000Opening deferred tax asset 39,735 37,94137,941Deferred tax (charge) / income(1,824) 1,794(407)37,911 39,73537,534Movements in the Zakat and income tax accrued during the period ended 31 March 2022 and year ended 31 December 2021 respectively are as follows:Zakat payableIncome taxpayableTotal 31 March 2022 (Unaudited)Total31 December2021 (Audited)SAR’000SAR’000SAR’000SAR’000Balance at beginning of the period/year 202,819 33,790 236,609 317,199Provided during the period/year20,33721,72442,061106,925Payments during the period/year -(17,884)(17,884)(187,514)Balance at end of the period/year223,15637,630260,786236,610Status of assessments The Company has filed its zakat and income tax returns for the financial years up to and including the year 2020 with the Zakat, Tax and Custom Authority. The Company has received assessments for the fiscal periods 2008 through 2018 of additional zakat, corporate income tax and withholding tax in addition to delay fines on various assessed items.In February 2021, the Company reached a settlement with Zakat, Tax and Custom Authority on all zakat, corporate income tax and withholding tax for the years 2008 through 2016 and 2018. All settled liabilities were provided for previously in respective year, and, hence, there is no significant financial impact on the Company. For the year 2017 assessments, the Company has escalated the matter to the General Secretariat of Tax Committees (the “GSTC”) and their review is awaited. | 15 |
| Disclosure of classes of share capital [text block] | The authorised, issued and paid-up capital of the Company is SAR 1,200 million at 31 March 2022 (31 December 2021: SAR 1,200 million) consisting of 120 million shares (31 December 2021: 120 million shares) of SAR 10 each. Shareholding structure of the Company is as below: 31 March 2022 (Unaudited)31 December 2021(Audited)Holding percentageSR‘000Holding percentage SR‘000Major shareholders52.3% 628,066 52.3%628,066General Public47.7% 571,934 47.7%571,934100%1,200,000 100%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 carry out this transfer on an annual basis at 31 December. As at 31 March 2022, SR 992.2 million (31 December 2021: SR 992.2 million) had been set aside as a statutory reserve, representing 82.6% (31 December 2021: 82.6%) of the paid-up share capital. | 17 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 1 Movement in unearned premiumsMovements in unearned premiums are as follows:Three-month ended 31 March 2022 (Unaudited)GrossReinsuranceNetSAR‘000Balance at 1 January 20224,709,555(27,935)4,681,620Premium written/(ceded) during the period4,222,419(27,476)4,194,943Premium earned during the period(2,967,503)22,303(2,945,200)5,964,471(33,108)5,931,363Year ended 31 December 2021 (Audited)GrossReinsuranceNetSAR‘000Balance at 1 January 20214,023,331(20,108)4,003,223Premium written/(ceded) during the year11,382,194(86,082)11,296,112Premium earned during the year(10,695,970)78,255(10,617,715)4,709,555(27,935)4,681,6202 Net outstanding claims and reservesNet outstanding claims and other technical reserves consist of the following:31 March 2022(Unaudited)31 December 2021(Audited)SAR’000SAR’000Outstanding claims 692,654 601,168Claims incurred but not reported 1,877,665 1,413,888Premium deficiency reserve 72,373 74,602Claims handling reserves 25,535 21,797 2,668,227 2,111,455Less:- Reinsurers’ share of outstanding claims (6,670)(7,207)- Reinsurers’ share of claims incurred but not reported (8,618)(7,829) (15,288)(15,036) Net outstanding claims and reserves 2,652,939 2,096,419 | 9 |
| Disclosure of earnings per share [text block] | The basic and diluted earnings per share has been calculated by dividing net income after zakat and income tax for the period by the weighted average number of ordinary shares issued and outstanding at the period end. Weighted average number of ordinary share outstanding at the period end are the ordinary shares issued adjusted for share held under employees share scheme as at 31 March 2022. | 19 |
| Disclosure of related party transactions [text block] | Related parties represent major shareholders, Board members 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. Contract pricing policies and terms are conducted on an arm’s length basis and transactions are approved by the Company’s management or where required and applicable the Company’s 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 at31 March 2022(Unaudited)SR’00031 March 2021(Unaudited)SR’00031 March 2022(Unaudited)SR’00031 December 2021(Audited)SR’000Shareholdersand othersInsurance premium written 26,261153,617204**2,726**ShareholdersReinsurance Premium ceded (20,060)(18,324)(25,126)*(19,672)*Shareholders and othersClaims paid2,34623,145(255)***(17,289)***ShareholdersMedical costs charged by providers3,29017,269(362)***(19,696)***ShareholdersExpenses charged to/from a related party - net33 681533*1,024*ShareholdersTax equalisation - net--12,369*12,369*ShareholdersBoard members fees213151(213)*(833)*Bupa Middle East Holdings Two W.L.L. (Related party)Trade mark fee 7,3826,260(33,993)*(26,611)** Amounts due to related parties amounted to SR 46,430 thousand (2021: SR 33,723 thousand).** Amounts included in premium receivables (note 5).*** Amounts are included in outstanding claims.The remuneration of the key management personnel during the period ended 31 March is as follows:31 March 2022 (Unaudited)31 March 2021 (Unaudited)SAR’000SAR’000Short-term benefits6,8847,115Long-term benefits3,9464,86210,83011,977Short-term benefits include salaries, allowances, annual bonuses and incentives whilst long-term benefits include employees’ end of service benefits and the shares held under employees share scheme. | 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 operating decision maker, who is responsible for allocating resources and assessing the performance of operating segments in line with the strategic decisions. No inter-segment transactions occurred during the period.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, fixtures, furniture and right-of-use assets, term deposits, investments, and prepaid expenses and other assets. Segment liabilities do not include reinsurance balance payable, accrued 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 31 March 2022 (Unaudited)Insurance operationsOperating segmentsMajor customersNon-Major customersTotal Insurance operationsShareholders’ operationsTotalSAR’000SAR’000SAR’000Assets Premiums receivable – net1,762,314 1,237,516 2,999,830 - 2,999,830 Reinsurers’ share of unearned premiums18,546 14,562 33,108 - 33,108 Reinsurers’ share of outstanding claims2,298 4,372 6,670 - 6,670 Reinsurers’ share of claims incurred but not reported2,959 5,659 8,618 - 8,618 Deferred policy acquisition costs 142,481 121,353 263,834 - 263,834 Unallocated assets 6,180,662 4,869,020 11,049,682 Total assets 9,492,722 4,869,020 14,361,742 LiabilitiesUnearned premiums3,341,069 2,623,402 5,964,471 - 5,964,471 Outstanding claims 494,024 198,630 692,654 - 692,654 Claims incurred but not reported1,345,839 531,826 1,877,665 - 1,877,665Premium deficiency Reserve40,540 31,833 72,373 - 72,373 Claims handling reserve18,258 7,277 25,535 - 25,535 Unallocated liabilities 866,288606,0271,472,315 Total liabilities 9,498,986606,02710,105,013At 31 December 2021 (Audited)Insurance operationsOperating segments Major customers Non-Major customers Total Insurance operationsShareholders’ operationsTotalSR’000SR’000SR’000ASSETS Premiums receivable – net1,034,713726,5871,761,300-1,761,300Reinsurers’ share of unearned premiums15,35312,58227,935-27,935Reinsurers’ share of outstanding claims2,5604,6477,207-7,207Reinsurers’ share of claims incurred but not reported2,6235,2067,829-7,829Deferred policy acquisition costs114,64586,397201,042-201,042Unallocated assets5,638,0404,755,74910,393,789Total assets 7,643,3534,755,74912,399,102LIABILITIESUnearned premiums2,588,2462,121,3094,709,555-4,709,555Outstanding claims425,245175,923601,168-601,168Claims incurred but not reported1,000,536413,3521,413,888-1,413,888Premium Deficiency Reserve40,99933,60374,602-74,602Claims handling reserve15,4216,37621,797-21,797Unallocated liabilities813,368569,7001,383,068Total liabilities 7,634,378569,7008,204,078Three-month period ended 31 March 2022(Unaudited) Operating segments Major customers Non-Major customers TotalSAR’000REVENUESGross written premium 2,752,5401,469,8794,222,419Reinsurance premiums ceded – Local(967)(516)(1,483)Reinsurance premiums ceded – International(16,945)(9,048)(25,993)Net premiums written2,734,6281,460,3154,194,943Changes in unearned premiums – net(749,630)(500,113)(1,249,743)Net premiums earned1,984,998960,2022,945,200UNDERWRITING COSTS AND EXPENSESGross claims paid (1,411,654)(616,480)(2,028,134)Reinsurers’ share of claims paid4,3031,8806,183Net claims paid (1,407,351)(614,600)(2,021,951)Changes in outstanding claims(68,779)(22,707)(91,486)Changes in claims incurred but not reported(345,303)(118,474)(463,777)Changes in Premium deficiency Reserve4591,7702,229Changes in claims handling reserves(2,837)(901)(3,738)Reinsurance share of changes in outstanding claims(262)(275)(537)Reinsurance share of changes in claims incurred but not reported336453789Net claims incurred(1,823,737)(754,734)(2,578,471)Policy acquisition costs(72,521)(48,347)(120,868)TOTAL UNDERWRITING COSTS AND EXPENSES(1,896,258)(803,081)(2,699,339)NET UNDERWRITING INCOME88,740157,121245,861OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (31,346)Unallocated income 96,615Unallocated expenses(165,676)TOTAL OTHER OPERATING INCOME/(EXPENSES)(100,407)Income before Surplus, Zakat & Income Tax145,454Income attributed to insurance operations (transfer to surplus payable)(7,501) Income attributed to the shareholders before zakat and income tax137,953 Zakat charge(20,337)Income tax charge (23,548)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX94,068Gross Written Premium details Three-month period ended 31 March 2022SAR’000Corporates 3,182,327 Medium Enterprises 752,811Small Enterprises 250,975Micro Enterprises 26,844Individuals9,462Total Gross Written Premium4,222,419Three-month period ended 31 March 2021(Unaudited)Operating segments Major customers Non-Major customers TotalSAR’000REVENUESGross written premium 2,099,0441,153,7383,252,782Reinsurance premiums ceded – Local(811)(446)(1,257)Reinsurance premiums ceded – International(15,071)(8,283)(23,354)Net premiums written2,083,1621,145,0093,228,171Changes in unearned premiums – net(401,041)(329,265)(730,306)Net premiums earned1,682,121815,7442,497,865UNDERWRITING COSTS AND EXPENSES Gross claims paid (1,572,308)(620,533)(2,192,841)Reinsurers’ share of claims paid4,4811,7696,250Net claims paid (1,567,827)(618,764)(2,186,591) Changes in outstanding claims(49,242) (17,810)(67,052)Changes in claims incurred but not reported36,75013,02249,772Changes in Premium deficiency Reserve71,441(10,649)60,792Changes in claims handling reserves494291Reinsurance share of changes in outstanding claims230607837Reinsurance share of changes in claims incurred but not reported329314643Net claims incurred(1,508,270)(633,238)(2,141,508)Policy acquisition costs(34,001)(22,667) (56,668) TOTAL UNDERWRITING COSTS AND EXPENSES(1,542,271) (655,905)(2,198,176)NET UNDERWRITING INCOME 139,850159,839299,689OTHER OPERATING (EXPENSES)/ INCOMEAllowance for doubtful receivables (17,018)Unallocated income 70,227Unallocated expenses(162,990) TOTAL OTHER OPERATING (EXPENSES)/INCOME(109,781)Income before Surplus, Zakat & Income Tax189,908Income attributed to insurance operations (transfer to surplus payable)(14,489)Income attributed to the shareholders before zakat and income tax175,419Zakat charge(18,318)Income tax charge (17,198)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX139,903Gross Written Premium details Three-month period ended 31 March 2021SAR’000Corporates2,389,210Medium Enterprises 620,456Small Enterprises 218,453Micro Enterprises 20,031Individuals4,632Total Gross Written Premium3,252,782 | 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. | 18 |
| Disclosure of commitments and contingencies, general [text block] | The Company’s commitments and contingencies are as follows:i)The Company is subject to legal proceedings in the ordinary course of business. There was no material change in the status of legal proceedings as at 31 December 2021.ii)As of 31 March 2022 total Letters of Guarantee issued by banks amounted to SR 108 million (2021: SR 128 million). | 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 as the carrying amount is a reasonable approximation to fair value.Fair valueLevel 1Level 2Level 3TotalCarrying valueSAR’000SAR’000SAR’00031 March 2022 (Unaudited)Financial assets measured at fair value- Investments held as FVSI-2,779,286-2,779,2862,779,286- Available-for-sale investments1,323,679731,40421,0002,076,0832,076,0831,323,6793,510,69021,0004,855,3694,855,369Fair valueLevel 1Level 2Level 3TotalCarrying valueSAR’000SAR’000SAR’00031 December 2021 (Audited)Financial assets measured at fair value- Investments held as FVSI-3,257,935-3,257,9353,257,935- Available for sale investments1,421,562670,90322,1232,114,5882,114,5881,421,5623,928,83822,1235,372,5235,372,523c)Measurement of fair valueValuation technique and significant unobservable inputsThe following table shows the valuation techniques used in measuring Level 2 fair value at 31 March 2022 and 31 December 2021, as well as the significant unobservable inputs used. TypeValuation techniqueSignificant unobservable inputsInter-relationship between significant unobservable inputs and fair value measurementFloating rate sukuks and 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 | 12 |
| Disclosure of comparative figures [text block] | Certain comparative figures have been restated and regrouped to conform with the current period’s presentation in these interim condensed financial statements. These restatements have no impact on the net income for the three month period ended 31 March 2021 and retained earnings for the same period. | 21 |
| 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 26 Ramadan 1443 H corresponding to 27 April 2022 G. | 23 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | Interim financial position 31 March 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000ASSETSCash and cash equivalents 839,268 51,744 891,012 930,69130,067960,758Premiums receivables – net 2,999,830 - 2,999,830 1,761,300-1,761,300Reinsurers’ share of unearned premiums 33,108 - 33,108 27,935-27,935Reinsurers’ share of outstanding claims 6,670 - 6,670 7,207-7,207Reinsurers’ share of claims Incurred but not reported 8,618 - 8,618 7,829-7,829Deferred policy acquisition costs 263,834 - 263,834 201,042-201,042Investments 1,993,402 3,193,217 5,186,619 2,599,4293,104,3445,703,773Prepaid expenses and other assets 83,183 33,171 116,354 99,99813,256113,254Term deposits 3,264,809 1,078,845 4,343,654 2,007,9221,085,7983,093,720Fixtures, furniture – net - 66,766 66,766 -69,77169,771Right-of-use assets – net - 108,931 108,931 -112,616112,616Intangible assets – net - 65,245 65,245 -67,27767,277Deferred tax asset - 37,911 37,911 -39,73539,735Goodwill - 98,000 98,000 -98,00098,000Statutory deposit - 120,000 120,000 -120,000120,000Accrued income on statutory deposit - 15,190 15,190 -14,88514,885TOTAL ASSETS9,492,722 4,869,020 14,361,742 7,643,3534,755,74912,399,102LIABILITIESAccrued and other liabilities 639,395 7,611 647,006 597,9116,863604,774Lease Liability - 120,423 120,423 -125,333125,333Insurance operations’ surplus payable 194,080 - 194,080 190,060-190,060Reinsurers’ balances payable 32,813 - 32,813 25,397-25,397Unearned premiums 5,964,471 - 5,964,471 4,709,555-4,709,555Outstanding claims 692,654 - 692,654 601,168-601,168Claims incurred but not reported 1,877,665 - 1,877,665 1,413,888-1,413,888Premium deficiency Reserve 72,373 - 72,373 74,602-74,602Claims handling reserve 25,535 - 25,535 21,797-21,797Due to related parties - 46,430 46,430 -33,72333,723Provision for end-of-service benefits (EOSB) - 155,587 155,587 -152,286152,286Provision for zakat and income tax - 260,786 260,786 -236,610236,610Accrued income payable to SAMA - 15,190 15,190 -14,88514,885TOTAL LIABILITIES 9,498,986 606,027 10,105,013 7,634,378569,7008,204,078 EQUITY Share capital- 1,200,000 1,200,000 -1,200,0001,200,000Statutory reserve- 992,210 992,210 -992,210992,210Share based payments reserve- 37,452 37,452 -43,50043,500Shares held under employees share scheme- (62,973) (62,973)-(53,356)(53,356)Retained earnings - 1,884,768 1,884,768 -1,790,7001,790,700Re-measurement reserve for employees’ EOSB- (23,638) (23,638) - (23,638) (23,638) Investments fair value reserve (6,264) 235,174 228,910 8,975236,633245,608TOTAL EQUITY (6,264) 4,262,993 4,256,729 8,9754,186,0494,195,024TOTAL LIABILITIES AND EQUITY 9,492,722 4,869,020 14,361,742 7,643,3534,755,74912,399,102Interim statement of incomeThree-month period ended 31 March (Unaudited)20222021Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000REVENUESGross premiums written4,222,419 -4,222,419 3,252,782-3,252,782Reinsurance premiums ceded – Local(1,483)-(1,483)(1,257)-(1,257)Reinsurance premiums ceded – International(25,993)-(25,993)(23,354)-(23,354)Net premiums written4,194,943 -4,194,943 3,228,171-3,228,171Changes in unearned premiums – net(1,249,743)-(1,249,743)(730,306)-(730,306)Net premiums earned2,945,200 -2,945,2002,497,865-2,497,865UNDERWRITING COSTS AND EXPENSESGross claims paid (2,028,134)-(2,028,134)(2,192,841)-(2,192,841)Reinsurers’ share of claims paid6,183 -6,183 6,250-6,250Net claims paid (2,021,951)-(2,021,951)(2,186,591)-(2,186,591)Changes in outstanding claims(91,486)-(91,486)(67,052)-(67,052)Changes in claims incurred but not reported(463,777)-(463,777)49,772-49,772Changes in Premium deficiency Reserve2,229 -2,229 60,792-60,792Changes in claims handling reserves(3,738)-(3,738)91-91Reinsurance share of changes in outstanding claims (537)-(537)837-837Reinsurance share of changes in claims incurred but not reported789 -789 643-643Net claims incurred(2,578,471)-(2,578,471)(2,141,508)-(2,141,508)Policy acquisition costs(120,868)-(120,868)(56,668)-(56,668)TOTAL UNDERWRITING COSTS AND EXPENSES(2,699,339)-(2,699,339)(2,198,176)-(2,198,176)NET UNDERWRITING INCOME245,861-245,861299,689-299,689OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (31,346) - (31,346)(17,018)-(17,018)General and administrative expenses(136,646)(1,811)(138,457)(129,449)(2,573)(132,022)Selling and marketing expenses (27,219) - (27,219)(30,968)-(30,968)Investment income – net 25,628 56,230 81,858 23,63536,24159,876Other income – net (1,273) 16,030 14,757 (1,000)11,35110,351TOTAL OTHER OPERATING INCOME/(EXPENSES)(170,856)70,449(100,407)(154,800)45,019(109,781)Income before Surplus, Zakat & Income Tax75,00570,449145,454144,88945,019189,908Transfer of surplus to shareholders (67,504)67,504 -(130,400)130,400 -NET RESULTS FROM OPERATIONS 7,501 137,953 145,454 14,489175,419189,908Zakat charge - (20,337) (20,337)-(18,318)(18,318) Income tax charge- (23,548) (23,548)-(17,198)(17,198)NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX7,50194,068 101,569 14,489139,903154,392Weighted average number of ordinary outstanding shares (in thousands)119,497119,452Basic and diluted earnings per share (Expressed in SAR per share)0.791.17Interim statement of comprehensive income Three month period ended 31 March (Unaudited)20222021Insurance operationsShare-holders’ operationsTotalInsurance operationsShare-holders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000Net income attributed after zakat and income tax 7,50194,068 101,56914,489139,903154,392Other 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 (15,239)(1,459) (16,698)(3,733)13,5529,819TOTAL COMPREHENSIVE INCOME(7,738)92,60984,871 10,756153,455164,211Reconciliation:Less: Net income attributable to insurance operations transferred to surplus payable(7,501)(14,489)TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 77,370 149,722 Interim statement of cash flowsThree-month period ended 31 March (Unaudited)20222021Insurance 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-137,953137,953-175,419175,419Adjustments for non-cash items:Net income attributed to the insurance operations7,501-7,50114,489-14,489Depreciation of fixtures, and furniture 4,015-4,0153,715-3,715Amortization of Right-of-use assets 3,685-3,6854,065-4,065Amortization of intangible assets2,972 -2,972 3,430-3,430Provision for employees share scheme-5,5755,575-4,9494,949Allowance for doubtful receivables31,346-31,34617,018-17,018Commission income on term deposits (12,165)(6,292)(18,457)(10,576)(7,866)(18,442)Unrealized loss / (gains) on investments held as FVIS150251401(381)362(19)Realized gains on investments (2,845)(27,183)(30,028)(2,220)(725)(2,945) Provision for end-of-service benefits-4,9094,909-4,4984,498Finance cost-1,2731,273-1,8281,82834,659 116,486151,14529,540178,465208,005Changes in operating assets and liabilities:Premiums receivable (1,269,876)-(1,269,876)(674,850)-(674,850)Reinsurers’ share of unearned premiums(5,173)-(5,173)(6,397)-(6,397)Reinsurers’ share of outstanding claims537-537(837)-(837)Reinsurers’ share of claims incurred but not reported(789)-(789)(643)-(643)Deferred policy acquisition costs(62,792)-(62,792)(116,626)-(116,626)Prepaid expenses and other assets16,815(19,915)(3,100)4,839(16,096)(11,257)Accrued and other liabilities41,48374942,232(1,505)5,4663,961Reinsurers’ balances payable7,416-7,4166,288-6,288Unearned premiums1,254,916-1,254,916736,703-736,703Outstanding claims91,486-91,48667,052-67,052Claims incurred but not reported463,777-463,777(49,772)-(49,772)Premium deficiency reserve(2,229)-(2,229)(60,792)-(60,792)Claims handling reserve3,738-3,738(91)-(91)Due to related parties-12,70712,707-(51,661)(51,661)573,968110,027683,995(67,091)116,17449,083Due to shareholders’ operations174,615(174,615)-(117,623)117,623-End-of-service benefits paid-(1,608)(1,608)-(2,222)(2,222)Surplus paid to policyholders(3,481)-(3,481)(14,218)-(14,218)Zakat and income tax paid -(17,885)(17,885)-(111,444)(111,444)Net cash generated from / (used in) operating activities745,102(84,081)661,021(198,932)120,131(78,801)CASH FLOWS FROM INVESTING ACTIVITIES Placement in term deposits(1,250,250)(200,000)(1,450,250)(385,000)(100,000)(485,000)Proceeds from maturity of term deposits5,528213,245218,773668,55518,442686,997Additions to investments(1,902,318)(1,703,744)(3,606,062)(3,348,359)(2,298,360)(5,646,719)Disposals of investments2,310,5151,825,6304,136,1453,175,0621,941,6195,116,681Additions to Fixtures, Furniture -(1,010)(1,010)-(7,111)(7,111)Intangible assets acquired-(940) (940) -(7,291)(7,291)Net cash (used in) / generated from investing activities(836,525)133,181(703,344) 110,258(452,701)(342,443) CASH FLOWS FROM FINANCING ACTIVITYPurchase of shares held under employees share scheme-(21,240)(21,240)---Lease liability paid-(6,183) (6,183) -(7,106)(7,106)Net cash used in financing activity-(27,423)(27,423)-(7,106)(7,106)Net change in cash and cash equivalents(91,423)21,677(69,746)(88,674)(339,676)(428,350)Cash and cash equivalents at the beginning of the period930,69130,067960,758195,232438,019633,251Cash and cash equivalents at the end of the period839,26851,744891,012106,55898,343204,901IMPACT OF COVID-19 & COMPENSATION FOR GOVERNMENT PROVIDERSa. Impact of Government ProvidersThe Council of Health Insurance (“CHI”) issued Circular 895, dated 17/12/2020, regarding the enforcement of Article 11 of the Cooperative Health Insurance Law, requesting medical insurance companies, effective 1/1/2021, to include all accredited government healthcare providers in their medical network while complying with the approved financial compensation structure. The circular is expected to have a material impact on future medical claims considering the mandated prices and protocols regulating the relationship between government health facilities and insurance companies. Given the many uncertainties surrounding the actual rollout and application of Circular 895, management continues monitoring the situation closely, while reassessing and updating its estimates and judgments on a regular basis.b. COVID-19 ExpensesCHI issued Circular 965, dated 14/3/2022, stating that insurance companies will be covering all expenses resulting from suspected and confirmed cases with COVID-19. The coverage will include all polices currently in force which results in deficiency in Unearned Premium Reserve (“UPR”) and hence the company will hold a Premium Deficiency Reserve (“PDR”) balance of SR 72.3M. The PDR calculation follows SAMA Circular 173 dated 16/01/2019, which requires insurance companies to hold a PDR in case the relevant UPR is insufficient to cover related projected claims and expenses. | 20 / 22 |
