| 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.The Company has the following subsidiary:Name of the SubsidiaryRegistration NumberCountry of incorporationOwnershipPrincipal business activityBupa Arabia For Third Party Administration4030605585Saudi Arabia100%Claims management servicesThese interim condensed consolidated financial statements comprise the Company and its subsidiary (together referred to as the “Group”). The subsidiary has commenced operations in July 2022 and prior to that subsidiary was dormant. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | The interim condensed consolidated 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 consolidated financial statements provides the interim consolidated statement of financial position, interim consolidated statement of income, interim consolidated statement of comprehensive income and interim consolidated statement of cash flows of the insurance operations and shareholders operations, separately.The interim condensed consolidated 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 consolidated financial statements may not be considered indicative of the expected results for the full year.These interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SAR) and all amounts are rounded off to the nearest thousand, unless otherwise indicated. | 2.A |
| Disclosure of new standards and amendments in standards [text block] | New IFRS Standards, IFRIC interpretations and amendments thereof, adopted by the GroupAmendments to IAS 16Property, Plant and Equipment: Proceeds before Intended UseAmendments to IAS 37Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37Amendments to IFRS 3Reference to the Conceptual FrameworkThese amendments had no impact on the interim condensed consolidated financial statements of the Group.The Group 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 Group’s interim condensed consolidated financial statements are listed below. The Group 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 9Amendments to IAS 1 and IFRS Practice Statement 2Financial InstrumentsDisclosure of accounting policies See note below1 January 2023 Amendments to IAS 8Definition of accounting estimates1 January 2023Amendments to IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction1 January 2023IFRS 17 – Insurance ContractsOverviewThis standard which was published on May 18, 2017 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 the general model;i)changes in the entity’s share of the fair value of underlying items, andii)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.Impact The Company has performed an operational gap assessment which has focused on the impact of IFRS 17 across data, systems, processes and people. The impact of transitioning to the new standard is not expected to have a material impact on equity as at 1 January 2022.For further details on the impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended 31 December 2021 should be made.As of the date of the publication of these interim condensed consolidated financial statements, the Company has already submitted Phase 3 Implementation plan to SAMA and multiple dry run results using 2020, 2021 and June 2022 data, respectively. 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:i)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; andii)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: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; andii)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 The Company is still finalizing its assessment to measure the impact of applying and implementing IFRS 9. For further details, reference to the annual financial statements for the year ended 31 December 2021 should be made.As of the date of the publication of these interim condensed consolidated financial statements, the Company has already submitted Phase 1 Gap Analysis to SAMA and dry run results to SAMA using 2021 data. | 3.B |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of interim condensed consolidated 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 disclosures notes including disclosure of contingent liabilities. Actual results may differ from these estimates.In preparing these interim condensed consolidated 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 Health Insurance’s (“CHI”) Circular 895 of Article 11 dated 17 December 2020 and Circular 965 dated 14 March 2022. For further details, please see note 9 to these interim condensed consolidated 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 interim condensed consolidated 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 and liabilities for defined benefit obligations [Employees’ end of service benefits (“EOSB”)] recorded at the present value using the projected unit credit method. The Company’s interim consolidated statement of financial position is presented in order of liquidity. Except for available-for-sale investments, Fixtures, furniture and equipments, right-of-use assets, intangible assets, goodwill, statutory deposit, accrued income on statutory deposit, provision for end-of-service benefits (EOSB) and accrued income payable to SAMA, all other assets and liabilities are of short-term nature, unless stated otherwise. | 2.A |
| Disclosure of basis of consolidation of financial statements [text block] | The interim condensed consolidated financial statements include the financial statements of the Company and the financial statements of the subsidiary, as stated in note 1. The financial statements of the subsidiary is prepared for the same reporting period as that of the Company, using consistent accounting policies. Adjustments have been made to the interim condensed consolidated financial statements of the subsidiary, where necessary, to align with the Company’s interim condensed consolidated financial statements.Subsidiary is the investee that is controlled by the Group. The Group controls an investee only when it has: Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); Exposure, or rights, to variable returns from its involvement with the investee; and The ability to use its power over the investee to affect amount of its returns.When the Group has less than a majority of the voting or similar rights of an investee entity, it considers relevant facts and circumstances in assessing whether it has power over the entity, including: The contractual arrangement with the other voters of the investee entity; Rights arising from other contractual arrangements; and The Group’s current and potential voting rights granted by equity instruments such as shares. The Group re-assesses whether or not it controls an investee entity if facts and circumstances indicate that there are changes to one or more elements of control. Subsidiaries are consolidated from the date on which the control is transferred to the Group and cease to be consolidated from the date on which the control is transferred from the Group. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: Derecognises the assets (including goodwill) and liabilities of the subsidiary; Derecognises the carrying amount of any non-controlling interests; Derecognises the cumulative translation differences recorded in equity; Recognises the fair value of the consideration received; Recognises the fair value of any investment retained; Recognises any surplus or deficit in the consolidated statement of income; and Reclassifies the Group's share of components previously recognised in other comprehensive income to the condensed consolidated statement of income or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities. Intra-group balances and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the interim condensed consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. | 2.C |
| 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 the customer’s employees with specific terms and conditions. The agreement is effective from 1 March 2018. 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 consolidated statement of financial position. The assets and liabilities held in fiduciary capacity amounted to SAR 355 million as of 30 September 2022 (31 December 2021: SAR 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.D |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments are classified as follows:30 September 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR’000Held as FVSI 289,956897,5331,187,4891,808,1991,449,7363,257,935Available-for-sale755,2261,530,1462,285,372691,2301,423,3582,114,588Held to maturity250,000275,479525,479100,000231,250331,2501,295,1822,703,1583,998,3402,599,4293,104,3445,703,773(i)Investments held as FVSI comprise of the following:30 September 2022 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSAR’000Sukuks11,0146,89036,04420,67174,619Funds272,052-840,818-1,112,870283,0666,890876,86220,6711,187,48931 December 2021 (Audited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSAR’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:30 September 2022 (Unaudited)Insurance operationsShareholders’ operationsDomesticInternationalDomesticInternationalTotalSAR’000Sukuks573,595147,383979,343110,2151,810,536Funds-34,248157,20626,287217,741Equities--189,39823,622213,020 Investments in discretionary portfolios--44,075-44,075573,595181,6311,370,022160,1242,285,37231 December 2021 (Audited)Insurance operationsShareholders’ operationsDomesticInternationalDomesticInternationalTotalSAR’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:30 September 2022 (Unaudited)Insurance operations Shareholders’ operationsDomesticInternationalDomesticInternationalTotalSAR’000Sukuks250,000-200,47975,000525,479250,000-200,47975,000525,47931 December 2021 (Audited)Insurance operations Shareholders’ operations DomesticInternationalDomesticInternationalTotalSAR’000Sukuks100,000-156,25075,000331,250100,000-156,25075,000331,250The movements in the investments balance are as follows:30 September 2022 (Unaudited)Insurance operationsShareholders’operationsTotalSAR‘000Balance at the beginning of the period2,599,4293,104,3445,703,773Purchased during the period3,790,9664,088,9847,879,950Disposed during the period(5,063,518)(4,493,916)(9,557,434)Unrealized (losses) / gains during the period, net(31,695)3,746(27,949) 1,295,1822,703,1583,998,34031 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 1.05% to 4.95% per annum (2021: from 0.95% to 4.30% per annum). The movements in term deposits during the period ended 30 September 2022 are as follows:30 September 2022 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Balance at the beginning of the period 2,007,922 1,085,798 3,093,720 Matured during the period (1,536,438) (497,563) (2,034,001)Placed during the period 4,645,854 795,869 5,441,723 Commission income earned during the period 64,786 22,303 87,089 5,182,124 1,406,407 6,588,531 31 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] | Premium receivable amounts are due from the following:30 September 2022 (Unaudited)31 December 2021(Audited)SAR’000SAR’000Policyholders2,171,825 1,401,823 Brokers1,061,262 590,8333,233,0871,992,656Provision for doubtful receivables (298,074)(231,356) Premiums receivable – net2,935,0131,761,300 | 5 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents consist of the following:30 September 2022 (Unaudited)Insurance operationsShareholders’ operationsTotalSAR‘000Bank balances 586,066155,848 741,914 Term deposits --- 586,066 155,848 741,914 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 nine-months period ended 30 September 2022, the insurance operations transferred cash of SAR 45.9 million to the shareholders’operations (31 December 2021: SAR 435 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 SAR 120 million, in a bank designated by SAMA. Accrued income on this deposit is payable to SAMA amounting to SAR 15.9 million (2021: SAR 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 nine-month period ended 30 September 2022 and 2021 is as follows:Nine-months period ended 30 September 2022 (Unaudited)Nine-months period ended 30 September 2021 (Unaudited)SAR’000SAR’000Current zakat charge 62,16454,970Current income tax charge 80,046 79,293Deferred tax charge (note 15.a)(9,157)(2,534) 70,88976,759133,053131,729The reconciliation of deferred tax is as follows:30 September 2022(Unaudited)31 December 2021(Audited)30 September 2021(Unaudited)SAR’000SAR’000SAR’000Opening deferred tax asset 39,73537,941 37,941 Deferred tax charge9,1571,794 2,534 48,89239,73540,475 Movements in the Zakat and income tax accrued during the period ended 30 September 2022 and year ended 31 December 2021, respectively, are as follows:Zakat payable(Unaudited)Income taxpayable(Unaudited)Total 30 September 2022 (Unaudited)Total31 December2021 (Audited)SAR’000SAR’000SAR’000SAR’000Balance at beginning of the period/year202,82033,790236,610317,199Provided during the period/year62,16480,046142,210106,925Payments during the period/year (11,173)(63,597)(74,770)(187,514)Balance at end of the period/year253,81150,239304,050236,610Status of assessmentsCompanyThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2021 with the Zakat, Tax and Customs Authority. The Company has finalized its corporate income tax, zakat and withholding tax with the Zakat, Tax and Custom Authority for the fiscal periods 2008 through 2016 and 2018. For the year 2017 assessments, totaling SAR 35.8 million in additional Zakat and tax, the Company has escalated the matter to the General Secretariat of Tax Committees (the “GSTC”) and their review is awaited. The management believes that these assessments are appropriately provisioned. Bupa Arabia For Third Party AdministrationThe Company has filed its zakat returns for the financial years up to the year ended 31 December 2021 with the Zakat, Tax and Customs Authority (ZATCA). The due Zakat under these years and these returns are still under the review of ZATCA. | 15 |
| Disclosure of income tax [text block] | Breakup of zakat and income tax charge for the nine-month period ended 30 September 2022 and 2021 is as follows:Nine-months period ended 30 September 2022 (Unaudited)Nine-months period ended 30 September 2021 (Unaudited)SAR’000SAR’000Current zakat charge 62,16454,970Current income tax charge 80,046 79,293Deferred tax charge (note 15.a)(9,157)(2,534) 70,88976,759133,053131,729The reconciliation of deferred tax is as follows:30 September 2022(Unaudited)31 December 2021(Audited)30 September 2021(Unaudited)SAR’000SAR’000SAR’000Opening deferred tax asset 39,73537,941 37,941 Deferred tax charge9,1571,794 2,534 48,89239,73540,475 Movements in the Zakat and income tax accrued during the period ended 30 September 2022 and year ended 31 December 2021, respectively, are as follows:Zakat payable(Unaudited)Income taxpayable(Unaudited)Total 30 September 2022 (Unaudited)Total31 December2021 (Audited)SAR’000SAR’000SAR’000SAR’000Balance at beginning of the period/year202,82033,790236,610317,199Provided during the period/year62,16480,046142,210106,925Payments during the period/year (11,173)(63,597)(74,770)(187,514)Balance at end of the period/year253,81150,239304,050236,610Status of assessmentsCompanyThe Company has filed its zakat and income tax returns for the financial years up to and including the year 2021 with the Zakat, Tax and Customs Authority. The Company has finalized its corporate income tax, zakat and withholding tax with the Zakat, Tax and Custom Authority for the fiscal periods 2008 through 2016 and 2018. For the year 2017 assessments, totaling SAR 35.8 million in additional Zakat and tax, the Company has escalated the matter to the General Secretariat of Tax Committees (the “GSTC”) and their review is awaited. The management believes that these assessments are appropriately provisioned. Bupa Arabia For Third Party AdministrationThe Company has filed its zakat returns for the financial years up to the year ended 31 December 2021 with the Zakat, Tax and Customs Authority (ZATCA). The due Zakat under these years and these returns are still under the review of ZATCA. | 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 30 September 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: 30 September 2022 (Unaudited)31 December 2021(Audited)Holding percentageSAR‘000Holding percentage SAR‘000Major shareholders50.59% 607,068 52.3%628,066General Public49.41% 592,932 47.7%571,934100%1,200,000 100%1,200,000The total shareholders’ equity as of 30 September 2022 for Saudi shareholders is SAR 2,371 million (31 December 2021: SAR 2,394 million) and foreign shareholder is SAR 1,816 million (31 December 2021: SAR 1,792 million) after incorporating their respective shareholding percentage and impact of Zakat, income tax and other adjustments. The above equity is arrived after allocating the net income after zakat of SAR 394.3 million (31 December 2021: SAR 373.5 million) and net income after income tax of SAR 277 million (31 December 2021: SAR 252 million) to Saudi and foreign shareholders, respectively. Proposed issuance of bonus shares:During the period, the Board of Directors of the Company recommended issuance of bonus shares by the utilization of SAR 300 million of the Company's existing retained earnings by issuing 1 bonus share for every 4 shares held. The proposed bonus share issuance will be approved by the forthcoming extraordinary general assembly meeting subsequent to receiving the Capital Market Authority’s approval on 12 October 2022 (subsequent event). | 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 30 September 2022, SAR 992.2 million (31 December 2021: SAR 992.2 million) had been set aside as a statutory reserve, representing 83% (31 December 2021: 83%) 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:Nine-month ended 30 September 2022 (Unaudited)GrossReinsuranceNetSAR‘000Balance at 1 January 20224,709,555(27,935)4,681,620Premium written/(ceded) during the period11,400,035(69,975)11,330,060Premium earned during the period(9,497,517)69,904(9,427,613)6,612,073(28,006)6,584,067Year 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:Note30 September 2022(Unaudited)31 December 2021(Audited)SAR’000SAR’000Outstanding claims560,898 601,168 Claims incurred but not reported 2,244,032 1,413,888 Premium deficiency reserve9.2 (b) 63,484 74,602 Claims handling reserves 27,050 21,797 2,895,4642,111,455Less:- Reinsurers’ share of outstanding claims(4,850)(7,207)- Reinsurers’ share of claims incurred but not reported(12,000)(7,829)(16,850)(15,036) Net outstanding claims and reserves2,878,6142,096,419 9.2 (a) 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.9.2 (b) COVID-19 ExpensesCCHI 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 SAR 63.5 million, as at the date of these financial statements. 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. | 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 30 September 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 at30 September 2022(Unaudited)SAR’00030 September 2021(Unaudited)SAR’00030 September 2022(Unaudited)SAR’00031 December 2021(Audited)SAR’000Shareholdersand othersInsurance premium written200,650208,47610,946**2,726**ShareholdersReinsurance Premium ceded (50,966)(34,484)(14,650)*(19,672)*Shareholders and othersClaims paid82,526126,490(10,074)***(17,289)***ShareholdersMedical costs charged by providers157,488117,402(17,220)***(19,696)***ShareholdersExpenses charged to/from a related party – net988741,958*1,024*ShareholdersTax equalisation - net65,31514,24130,797*12,369*ShareholdersBoard members fees663605(450)*(833)*Bupa Middle East Holdings Two W.L.L.Trade mark fee 23,61719,496(23,617)*(26,611)** Amounts due to related parties amounted to SAR 5,962 thousand (2021: SAR 33,723 thousand).** Amounts included in premium receivables.*** Amounts are included in outstanding claims.The remuneration of the key management personnel during the period ended 30 September is as follows:30 September 2022 (Unaudited)30 September 2021 (Unaudited)SAR’000SAR’000Short-term benefits 21,806 22,035 Long-term benefits11,46913,014 33,27535,049Short-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 equipments , 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:At 30 September 2021 (Unaudited)Insurance operationsOperating segmentsMajor customersNon-Major customersTotal Insurance operationsShareholder’ operationsTotalSAR’000Assets Premiums receivable – net2,057,759 877,2542,935,013-2,935,013Reinsurers’ share of unearned premiums13,563 14,443 28,006-28,006Reinsurers’ share of outstanding claims2,134 2,7164,850-4,850Reinsurers’ share of claims incurred but not reported5,962 6,03812,000-12,000Deferred policy acquisition costs 152,815 131,269284,084-284,084Unallocated assets7,156,5294,885,01812,041,547Total assets 10,420,4824,885,01815,305,500LiabilitiesUnearned premiums 3,201,899 3,410,174 6,612,073-6,612,073Outstanding claims 401,342 159,556 560,898-560,898Claims incurred but not reported 1,596,979 647,053 2,244,032-2,244,032Premium deficiency reserve 30,742 32,742 63,484-63,484Claims handling reserve 19,303 7,747 27,050-27,050Unallocated liabilities945,164697,9971,643,161Total liabilities 10,452,701697,99711,150,698*shareholders’ operations includes, amongst others, balances of the subsidiary of the Company, net of eliminations. At 31 December 2021 (Audited)Insurance operationsOperating segments Major customers Non-Major customers Total Insurance operationsShareholders’ operationsTotalSAR’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 30 September 2022 (Unaudited)Operating segments Major customers Non-Major customers TotalSAR’000SAR’000REVENUESGross premiums written 3,139,078 1,037,258 4,176,336Reinsurance premiums ceded – Local (422) (139)(561)Reinsurance premiums ceded – International (7,978) (2,636)(10,614)Net premiums written 3,130,678 1,034,483 4,165,161Changes in unearned premiums – net (902,864) 79,174 (823,690)Net premiums earned 2,227,814 1,113,657 3,341,471Other revenues (unallocated)--19,863Total Revenues 2,227,814 1,113,657 3,361,334UNDERWRITING AND OTHER DIRECT COSTSGross claims paid (1,880,552) (849,254) (2,729,806)Reinsurers’ share of claims paid - - - Net claims paid (1,880,552) (849,254) (2,729,806)Changes in outstanding claims (9,162) (3,775) (12,937)Changes in claims incurred but not reported 4,258 (768) 3,490 Changes in premium deficiency reserve (14,645) (8,267) (22,912)Changes in claims handling reserves (602) (259) (861)Reinsurance share of changes in outstanding claims 656 361 1,017 Reinsurance share of changes in claims incurred but not reported 1,659 (602) 1,057 Net claims incurred (1,898,388) (862,564) (2,760,952)Policy acquisition costs(78,001)(68,345) (146,346)Other costs (unallocated)--(8,124)TOTAL UNDERWRITING AND OTHER DIRECT COSTS (1,976,389)(930,909)(2,915,422)NET UNDERWRITING & OTHER ACTIVITIES GROSS INCOME251,425 182,748 445,912OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (26,014)Unallocated income 189,114Unallocated expenses (208,951)TOTAL OTHER OPERATING INCOME/(EXPENSES) (45,851)Income before Surplus, Zakat & Income Tax400,061Income attributed to insurance operations (transfer to surplus payable)(24,738)Income attributed to the shareholders before zakat and income tax375,323Zakat charge(21,855)Income tax charge (32,874)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX320,594 Gross Premium Written details Three-month period ended 30 September 2022SAR’000Corporates 3,378,797 Medium Enterprises 541,134 Small Enterprises 215,187 Micro Enterprises 29,648 Individuals 11,570 Total Gross Premium Written 4,176,336Three-month period ended 30 September 2021 (Unaudited)Operating segments Major customers Non-Major customers TotalSAR’000SAR’000REVENUESGross premiums written2,634,173 824,611 3,458,784 Reinsurance premiums ceded – Local (1,040) (326) (1,366)Reinsurance premiums ceded – International (8,564) (2,681) (11,245)Net premiums written2,624,569 821,604 3,446,173 Changes in unearned premiums – net (800,786) 66,515 (734,271)Net premiums earned1,823,783888,1192,711,902 Other revenues (unallocated)---Total Revenues1,823,783888,1192,711,902 UNDERWRITING AND OTHER DIRECT COSTS Gross claims paid (1,667,952) (729,373) (2,397,325)Reinsurers’ share of claims paid 4,348 1,902 6,250 Net claims paid (1,663,604) (727,471) (2,391,075)Changes in outstanding claims 38,459 11,469 49,928 Changes in claims incurred but not reported 30,705 10,174 40,879 Changes in premium deficiency reserve 19,855 33,142 52,997 Changes in claims handling reserves (193) (187) (380)Reinsurance share of changes in outstanding claims 647 821 1,468 Reinsurance share of changes in claims incurred but not reported(254)(871)(1,125)Net claims incurred(1,574,385) (672,923) (2,247,308) Policy acquisition costs(72,879) (48,586) (121,465) Other costs (unallocated)---TOTAL UNDERWRITING AND OTHER DIRECT COSTS (1,647,264) (721,509) (2,368,773) NET UNDERWRITING & OTHER ACTIVITIES GROSS INCOME176,519 166,610 343,129 OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (8,615)Unallocated income 91,005 Unallocated expenses (179,713)TOTAL OTHER OPERATING INCOME/(EXPENSES)(97,323)Income before Surplus, Zakat & Income Tax245,806Income attributed to insurance operations (transfer to surplus payable)(17,529)Income attributed to the shareholders before zakat and income tax228,277Zakat charge (19,337)Income tax charge (31,224)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX177,716Gross Premium Written details Three-month period ended 30 September 2021SAR’000Corporates 2,852,556 Medium Enterprises 391,445 Small Enterprises 188,823 Micro Enterprises 20,688 Individuals 5,272 Total Gross Premium Written 3,458,784 Nine-month period ended 30 September 2022(Unaudited)Operating segments Major customers Non-Major customers TotalSAR’000SAR’000REVENUESGross premiums written 6,974,779 4,425,256 11,400,035Reinsurance premiums ceded – Local (2,415) (1,387)(3,802)Reinsurance premiums ceded – International (35,201) (30,972)(66,173)Net premiums written 6,937,163 4,392,897 11,330,060Changes in unearned premiums – net (615,443) (1,287,004)(1,902,447)Net premiums earned 6,321,720 3,105,893 9,427,613Other revenues (unallocated)--19,863Total Revenues 6,321,720 3,105,893 9,447,476UNDERWRITING AND OTHER DIRECT COSTS Gross claims paid (4,970,425) (2,182,372)(7,152,797)Reinsurers’ share of claims paid 7,856 3,396 11,252Net claims paid (4,962,569) (2,178,976)(7,141,545)Changes in outstanding claims 23,903 16,367 40,270Changes in claims incurred but not reported (596,443) (233,701)(830,144)Changes in premium deficiency reserve 10,257 861 11,118Changes in claims handling reserves (3,882) (1,371)(5,253)Reinsurance share of changes in outstanding claims (426) (1,931)(2,357)Reinsurance share of changes in claims incurred but not reported 3,339 832 4,171Net claims incurred (5,525,821) (2,397,919)(7,923,740)Policy acquisition costs(221,624)(188,795)(410,419)Other costs (unallocated)--(8,124)TOTAL UNDERWRITING AND OTHER DIRECT COSTS (5,747,445) (2,586,714)(8,342,283)NET UNDERWRITING & OTHER ACTIVITIES GROSS INCOME574,275 519,1791,105,193OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (80,071)Unallocated income 393,916Unallocated expenses(558,854)TOTAL OTHER OPERATING INCOME/(EXPENSES)(245,009)Income before Surplus, Zakat & Income Tax860,184Income attributed to insurance operations (transfer to surplus payable)(55,884)Income attributed to the shareholders before zakat and income tax804,300Zakat charge(62,164)Income tax charge (70,889)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX671,247Gross Premium Written details Nine-month period ended 30 September 2022SAR’000Corporates 8,594,710Medium Enterprises 1,999,838Small Enterprises 694,127Micro Enterprises 82,099Individuals 29,261Total Gross Premium Written 11,400,035Nine-month period ended 30 September 2021(Unaudited)Operating segments Major customers Non-Major customers TotalSAR’000SAR’000REVENUESGross premiums written6,304,4572,976,826 9,281,283Reinsurance premiums ceded – Local(2,593)(1,324) (3,917)Reinsurance premiums ceded – International(33,193)(16,957)(50,150)Net premiums written6,268,671 2,958,545 9,227,216 Changes in unearned premiums – net(1,041,445)(406,932)(1,448,377)Net premiums earned5,227,2262,551,6137,778,839Other revenues (unallocated)---Total Revenues5,227,2262,551,6137,778,839UNDERWRITING AND OTHER DIRECT COSTSGross claims paid (4,767,442)(1,944,207)(6,711,649)Reinsurers’ share of claims paid13,329 5,421 18,750 Net claims paid (4,754,113)(1,938,786)(6,692,899)Changes in outstanding claims (38,157)(21,229) (59,386)Changes in claims incurred but not reported 142,863 28,428171,291Changes in premium deficiency reserve111,43027,276 138,706Changes in claims handling reserves 373(215) 158Reinsurance share of changes in outstanding claims1,522 2,841 4,363Reinsurance share of changes in claims incurred but not reported(143)(903) (1,046)Net claims incurred (4,536,225)(1,902,588) (6,438,813)Policy acquisition costs (147,308) (98,205) (245,513)Other costs (unallocated)---TOTAL UNDERWRITING AND OTHER DIRECT COSTS (4,683,533)(2,000,793) (6,684,326)NET UNDERWRITING & OTHER ACTIVITIES GROSS INCOME543,693 550,820 1,094,513 OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (34,976)Unallocated income 244,991 Unallocated expenses (504,790)TOTAL OTHER OPERATING INCOME/(EXPENSES)(294,775)Income before Surplus, Zakat & Income Tax799,738Income attributed to insurance operations (transfer to surplus payable)(62,432)Income attributed to the shareholders before zakat and income tax737,306Zakat charge (54,970)Income tax charge (76,759)NET INCOME ATTRIBUTABLE TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX605,577Gross Premium Written details Nine-month period ended 30 September 2021SAR’000Corporates 7,066,362 Medium Enterprises 1,561,903 Small Enterprises 583,058 Micro Enterprises 55,547 Individuals 14,413 Total Gross Premium Written 9,281,283 | 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 insurance/ takaful operations surplus and dividends [text block] | During the period ended 30 September 2022, the Company’s Board of Directors proposed to pay dividends for the year ended 31 December 2021 of SAR 4.5 per share, totalling SAR 540 million to its shareholders. The dividends were approved by the shareholders in the Extraordinary General Assembly meeting and paid during the period. | 22 |
| 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 during the current period from the status disclosed as at 31 December 2021.ii)As of 30 September 2022 total letters of guarantee issued by banks on behalf of the Company amounted to SAR 115 million (2021: SAR 128 million).iii)Refer to Note 15 for zakat and tax related matters. | 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’00030 September 2022 (Unaudited)Financial assets measured at fair value- Investments held as FVSI-1,187,489-1,187,4891,187,489- Available-for-sale investments1,465,850769,61349,9092,285,3722,285,3721,465,8501,957,102 49,9093,472,8613,472,861 Fair 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 30 September 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 board of director's approval of the financial statements [text block] | The interim condensed consolidated financial statements have been approved by the Board of Directors, on 7 Rabih Al-Thani 1444 H corresponding to 1 November 2022. | 23 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | Interim consolidated financial position 30 September 2022 (Unaudited)31 December 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalSAR‘000SAR‘000SAR‘000SAR‘000SAR‘000SAR‘000ASSETSCash and cash equivalents586,066155,848 741,914 930,69130,067960,758Premiums receivables – net2,935,013-2,935,0131,761,300-1,761,300Reinsurers’ share of unearned premiums28,006-28,00627,935-27,935Reinsurers’ share of outstanding claims4,850-4,850 7,207-7,207Reinsurers’ share of claims Incurred but not reported12,000-12,0007,829-7,829Deferred policy acquisition costs284,084-284,084201,042-201,042Investments1,295,1822,703,1583,998,3402,599,4293,104,3445,703,773Prepaid expenses and other assets93,157 37,243 130,40099,99813,256113,254Term deposits5,182,124 1,406,407 6,588,531 2,007,9221,085,7983,093,720Fixtures, furniture and equipments– net-68,106 68,106-69,77169,771Right-of-use assets – net-171,658171,658-112,616112,616Intangible assets – net-59,830 59,830-67,27767,277Deferred tax asset-48,89248,892-39,73539,735Goodwill-98,00098,000-98,00098,000Statutory deposit-120,000120,000-120,000120,000Accrued income on statutory deposit-15,87615,876-14,88514,885TOTAL ASSETS10,420,4824,885,018 15,305,5007,643,3534,755,74912,399,102LIABILITIESAccrued and other liabilities709,80811,207721,015597,9116,863604,774Lease Liability-188,027188,027-125,333125,333Insurance operations’ surplus payable214,618-214,618190,060-190,060Reinsurers’ balances payable20,738-20,73825,397-25,397Unearned premiums6,612,073-6,612,0734,709,555-4,709,555Outstanding claims560,898 -560,898 601,168-601,168Claims incurred but not reported2,244,032 -2,244,032 1,413,888-1,413,888Premium deficiency reserve63,484-63,48474,602-74,602Claims handling reserve27,050 -27,05021,797-21,797Due to related parties-5,9625,962-33,72333,723Provision for end-of-service benefits (EOSB) -172,875172,875-152,286152,286Provision for zakat and income tax-304,050304,050-236,610236,610Accrued income payable to SAMA-15,87615,876-14,88514,885TOTAL LIABILITIES10,452,701697,99711,150,6987,634,378569,7008,204,078EQUITYShare capital-1,200,0001,200,000-1,200,0001,200,000Statutory reserve-992,210992,210-992,210992,210Share based payments reserve-48,32648,326-43,50043,500Shares held under employees share scheme-(78,235)(78,235)-(53,356)(53,356)Retained earnings -1,987,2621,987,262-1,790,7001,790,700Re-measurement reserve for employees’ EOSB-(23,638)(23,638)-(23,638) (23,638) Investments fair value reserve (32,219)61,09628,8778,975236,633245,608TOTAL EQUITY(32,219)4,187,0214,154,8028,9754,186,0494,195,024TOTAL LIABILITIES AND EQUITY10,420,4824,885,01815,305,5007,643,3534,755,74912,399,102Interim consolidated statement of incomeThree-month period ended 30 September (Unaudited)Nine-month period ended 30 September (Unaudited)2022202120222021Insurance 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 4,176,336 - 4,176,336 3,458,784 - 3,458,784 11,400,035 - 11,400,035 9,281,283 - 9,281,283 Reinsurance premiums ceded – Local (561)- (561) (1,366)- (1,366) (3,802)- (3,802) (3,917)- (3,917)Reinsurance premiums ceded – International (10,614)- (10,614) (11,245)- (11,245) (66,173)- (66,173) (50,150)- (50,150)Net premiums written 4,165,161 - 4,165,161 3,446,173 - 3,446,173 11,330,060 - 11,330,060 9,227,216 - 9,227,216 Changes in unearned premiums – net (823,690)- (823,690) (734,271)- (734,271) (1,902,447)- (1,902,447) (1,448,377)- (1,448,377)Net premiums earned 3,341,471 - 3,341,471 2,711,902 -2,711,902 9,427,613 - 9,427,613 7,778,839-7,778,839Other revenues-19,86319,863----19,86319,863---Total Revenues3,341,47119,8633,361,3342,711,902 -2,711,902 9,427,61319,8639,447,4767,778,839-7,778,839UNDERWRITING AND OTHER DIRECT COSTS Gross claims paid (2,729,806)- (2,729,806) (2,397,325)- (2,397,325) (7,152,797)- (7,152,797) (6,711,649)- (6,711,649)Reinsurers’ share of claims paid - - - 6,250 - 6,250 11,252 - 11,252 18,750 - 18,750 Net claims paid (2,729,806)- (2,729,806)(2,391,075)-(2,391,075) (7,141,545)- (7,141,545) (6,692,899)- (6,692,899)Changes in outstanding claims (12,937)- (12,937) 49,928 - 49,928 40,270 - 40,270 (59,386)- (59,386)Changes in claims incurred but not reported 3,490 - 3,490 40,879 - 40,879 (830,144)- (830,144) 171,291 - 171,291 Changes in premium deficiency reserve (22,912)- (22,912) 52,997 - 52,997 11,118 - 11,118 138,706 - 138,706 Changes in claims handling reserves (861)- (861) (380)- (380) (5,253)- (5,253) 158 - 158 Reinsurance share of changes in outstanding claims 1,017 - 1,017 1,468 - 1,468 (2,357)- (2,357) 4,363 - 4,363 Reinsurance share of changes in claims incurred but not reported 1,057 - 1,057 (1,125)-(1,125) 4,171 - 4,171 (1,046)-(1,046)Net claims incurred (2,760,952)- (2,760,952)(2,247,308)-(2,247,308) (7,923,740)- (7,923,740)(6,438,813)-(6,438,813)Policy acquisition costs (146,346)- (146,346)(121,465)-(121,465) (410,419)- (410,419)(245,513)-(245,513)Other costs-(8,124)(8,124)----(8,124)(8,124)---TOTAL UNDERWRITING AND OTHER DIRECT COSTS (2,907,298)(8,124) (2,915,422)(2,368,773) -(2,368,773) (8,334,159)(8,124) (8,342,283)(6,684,326)-(6,684,326)NET UNDERWRITING & OTHER ACTIVITIES GROSS INCOME434,17311,739445,912343,129-343,1291,093,45411,7391,105,1931,094,513-1,094,513OTHER OPERATING INCOME/(EXPENSES)Allowance for doubtful receivables (26,014) - (26,014) (8,615) --(8,615) (80,071) - (80,071) (34,976) - (34,976)General and administrative expenses (170,842)(4,272) (175,114) (149,477) (2,768) (152,245) (456,480) (7,838) (464,318)(414,267) (8,598) (422,865)Selling and marketing expenses (33,837) - (33,837) (27,468) -- (27,468) (94,536) - (94,536)(81,925) - (81,925)Investment income – net 43,026 144,765 187,791 19,087 61,825 80,912 98,592 269,746 368,338 64,657 150,007 214,664 Other income – net 871 452 1,323 (1,366) 11,459 10,093 (2,119)27,69725,578(3,686) 34,013 30,327 TOTAL OTHER OPERATING INCOME/(EXPENSES) (186,796)140,945(45,851)(167,839)70,516(97,323) (534,614)289,605 (245,009)(470,197)175,422 (294,775)Income before Surplus, Zakat & Income Tax 247,377 152,684 400,061 175,29070,516245,806 558,840 301,344 860,184 624,316175,422799,738Transfer of surplus to shareholders (222,639) 222,639 - (157,761)157,761 - (502,956) 502,956 - (561,884)561,884 -NET RESULTS FROM OPERATIONS 24,738375,323 400,061 17,529228,277 245,806 55,884 804,300 860,184 62,432737,306799,738Zakat charge - (21,855) (21,855)-(19,337) (19,337) - (62,164) (62,164)-(54,970) (54,970) Income tax charge - (32,874) (32,874)-(31,224) (31,224) - (70,889) (70,889)-(76,759)(76,759) NET INCOME ATTRIBUTED TO THE SHAREHOLDERS AFTER ZAKAT AND INCOME TAX 24,738 320,594 345,332 17,529177,716195,245 55,884 671,247 727,131 62,432605,577668,009Weighted average number of ordinary outstanding shares (in thousands)119,458119,608119,478119,557Basic and diluted earnings per share (Expressed in SAR per share)2.681.495.625.07Interim consolidated statement of comprehensive income Three month period ended 30 September (Unaudited)Nine month period ended 30 September (Unaudited)2022202120222021Insurance 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 after zakat and income tax 24,738 320,594 345,332 17,529177,716195,245 55,884 671,247 727,131 62,432605,577668,009Other 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 (15,592)(123,301)(138,893)(2,742)(5,591)(8,333)(41,194)(175,537)(216,731)(9,849)81,14971,300TOTAL COMPREHENSIVE INCOME9,146197,293 206,439 14,787 172,125 186,912 14,690495,710510,400 52,583686,726 739,309 Reconciliation:Less: Net income attributable to insurance operations transferred to surplus payable(24,738)(17,529) (55,884)(62,432) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 181,701169,383454,516676,877Interim consolidated statement of cash flowsNine-month period ended 30 September (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-804,300804,300-737,306737,306Adjustments for non-cash items:Net income attributed to the insurance operations55,884-55,884 62,432-62,432Depreciation of Fixtures, furniture and equipments11,850-11,85011,221-11,221Loss on sale of Fixtures, furniture and equipments-267267 ---Loss on sale of Intangible assets-326326 ---Amortization of Right-of-use assets 15,308-15,308 11,978-11,978Amortization of intangible assets9,672-9,672 10,729-10,729Provision for employees share scheme-16,44916,449 - 15,670 15,670 Allowance for doubtful receivables80,071- 80,071 34,976-34,976Commission income on term deposits (64,786)(22,303)(87,089)(24,101)(20,976)(45,077)Unrealized loss / (gains) on investments held as FVIS55(2,110)(2,055)(3,057)342(2,715)Realized gains on investments (250,877)(28,317)(279,194)(4,617) (48,774)(53,391) Provision for end-of-service benefits-27,28427,284 -11,93211,932Finance cost-4,6584,658 -4,5234,523(142,823)800,554657,731 99,561700,023799,584Changes in operating assets and liabilities:Premiums receivable (1,253,784)- (1,253,784)(1,124,127)-(1,124,127)Reinsurers’ share of unearned premiums(71)- (71)3,241-3,241Reinsurers’ share of outstanding claims2,357- 2,357 (4,363)-(4,363)Reinsurers’ share of claims incurred but not reported(4,171)- (4,171)1,046-1,046Deferred policy acquisition costs(83,042)- (83,042)(160,154)-(160,154) Prepaid expenses and other assets78,380(3,059)75,32155,21824,97980,197Accrued and other liabilities111,8994,342 116,241 97,534(71)97,463 Reinsurers’ balances payable(4,659)- (4,659)13,383-13,383Unearned premiums1,902,518- 1,902,518 1,445,136-1,445,136Outstanding claims(40,270)- (40,270)59,386-59,386Claims incurred but not reported830,144- 830,144 (171,291)-(171,291)Premium deficiency reserve(11,118)- (11,118)(138,706)-(138,706)Claims handling reserve5,253-5,253 (158)-(158)Due to related parties-37,554 37,554 -(67,961) (67,961) 1,390,613839,3912,230,004175,706656,970832,676Due to shareholders’ operations132,466(132,466) - (30,803)30,803-End-of-service benefits paid-(6,695)(6,695) -(3,494) (3,494)Surplus paid to policyholders(31,326)- (31,326)(44,406)-(44,406)Zakat and income tax paid -(74,770) (74,770)-(187,514)(187,514)Net cash generated from operating activities1,491,753625,4602,117,213100,497496,765597,262CASH FLOWS FROM INVESTING ACTIVITIES Placement in term deposits(4,645,854)(795,869)(5,441,723)(1,239,000)(204,327)(1,443,327)Proceeds from maturity of term deposits1,536,924497,077 2,034,001 1,406,055432,0001,838,055Additions to investments(3,790,966)(4,088,984)(7,879,950) (6,310,355)(5,857,746)(12,168,101)Disposals of investments5,063,5184,493,9169,557,4345,996,3835,330,41611,326,799Additions of Fixtures, furniture and equipments-(10,480)(10,480)-(8,491)(8,491)Procceds from sale of Fixtures, furniture and equipments-2828 ---Additions to intangible assets -(2,551)(2,551)-(13,144) (13,144) Net cash (used in ) / generated from investing activities(1,836,378)93,137(1,743,241)(146,917)(321,292)(468,209)CASH FLOWS FROM FINANCING ACTIVITY-Purchase of shares held under employees share scheme-(36,502)(36,502)---Dividend paid-(540,000) (540,000)-(408,000)(408,000)Lease liability paid-(16,314)(16,314)-(18,840)(18,840)Net cash used in financing activity-(592,816) (592,816)-(426,840)(426,840) Net change in cash and cash equivalents(344,625)125,781(218,844)(46,420)(251,367)(297,787)Cash and cash equivalents at the beginning of the period930,69130,067960,758195,232438,019633,251Cash and cash equivalents at the end of the period586,066155,848741,914148,812186,652335,464 | 20 |
