| 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] | 1. GENERAL Al Rajhi Company for Cooperative Insurance (a Saudi Joint Stock Company incorporated in Kingdom of Saudi Arabia), “the Company”, was formed pursuant to Royal Decree No. (M/35) dated Jumada al thani 27,1429. (January 1, 2008). The Company operates under Commercial Registration no. 1010270371 dated Rajab 5, 1430 corresponding to June 28, 2009. The registered address of the Company's head office is as follows: Al Rajhi Company for Cooperative InsuranceP.O. Box 67791 Riyadh 11517 Kingdom of Saudi Arabia. The purpose of the Company is to conduct takaful operations and all related activities including re-takaful / re-insurance and agency activities. Its principal lines of business include motor, medical, protection & savings, marine, fire, engineering and casualty insurance. On July 31, 2003, corresponding to Jumada al thani 2, 1424, the Saudi Arabian Monetary Authority (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia. On April 20, 2004, corresponding to Rabi' al-awwal 1, 1425, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). As a commitment from the Company for its activities to be in compliance with Islamic Shari’a legislations, since its inception, the Company has established a Shari’a Authority to review and approve the activities and the products of the Company. | |
| Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATION (a) Basis of presentation The Company presents its statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly (Note 19). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors. The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 19 of the financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim statements of financial position, income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level financial statement in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances. The interim condensed financial information does not include all of the information required for full annual financial information and should be read in conjunction with the annual financial statement as of and for the year ended December 31, 2018. This interim condensed financial information is expressed in Saudi Arabian Riyals (SAR) and is rounded off to the nearest thousands. The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for financial assets measured at fair value through profit or loss (FVPL), financial assets measured at fair value through other comprehensive income (FVOCI) financial liabilities measured at fair value through profit or loss (FVPL) and end of service benefits at present value. The Company’s interim statement of financial position is not presented using a current / non-current classification. The following balances would generally be classified as non-current: financial assets at fair value through other comprehensive income, financial asset at amortised cost, property and equipment, statutory deposit, other assets, end of service benefits and payable to shareholders. All other assets and liabilities are classified as current. As required by the Saudi Arabian Insurance Regulations and guidelines of the sharia board, the Company maintains separate books of accounts for takaful operations and shareholders’ operations and presents the financial information accordingly (refer note 19). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors. As per the Company’s policy, all general and administrative expenses of takaful operations are charged to shareholders’ operations. The Company in accordance with the Islamic Shariah provisions managing the co-operative insurance operations and calculates the management fee in the below manner and pays it in full shortly after at the end of the fiscal year. The first component of the management fee is calculated based on the net contributions written for the period after adjusting commission income and cost of production for motor and general at 40% and for health at 30% and is limited to the extent of general and administrative expenses charged in the interim statement of income – shareholders’ operations. (refer note 19); and the other component of the management fee is determined up to 90% of the net surplus, if any, for the period from takaful operations remaining after computing the first component of management fee. The Company is required to distribute the remaining 10% of the net surplus from Takaful operations to policyholders in accordance with the Insurance Law and Implementation Regulations issued by the Saudi Arabian Monetary Agency (“SAMA”). (a) Basis of presentation (continued) The interim statement of financial position, statements of income, comprehensive income and cash flows of the takaful operations and shareholders’ operations which are presented in note 19 of the condensed interim financial information have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the takaful operations and the shareholders’ operations. Accordingly, the interim statements of financial position, statements of income, comprehensive income and cash flows prepared for the takaful operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company-level financial information in compliance with IFRSs, the balances and transactions of the takaful operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the takaful operations and shareholders’ operations are uniform for like transactions and events in similar circumstances. | |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of interim financial information 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 expense. Actual results may differ from these estimates.In preparing these condensed financial information, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial information as at and for the year ended December 31, 2018. | |
| Disclosure of functional and presentation currency [text block] | The functional and presentational currency of the Company is Saudi Riyals. The financial information values are presented in Saudi Riyals rounded to the nearest thousand (SAR’000), unless otherwise indicated.The interim condensed financial information 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 December 31, 2018. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | 3. SIGNIFICANT ACCOUNTING POLICIES (a) Leases: At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected to apply the practical expedient to account for each lease component and any non-lease components as a single lease component. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. Lease terms range from 2 to 10 years for offices, vehicles and equipments. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is measured at amortized cost using the incremental borrowing cost. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. IFRS 16: Leases (“IFRS 16”) IFRS 16 specifies how to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all major leases. Effective January 1, 2019, the Company adopted IFRS 16 using the modified retrospective approach and accordingly the information presented for 2018 has not been restated. It remains as previously reported under IAS 17 and related interpretations. On initial application, the Company has elected to record right-of-use assets based on the corresponding lease liability. Right-of-use assets and lease obligations of SAR 13.8 million were recorded as of January 1, 2019, with no net impact on retained earnings. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at January 1, 2019, the rate applied is 6.15% The Company has elected to apply the practical expedient to account for leases for which the lease term ends within 12 months of the date of initial application as short-term leases. The Company has elected to apply the practical expedient to grandfather the assessment of which transactions are leases on the date of initial application, as previously assessed under IAS 17 and IFRIC 4. The Company applied the definition of a lease under IFRS 16 to contracts entered into or changed on or after January 1, 2019. The following table reconciles the Company’s operating lease obligations at December 31, 2018, to the lease obligations recognized on initial application of IFRS 16 at January 1, 2019: Operating lease commitments at December 31, 2018 80,356 Discounted using the incremental borrowing rate at January 1, 2019 (1,078)Recognition exemptions / not yet commenced (65,468)Lease obligations recognized at January 1, 2019 13,810 | |
| Description of accounting policy for cash and cash equivalents [text block] | 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the statement of cash flows comprise the following: Takaful operationsSAR’000 June 30, 2019 (Unaudited) December 31, 2018(Audited)Bank balances and cash 428,032 205,425 Deposits maturing within 3 months from the acquisition date - 150,000 Cash and cash equivalents in the statement of cash flow 428,032 355,425 Less : Impairment loss - (65)Cash and bank balances, net 428,032 355,360 Deposits against letters of guarantee 15,533 14,437 Total 443,565 369,797 Shareholders’ operations SAR’000 June 30, 2019 (Unaudited) December 31, 2018(Audited)Bank balances and cash 91,942 71,515 Deposits maturing within 3 months from the acquisition date 50,000 50,000 Cash and cash equivalents in the statement of cash flow 141,942 121,515 Less : Impairment loss (13) (38)Cash and bank balances, net 141,929 121,477 Cash at banks (statutory deposit income) 4,709 908 Total 146,638 122,385 Total 590,203 492,182 | |
| Description of accounting policy for zakat [text block] | (b) Change in accounting policy in relation to accounting for zakat As mentioned above, the basis of preparation has been changed for the period ended 30 June 2019 as a result of the issuance of latest instructions from SAMA dated 17 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 17 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat retrospectively (see note 14) and the effects of the above change are disclosed in note 20 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the three and six month period ended 30 June 2018 by SAR 3.8 million and SAR 8.2 million respectively The change has had no impact on the statement of cash flows for the period ended 30 June 2018. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of due from related parties [text block] | 13. RELATED PARTY TRANSACTIONS AND BALANCES Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Gross contribution written 444,884 573,218 274,092 249,872 Claims paid 324,445 504,253 (416) (2,172) Claims incurred and notified during the period 294,857 383,619 (118,413) (148,001) Reimbursement from related party - 340 - - Bank Balance - - 498,163 274,705 Investment in shares of Al Rajhi Banking and Investment Corporation - - 31,741 25,901 Entities controlled, jointly controlled or significantly influenced by related parties Gross contribution written 1,327 23,034 2,250 3,382 Claims paid 985 20,203 - - Claims incurred and notified during the period 2,085 286,483 (1,254) (277,417) Investments managed by affiliates 21,265 14,205 112,857 95,500 Income received from sale of investment in Al Rajhi Capital commodity fund 4,024 2,830 - - Investment management fee paid to Al Rajhi Capital Company 1,450 1,457 - - For the period ended | |
| Disclosure of compensation to key management personnel [text block] | The compensation of key management personnel during the period is as follows: June 30, 2019(Unaudited) June 30, 2018 (Unaudited) SAR’000 Salaries and other allowances 3,571 3,084 End of service benefits 2,171 2,487 5,742 5,571 Shariah committee remuneration 128 195 | |
| Disclosure of earnings per share [text block] | Earnings per share for the period ended March 31, 2019 and year ended December 31, 2018 is calculated by dividing the net income for the period attributable to the equity holders by 40 million shares. There were no dilutive potential shares in issue as at March 31, 2019 and December 31, 2018. | |
| Disclosure of entity's operating segments [text block] | 12. OPERATING SEGMENTS Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Chief Executive Officer as his function as key decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the interim income statement. Segment assets and liabilities comprise operating assets and liabilities. There have been no changes to the basis of segmentation or the measurement basis for the segment surplus or deficit since December 31, 2018. Segment assets do not include takaful operations’ bank balances and cash, net contributions receivable, investments etc., accordingly, they are included in unallocated assets. Segment liabilities do not include takaful operations’ payables accruals and other liabilities and re-takaful / re-insurance balances payable etc., accordingly, they are included in unallocated liabilities. These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis. The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at June 30, 2019 and December 31, 2018, its total revenues, expenses, and net income for year ended, are as follows: For the three month period ended June 30, 2019(Unaudited) Customers' category Medical Motor Property & casualty Protection&Savings Total SAR’000GROSS CONTRIBUTION WRITTEN Retail 10,527 119,022 1,567 11,128 142,244 Very small 20,247 - - - 20,247 Small 15,549 23,217 - - 38,766 Medium 29,455 44,634 - - 74,089 Corporate 29,466 205,598 22,214 12,034 269,312 TOTAL GROSS CONTRIBUTION WRITTEN 105,244 392,471 23,781 23,162 544,658 For the three month period ended June 30, 2018(Unaudited) Customers' category Medical Motor Property & casualty Protection&Savings Total SAR’000GROSS CONTRIBUTION WRITTEN Retail 1,627 97,065 1,142 8,354 108,188 Very small 30,433 - - - 30,433 Small 23,372 12,814 - - 36,186 Medium 44,275 68,338 - - 112,613 Corporate 74,930 244,687 20,909 10,218 350,744 TOTAL GROSS CONTRIBUTION WRITTEN 174,637 422,904 22,051 18,572 638,164 12. OPERATING SEGMENTS (continued) For the six month period ended June 30, 2019(Unaudited) Customers' category Medical Motor Property & casualty Protection&Savings Total SAR’000GROSS CONTRIBUTION WRITTEN Retail 16,761 232,581 2,951 21,882 274,175 Very small 55,859 - - - 55,859 Small 42,899 27,255 - - 70,154 Medium 81,266 50,505 - - 131,771 Corporate 101,336 692,584 38,577 23,775 856,272 TOTAL GROSS CONTRIBUTION WRITTEN 298,121 1,002,925 41,528 45,657 1,388,231 For the six month period ended June 30, 2018(Unaudited) Customers' category Medical Motor Property & casualty Protection&Savings Total SAR’000GROSS CONTRIBUTION WRITTEN Retail 2,658 217,653 1,963 16,133 238,407 Very small 52,710 - - - 52,710 Small 40,480 15,474 - - 55,954 Medium 76,684 72,206 - - 148,890 Corporate 149,012 929,655 55,167 21,503 1,155,337 TOTAL GROSS CONTRIBUTION WRITTEN 321,543 1,234,988 57,130 37,636 1,651,297 12. OPERATING SEGMENTS (continued) As at June 30, 2019 (Unaudited) Takaful operations Operating segments Medical Motor Property & casualty Protection & Savings Total - Takaful operations Shareholders’ operations Total SAR’000Assets: Cash and cash equivalents - - - - 443,565 146,638 590,203 Contributions and re-takaful / reinsurance balances receivable – net - - - - 500,617 - 500,617 Re-takaful / reinsurance share of unearned contributions - 34,282 44,171 1,679 80,132 - 80,132 Re-takaful / reinsurance share of outstanding claims - 14,856 85,716 2,977 103,549 - 103,549 Re-takaful / reinsurance share of claims incurred but not reported - - 5,081 7,008 12,089 - 12,089 Deferred policy acquisition costs 20,535 24,683 3,327 289 48,834 - 48,834 Investments mandatorily measured at FVSI - - - - 165,005 16,179 181,184 Investments designated as FVOCI - - - - 27,003 141,325 168,328 Investments held at amortised cost - - - - 1,448,773 344,897 1,793,670 Right-of-use assets - - - - - 11,336 11,336 Unallocated assets - - - - (114,820) 265,514 150,694 Total assets 20,535 73,821 138,295 11,953 2,714,747 925,889 3,640,636 Liabilities: Unearned contributions 290,896 912,909 57,733 4,382 1,265,920 - 1,265,920 Unearned re-takaful / reinsurance commission - - 7,040 - 7,040 - 7,040 Gross outstanding claims 58,666 188,210 89,364 4,078 340,318 - 340,318 Claims incurred but not reported 177,240 587,018 6,401 11,360 782,019 - 782,019 Contribution deficiency reserve 46,762 - 1,038 - 47,800 - 47,800 Lease obligations - - - - 9,932 9,932 Unallocated liabilities and surplus - - - - 271,650 915,957 1,187,607 Total liabilities, Accumulated surplus and equity 573,564 1,688,137 161,576 19,820 2,714,747 925,889 3,640,636 | |
| Disclosure of board of director's approval of the financial statements [text block] | These financial statements were approved by the Board of Directors of the Company, on sha'ban 27, 1440, corresponding May 2, 2019. | |
