| 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] | The financial statements are prepared under the going concern basis and the historical cost convention, except for investments measured at fair value through statement of income (FVSI), investments designated as fair value through other comprehensive income (FVOCI), unit linked liabilities measured at FVSI and employees' end of service benefits (EOSB) carried at present value. The Company’s 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. The Company has prepared these financial statements in accordance with International Financial Reporting Standards (IFRSs) as modified by SAMA for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are accrued on a quarterly basis through shareholders equity under retained earnings. The Company presents its statement of financial position in order of liquidity. As required by Saudi Arabian insurance regulations, the Company maintains separate books of accounts for Takaful Operations and Shareholders’ Operations and presents the financial information accordingly (refer note 25). The physical custody of all assets related to the Takaful Operations and Shareholders’ Operations are held by the Company. Assets, liabilities, revenues and expenses clearly attributable to each operation are recorded in their respective books. As per the Company’s policy, all general and administrative expenses of Takaful Operations are charged to Shareholders’ Operations. The basis of allocation of other revenue and expenses from joint operations is determined by the management and approved by 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 the end of the fiscal year (refer note 25); 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 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”). Any deficit arising on insurance operations is transferred to the shareholders’ operations in full. The statement of financial position, statements of income, comprehensive income and cash flows of the takaful operations and shareholders’ operations which are presented in note 25 of the financial statement 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 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 income 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. The functional and presentational currency of the Company is Saudi Arabian Riyal (SAR). The financial statements values are presented in SAR rounded off to the nearest thousand, except where otherwise indicated. b) Fiscal year The Company follows a fiscal year ending December 31. c) Critical accounting judgments, estimates and assumptions The preparation of the financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results may differ from these estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances Following are the accounting judgments and estimates that were critical in preparation of these financial statements:c) Critical accounting judgments, estimates and assumptions (Continued) i) The ultimate liability arising from claims made under insurance contracts The estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision. The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Actuary had also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims. ii. Measurement of expected credit loss allowance on financial assets accounted for under IFRS 9 The measurement of the expected credit loss allowance for financial assets measured at amortised cost, other than contributions and re-takaful balances receivable, is an area that requires the use of complex models and significant assumptions about future economic conditions. Explanation of the inputs, assumptions and estimation techniques used in measuring expected credit loss (ECL) is further detailed in note 24.1.1, which also sets out key sensitivities of the ECL to changes in these elements. A number of significant judgements are also required in applying the accounting requirements for measuring ECL, such as: a. Determining criteria for significant increase in credit risk;b. Choosing appropriate models and assumptions for the measurement of ECL;c. Establishing groups of similar financial assets for the purposes of measuring ECL.iii) Impairment of contributions and re-takaful balances receivable accounted for under IAS-39Insurance contracts are accounted for under IFRS-4 and excluded from the scope of IFRS-9. Therefore, these continue to be accounted for under IAS-39.A provision for impairment of contribution and re-takaful balances receivable is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial instruments Fair values of investments designated as FVOCI are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics. The fair value of such securities not quoted in an active market may be determined by the Company using latest available audited net assets value of the investee. The Company would exercise judgement and estimates on the quantity and quality of pricing sources used. Where no market data is available, the Company may value positions using its own models, which are usually based on valuation methods and techniques generally recognised as standard within the market practice. As of December 31, 2018, the Company has unlisted equity investments of SAR 7.54 million (December 31, 2017 SAR 6.05 million).The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2017, except for the new and amended standards and interpretation made in the following which are effective for annual periods beginning on or after January 1, 2018: The Company adopted IFRS 15 ‘Revenue from Contracts with Customers’. IFRS 15 was issued in May 2014 and is effective for annual periods commencing on or after January 1, 2018. IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRS. It established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Company has opted for the modified retrospective application permitted by IFRS 15 upon adoption of the new standard. Modified retrospective application requires the recognition of the cumulative impact of adoption of IFRS 15 on all contracts as at January 1, 2018 in equity. IFRS 15 does not have any material impact on the financial statement of the Company. Standards issued but not yet effective The following are the standards which are issued but are not yet effective:IFRS 16 - “Leases”, applicable for the period beginning on or after January 1, 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The Company has decided not to early adopt this new standard because currently the Company does not have any material lease contract or commitment which may require restatement in financial statements on adoption of IFRS 16.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after January 1, 2021, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of finacial position. The Company has decided not to early adopt IFRS 17 however IFRS 9 is already adopted effective from January 1, 2017. | |
| 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 Arabian Riyal (SAR). The financial statements values are presented in SAR rounded off to the nearest thousand, except where otherwise indicated. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2017, except for the new and amended standards and interpretation made in the following which are effective for annual periods beginning on or after January 1, 2018: The Company adopted IFRS 15 ‘Revenue from Contracts with Customers’. IFRS 15 was issued in May 2014 and is effective for annual periods commencing on or after January 1, 2018. IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRS. It established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Company has opted for the modified retrospective application permitted by IFRS 15 upon adoption of the new standard. Modified retrospective application requires the recognition of the cumulative impact of adoption of IFRS 15 on all contracts as at January 1, 2018 in equity. IFRS 15 does not have any material impact on the financial statement of the Company. Standards issued but not yet effective The following are the standards which are issued but are not yet effective:IFRS 16 - “Leases”, applicable for the period beginning on or after January 1, 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The Company has decided not to early adopt this new standard because currently the Company does not have any material lease contract or commitment which may require restatement in financial statements on adoption of IFRS 16.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after January 1, 2021, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of finacial position. The Company has decided not to early adopt IFRS 17 however IFRS 9 is already adopted effective from January 1, 2017. | |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalents included in the statement of cash flows comprise the following: Takaful operationsSAR’000 December 31, 2018 December 31, 2017Bank balances and cash 205,425 316,460 Deposits maturing within 3 months from the acquisition date 150,000 250,000 Cash and cash equivalents in the statement of cash flow 355,425 566,460 Less : Impairment loss (65) (175)Cash and bank balances, net 355,360 566,285 Deposits against letters of guarantee 14,437 12,997 Total 369,797 579,282 Shareholders’ operations SAR’000 December 31, 2018 December 31, 2017Bank balances and cash 71,515 319 Deposits maturing within 3 months from the acquisition date 50,000 250,000 Cash and cash equivalents in the statement of cash flow 121,515 250,319 Less : Impairment loss (38) (68)Cash and bank balances, net 121,477 250,251 Cash at banks (statutory deposit income) 908 908 Total 122,385 251,159 Total 492,182 830,441 | |
| Description of accounting policy for zakat [text block] | The Company is subject to zakat in accordance with the regulations of the General Authority of Zakat and Tax (“GAZT”). Zakat is computed on the Saudi shareholders’ share of equity or net income using the basis defined under the Zakat regulations. Income taxes are computed on the foreign shareholders share of net adjusted income for the year. Zakat and income tax is accrued on a quarterly basis. Effective January 1, 2017, based on the Circular issued by SAMA, the Company amended its accounting policy to charge zakat and tax directly into retained earnings in the statement of changes in equity instead of statement of income. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of due from related parties [text block] | Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the year ended Balance receivable / (payable) as at December 31, December 31, December 31, December 31, 2018 2017 2018 2017 SAR’000Major shareholders Gross contribution written 1,050,802 1,339,545 249,872 121,017 Claims paid 893,069 1,023,048 (2,172) (3,743) Claims incurred and notified during the period 894,571 1,047,137 (148,001) (146,500) Reimbursement from related party 340 239 - 340 Bank Balance - - 274,705 289,236 Investment in shares of Al Rajhi Banking and Investment Corporation - - 25,901 13,679 Entities controlled, jointly controlled or significantly influenced by related parties Gross contribution written 29,323 24,201 3,382 22,784 Claims paid 77,295 16,441 - (1,148) Claims incurred and notified during the period 333,532 15,072 (277,417) (14,784) Investments managed by affiliates 6,114 745 95,500 88,857 Income received from sale of investment in Al Rajhi Capital commodity fund 5,944 7,955 - - Investment management fee paid to Al Rajhi Capital Company 3,251 2,257 - - Commission to Al Rajhi Takaful Agency 1,558 2,778 1,701 2,855 | |
| Disclosure of zakat [text block] | The zakat and income tax payable by the Company has been calculated based on the best estimate of management. a) The zakat charge for the year has been computed as follows: December 31, 2018 () December 31, 2017 SAR’000 SAR’000 Equity 598,060 429,363 Opening allowances and other adjustments 62,130 61,431 Book value of long term assets (125,632) (100,775) 534,558 390,019 Zakatable income for the year 245,442 229,981 Zakat base 780,000 620,000 Zakat @ 2.5% 19,500 15,500 The differences between the income as per the financial statements and zakatable income (income subject to zakat which is computed based on zakat rules) for the year used for zakat base is mainly due to provisions, which are not allowed in the calculation of zakatable income. b) Movements in zakat accrued are as follows: December 31, 2018 () December 31, 2017 SAR’000 SAR’000 At the beginning of the year 26,490 18,391 Provided during the year 19,500 15,500 Payments during the year (12,301) (7,401) Balance at the end of the year 33,689 26,490 Shareholdings Following are the shareholding structure of the Company as on: December 31, 2018 () December 31, 2017 Shareholding subject to Zakat 100.00% 100.00% Status of assessments The Company had filed zakat and income tax returns with the General Authority of Zakat and Tax (“GAZT”) for the years from 2010 to 2017. For the year 2011, the Company has filed an appeal to recover the additional paid zakat against the additional zakat assessment of SAR 1.852 million raised by the GAZT. The appeal is still pending, accordingly no receivable is recorded or contingent asset is disclosed. | |
| Disclosure of compensation to key management personnel [text block] | For the year ended The compensation of key management personnel during the period is as follows: December 31, 2018 December 31, 2017 SAR’000 Salaries and other allowances 6,198 7,300 End of service indemnities 2,424 1,942 8,622 9,242 Shariah committee remuneration 340 200 | |
| Disclosure of earnings per share [text block] | Earnings per share for the year ended December 31, 2018 and 2017 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 Dec 31, 2018 and 2017. | |
| Disclosure of entity's operating segments [text block] | 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 condensed 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, 2017. 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 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 December 31, 2018 and December 31, 2017, its total revenues, expenses, and net income for year ended, are as follows: As at December 31, 2018 Takaful operations Operating segments Medical Motor Property & casualty Protection & Savings Total - Takaful operations Shareholders’ operations Total SAR’000Assets: Cash and cash equivalents - - - - 369,797 122,385 492,182 Contributions and re-takaful balances receivable – net - - - - 456,575 - 456,575 Re-takaful share of unearned contributions - 35,746 51,231 1,481 88,458 - 88,458 Re-takaful share of outstanding claims - 10,019 365,339 9,633 384,991 - 384,991 Deferred policy acquisition costs 28,845 28,359 3,253 411 60,868 - 60,868 Investments mandatorily measured at FVSI - - - - 129,853 33,975 163,828 Investments designated as FVOCI - - - - 25,327 130,135 155,462 Investments held at amortised cost - - - - 1,703,637 85,009 1,788,646 Unallocated assets - - - - (361,994) 493,825 131,831 Total assets 28,845 74,124 419,823 11,525 2,857,512 865,329 3,722,841 Liabilities: Unearned contributions 361,798 873,955 62,485 4,395 1,302,633 - 1,302,633 Unearned re-takaful commission - - 6,002 - 6,002 - 6,002 Gross outstanding claims 140,721 778,730 370,507 14,886 1,304,844 - 1,304,844 Unallocated liabilities and surplus - - - - 244,033 865,329 1,109,362 Total liabilities and surplus 502,519 1,652,685 438,994 19,281 2,857,512 865,329 3,722,841 | |
| 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 Jumada al thani 22, 1440, corresponding February 27, 2019. | |
