| 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] |
General
AXA Cooperative Insurance Company (a Joint Stock Company incorporated in Kingdom of Saudi Arabia), “the Company”, was formed pursuant to Royal Decree No. M/36 dated 27 Jumada II 1429H. (1 July 2008) (Date of inception). The Company was incorporated vide Ministerial Order number Q/192, dated 10 Jumada II 1430H, (3 June 2009) (date of incorporation). The Company is registered in the Kingdom of Saudi Arabia under commercial registration number 1010271203 issued in Riyadh on Rajab 20, 1430H (13 July 2009). The Company’s registered address is P.O. Box 753, Riyadh 11421, Kingdom of Saudi Arabia.
The purpose of the Company is to transact cooperative insurance operations and all related activities including reinsurance activities. Its principal lines of business include health, motor, marine, property, engineering, accident and liability and protection insurance.
The principal activities of the Company are to engage in cooperative insurance operations and related activities including reinsurance activities in accordance with the Law on Supervision of Cooperative Insurance (the “Law”), the Company’s by-laws and other regulations promulgated in the Kingdom of Saudi Arabia. The Company obtained licence from the Saudi Central Bank (“SAMA”) to practice general and health insurance and reinsurance business in the Kingdom of Saudi Arabia vide licence number TMN/25/20101, dated Safar 11, 1431H (corresponding to 26 January 2010). The Company has commenced insurance operations on 4 Rabi’ I 1431H (corresponding to 18 February 2010) after obtaining full product approval for certain products and temporary approval for the remaining products. During 2016, the Company obtained approval for the remaining products.
On 17 March 2022, the Board of Directors of the Company has recommended the distribution of cash dividends Saudi Riyals 50 million for the 2021 fiscal year. The dividend distribution is subject to the approval of the shareholders in the Annual General Assembly to be held on 15 May 2022. | 1 |
| Disclosure of basis of preparation of financial statements [text block] |
Basis of preparation
Basis of presentation
The interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia.
The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: long-term deposits, right-of-use asset, property and equipment, intangible assets, goodwill, statutory deposit, lease liability and employee benefit obligations. All other financial statements line items would generally be classified as current.
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 information accordingly. 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 condensed statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented on pages 36 to 43 of the financial information have been provided as supplementary financial information and 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 insurance operations and the shareholders operations. Accordingly, the interim condensed 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.
2Basis of preparation (continued)
(a) Basis of presentation (continued)
In preparing the Company’s financial information in compliance with IAS 34 as endorsed in the Kingdom of Saudi Arabia, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized 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.
Critical accounting judgments, estimates and assumptions
The preparation of interim condensed 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 this interim 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 statements as at and for the year ended 31 December 2021.
1)Impact of Covid-19
In response to the spread of the Covid-19 in the Kingdom of Saudi Arabia where the Company operates and its resulting disruptions to the social and economic activities in those markets over the last two years, management continues to proactively assess its impacts on its operations. In particular, the Company is closely monitoring the current surge in cases due to the outbreak of a new variant - Omicron. The preventive measures taken by the Company in April 2020 are still in effect including the creation of ongoing crisis management teams and processes, to ensure the health and safety of its employees, customers and the wider community as well as to ensure the continuity of its operations. Employee health continues to be a key area of focus with programs being implemented to assist with increasing awareness, identification, support and monitoring of employee health. A majority of the employees of the Company have been fully vaccinated for at least two doses of vaccine and the management is working on a plan to encourage booster shots in line with the government initiatives related to Covid-19.
The management of the Company believes that any potential lockdown measures being reintroduced will not materially affect the underlying demand for the Company’s insurance products and forecast.
Based on these factors, management believes that the Covid-19 pandemic has had no material effect on the Company’s reported financial results for the three-month period ended 31 March 2022 including the significant accounting judgements and estimates.
Basis of preparation (continued)
Critical accounting judgments, estimates and assumptions (continued)
Liability arising from claims 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 period claims estimates are reassessed for adequacy and changes are made to the provision.
The provision for claims incurred but not reported is an estimation of claims which are expected to be reported subsequent to the date of interim condensed statement of financial position, for which the insured event has occurred prior to the date of interim condensed 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. The actuary also uses a segmentation approach including analyzing cost per member per year for the 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.
Impairment of premiums and reinsurance balances receivable and goodwill
An estimate of the uncollectible amount of premium receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.
The recoverable amount of goodwill is estimated based on the present value of the future cash flows expected to be derived from the asset. In case the, recoverable amount is less than carrying value, the difference is charged to interim condensed statement of income as impairment loss.
Impairment of available-for-sale investments
The Company treats available-for-sale investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments.
Seasonality of operations
There are no seasonal changes that may affect the insurance operations of the Company. | 2 |
| Disclosure of new standards and amendments in standards [text block] |
3.1New and amended standards adopted by the Company
Amendment to IFRS 16, ‘Leases’ - COVID-19 related rent concessions Extension of the practical expedient
As a result of the coronavirus (COVID-19) pandemic, rent concessions have been granted to lessees. In May 2020, the IASB published an amendment to IFRS 16 that provided an optional practical expedient for lessees from assessing whether a rent concession related to COVID-19 is a lease modification. On 31 March 2021, the IASB published an additional amendment to extend the date of the practical expedient from 30 June 2021 to 30 June 2022. Lessees can select to account for such rent concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concession as variable lease payments in the period(s) in which the event or condition that triggers the reduced payment occurs. The Company did not identify a material impact as a result of this amendment. | 3.1 |
| Disclosure of issued IFRS not yet adopted [text block] |
3.2New standards, amendments and interpretations not yet applied by the Company
IFRS 9, ‘Financial Instruments’
In July 2014, the IASB published IFRS 9 which will replace IAS 39, ‘Financial Instruments: Recognition and Measurement’. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in the interim condensed statement of comprehensive income instead of the interim condensed statement of income. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.
In September 2016, the IASB published amendments to IFRS 4, ‘Insurance Contracts’ that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2022.The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.
The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9.
For detailed impact assessment of IFRS 9 adoption, reference to the annual financial statements for the year ended 31 December 2021 should be made.
3Significant accounting policies (continued)
3.2New standards, amendments and interpretations not yet applied by the Company (continued)
IFRS 17, ‘Insurance Contracts’
Applicable for the period beginning on or after 1 January 2023, and will supersede IFRS 4. Earlier adoption is permitted if IFRS 9 has also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect the interim condensed statements of financial position, income and comprehensive income. The Company has decided not to early adopt this new standard.
For detailed impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended 31 December 2021 should be made.
A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 37 and some annual improvements on IFRS 1, IFRS 9, IAS 41 and IFRS 16
Amendments to IFRS 3, ‘Business combinations’ update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.
Amendments to IAS 16, ‘Property, plant and equipment’ prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.
Amendments to IAS 37, ‘Provisions, contingent liabilities and contingent assets’ specify which costs a company includes when assessing whether a contract will be loss-making.
Annual improvements make minor amendments to IFRS 1, ‘First-time Adoption of IFRS’, IFRS 9, ‘Financial instruments’, IAS 41, ‘Agriculture’ and the Illustrative Examples accompanying IFRS 16, ‘Leases’.
Effective date:
Annual periods beginning on or after 1 January 2022.
Impact assessment
The management is in the process of assessing the impact of the amendments on its financial statements.
3Significant accounting policies (continued)
3.2New standards, amendments and interpretations not yet applied by the Company (continued)
Amendments to IAS 1, Presentation of financial statements’, on classification of liabilities
These narrow-scope amendments to IAS 1, ‘Presentation of financial statements’, clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (for example, the receipt of a waiver or a breach of covenant). The amendment also clarifies what IAS 1 means when it refers to the ‘settlement’ of a liability.
Effective date:
Deferred until accounting periods starting not earlier than 1 January 2024.
Impact assessment
The management is in the process of assessing the impact of the amendments on its financial statements.
Narrow scope amendments to IAS 1, Practice statement 2 and IAS 8
The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.
Effective date:
Annual periods beginning on or after 1 January 2023.
Impact assessment
The management is in the process of assessing the impact of the amendments on its financial statements.
Amendment to IAS 12 - deferred tax related to assets and liabilities arising from a single transaction
These amendments require companies to recognise deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deductible temporary differences.
Effective date:
Annual periods beginning on or after 1 January 2023.
Impact assessment
The management is in the process of assessing the impact of the amendment on its financial statements.
| 3.2 |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] |
Critical accounting judgments, estimates and assumptions
The preparation of interim condensed 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 this interim 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 statements as at and for the year ended 31 December 2021.
1)Impact of Covid-19
In response to the spread of the Covid-19 in the Kingdom of Saudi Arabia where the Company operates and its resulting disruptions to the social and economic activities in those markets over the last two years, management continues to proactively assess its impacts on its operations. In particular, the Company is closely monitoring the current surge in cases due to the outbreak of a new variant - Omicron. The preventive measures taken by the Company in April 2020 are still in effect including the creation of ongoing crisis management teams and processes, to ensure the health and safety of its employees, customers and the wider community as well as to ensure the continuity of its operations. Employee health continues to be a key area of focus with programs being implemented to assist with increasing awareness, identification, support and monitoring of employee health. A majority of the employees of the Company have been fully vaccinated for at least two doses of vaccine and the management is working on a plan to encourage booster shots in line with the government initiatives related to Covid-19.
The management of the Company believes that any potential lockdown measures being reintroduced will not materially affect the underlying demand for the Company’s insurance products and forecast.
Based on these factors, management believes that the Covid-19 pandemic has had no material effect on the Company’s reported financial results for the three-month period ended 31 March 2022 including the significant accounting judgements and estimates.
Basis of preparation (continued)
Critical accounting judgments, estimates and assumptions (continued)
Liability arising from claims 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 period claims estimates are reassessed for adequacy and changes are made to the provision.
The provision for claims incurred but not reported is an estimation of claims which are expected to be reported subsequent to the date of interim condensed statement of financial position, for which the insured event has occurred prior to the date of interim condensed 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. The actuary also uses a segmentation approach including analyzing cost per member per year for the 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.
Impairment of premiums and reinsurance balances receivable and goodwill
An estimate of the uncollectible amount of premium receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.
The recoverable amount of goodwill is estimated based on the present value of the future cash flows expected to be derived from the asset. In case the, recoverable amount is less than carrying value, the difference is charged to interim condensed statement of income as impairment loss.
Impairment of available-for-sale investments
The Company treats available-for-sale investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments. | 2 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] |
3Significant accounting policies
The accounting policies, estimates and assumptions used in the preparation of these interim condensed financial information are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2021 except as explained below: | 3 |
| Description of accounting policy for segment reporting [text block] |
12 Segmental information
Operating segments for the purpose of segmental information are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating 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 of Directors is measured in a manner consistent with that in the interim condensed statement of income. Segment assets and liabilities comprise operating assets and liabilities.
Segment assets do not include cash and cash equivalents, short-term deposits, premiums and reinsurers’ balances receivable - net, investments, prepaid expenses and other assets, long-term deposits, property and equipment, intangible assets, due from shareholders’ / insurance operations, goodwill, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include claims payable, accrued expenses and other liabilities, surplus distribution payable, reinsurers' balances payable, advance premiums, due to related party, employee benefit obligations, zakat and income tax, due to shareholders’ / insurance operations, and accrued income payable to SAMA. Accordingly, they are included in unallocated liabilities.
12 Segmental information (continued)
These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.
For management purposes, the Company is organized into business units based on their products and services and has the following reportable segments:
Motor; Property and casualty; Health; and Protection.
Segment performance is evaluated based on profit or loss which, in certain respects, is measured differently from profit or loss in the interim condensed financial information.
Where intersegment transaction were to occur, transfer prices between operating segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment income, expense and results will then include those transfers between operating segments which will then be eliminated at the level of interim condensed financial information of the Company. | 12 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of transfer of portfolio [text block] |
21 Goodwill on acquisition of insurance portfolio
This represents goodwill recognised on acquisition of insurance portfolio and net assets of AXA Saudi Arabia Holding W.L.L. (formerly: “AXA Insurance Saudi Arabia B.S.C (c)”). The Company received approval from SAMA on 15 Dhul-Qadah 1433H (corresponding to 1 October 2012) to transfer the insurance portfolio from AXA Saudi Arabia Holding W.L.L. (formerly AXA Insurance Saudi Arabia B.S.C.c) at a total consideration of Saudi Riyals 106.6 million. During 2015, the Company met payment conditions imposed by SAMA and received approval for payment of Saudi Riyals 50.0 million in respect of initial consideration to AXA Saudi Arabia Holding W.L.L. which was recognized as goodwill being the excess of consideration paid and the net assets acquired. The remaining amount of Saudi Riyals 56.6 million which was recorded as contingent liability was accordingly relinquished.
| 21 |
| Disclosure of commercial operations and product approval [text block] |
The purpose of the Company is to transact cooperative insurance operations and all related activities including reinsurance activities. Its principal lines of business include health, motor, marine, property, engineering, accident and liability and protection insurance.
The principal activities of the Company are to engage in cooperative insurance operations and related activities including reinsurance activities in accordance with the Law on Supervision of Cooperative Insurance (the “Law”), the Company’s by-laws and other regulations promulgated in the Kingdom of Saudi Arabia. The Company obtained licence from the Saudi Central Bank (“SAMA”) to practice general and health insurance and reinsurance business in the Kingdom of Saudi Arabia vide licence number TMN/25/20101, dated Safar 11, 1431H (corresponding to 26 January 2010). The Company has commenced insurance operations on 4 Rabi’ I 1431H (corresponding to 18 February 2010) after obtaining full product approval for certain products and temporary approval for the remaining products. During 2016, the Company obtained approval for the remaining products | 1 |
| Disclosure of leases [text block] |
9 Right-of-use asset and lease liability
| 31 March 2022 | 31 December 2021 | Right-of-use asset - building |
|
| Cost |
|
| Balance as at the beginning of the period / year | 27,086 | 27,086 | Additions | - | - | Balance as at the end of the period / year | 27,086 | 27,086 |
|
|
| Accumulated depreciation |
|
| Balance as at the beginning of the period / year | (6,607) | (3,964) | Charge for the period / year | (660) | (2,643) | Balance as at the end of the period / year | (7,267) | (6,607) | Net book value | 19,819 | 20,479 |
|
|
| Lease liability | 31 March 2022 | 31 December 2021 | Within one year | 3,183 | 3,183 | Later than one year but not later than five years | 12,732 | 12,732 | Later than five years | 6,366 | 6,366 |
| 22,281 | 22,281 | Future finance charges | (2,690) | (2,874) | Total lease liability | 19,591 | 19,407 |
Interest expense on leases amounted to Saudi Riyals 0.2 million during the three-month period ended 31 March 2022 and are presented under “Other income - net” in the interim condensed statement of income (Three-months period ended 31 March 2021: Saudi Riyals 0.2 million).
Short-term leases that were expensed during the three-month period ended 31 March 2022 amounted to Saudi Riyals 0.9 million (Three-month period ended 31 March 2021: Saudi Riyals 0.80 million). | 9 |
| Disclosure of investments [text block] |
6 Investments
Investments are comprised of the following:
| 31 March 2022 | 31 December 2021 | Insurance operations |
|
| Available-for-sale | 674,736 | 689,076 | Held-to-maturity | 78,768 | 78,772 | Total | 753,504 | 767,848 |
|
|
| Shareholders’ operations |
|
| Available-for-sale | 457,962 | 474,307 | Held-to-maturity | 60,000 | 60,000 | Total | 517,962 | 534,307 |
|
|
| Total investments | 1,271,466 | 1,302,155 |
Available-for-sale investments at 31 March 2022 include 1,923,078 shares (31 December 2021: 1,923,078 shares) in Najm for Insurance Services (“Najm”) and are held by the Company at Nil value.
Movement in available-for-sale investments is as follows:
| Insurance operations | Shareholders’ operations | Total |
|
|
|
| As at 1 January 2022 | 689,076 | 474,307 | 1,163,383 | Purchases | 51,950 | - | 51,950 | Disposals | (45,880) | (7,417) | (53,297) | Gain on sale of investments | 210 | (4,462) | (4,252) | Amortization of premium | (181) | (214) | (395) | Accretion of discount | 269 | 95 | 364 | Changes in fair value | (20,708) | (4,347) | (25,055) | As at 31 March 2022 | 674,736 | 457,962 | 1,132,698 |
| Insurance operations | Shareholders’ operations | Total |
|
|
|
| As of 1 January 2021 | 689,178 | 236,618 | 925,796 | Purchases | 177,007 | 249,738 | 426,745 | Disposals | (162,896) | (17,044) | (179,940) | Gain on sale of investments | 866 | 3,439 | 4,305 | Amortization of premium | (917) | (238) | (1,155) | Accretion for the discount | 1,266 | 346 | 1,612 | Changes in fair value | (15,428) | 1,448 | (13,980) | As at 31 December 2021 | 689,076 | 474,307 | 1,163,383 |
6 Investments (continued)
Movement in held-to-maturity investments is as follows:
| Insurance operations | Shareholders’ operations |
| 31 March 2022 | 31 December 2021 | 31 March 2022 | 31 December 2021 |
|
|
|
|
| Opening balance | 78,772 | 78,786 | 60,000 | 60,000 | Amortization of premium | (4) | (14) | - | - | Closing balance | 78,768 | 78,772 | 60,000 | 60,000 |
| 6 |
| Disclosure of investments held-to-maturity [text block] |
Movement in held-to-maturity investments is as follows:
| Insurance operations | Shareholders’ operations |
| 31 March 2022 | 31 December 2021 | 31 March 2022 | 31 December 2021 |
|
|
|
|
| Opening balance | 78,772 | 78,786 | 60,000 | 60,000 | Amortization of premium | (4) | (14) | - | - | Closing balance | 78,768 | 78,772 | 60,000 | 60,000 |
| 6 |
| Disclosure of investments in available-for-sale investments [text block] |
Available-for-sale investments at 31 March 2022 include 1,923,078 shares (31 December 2021: 1,923,078 shares) in Najm for Insurance Services (“Najm”) and are held by the Company at Nil value.
Movement in available-for-sale investments is as follows:
| Insurance operations | Shareholders’ operations | Total |
|
|
|
| As at 1 January 2022 | 689,076 | 474,307 | 1,163,383 | Purchases | 51,950 | - | 51,950 | Disposals | (45,880) | (7,417) | (53,297) | Gain on sale of investments | 210 | (4,462) | (4,252) | Amortization of premium | (181) | (214) | (395) | Accretion of discount | 269 | 95 | 364 | Changes in fair value | (20,708) | (4,347) | (25,055) | As at 31 March 2022 | 674,736 | 457,962 | 1,132,698 |
| Insurance operations | Shareholders’ operations | Total |
|
|
|
| As of 1 January 2021 | 689,178 | 236,618 | 925,796 | Purchases | 177,007 | 249,738 | 426,745 | Disposals | (162,896) | (17,044) | (179,940) | Gain on sale of investments | 866 | 3,439 | 4,305 | Amortization of premium | (917) | (238) | (1,155) | Accretion for the discount | 1,266 | 346 | 1,612 | Changes in fair value | (15,428) | 1,448 | (13,980) | As at 31 December 2021 | 689,076 | 474,307 | 1,163,383 |
| 6 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] |
5 Premiums and reinsurers’ balances receivable - net
| 31 March 2022 | 31 December 2021 |
|
|
| Policyholders | 417,798 | 290,106 | Brokers and agents | 514 | 559 | Related parties | 1,870 | 9,038 | Reinsurers and other insurers | 52,071 | 43,360 |
| 472,253 | 343,063 | Less: provision for doubtful debts | (43,734) | (43,252) |
| 428,519 | 299,811 |
Movement in provision for doubtful debts is as follows:
| 31 March 2022 | 31 December 2021 |
|
|
| Balance at the beginning of the period / year | 43,252 | 45,551 | Provision for the period / year | 482 | 3,941 | Write off during the period/ year | - | (6,240) | Balance at the end of the period / year | 43,734 | 43,252 |
| 5 |
| Disclosure of prepayments and other assets [text block] |
7Prepaid expenses and other assets
| 31 March 2022 | 31 December 2021 |
|
|
| Accrued income | 23,132 | 18,305 | Prepaid expenses | 12,456 | 5,016 | Receivable from Manafeth | 3,536 | 3,536 | Employees’ receivable | 3,824 | 2,497 | Other | - | 501 |
| 42,948 | 29,855 |
| 7 |
| Disclosure of cash and cash equivalents [text block] |
4 Cash and cash equivalents
Cash and cash equivalents included in the interim condensed statement of financial position comprise the following:
| 31 March 2022 | 31 December 2021 |
|
|
| Bank balances and cash | 187,266 | 86,719 | Deposits maturing within 3 months from the placement date | 4,016 | 2,802 |
| 191,282 | 89,521 |
As at 31 March 2022, deposits were placed with local banks with original maturities of less than three months from the date of placement and earned financial income at 0.50% to 1.00% (31 December 2021: 0.50% to 1.00% ) per annum. | 4 |
| Disclosure of statutory deposit [text block] |
16 Statutory deposit
In accordance with Article 58 of the Insurance Implementing Regulations of SAMA, the Company is required to maintain a statutory deposit of not less than 10% of its paid-up capital. The statutory deposit is maintained with a Saudi Arabian bank and can be withdrawn only with the consent of SAMA | 16 |
| Disclosure of zakat [text block] |
Zakat and income tax
Status of assessments
The Company has filed its Zakat and Income Tax returns with the ZATCA up to 2021. The Company has finalised its zakat and tax status with the ZATCA for all years up to 31 December 2015.
During 2021, the ZATCA issued assessments of zakat and income tax for the years 2016 through 2018 with additional liability amounting to Saudi Riyals 21.7 million. The Company has filed an appeal with the General Secretariat of Tax Committees (“GSTC”) against the ZATCA’s assessments. The review and decision of the GSTC is awaited. Furthermore, the ZATCA has issued assessments for zakat and income tax for the years 2019 and 2020 with additional liability amounting to Saudi Riyals 5.6 million. The Company has filed an objection with the with the ZATCA in relation to these assessments. The review and decision of the ZATCA is awaited.
Management is of the view that the level of existing provisions for zakat and income tax is sufficient to account for any potential additional liabilities arising out of the final assessments, once issued. | 14 |
| Disclosure of income tax [text block] |
14 Zakat and income tax
Status of assessments
The Company has filed its Zakat and Income Tax returns with the ZATCA up to 2021. The Company has finalised its zakat and tax status with the ZATCA for all years up to 31 December 2015.
During 2021, the ZATCA issued assessments of zakat and income tax for the years 2016 through 2018 with additional liability amounting to Saudi Riyals 21.7 million. The Company has filed an appeal with the General Secretariat of Tax Committees (“GSTC”) against the ZATCA’s assessments. The review and decision of the GSTC is awaited. Furthermore, the ZATCA has issued assessments for zakat and income tax for the years 2019 and 2020 with additional liability amounting to Saudi Riyals 5.6 million. The Company has filed an objection with the with the ZATCA in relation to these assessments. The review and decision of the ZATCA is awaited.
Management is of the view that the level of existing provisions for zakat and income tax is sufficient to account for any potential additional liabilities arising out of the final assessments, once issued. | 14 |
| Disclosure of classes of share capital [text block] |
19 Share capital
The authorized, issued and paid up capital of the Company is Saudi Riyals 500 million at 31 March 2022 (31 December 2021: Saudi Riyals 500 million) consisting of 50 million shares (31 December 2021: 50 million shares) of Saudi Riyals 10 each.
Shareholding structure of the Company as at 31 March 2022 and 31 December 2021 is as below. The shareholders of the Company are subject to zakat and income tax.
| No. of shares (thousands) | Saudi Riyals (thousands) |
|
|
| GIG Gulf | 25,000 | 250,000 | General public | 25,000 | 250,000 |
| 50,000 | 500,000 |
| 19 |
| Disclosure of statutory reserve [text block] |
17 Statutory reserve
In accordance with By-laws of the Company and Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to transfer not less than 20% of its annual profits, after adjusting accumulated losses, to a statutory reserve until such reserve amounts to 100% of the paid-up share capital of the Company. This reserve is not available for distribution to the shareholders until the liquidation of the Company. | 17 |
| Disclosure of investments income [text block] |
15 Other income - net
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 | Insurance operations: |
|
| Commission income on deposits | 3,594 | 3,182 | Commission income on investments | 5,956 | 6,778 | Realized gains on disposal of investments | (210) | - | Amortization and accretion on investments | 83 | 160 | Total deposits and investments income | 9,423 | 10,120 | Interest on leases | (184) | (207) | Hajj and Umrah income | (154) | 4,592 | Total | 9,085 | 14,505 |
|
|
| Shareholders’ operations: |
|
| Commission income on deposits | 2,781 | 1,933 | Commission income on investments | 3,308 | 2,271 | Realized gains on disposal of investments | 4,461 | - | Amortization and accretion on investments | (119) | 26 | Total deposits and investments income | 10,431 | 4,230 |
|
|
| Total other income - net | 19,516 | 18,735 |
| 15 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] |
8Technical reserves
8.1 Outstanding claims and reserves
Outstanding claims and reserves comprise of the following:
| Gross | Reinsurance | Net |
|
|
|
| 1 January | 366,614 | (120,273) | 246,341 | Claims paid | (276,631) | 22,240 | (254,391) | Claims incurred | 326,526 | (20,833) | 305,693 | 31 March | 416,509 | (118,866) | 297,643 |
|
|
|
| Salvage and subrogation | (97,427) | - | (97,427) | Gross outstanding claims | 319,082 | (118,866) | 200,216 |
|
|
|
| Claims incurred but not reported | 628,854 | (56,154) | 572,700 | Unallocated loss adjustment expenses reserve | 5,460 | - | 5,460 | 31 March | 953,396 | (175,020) | 778,376 |
8Technical reserves (continued)
8.1 Outstanding claims and reserves (continued)
| Gross | Reinsurance | Net |
|
|
|
| 1 January | 288,704 | (74,988) | 213,716 | Claims paid | (994,592) | 48,205 | (946,387) | Claims incurred | 1,162,272 | (93,490) | 1,068,782 | 31 December | 456,384 | (120,273) | 336,111 |
|
|
|
| Salvage and subrogation | (89,770) | - | (89,770) | Gross outstanding claims | 366,614 | (120,273) | 246,341 |
|
|
|
| Claims incurred but not reported | 648,782 | (54,747) | 594,035 | Unallocated loss adjustment expenses reserve | 5,460 | - | 5,460 | 31 December | 1,020,856 | (175,020) | 845,836 |
8.2Movement in net unearned premiums
Movement in net unearned premiums comprise of the following:
| Gross | Reinsurance | Net |
|
|
|
| Balance as at the beginning of the period | 517,829 | (26,333) | 491,496 | Premium written during the period | 538,776 | (60,363) | 478,413 | Premium earned during the period | (349,769) | 38,792 | (310,977) | Balance as at the end of the period | 706,836 | (47,904) | 658,932 |
| Gross | Reinsurance | Net |
|
|
|
| Balance as at the beginning of the year | 486,709 | (23,455) | 463,254 | Premium written during the year | 1,454,470 | (144,529) | 1,309,941 | Premium earned during the year | (1,423,350) | 141,651 | (1,281,699) | Balance as at the end of the year | 517,829 | (26,333) | 491,496 |
| 8 |
| Disclosure of other income [text block] |
15 Other income - net
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 | Insurance operations: |
|
| Commission income on deposits | 3,594 | 3,182 | Commission income on investments | 5,956 | 6,778 | Realized gains on disposal of investments | (210) | - | Amortization and accretion on investments | 83 | 160 | Total deposits and investments income | 9,423 | 10,120 | Interest on leases | (184) | (207) | Hajj and Umrah income | (154) | 4,592 | Total | 9,085 | 14,505 |
|
|
| Shareholders’ operations: |
|
| Commission income on deposits | 2,781 | 1,933 | Commission income on investments | 3,308 | 2,271 | Realized gains on disposal of investments | 4,461 | - | Amortization and accretion on investments | (119) | 26 | Total deposits and investments income | 10,431 | 4,230 |
|
|
| Total other income - net | 19,516 | 18,735 |
| 15 |
| Disclosure of related party transactions [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 three-month period ended 31 March 2022 and 2021, and the related balances:
| 31 March 2022 | 31 March 2021 | Major shareholders |
|
| Gross premiums from major shareholders | - | 251 | Reinsurance premiums ceded to major shareholders | - | 32,121 | Reinsurance commissions from major shareholders | - | 3,283 | Net claims paid to major shareholders | - | 3,630 | Reinsurers’ share of gross claims paid to major shareholders | - | 4,840 | Expenses charged by major shareholders | 1,958 | 387 |
|
|
| Entities controlled, jointly controlled or significantly influenced by related parties |
|
| Gross premiums from other related parties | 2,228 | 2,438 | Net claims paid to other related parties | 2,874 | 8,629 |
The compensation of key management personnel during the three-month period is as follows:
| 31 March 2022 | 31 March 2021 |
|
|
| Salaries and benefits | 2,409 | 2,560 | Employee benefit obligations | 122 | 137 |
| 2,531 | 2,697 |
Board of Directors fees for the period ended 31 March 2022 was Saudi Riyals 0.3 million (31 March 2021: Saudi Riyals 0.3 million ).
The transactions with related parties are carried out at commercial terms and conditions. Compensation to key management personnel is on employment terms and as per the By-laws of the Company.
Due to a related party represents amounts payable to Gulf Insurance Group (Gulf) B.S.C
| 13 |
| Disclosure of entity's operating segments [text block] |
12 Segmental information (continued)
The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at 31 March 2022 and 31 December 2021, its total revenues, expenses, and net income for the three-month period then ended are as follows:
| Insurance operations |
|
|
|
|
| 31 March 2022 (Unaudited) | Motor | Property | Health | Protection | Total | Shareholders’ operations | Grand total |
|
|
| and casualty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
| Reinsurers’ share of unearned premiums | - | 34,003 | 12,448 | 1,453 | 47,904 | - | 47,904 |
| Reinsurers’ share of outstanding claims | 3,927 | 56,019 | 3,094 | 10,885 | 73,925 | - | 73,925 |
| Reinsurers’ share of claims incurred but not reported and other reserves | 6,333 | 43,782 | 402 | 5,637 | 56,154 | - | 56,154 |
| Deferred policy acquisition costs | 39,715 | 8,865 | 13,388 | 1,586 | 63,554 | - | 63,554 |
| Segment assets | 49,975 | 142,669 | 29,332 | 19,561 | 241,537 | - | 241,537 |
| Unallocated assets | - | - | - | - | 1,772,992 | 1,072,352 | 2,845,344 |
| Total assets |
|
|
|
| 2,014,529 | 1,072,352 | 3,086,881 |
|
|
|
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
|
|
| Unearned premiums | 376,259 | 111,160 | 205,070 | 14,347 | 706,836 | - | 706,836 |
| Unearned reinsurance commission | - | 5,234 | 3,137 | 339 | 8,710 | - | 8,710 |
| Outstanding claims | 45,128 | 180,015 | 75,297 | 18,642 | 319,082 | - | 319,082 |
| Claims incurred but not reported and other reserves | 369,229 | 179,869 | 59,264 | 25,952 | 634,314 | - | 634,314 |
| Segment liabilities | 790,616 | 476,278 | 342,768 | 59,280 | 1,668,942 | - | 1,668,942 |
| Unallocated liabilities and equity |
|
|
| 345,587 | 1,072,352 | 1,417,939 |
| Total liabilities and equity |
|
|
| 2,014,529 | 1,072,352 | 3,086,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12 | Segmental information (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance operations |
|
|
|
|
|
| 31-Dec-21 | Motor |
| Property and casualty | Health | Protection | Total | Shareholders’ operations | Grand Total |
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
| Reinsurers’ share of unearned premiums | 712 |
| 25,384 | 143 | 94 | 26,333 | - | 26,333 | Reinsurers’ share of outstanding claims | 4,125 |
| 105,631 | 1,351 | 9,166 | 120,273 | - | 120,273 | Reinsurers’ share of claims incurred but not reported and other reserves | 13,793 |
| 35,475 | - | 5,479 | 54,747 | - | 54,747 | Deferred policy acquisition costs | 31,729 |
| 7,215 | 9,520 | 843 | 49,307 | - | 49,307 | Segment assets | 50,359 |
| 173,705 | 11,014 | 15,582 | 250,660 | - | 250,660 | Unallocated assets |
|
|
|
| 1,689,165 | 1,051,244 | 2,740,409 | Total assets |
|
|
|
|
| 1,939,825 | 1,051,244 | 2,991,069 |
|
|
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
|
|
| Unearned premiums | 274,935 |
| 81,259 | 153,821 | 7,814 | 517,829 | - | 517,829 | Unearned reinsurance commission | 143 |
| 3,304 | 10 | 1 | 3,458 | - | 3,458 | Outstanding claims | 39,176 |
| 252,927 | 58,613 | 15,898 | 366,614 | - | 366,614 | Claims incurred but not reported and other reserves | 413,616 |
| 157,154 | 61,456 | 22,016 | 654,242 | - | 654,242 | Segment liabilities | 727,870 |
| 494,644 | 273,900 | 45,729 | 1,542,143 | - | 1,542,143 | Unallocated liabilities and equity |
|
|
|
| 397,682 | 1,051,244 | 1,448,926 | Total liabilities and equity |
|
|
|
| 1,939,825 | 1,051,244 | 2,991,069 |
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| 12 | Segmental information (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance operations |
|
|
|
|
|
| For the three-month period ended 31 March 2022 (Unaudited) | Motor | Property | Health | Protection | Total | Shareholders’ operations | Grand total |
|
|
| and casualty |
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
| Gross premiums written |
|
|
|
|
|
|
| - Direct |
|
|
|
|
|
|
| - Large corporates | 75,437 | 40,054 | 131,433 | - | 246,924 | - | 246,924 |
| - Medium corporates | 80,857 | 24,638 | 6,346 | 20,894 | 132,735 | - | 132,735 |
| - Small corporates | 61,536 | 18,189 | 791 | - | 80,516 | - | 80,516 |
| - Micro enterprises | 2,783 | 629 | 18 | - | 3,430 | - | 3,430 |
| - Retail | 52,168 | 10,051 | 8,940 | - | 71,159 | - | 71,159 |
| - Reinsurance | - | 4,012 | - | - | 4,012 | - | 4,012 |
|
| 272,781 | 97,573 | 147,528 | 20,894 | 538,776 | - | 538,776 |
| Reinsurance premiums ceded |
|
|
|
|
|
|
| - Foreign | 324 | -33,667 | -16,485 | -5,183 | -55,011 | - | -55,011 |
| - Local | - | -3,110 | - | -2,242 | -5,352 | - | -5,352 |
|
| 324 | -36,777 | -16,485 | -7,425 | -60,363 | - | -60,363 |
| Net premiums written | 273,105 | 60,796 | 131,043 | 13,469 | 478,413 | - | 478,413 |
| Changes in unearned premiums | -101,324 | -29,901 | -51,249 | -6,534 | -189,008 | - | -189,008 |
| Changes in reinsurers’ share of unearned premiums | -714 | 8,621 | 12,306 | 1,359 | 21,572 | - | 21,572 |
| Net premiums earned | 171,067 | 39,516 | 92,100 | 8,294 | 310,977 | - | 310,977 |
| Reinsurance commissions | -7 | 2,711 | 1,043 | 389 | 4,136 | - | 4,136 |
| Total revenues | 171,060 | 42,227 | 93,143 | 8,683 | 315,113 | - | 315,113 |
|
|
|
|
|
|
|
|
|
| Underwriting costs and expenses |
|
|
|
|
|
|
| Gross claims paid | 177,102 | 31,478 | 64,146 | 3,905 | 276,631 | - | 276,631 |
| Reinsurers’ share of claims paid | -606 | -17,576 | -1,974 | -2,084 | -22,240 | - | -22,240 |
| Net claims and other benefits paid | 176,496 | 13,902 | 62,172 | 1,821 | 254,391 | - | 254,391 |
|
|
|
|
|
|
|
| (Continued) |
|
|
|
|
|
|
|
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|
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|
|
| 12 | Segmental information (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance operations |
|
|
|
|
|
| For the three-month period ended 31 March 2022 (Unaudited) | Motor | Property | Health | Protection | Total | Shareholders’ operations | Grand total |
|
|
| and casualty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in outstanding claims | 5,952 | -72,911 | 16,683 | 2,745 | -47,531 | - | -47,531 |
| Changes in reinsurers’ share of outstanding claims | 198 | 49,613 | -1,742 | -1,720 | 46,349 | - | 46,349 |
| Changes in claims incurred but not reported and other reserves | -44,387 | 22,716 | -2,192 | 3,935 | -19,928 | - | -19,928 |
| Changes in reinsurers’ share of claims incurred but not reported and other reserves | 7,460 | -8,307 | -402 | -158 | -1,407 | - | -1,407 |
| Net claims and other benefits incurred | 145,719 | 5,013 | 74,519 | 6,623 | 231,874 | - | 231,874 |
| Policy acquisition costs | 18,022 | 6,778 | 6,460 | 1,883 | 33,143 | - | 33,143 |
| Total underwriting costs and expenses | 163,741 | 11,791 | 80,979 | 8,506 | 265,017 | - | 265,017 |
| Net underwriting income | 7,319 | 30,436 | 12,164 | 177 | 50,096 | - | 50,096 |
|
|
|
|
|
|
|
|
|
| Other operating expenses |
|
|
|
|
|
|
| General and administrative expenses | -23,193 | -5,358 | -12,487 | -1,126 | -42,164 | -348 | -42,512 |
| Other income - net | - | - | - | - | 9,085 | 10,431 | 19,516 |
| Total other operating expenses, net | -23,193 | -5,358 | -12,487 | -1,126 | -33,079 | 10,083 | -22,996 |
|
|
|
|
|
|
|
|
|
| Total income before surplus attribution, zakat and income tax |
|
|
| 27,100 |
| Surplus attributed to the insurance operations |
|
|
|
| -1,702 |
| Total income for the period attributable to the shareholders |
|
|
| 25,398 |
| Zakat expense |
|
|
|
|
|
| -7,857 |
| Income tax |
|
|
|
|
|
| 2,746 |
| Total income for the period attributable to the shareholders |
|
|
| 20,287 |
|
|
|
|
|
|
|
|
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| 12 | Segmental information (continued) |
|
|
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|
|
|
|
|
|
|
|
|
|
|
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| Insurance operations |
|
|
|
|
|
| For the three-month period ended 31 March 2021 (Unaudited) | Motor | Property | Health | Protection | Total | Shareholders’ operations | Grand total |
|
|
| and casualty |
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
| Gross premiums written |
|
|
|
|
|
|
| - Direct |
|
|
|
|
|
|
| - Large corporates | 182,040 | 33,852 | 113,193 | - | 329,085 | - | 329,085 |
| - Medium corporates | 75,982 | 17,847 | 14,805 | 20,874 | 129,508 | - | 129,508 |
| - Small corporates | 12,058 | 11,821 | 1,359 | - | 25,238 | - | 25,238 |
| - Micro enterprises | 2,261 | 715 | - | - | 2,976 | - | 2,976 |
| - Retail | 34,820 | 12,950 | 6,110 | - | 53,880 | - | 53,880 |
| - Reinsurance | - | 904 | - | - | 904 | - | 904 |
|
| 307,161 | 78,089 | 135,467 | 20,874 | 541,591 | - | 541,591 |
| Reinsurance premiums ceded |
|
|
|
|
|
|
| - Foreign | -1,383 | -26,558 | -13,593 | -7,838 | -49,372 | - | -49,372 |
| - Local | - | -3,605 | - | - | -3,605 | - | -3,605 |
|
| -1,383 | -30,163 | -13,593 | -7,838 | -52,977 | - | -52,977 |
| Net premiums written | 305,778 | 47,926 | 121,874 | 13,036 | 488,614 | - | 488,614 |
| Changes in unearned premiums | -137,251 | -18,895 | -34,522 | -4,405 | -195,073 | - | -195,073 |
| Changes in reinsurers’ share of unearned premiums | - | 5,575 | 9,533 | 319 | 15,427 | - | 15,427 |
| Net premiums earned | 168,527 | 34,606 | 96,885 | 8,950 | 308,968 | - | 308,968 |
| Reinsurance commissions | 1,162 | 2,153 | 857 | 128 | 4,300 | - | 4,300 |
| Total revenues | 169,689 | 36,759 | 97,742 | 9,078 | 313,268 | - | 313,268 |
|
|
|
|
|
|
|
|
|
| Underwriting costs and expenses |
|
|
|
|
|
|
| Gross claims paid | 143,860 | 4,390 | 98,969 | 7,888 | 255,107 | - | 255,107 |
| Reinsurers’ share of claims paid | -153 | -379 | -2,366 | -3,720 | -6,618 | - | -6,618 |
| Net claims and other benefits paid | 143,707 | 4,011 | 96,603 | 4,168 | 248,489 | - | 248,489 |
|
|
|
|
|
|
|
| (Continued) |
|
|
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|
|
|
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|
| 12 | Segmental information (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Insurance operations |
|
|
|
|
|
| For the three-month period ended 31 March 2021 (Unaudited) | Motor | Property | Health | Protection | Total | Shareholders’ operations | Grand total |
|
|
| and casualty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in outstanding claims | 1,167 | 52,334 | 1,826 | 3,941 | 59,268 | - | 59,268 |
| Changes in reinsurers’ share of outstanding claims | -429 | -39,453 | -1,020 | -3,472 | -44,374 | - | -44,374 |
| Changes in claims incurred but not reported and other reserves | -39,179 | 3,349 | -12,271 | 1,858 | -46,243 | - | -46,243 |
| Changes in reinsurers’ share of claims incurred but not reported and other reserves | 101 | -774 | 589 | -2,151 | -2,235 | - | -2,235 |
| Net claims and other benefits incurred | 105,367 | 19,467 | 85,727 | 4,344 | 214,905 | - | 214,905 |
| Policy acquisition costs | 14,954 | 6,102 | 6,311 | 2,151 | 29,518 | - | 29,518 |
| Total underwriting costs and expenses | 120,321 | 25,569 | 92,038 | 6,495 | 244,423 | - | 244,423 |
| Net underwriting income | 49,368 | 11,190 | 5,704 | 2,583 | 68,845 | - | 68,845 |
|
|
|
|
|
|
|
|
|
| Other operating (expenses) income |
|
|
|
|
|
|
| General and administrative expenses | -23,374 | -3,857 | -10,798 | -995 | -39,024 | -349 | -39,373 |
| Other income - net | - | - | - | - | 14,505 | 4,230 | 18,735 |
| Total other operating expenses, net | -23,374 | -3,857 | -10,798 | -995 | -24,519 | 3,881 | -20,638 |
|
|
|
|
|
|
|
|
|
| Total income before surplus attribution, zakat and income tax |
|
|
| 48,207 |
| Surplus attributed to the insurance operations |
|
|
|
| -4,432 |
| Total income for the period attributable to the shareholders |
|
|
| 43,775 |
| Zakat expense |
|
|
|
|
|
| -3,926 |
| Income tax expense |
|
|
|
|
| -3,290 |
| Total income for the period attributable to the shareholders |
|
|
| 36,559 |
|
| 12 |
| Disclosure of capital management [text block] |
20 Capital management
The Company’s objectives when managing capital are:
To comply with the insurance capital requirements as set out in the Law. The Company’s current paid-up share capital is in accordance with Article 3 of the Law; To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and To provide an adequate return to shareholders by pricing insurance contracts commensurately with the level of risk.
As per Article 66 of the Regulations, the Company shall maintain a solvency margin equivalent to the highest of the following three methods:
Minimum capital requirement of Saudi Riyals 300 million; Premium solvency margin; or Claims solvency margin.
The Company’s management, through various scenario analyses as required by SAMA, has assessed the potential impact of Covid-19 on the Company’s solvency margin by performing stress testing for various variables such as gross premium growth, increase in employee cost, year-to-date loss ratios, outstanding premium provisions etc. and the related impact on the revenue, profitability, loss ratios and solvency ratios. The Company’s management has concluded that, based on the stress testing performed, the solvency margin of the Company is adequate at 31 March 2022. As the situation is fluid and rapidly evolving, the Company will continue to reassess its position and the related impact on a regular basis. | 20 |
| Disclosure of commitments and contingencies, general [text block] |
10 Commitments and contingencies
The Company has issued various bank guarantees amounting to Saudi Riyals 31.0 million (31 December 2021: Saudi Riyals 31.4 million) in the ordinary course of business.
The Company operates in the insurance industry and is subject to legal proceedings in the ordinary course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its results and financial position.
| 10 |
| Disclosure of fair value of financial assets and liabilities [text block] |
11 Determination of fair value and fair value hierarchy
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 advantages accessible market for the asset or liability
The fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed financial information.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;
Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; and
Level 3: valuation techniques for which any significant input is not based on observable market data.
The following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value.
| Carrying value | Level 1 | Level 2 | Level 3 | Total | 31 March 2022 |
|
|
|
|
|
|
|
|
|
|
| Financial assets measured at fair value (Insurance operations) |
|
|
|
|
| Available-for-sale investments |
|
|
|
|
| - Government bonds | 571,507 | 571,507 | - | - | 571,507 | - Other bonds | 87,221 | 87,221 | - | - | 87,221 | - Mutual funds | 16,008 | 16,008 | - | - | 16,008 |
| 674,736 | 674,736 | - | - | 674,736 |
|
|
|
|
|
| Financial assets measured at fair value (Shareholders’ operations) |
|
|
|
|
| Available-for-sale investments |
|
|
|
|
| - Government bonds | 352,485 | 352,485 | - | - | 352,485 | - Other bonds | 27,767 | 27,767 | - | - | 27,767 | - Mutual funds | 7,161 | 7,161 | - | - | 7,161 | - Equities | 70,549 | 70,549 | - | - | 70,549 |
| 457,962 | 457,962 | - | - | 457,962 |
11 Determination of fair value and fair value hierarchy (continued)
| Carrying value | Level 1 | Level 2 | Level 3 | Total |
|
|
|
|
|
| 31 December 2021 |
|
|
|
|
|
|
|
|
|
|
| Financial assets measured at fair value (Insurance operations) |
|
|
|
|
| Available-for-sale investments |
|
|
|
|
| - Government bonds | 577,824 | 577,824 | - | - | 577,824 | - Other bonds | 91,774 | 91,774 | - | - | 91,774 | - Mutual funds | 19,478 | 19,478 | - | - | 19,478 |
| 689,076 | 689,076 | - | - | 689,076 |
|
|
|
|
|
| Financial assets measured at fair value (Shareholders’ operations) |
|
|
|
|
| Available-for-sale investments |
|
|
|
|
| - Government bonds | 371,235 | 371,235 | - | - | 371,235 | - Other bonds | 27,802 | 27,802 | - | - | 27,802 | - Mutual funds | 7,105 | 7,105 | - | - | 7,105 | - Equities | 68,165 | 68,165 | - | - | 68,165 |
| 474,307 | 474,307 | - | - | 474,307 |
| 11 |
| Disclosure of board of director's approval of the financial statements [text block] |
23 Approval of the interim condensed financial information
The interim condensed financial information has been approved by the Board of Directors on 9 May 2022. | 23 |
| Disclosure of other notes relevant to understanding of financial statements [text block] |
18 Performance share reserve
AXA Group (the “Group”) has introduced a performance share based plan for employees of AXA entities world-wide which is designed to reward them for their role in achievement of the Group’s long-term objectives. This scheme incentivizes employees after completion of certain number of years with the Company, with shares of AXA Societe Anonyme (“AXA SA”) without any cost to employees. These shares are issued outside the Kingdom of Saudi Arabia and employees have the right to receive at the settlement date, a certain number of AXA SA shares based on the achievement of performance criteria defined by AXA SA and vesting period. The Company absorbs the cost of these shares under a group recharge arrangement, paid directly to AXA S.A.
During 2022, AXA SA. has terminated all schema subsequent to the Company’s acquisition by Gulf Insurance Group K.S.C.P. As a result, Saudi Riyals 2.5 million has been transferred to retained earnings. 22 Supplementary information
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
| 31 March 2022 (Unaudited) | 31 December 2021 (Audited) |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operation | Total | Assets |
|
|
|
|
|
| Cash and cash equivalents | 191,282 | - | 191,282 | 89,521 | - | 89,521 | Short-term deposits | 368,798 | 234,725 | 603,523 | 408,798 | 236,023 | 644,821 | Premiums and reinsurers’ balances receivable - net | 428,519 | - | 428,519 | 299,811 | - | 299,811 | Reinsurers’ share of unearned premiums | 47,904 | - | 47,904 | 26,333 | - | 26,333 | Reinsurers’ share of outstanding claims | 73,925 | - | 73,925 | 120,273 | - | 120,273 | Reinsurers’ share of claims incurred but not reported and other reserves | 56,154 | - | 56,154 | 54,747 | - | 54,747 | Deferred policy acquisition costs | 63,554 | - | 63,554 | 49,307 | - | 49,307 | Investments | 753,504 | 517,962 | 1,271,466 | 767,848 | 534,307 | 1,302,155 | Prepaid expenses and other assets | 34,869 | 8,079 | 42,948 | 23,577 | 6,278 | 29,855 | Deferred Tax asset | - | 4,006 | 4,006 | - | - | - | Long-term deposits | 120,721 | 25,000 | 145,721 | 145,721 | 70,000 | 215,721 | Right-of-use assets | 19,819 | - | 19,819 | 20,479 | - | 20,479 | Property and equipment | 18,170 | - | 18,170 | 19,518 | - | 19,518 | Intangible assets | 13,471 | - | 13,471 | 12,247 | - | 12,247 | Due from shareholders’/ insurance operations | (176,161) | 176,161 | - | (98,355) | 98,355 | - | Goodwill | - | 50,000 | 50,000 | - | 50,000 | 50,000 | Statutory deposit | - | 50,000 | 50,000 | - | 50,000 | 50,000 | Accrued income on statutory deposit | - | 6,419 | 6,419 | - | 6,281 | 6,281 | Total assets | 2,014,529 | 1,072,352 | 3,086,881 | 1,939,825 | 1,051,244 | 2,991,069 |
|
|
|
|
|
| (Continued) |
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION (continued)
| 31 March 2022 (Unaudited) | 31 December 2021 (Audited) |
| Insurance operations | Share- holders’ operations | Total | Insurance operations | Share-holders’ operations | Total | Liabilities and equity |
|
|
|
|
|
| Claims payable, accrued expenses and other liabilities | 158,339 | 1,566 | 159,905 | 200,218 | 1,249 | 201,467 | Surplus distribution payable | 30,876 | - | 30,876 | 33,976 | - | 33,976 | Reinsurers' balances payable | 86,008 | - | 86,008 | 68,929 | - | 68,929 | Advance premiums | 23,395 | - | 23,395 | 30,055 | - | 30,055 | Unearned premiums | 706,836 | - | 706,836 | 517,829 | - | 517,829 | Unearned reinsurance commission | 8,710 | - | 8,710 | 3,458 | - | 3,458 | Outstanding claims | 319,082 | - | 319,082 | 366,614 | - | 366,614 | Claims incurred but not reported and other reserves | 634,314 | - | 634,314 | 654,242 | - | 654,242 | Lease liabilities | 19,591 | - | 19,591 | 19,407 | - | 19,407 | Due to a related party | 4,311 | - | 4,311 | 2,353 | - | 2,353 | Employee benefit obligations | 32,664 | - | 32,664 | 31,633 | - | 31,633 | Zakat and income tax | - | 63,519 | 63,519 | - | 58,806 | 58,806 | Accrued income payable to SAMA | - | 6,419 | 6,419 | - | 6,281 | 6,281 | Total liabilities | 2,024,126 | 71,504 | 2,095,630 | 1,928,714 | 66,336 | 1,995,050 |
|
|
|
|
|
|
| Equity |
|
|
|
|
|
| Share capital | - | 500,000 | 500,000 | - | 500,000 | 500,000 | Statutory reserve | - | 108,760 | 108,760 | - | 104,702 | 104,702 | Performance share reserve | - | - | - | - | 2,514 | 2,514 | Retained earnings | - | 379,606 | 379,606 | - | 360,863 | 360,863 | Fair value reserve on investments | (9,597) | 12,482 | 2,885 | 11,111 | 16,829 | 27,940 | Total equity | (9,597) | 1,000,848 | 991,251 | 11,111 | 984,908 | 996,019 | Total liabilities and equity | 2,014,529 | 1,072,352 | 3,086,881 | 1,939,825 | 1,051,244 | 2,991,069 |
|
|
|
|
|
|
|
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF INCOME FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (Unaudited)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total | Revenues |
|
|
|
|
|
| Gross premiums written |
|
|
|
|
|
| | 534,764 | - | 534,764 | 540,687 | - | 540,687 | | 4,012 | - | 4,012 | 904 | - | 904 |
| 538,776 | - | 538,776 | 541,591 | - | 541,591 | Reinsurance premiums ceded: |
|
|
|
|
|
| | (55,011) | - | (55,011) | (49,372) | - | (49,372) | | (5,352) | - | (5,352) | (3,605) | - | (3,605) |
| (60,363) | - | (60,363) | (52,977) | - | (52,977) | Net premiums written | 478,413 | - | 478,413 | 488,614 | - | 488,614 | Changes in unearned premiums | (189,008) | - | (189,008) | (195,073) | - | (195,073) | Changes in reinsurers’ share of unearned premiums | 21,572 | - | 21,572 | 15,427 | - | 15,427 | Net premiums earned | 310,977 | - | 310,977 | 308,968 | - | 308,968 | Reinsurance commissions | 4,136 | - | 4,136 | 4,300 | - | 4,300 | Total revenues | 315,113 | - | 315,113 | 313,268 | - | 313,268 |
|
|
|
|
|
|
| Underwriting costs and expenses |
|
|
|
|
|
| Gross claims paid | 276,631 | - | 276,631 | 255,107 | - | 255,107 | Reinsurers’ share of claims paid | (22,240) | - | (22,240) | (6,618) | - | (6,618) | Net claims and other benefits paid | 254,391 | - | 254,391 | 248,489 | - | 248,489 | Changes in outstanding claims | (47,531) | - | (47,531) | 59,268 | - | 59,268 | Changes in reinsurance share of outstanding claims | 46,349 | - | 46,349 | (44,374) | - | (44,374) | Changes in claims incurred but not reported and other reserves | (19,928) | - | (19,928) | (46,243) | - | (46,243) | Changes in reinsurance share of claims incurred but not reported and other reserves | (1,407) | - | (1,407) | (2,235) | - | (2,235) |
|
|
|
|
|
| (Continued) |
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF INCOME FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (Unaudited) (continued)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total |
|
|
|
|
|
|
| Net claims and other benefits incurred | 231,874 | - | 231,874 | 214,905 | - | 214,905 | Policy acquisition costs | 33,143 | - | 33,143 | 29,518 | - | 29,518 | Total underwriting costs and expenses | 265,017 | - | 265,017 | 244,423 | - | 244,423 |
|
|
|
|
|
|
| Net underwriting income | 50,096 | - | 50,096 | 68,845 | - | 68,845 |
|
|
|
|
|
|
| Other operating expenses |
|
|
|
|
|
| General and administrative expenses | (42,164) | (348) | (42,512) | (39,024) | (349) | (39,373) | Other income - net | 9,085 | 10,431 | 19,516 | 14,505 | 4,230 | 18,735 | Total other operating expenses, net | (33,079) | 10,083 | (22,996) | (24,519) | 3,881 | (20,638) |
|
|
|
|
|
|
| Total income before surplus attribution, zakat and income tax | 17,017 | 10,083 | 27,100 | 44,326 | 3,881 | 48,207 |
|
|
|
|
|
|
| Zakat expense | - | (7,857) | (7,857) | - | (3,926) | (3,926) | Income tax | - | 2,746 | 2,746 | - | (3,290) | (3,290) | Total income for the period | 17,017 | 4,972 | 21,989 | 44,326 | (3,335) | 40,991 | Surplus transferred to shareholders’ operations | (15,315) | 15,315 | - | (39,894) | 39,894 | - | Total income for the period after transfer of insurance operations surplus | 1,702 | 20,287 | 21,989 | 4,432 | 36,559 | 40,991 |
|
|
|
|
|
|
|
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (Unaudited)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total |
|
|
|
|
|
|
| Total income for the period after transfer of insurance operations surplus | 1,702 | 20,287 | 21,989 | 4,432 | 36,559 | 40,991 |
|
|
|
|
|
|
| Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will be reclassified to the interim condensed statement of income in subsequent period |
|
|
|
|
|
| Net change in fair value of available-for-sale investments | (20,708) | (4,347) | (25,055) | (10,722) | 3,268 | (7,454) | Total comprehensive (loss)/income for the period | (19,006) | 15,940 | (3,066) | (6,290) | 39,827 | 33,537 |
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (Unaudited)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 | | | |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total | Cash flows from operating activities |
|
|
|
|
|
| Total income before surplus attribution, zakat and income tax | 17,017 | 10,083 | 27,100 | 44,326 | 3,881 | 48,207 |
|
|
|
|
|
|
| Adjustments for non-cash items: |
|
|
|
|
|
| Depreciation of property and equipment | 1,625 | - | 1,625 | 1,717 | - | 1,717 | Depreciation of right-of-use assets | 660 | - | 660 | 659 | - | 659 | Amortization of intangible assets | 983 | - | 983 | 881 | - | 881 | Interest on lease liability | 184 | - | 184 | 207 | - | 207 | Provision for doubt debts | 482 | - | 482 | 461 | - | 461 | Accretion of discount on available-for-sale investments | (269) | (95) | (364) | (309) | (71) | (380) | Amortization of premium on available-for-sale investments | 181 | 214 | 395 | 147 | 45 | 192 | Amortization of premium on held-to-maturity investments | 4 | - | 4 | 2 | - | 2 | Performance share reserve | - | - | - | - | 420 | 420 | Provision for employee benefit obligations | 1,031 | - | 1,031 | 1,197 | - | 1,197 | Gain on sale of investments | (210) | 4,462 | 4,252 | - | - | - |
|
|
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Premiums and reinsurers’ balances receivable - net | (129,190) | - | (129,190) | (148,805) | - | (148,805) | Reinsurers’ share of unearned premiums | (21,571) | - | (21,571) | (15,427) | - | (15,427) | Reinsurers’ share of outstanding claims | 46,348 | - | 46,348 | (44,374) | - | (44,374) | Reinsurers’ share of claims incurred but not reported | (1,407) | - | (1,407) | (2,235) | - | (2,235) | Deferred policy acquisition costs | (14,247) | - | (14,247) | (14,690) | - | (14,690) |
|
|
|
|
|
| (Continued) |
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE THREE-MONTH PERIOD ENDED 31 MARCH (Unaudited) (continued)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total |
|
|
|
|
|
|
| Prepaid expenses and other assets | (11,292) | (1,801) | (13,093) | (9,166) | (6,544) | (15,710) | Accrued income on statutory deposit | - | (138) | (138) | - | (112) | (112) | Claims payable, accrued expenses and other liabilities | (41,879) | 314 | (41,565) | (42,845) | (1,566) | (44,411) | Reinsurers' balances payable | 17,079 | - | 17,079 | 14,763 | - | 14,763 | Advance premiums | (6,660) | - | (6,660) | 3,120 | - | 3,120 | Unearned premiums | 189,010 | - | 189,010 | 195,073 | - | 195,073 | Unearned reinsurance commission | 5,252 | - | 5,252 | 3,501 | - | 3,501 | Outstanding claims | (47,532) | - | (47,532) | 59,268 | - | 59,268 | Claims incurred but not reported and other reserves | (19,928) | - | (19,928) | (46,243) | - | (46,243) | Due to a related party | 1,958 | - | 1,958 | 1,186 | - | 1,186 | Accrued income payable to SAMA | - | 138 | 138 | - | 112 | 112 | Due from shareholders’ operations | 62,489 | (62,489) | - | 5,354 | (5,354) | - |
| 50,118 | (49,312) | 806 | 7,768 | (9,189) | (1,421) | Employee benefit obligations paid | - | - | - | (137) | - | (137) | Surplus distribution paid | (4,802) | - | (4,802) | - | - | - | Zakat and income tax paid | - | (4,403) | (4,403) | - | - | - | Net cash used in operating activities | 45,316 | (53,715) | (8,399) | 7,631 | (9,189) | (1,558) |
|
|
|
|
|
| (Continued) |
22 Supplementary information (continued)
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE THREE-MONTH PERIOD ENDED MARCH 31 (Unaudited) (continued)
| Three-month period ended 31 March 2022 | Three-month period ended 31 March 2021 |
| Insurance operations | Share-holders’ operations | Total | Insurance operations | Share-holders’ operations | Total | Cash flows from investing activities |
|
|
|
|
|
| Placements in short-term deposits | 101,214 | 200,000 | 301,214 | - | (52,177) | (52,177) | Proceeds from disposals of short-term deposit | (61,215) | (198,702) | (259,917) | 30,163 | 53,697 | 83,860 | Placements in long-term deposits | 25,000 | 45,000 | 70,000 | - | - | - | Purchases of investments | (51,950) | - | (51,950) | (135,885) | - | (135,885) | Proceeds from disposal of investments | 45,880 | 7,417 | 53,297 | 2,177 | 4,167 | 6,344 | Purchases of property and equipment | (277) | - | (277) | (1,183) | - | (1,183) | Purchases of intangible assets | (2,207) | - | (2,207) | (228) | - | (228) | Net cash generated from/(used in) investing activities | 56,445 | 53,715 | 110,160 | (104,956) | 5,687 | (99,269) |
|
|
|
|
|
|
| Cash flows from financing activity |
|
|
|
|
|
| Performance shares reserve - settlement | - | - | - | - | (33) | (33) |
|
|
|
|
|
|
| Net change in cash and cash equivalents | 101,761 | - | 101,761 | (97,325) | (3,535) | (100,860) | Cash and cash equivalents, beginning of the period | 89,521 | - | 89,521 | 278,949 | 52,087 | 331,036 | Cash and cash equivalents, end of the period | 191,282 | - | 191,282 | 181,624 | 48,552 | 230,176 |
|
|
|
|
|
|
| Supplemental cash flow information: |
|
|
|
|
|
| Changes in fair value of available-for sale-investments | (20,708) | (4,347) | (25,055) | (10,722) | 3,268 | (7,454) |
| 18 & 22 |
