| 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] | ORGANIZATION AND PRINCIPLE ACTIVITIESGulf General Cooperative Insurance Company ("GGCI" or the "Company") is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia as per the Ministry of Commerce and Industry's Resolution number 12/Q dated 17 Muharram 1431H (corresponding to 3 January 2010) and registered under Commercial Registration number 4030196620 dated 9 Safar 1431H (corresponding to 25 January 2010). The registered address of the Company’s head office is as follows:Gulf General Cooperative Insurance Company Al Gheithy Plaza, Second Floor,Ameer Al Shoura'a StreetJeddah, Kingdom of Saudi ArabiaThe Company also has the following branches, which are operating under separate commercial registrations:BranchCommercial Registration No.Date of RegistrationRiyadh101031682329 Shawwal 1432H(corresponding to 27 September 2011)Al Khobar205104683619 Dhul Qa’dah 1432H (corresponding to 17 October 2011)The Company is licensed to conduct insurance business in the Kingdom of Saudi Arabia under cooperative principles in accordance with Royal Decree No. M/85 dated 5 Thul Hujja 1429H (corresponding to 3 December 2008) pursuant to Council of Ministers' Resolution No. 365 dated 3 Thul Hujja 1429H (corresponding to 1 December 2008). The Company obtained a license to conduct insurance operations in the Kingdom of Saudi Arabia from the Saudi Central Bank ("SAMA") on 20 Rabi-al-Awwal 1431H (corresponding to 6 March 2010). The Company was listed on the Saudi Arabian Stock Exchange (“Tadawul”) on 24 Safar 1431H (corresponding to 8 February 2010).The objectives of the Company are to engage in providing insurance and related services, which include reinsurance, in accordance with its by-laws, and applicable regulations in the Kingdom of Saudi Arabia. Its principal lines of business include medical, motor, property, engineering, marine and accident and liability.In accordance with the By-laws of the Company, the surplus arising from the insurance operations is distributed as follows:Transfer to shareholders’ operations90%Transfer to insurance operations10%100%In case of deficit arising from the insurance operations, the entire deficit is allocated and transferred to the shareholders’ operations in full.In accordance with the Implementing Regulations issued by SAMA, the Company proposes to distribute, subject to the approval of SAMA, its annual net policyholders’ surplus directly to policyholders at a time, and according to criteria, as set by its Board of Directors.Portfolio transferOn 19 May 2012, the Company entered into an agreement with Saudi General Insurance CompanyE.C. (“SGI”) and Gulf Cooperation Insurance Company Ltd. E.C. (“GCI”) (the "Sellers") pursuant to which it acquired the sellers' insurance operations in the Kingdom of Saudi Arabia, effective 1 January 2009, at a goodwill amount of SR 36.26 million, as approved by SAMA, along with the related insurance assets and liabilities of an equivalent amount. | |
| Disclosure of statement of compliance [text block] | 2.1Statement of complianceThe 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 and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA).These interim condensed financial statements have been prepared under the going concern basis and historical cost convention, except for the measurement of investments held at fair value through income statement (“FVIS”) and available-for-sale investment that are measured at fair value, and employees’ defined benefit obligations which is recognized at the present value of future obligations using the projected unit credit method.The Company’s interim condensed statement of financial position is presented in order of liquidity. Except for available-for-sale investment, property and equipment, right-of-use assets, intangible assets, goodwill, statutory deposit, accrued income on statutory deposit, employees’ defined benefit obligations, lease liabilities and accrued income payable to SAMA, all other assets and liabilities are of short-term nature, unless, stated otherwise.The Company’s Board of Directors has made an assessment of its ability to continue as a going concern and is satisfied that it will be able to continue as a going concern in the foreseeable future. Furthermore, the Board of Directors are not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the interim condensed financial statements have been prepared on the going concern basis.Accordingly, management believes that the Company's operations shall continue for a foreseeable future under the normal course of business and the going concern basis used in the preparation of this interim condensed financial information remains appropriate.As required by Saudi Arabian Insurance Regulations (“the Implementing Regulations”) the Company maintains separate books of accounts for “Insurance operations” and “Shareholders’ operations”. Accordingly, assets, liabilities, revenues and expenses attributable to either operation, are recorded in the respective accounts. Note 21 to these interim condensed financial statements provides the statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations, separately.The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements as of and for the year ended 31 December 2019.The interim condensed financial statements may not be considered indicative of the expected results for the full year.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SR) and are rounded off to the nearest thousands. | |
| Disclosure of new standards and amendments in standards [text block] | 3. SIGNIFICANT ACCOUNTING POLICIESThe accounting policies, estimates, and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2019, except as explained below:3.1 New IFRS Standards, IFRIC interpretations and amendments thereof, adopted by the CompanyThe following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (“IASB”) have been effective from 1 January 2021 and accordingly adopted by the Company, as applicable:Standard / AmendmentsDescriptionAmendments to IAS 1 & IAS 8Definition of MaterialAmendments to IFRS 3Definition of a BusinessConceptual FrameworkAmendments to References to Conceptual Framework in IFRS StandardsThe adoption of the amended standards and interpretations applicable to the Company did not have any significant impact on these interim condensed financial statements. | |
| Disclosure of issued IFRS not yet adopted [text block] | 3.2.Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The Company intends to adopt these standards, when they become effective.Standard / InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 17 – Insurance ContractsOverview:This standard has been published on 18 May 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:embedded derivatives, if they meet certain specified criteria;distinct investment components; andany promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). Measurement:In contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The General Measurement Model (“GMM”) is based on the following “building blocks” of:a)the fulfilment cash flows (“FCF”), which comprises:probability-weighted estimates of future cash flows,an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows; and a risk adjustment for non-financial risk;3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)3.2Standards issued but not yet effective (continued)IFRS 17 – Insurance Contracts (continued)Measurement (continued):b)the Contractual Service Margin (“CSM”). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services. Since the CSM cannot be negative, changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model;i) changes in the entity’s share of the fair value of underlying items,ii) changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)3.2Standards issued but not yet effective (continued)IFRS 17 – Insurance Contracts (continued)Effective date:The IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4, is currently 1 January 2021. Under the current exposure draft, it is proposed to amend the IFRS 17 effective date to reporting periods beginning on or after 1 January 2023. This is a deferral of 1 year compared to the previous date of 1 January 2021. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intend to apply the standard on its effective date.Transition:Retrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and Disclosures:The Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures.Impact:The Company is currently assessing the impact of the application and implementation of IFRS 17. As of 30 June 2020, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company has started with their implementation process and have set up an implementation committee. Further, the Company has undertaken a Gap Analysis and the key areas of Gaps are as follows:Impact areaSummary of impactFinancial impactNot yet fully assessed by the Company.Data impactThe Company believes that the data impact is not likely to be significant as a major proportion of the company’s business would qualify for measurement under the premium allocation approach.IT systemsThe Company is already in the process of implementing a new upgraded IT system which will facilitate the implementation of IFRS 17Process impactThe process impact is under evaluation, but no significant process changes are anticipated.Impact on reinsurance arrangementsThe Company’s reinsurance arrangements are currently under testing to determine the suitable measurement approachImpact on policies & control’s frameworksThe Company is currently working with an external consultant to review and modify the current policy control frameworkHuman resourcesThe Company needs to recruit suitably qualified personnel who have a comprehensive understanding of IFRS 17At the date of publication of these financial statements, it was not practicable to quantify the potential impact of adopting IFRS 17.3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)3.2Standards issued but not yet effective (continued)IFRS 9 – Financial InstrumentsThis standard was published on 24 July 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a) Classification and measurement:IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and;ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale and;ii) the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalents comprise of the following:30 June 2020 (Unaudited)31 December 2019 (Audited)SR’000SR’000Insurance operationsCash in hand 2332Cash at banks (see note below)27,18511,226Murabaha deposits with maturity less than three months (see note 5) 64,12834,00091,33645,258Shareholders’ operationsCash at banks 9,1816,557Murabaha deposits with maturity less than three months (see note 5) 62,15062,00071,33168,557Total of cash and cash equivalents162,667113,815 | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of property and equipment [text block] | Property and equipment are stated at cost less accumulated depreciation and impairment losses if any. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Expenditure incurred to replace a component of an item of property and equipment that is accounted for separately is capitalized and the carrying amount of the component that is replaced is written off. All other repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives of the assets for the calculation of depreciation are as follows:CategoryYearsLeasehold improvements8Furniture and fittings10Computer and office equipment4Motor vehicles4The assets’ residual values and useful lives are reviewed at each reporting date and adjusted if appropriate. The carrying values of these assets are reviewed for impairment when event or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount being the higher of their fair value less costs to sell and their value-in-use.Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in the statement of income. | |
| Disclosure of reinsurers/ retakaful share of outstanding claims, net [text block] | Net outstanding claims and other technical reserves comprise of the following:30 June 2020 (Unaudited)31 December 2019 (Audited)SR’000SR’000Outstanding claims32,06731,478Claims incurred but not reported27,47437,060Premium deficiency reserve4,224 3,801Other technical reserves2,235 2,21266,00074,551Less: Reinsurers’ share of outstanding claims11,81912,441Reinsurers’ share of claims incurred but not reported9,48113,95221,30026,393Net outstanding claims and reserves44,70048,158 | |
| Disclosure of investments [text block] | 30 June 2020 (Unaudited)31 December 2019 (Audited)SR’000SR’000Shareholders’ operationsInvestments held at fair value through income statement (“FVIS”) (note 7.1)-Equity securities 19,97922,721-Mutual funds 18,47818,70438,45741,425Available-for-sale investment (note 7.2)1,9231,923Total of investments40,38043,348 | |
