	English [member]
Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Gulf General Cooperative Insurance Co.
Company symbol code\| ISIN code	8260 \| SA12CG541219
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Annual
Reporting period start date	2022-01-01	2021-01-01
Reporting period end date	2022-12-31	2021-12-31
Description of nature of financial statements	Consolidated
Status of financial statements	Audited
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

[200100] Independent auditors report

Primary auditor [member]

Second primary auditor [member]

English [member]

Start Date

2022-01-01

End Date

2022-12-31

Auditors information [line items]

Details of auditors signing report [abstract]

Name of auditor signing report

Ebrahim Oboud Baeshen

Abdullah Suleiman Almsned

Registration number of auditor

License No. 382

License No. 456

Details of audit firm [abstract]

Name of audit firm

KPMG Professional Services

Al Kharashi & Co

Registration number of audit firm

4030290792

Contact number of audit firm

هاتف 920028229 966+

Address of audit firm

Zahran Business Center

Prince Sultan Street

P.O. Box 55078

Jeddah 21534

Kingdom of Saudi Arabia

Headquarter in Riyadh

For Al Kharashi & Co

Certified Accountants and Auditors

English [member]

Start Date

2022-01-01

End Date

2022-12-31

Auditors report [line items]

Disclosures of auditors report [text block]

Opinion

We have audited the financial statements of Gulf General Coopertaive Insurance Company (the “Company”), which comprise the statement of financial position as at 31 December 2022 and the statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, comprising significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2022, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (‘‘SOCPA’’).

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing (“ISAs”) that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards), that is endorsed in the Kingdom of Saudi Arabia, that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with the Code’s requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to Note 2(b) of the financial statements, which indicates that the Company incurred a net loss of SR 104.32 million during the year ended 31 December 2022 and, as of that date, the Company’s accumulated losses amounted to SR 236.05 million which represents 47.2% of the share capital. These conditions along with other matters as set forth in note 2(b), indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matter (continued)

Key audit matter

How the matter was addressed in our audit

Valuation of ultimate claim liability arising from insurance contract

As at 31 December 2022, gross outstanding claims, claims incurred but not reported (IBNR) and other reserves amounted to SR 65.9 million and SR 20 million respectively.

The estimation of insurance contract liabilities involves a significant degree of judgement. The liabilities are based on the best-estimate of the ultimate cost of all claims incurred but not settled at the reporting date, whether reported or not, together with the related claims handling costs. The Company principally uses an external actuary ("management's expert") to provide them with the estimate of such liabilities. A range of methods were used to determine these provisions based on a number of explicit or implicit assumptions relating to the expected settlement amounts and settlement patterns of claims.

Due to the estimation uncertainty and subjectivity involved in the assessment of valuation of ultimate claim liabilities arising from insurance contracts, we have considered this as a key audit matter.

Refer to note 2.5.1 which which contains the disclosure of critical accounting judements, estimates and assumptions relating to the ultimate liability arising from claims under insurance contracts and note 3.4.8 which discloses accounting policies for claims.

We performed following procedures:

understood, evaluated and tested key controls around the claims handling process;

performed substantive tests on the amounts recorded for a sample of claims notified and paid; including comparing the gross outstanding claims amount to appropriate source documentation to evaluate the valuation of gross outstanding claim reserves;

evaluated the competence, capabilities and objectivity of the management's actuarial expert based on their professional qualifications and experience and assessed their independence;

checked the completeness and accuracy of the underlying data used by the management in estimating the insurance contract liabilities;

engaged our actuarial specialists to assess the methodology and reasonableness of the key assumptions and judgments used by the management in determining the insurance contract liabilities; and

assessed the adequacy and appropriateness of the related disclosures in the financial statements

Other Information

Management is responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements and our auditors’ report thereon. The annual report is expected to be made available to us after the date of this auditors’ report.

Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, when made available to us, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of the Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the IFRSs that are endorsed in the Kingdom of Saudi Arabia and other standards and prouncemnts issued by SOCPA ,the applicable requirements of the Regulations for Companies, and the Company’s By-laws, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Those charged with governance (ie the Board of Directors) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Audting that are endorsed in the Kingdom of Saudi Arabia, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Independent auditors’ report

To the Shareholders of Gulf General Cooperative Insurance Company

Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

As part of an audit in accordance with International Standards on Audting that are endorsed in the Kingdom of Saudi Arabia, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit of Gulf General Cooperative Insurance Company (the “Company”).

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, actions taken to eliminate threats or safeguards applied.

Independent auditors’ report

To the Shareholders of Gulf General Cooperative Insurance Company

Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Contents of auditors report [abstract]

Nature of auditors opinion

Unmodified opinion

Auditors opinion

Basis of opinion

Date of signing audit report by auditor

2023-03-20

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	15,499	13,120
Deferred policy acquisition costs	12,892	7,283
Reinsurers/ retakaful share of unearned premiums/ contributions	27,257	21,707
Prepayments and other assets, insurance/ takaful operations assets	68,198	41,630
Premiums/ insurance receivables/takaful contributions receivable, net	140,076	96,907
Reinsurers/ retakaful share of outstanding claims/ benefits, net	17,549	28,338
Time (Murabaha) deposits, insurance/ takaful operations assets	14,449
Cash and cash equivalents, insurance/ takaful operations assets	4,362	24,820
Other assets, insurance/ takaful operations assets	13,980	11,181
Total insurance/ takaful operations assets	314,262	244,986
Shareholders assets [abstract]
Goodwill	36,260	36,260
Statutory deposit	75,000	75,000
Prepayments and other assets, shareholders assets	776	262
Time (Murabaha) deposits, shareholders assets	125,000
Available-for-sale investments, shareholders assets	46,790	48,755
Due from insurance/ takaful operations assets	-11,802	-16,307
Cash and cash equivalents, shareholders assets	789	231,292
Other assets, shareholders assets	3,634	2,495
Total shareholders assets	276,447	377,757
Total assets	590,709	622,743
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	149,652	103,835
Unearned commission income	5,144	4,380
Employees end of service benefits, insurance/ takaful operations liabilities	4,661	5,157
Surplus distribution payable	8,738	8,738
Due to shareholders operations	-11,802	-16,307
Reinsurers/ retakaful balance payable	32,158	22,680
Gross outstanding claims/ benefits including IBNR payable	79,054	90,578
Other technical reserves	6,936	4,672
Accrued expenses payable, insurance/ takaful operations liabilities	38,324	19,592
Other liabilities, insurance/ takaful operations	27	1,224
Total insurance/ takaful operations liabilities	312,892	244,549
Total insurance/ takaful operations liabilities and surplus (deficit)	312,892	244,549
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	4,236	2,287
Accrued expenses payable, shareholders liabilities	2,331	2,539
Other liabilities, shareholders liabilities	3,634	2,495
Total shareholders liabilities	10,201	7,321
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	500,000	500,000
Statutory reserve	2,165	2,165
Retained earnings (accumulated losses)	-235,919	-131,729
Other reserves	1,370	437
Total equity attributable to owners of parent	267,616	370,873
Total equity attributable to equity holders of company	267,616	370,873
Total shareholders liabilities and equity	277,817	378,194
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	590,709	622,743

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	373,293	296,751
Excess of loss expense	16,351	13,856
Reinsurance/ retakaful premiums ceded	71,667	63,507
Net premiums/ contributions written	285,275	219,388
Changes in unearned premiums/ contributions	40,265	-11,645
Net premiums/ contributions earned	245,010	231,033
Reinsurance/ retakaful commissions	13,594	19,615
Fees and other income from insurance/ takaful operations	98	89
Total income from insurance/ takaful operations	258,702	250,737
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	283,598	248,279
Reinsurance/ retakaful share of gross claims/ benefits paid	31,609	43,840
Net claims/ benefits paid	251,989	204,439
Changes in outstanding claims/ benefits including IBNR	-1,547	14,374
Changes in other technical reserves	2,264	12,862
Net claims/ benefits incurred	252,706	231,675
Policy acquisition costs	40,630	35,361
Impairment charges for other assets, insurance/ takaful operations	4,042
General and administrative expenses, insurance/ takaful operations	79,599	78,255
Other underwriting income	24,059
Other cost and expenses	813	-1,250
Total cost and expenses	353,731	344,041
Surplus (deficit) for period from insurance/ takaful operations	-95,029	-93,304
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	-95,029	-93,304
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0
Policyholders share of accumulated surplus, at end of period	0	0

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	-95,029	-93,304
Revenue [abstract]
Income from murabaha/ time deposits	3,440	816
Unrealised gain (loss) on investments held as fair value through statement of income	-4,965	11,886
Other income	319	407
Total revenue	-1,206	13,109
Expenses [abstract]
General and administrative expenses, shareholders operations	3,937	3,880
Total expenses	3,937	3,880
Income (loss) from continuing operations before zakat and income tax	-100,172	-84,075
Zakat expenses on continuing operations for period	4,018	2,701
Profit (loss) from continuing operations	-104,190	-86,776
Profit (loss) for the period	-104,190	-86,776
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	-104,190	-86,776
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	-2.08	-3.16
Total basic earnings (loss) per share	-2.08	-3.16
Weighted average number of equity shares outstanding	50000000	27500000
Share closing price at the last trading day of financial year (in numbers)	6.81	12.64

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Other comprehensive gains (losses) that will not be reclassified to profit or loss	933	-667
Total other comprehensive income that will not be reclassified to profit or loss	933	-667
Total other comprehensive income (loss)	933	-667
Total comprehensive income (loss) for period	933	-667

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	-104,190	-86,776
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Remeasurement gains (losses) on defined benefit plans	933	-667
Total other comprehensive income that will not be reclassified to profit or loss	933	-667
Total other comprehensive income (loss)	933	-667
Total comprehensive income (loss) for period	-103,257	-87,443
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	-103,257	-87,443

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	2,322	432
Adjustments for allowance for doubtful receivables		1,778
Adjustments for impairment (reversal of impairment) charges for investments, insurance/ takaful operations cash flow	4,042
Other adjustments to reconcile net income to net cash from insurance/ takaful operating activities	2,226	2,936
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	8,590	5,146
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-47,211	-39,036
Adjustments for decrease (increase) in prepayments and other assets	-26,568	-8,305
Adjustments for increase (decrease) in outstanding claims including IBNR	-11,524	39,006
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	9,478	-2,738
Adjustments for increase (decrease) in accrued expenses and other liabilities	18,732	-4,608
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	7,961	-9,227
Adjustments for decrease (increase) in deferred policy acquisition costs	-5,609	1,332
Adjustments for decrease (increase) in deferred excess of loss expense	2,828	-4,449
Adjustments for decrease (increase) in unearned commission income	764	-2,151
Adjustments for decrease (increase) in due from shareholders operations	4,505	-12,837
Adjustments for movement in gross unearned premiums/ contributions	45,817	-27,604
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	-5,550	15,959
Adjustment for changes in other technical reserves	2,264	1,902
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	437	319
Total changes in operating assets and liabilities	-3,676	-52,437
Net cash flows from (used in) insurance/ takaful operations	4,914	-47,291
Net cash flows from (used in) operating activities, insurance/ takaful operations	4,914	-47,291
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Time (Murabaha) deposits, insurance/ takaful operations cash flow	-14,449
Purchase of property and equipment, insurance/ takaful operations cash flow	4,701	7,124
Other inflows (outflows) of cash classified as investing activities, insurance/ takaful operations cash flow	-5,025	-3,853
Net cash flows from (used in) investing activities, insurance/ takaful operations	-24,175	-10,977
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Other inflows (outflows) of cash classified as financing activities, insurance/ takaful operations cash flow	-1,197	-687
Net cash flows from (used in) financing activities, insurance/ takaful operations	-1,197	-687
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-20,458	-58,955
Net increase (decrease) in cash and cash equivalents	-20,458	-58,955
Cash and cash equivalents at beginning of period	24,820	83,775
Cash and cash equivalents at end of period	4,362	24,820

Start Date	2022-01-01	2021-01-01
End Date	2022-12-31	2021-12-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	-100,172	-84,075
Net profit (loss) for period (before zakat expenses and income tax)	-100,172	-84,075
Adjustments to reconcile profit (loss) [abstract]
Adjustments for unrealised loss (gain) on investments held as fair value through statement of income, shareholders cash flow	4,966	-11,886
Total adjustments to reconcile profit (loss)	4,966	-11,886
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	-208	239
Adjustments for increase (decrease) in due to insurance/ takaful operations	-4,505	12,833
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	-515	62
Total changes in operating assets and liabilities	-5,228	13,134
Net cash flows from (used in) operations	-100,434	-82,827
Other inflows (outflows) of cash	-2,069	-3,682
Net cash flows from (used in) operating activities	-102,503	-86,509
Cash flows from (used in) investing activities [abstract]
Proceeds form Murabaha/ time deposits matured during the period	-128,000	0
Net cash flows from (used in) investing activities	-128,000	0
Cash flows from (used in) financing activities [abstract]
Proceeds from issuing shares		300,000
Payment of transaction costs	0	4,818
Other inflows (outflows) of cash		-55,000
Net cash flows from (used in) financing activities	0	240,182
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-230,503	153,673
Net increase (decrease) in cash and cash equivalents	-230,503	153,673
Cash and cash equivalents at beginning of period	231,292	77,619
Cash and cash equivalents at end of period	789	231,292

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2022-01-01

End Date

2022-12-31

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

1. Organization and principal activities

Gulf 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 Street

Jeddah, Kingdom of Saudi Arabia

The Company also has the following branches, which are operating under separate commercial registrations:

Branch	Commercial Registration No.	Date of Registration

Riyadh	1010316823	29 Shawwal 1432H (corresponding to 27 September 2011)
Al Khobar	2051046836	19 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 Arabian Monetary Authority ("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, accident & liability, marine, property and engineering.

In accordance with the by-laws of the Company, the surplus arising from the insurance operations is distributed as follows:

Transfer to shareholders’ operations			90%
Transfer to insurance operations			10%
			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 Article 70 of SAMA implementing regulations, 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.

1.GENERAL (continued)

1. Portfolio transfer

On 19 May 2012, the Company entered into an agreement with Saudi General Insurance Company E.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. The goodwill payments are governed by rules and regulations issued by SAMA in this regard and are also subject to SAMA approval.

In December 2013, consequent to SAMA approval, a sum of SR 18.13 million payable to the Sellers for goodwill was adjusted against amount receivable from them. Further, SAMA approved additional payment of SR 5.37 million to the Sellers relating to 2012 profits, which was transferred to amount due to related parties, as at 31 December 2013, and settled in 2014. Further, during the year ended 31 December 2014, consequent to SAMA's approval, dated 28 Shawwal 1435H (corresponding to 24 August 2014), a payment of SR 2.96 million was made to the Sellers in respect of goodwill, out of 2013 profits. During the year ended 31 December 2015, consequent to SAMA's approval, dated 3 Rajab 1436H (corresponding to 22 April 2015), a final payment of SR 9.80 million was made to the Sellers in respect of goodwill, out of 2014 profits.

Disclosure of statement of compliance [text block]

1. Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements that are issued by Saudi Organization of Chartered and Professional Accountants (SOCPA) (collectively referred to as “IFRS as endorsed in KSA”).

As required by Saudi Arabian Insurance Regulations, the Company maintains separate book of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly. The physical custody of all assets related to the Insurance Operations and Shareholders’ Operations are held by the Company. 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 by the management and Board of Directors of the Company.

The statement of financial position, statement of income and statement of comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in note 31 of the financial statement have been provided as supplementary financial information and to comply with the requirements of regulations. The regulations requires the clear segregation of the assets, liabilities, income and expenses of the Insurance Operations and the Shareholders Operations. Accordingly, the statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred below in note 31 reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.

In preparing the Company’s financial statements in compliance with IFRS as endorsed in KSA, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the Insurance Operations and Shareholders Operations are uniform for like transactions and events in similar circumstances.

The Company is required to distribute 10% of the net surplus from insurance operations to policyholders and the remaining 90% is to be allocated to the shareholders of the Company in accordance with the Insurance Law and Implementation Regulations issued by the Saudi Central Bank. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full.

There are no seasonal changes that may affect the insurance operations of the Company.

2.1

Disclosure of new standards and amendments in standards [text block]

1. New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (“IFRICs”) and Amendments thereof, adopted by the Company

A number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after 01 January 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards which are described below:

Standard / Interpretation	Description

IAS 37	Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)
IAS 16	Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)
IFRS 3	Reference to the Conceptual Framework (Amendments to IFRS 3)
Annual improvements	Annual Improvements to IFRS Standards 2018–2020

3.1

Disclosure of issued IFRS not yet adopted [text block]

1. New IFRSs, IFRICs and Amendments thereof, issued but not yet effective

Standards and interpretation issued but not yet effective up to the date of issuance of the Company’s financial statements are listed below. A number of new standards are effective for annual periods beginning after 1 January 2022 and earlier application is permitted. However, the Company has not early adopted the new standards in preparing the financial statements. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they become effective.

3.2

Disclosure of critical accounting judgements, estimates and assumptions, general [text block]

2.6 Critical accounting judgements, estimates and assumptions

The preparation of financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the reporting date and the reported amounts of revenue and expenses during the reporting year. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates.

Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Following are the accounting judgments and estimates that are critical in preparation of these financial statements.

2.6

Disclosure of summary of significant accounting policies [abstract]

Description of accounting policy for cash and cash equivalents [text block]

1. Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and balances with banks including Murabaha deposits with less than three months maturity from the date of acquisition.

3.3.21

[100010] Filing information	[200100] Independent auditors report	[300100] Statement of financial position, order of liquidity
[300200] Statement of insurance/ takaful operations, nature of expense	[300300] Statement of shareholders operations, nature of expense	[300400] Statement of other comprehensive income, before tax, insurance operations
[300500] Statement of other comprehensive income, before tax, shareholders operations	[300600] Statement of cash flows, indirect method, insurance operations	[300700] Statement of cash flows, indirect method, shareholders operations
[300800] Statement of changes in equity	[400100] Notes forming part of accounts