	English [member]
Start Date	2018-07-01	2017-07-01
End Date	2018-09-30	2017-09-30
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Al Alamiya for Cooperative Insurance Co.
Company symbol code\| ISIN code	8280 \| SA12CG541C16
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	Quarter 3
Reporting period start date	2018-07-01	2017-07-01
Reporting period end date	2018-09-30	2017-09-30
Description of nature of financial statements	Consolidated
Status of financial statements	Reviewed
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	Primary auditor [member]	Second primary auditor [member]
	English [member]	English [member]
Start Date	2018-07-01	2018-07-01
End Date	2018-09-30	2018-09-30
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Waleed bin Moh'd Sobahi	Abdullah M.Al Basri
Registration number of auditor	378	171
Details of audit firm [abstract]
Name of audit firm	Deloitte and Touche & Co	Aldar Audit Bureau
Address of audit firm	P.O. Box 213, Riyadh,11411 Kingdom of Saudi Arabia	P.O.Box 2195, Riyadh 11451, Kingdom of Saudi Arabia

	English [member]
Start Date	2018-07-01
End Date	2018-09-30
Auditors report [line items]
Disclosures of auditors report [text block]	THE SHAREHOLDERS OF AL ALAMIYA FOR COOPERATIVE INSURANCE COMPANY (A SAUDI JOINT STOCK COMPANY)
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements as at 30 September 2018 of Al Alamiya for Cooperative Insurance Company are not prepared, in all material respects, in accordance with IAS 34 'Interim Financial Reporting' as modified by SAMA for the accounting of zakat and income tax.
Basis of opinion	We have reviewed the accompanying interim condensed statement of financial position of Al Alamiya for Cooperative Insurance Company (A Saudi Joint Stock Company) (the “Company”) as atSeptember 302018, the interim condensed statements of income and comprehensive income for three-month and nine-month periods then ended, the interim condensed statements ofchanges in shareholders’ equity and cash flows for thenine month period then ended and notes to the interim condensed financial statements.
Responsibilities of management and those charged with governance for financial statements	Management is responsible for the preparation and presentation of these interim condensed financial statements in accordance withIAS 34 “Interim Financial Reporting” as modified by the Saudi Arabian Monetary Authority ("SAMA") for the accounting of zakat and income tax.
Auditors responsibilities for audit of financial statements	our responsibility is to express a conclusion on these interim condensed financial statements based on our review.
Date of signing audit report by auditor	2018-11-11

Start Date	2018-01-01	2017-01-01	2017-01-01	Note No.
End Date	2018-09-30	2017-12-31	2017-09-30
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	1,253	686	419
Due from related parties, insurance/ takaful operations assets	0	31	37
Deferred policy acquisition costs	6,346	3,792	6,059
Reinsurers/ retakaful share of unearned premiums/ contributions	41,718	49,140	49,885	7.2
Prepayments and other assets, insurance/ takaful operations assets	3,292	2,950	3,336
Premiums/ insurance receivables/takaful contributions receivable, net	70,433	81,184	89,849	5
Reinsurers/ retakaful share of outstanding claims/ benefits, net	52,766	66,883	58,564	7.1
Time (Murabaha) deposits, insurance/ takaful operations assets	199,463	181,538	172,886
Deferred excess of loss premiums	2,103	0	0	7.2
Cash and cash equivalents, insurance/ takaful operations assets	31,952	15,010	14,738	4
Other assets, insurance/ takaful operations assets	1,923	1,923	1,923
Total insurance/ takaful operations assets	411,249	403,137	397,696
Shareholders assets [abstract]
Statutory deposit	40,000	40,000	40,000
Prepayments and other assets, shareholders assets	4,048	2,430	1,578
Time (Murabaha) deposits, shareholders assets	239,958	252,567	252,229
Available-for-sale investments, shareholders assets	89,802	75,355	75,653
Due from insurance/ takaful operations assets	47,636	29,936	19,017
Cash and cash equivalents, shareholders assets	1,883	1,641	1,060
Other assets, shareholders assets	3,059	2,204	2,204
Total shareholders assets	426,386	404,133	391,741
Total assets	837,635	807,270	789,437
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	100,040	100,103	92,908	7.2
Unearned commission income	4,875	4,465	6,354
Employees end of service benefits, insurance/ takaful operations liabilities	11,848	10,921	9,145
Surplus distribution payable	11,253	9,616	10,440
Due to shareholders operations	47,636	29,936	19,017
Due to related parties, insurance/ takaful operations liabilities	1,655	651	525
Reinsurers/ retakaful balance payable	54,382	40,720	60,799
Gross outstanding claims/ benefits including IBNR payable	135,423	163,975	159,450	7.1
Other technical reserves	1,471	1,733	0	7.1
Accrued expenses payable, insurance/ takaful operations liabilities	44,341	42,692	39,058
Other liabilities, insurance/ takaful operations	-1,675	-1,675	0
Total insurance/ takaful operations liabilities	411,249	403,137	397,696
Total insurance/ takaful operations liabilities and surplus (deficit)	411,249	403,137	397,696
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	33,906	28,484	27,487
Income tax payable	2,004	2,571	2,316
Due to related parties, shareholders liabilities	413	413	413
Accrued expenses payable, shareholders liabilities	3,917	3,596	3,060
Other liabilities, shareholders liabilities	3,059	2,204	2,204
Total shareholders liabilities	43,299	37,268	35,480
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	400,000	400,000	400,000	13
Fair value reserve on investments, shareholders equity	-1,651	-860	-698
Retained earnings (accumulated losses)	-15,262	-32,275	-43,041
Total equity attributable to owners of parent	383,087	366,865	356,261
Total equity attributable to equity holders of company	383,087	366,865	356,261
Total shareholders liabilities and equity	426,386	404,133	391,741
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	837,635	807,270	789,437

Start Date	2018-07-01	2017-07-01	2018-01-01	2017-01-01	Note No.
End Date	2018-09-30	2017-09-30	2018-09-30	2017-09-30
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	55,142	57,162	212,211	191,600
Excess of loss expense	0	0	7,641	9,154
Reinsurance/ retakaful premiums ceded	29,746	35,704	84,970	76,809	7.2
Net premiums/ contributions written	25,396	21,458	119,600	105,637
Changes in unearned premiums/ contributions	-18,530	-13,205	-63	-27,177
Reinsurance/ retakaful share of unearned premiums/ contributions	882	-6,661	7,422	17,152
Changes in Excess of Loss premium	-1,977	-2,325	2,103	1,860
Net premiums/ contributions earned	41,067	38,999	114,344	117,522
Reinsurance/ retakaful commissions	3,301	2,835	9,093	11,091
Investment income from insurance/ takaful operations, net	1,028	649	2,754	2,184
Fees and other income from insurance/ takaful operations	0	0	0	16
Total income from insurance/ takaful operations	45,396	42,483	126,191	130,813
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	38,759	18,148	80,227	56,079
Reinsurance/ retakaful share of gross claims/ benefits paid	17,436	3,199	26,068	14,703
Net claims/ benefits paid	21,323	14,949	54,159	41,376
Changes in outstanding claims/ benefits including IBNR	-4,863	4,740	-13,612	3,312
Changes in reinsurance/ retakaful share of outstanding claims/ benefits	125	-7,869	-822	-12,493
Changes in other technical reserves	529	0	-262	-704
Net claims/ benefits incurred	17,114	11,820	39,463	31,491
Policy acquisition costs	4,574	5,529	13,744	19,931
General and administrative expenses, insurance/ takaful operations	14,330	13,358	42,701	38,380
Other underwriting expenses	355	329	1,026	1,007
Other cost and expenses	2,010	2,800	6,328	7,207
Total cost and expenses	38,383	33,836	103,262	98,016
Surplus (deficit) for period from insurance/ takaful operations	7,013	8,647	22,929	32,797
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	6,311	7,782	20,636	29,517
Net result for period from insurance/ takaful operations after shareholders appropriation	702	865	2,293	3,280	15B
Policyholders share of accumulated surplus, at end of period	702	865	2,293	3,280

Start Date	2018-07-01	2017-07-01	2018-01-01	2017-01-01
End Date	2018-09-30	2017-09-30	2018-09-30	2017-09-30
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	6,311	7,782	20,636	29,517
Revenue [abstract]
Investment income	551	442	1,643	1,267
Income from murabaha/ time deposits	1,387	1,009	3,731	2,943
Total revenue	1,938	1,451	5,374	4,210
Expenses [abstract]
General and administrative expenses, shareholders operations	390	420	1,417	1,260
Total expenses	390	420	1,417	1,260
Income (loss) from continuing operations before zakat and income tax	7,859	8,813	24,593	32,467
Profit (loss) from continuing operations	7,859	8,813	24,593	32,467
Profit (loss) for the period	7,859	8,813	24,593	32,467
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	5,891.8923	6,607.1061	18,437.3721	24,340.5099
Profit (loss), attributable to non-saudi shareholders of company	1,967.1077	2,205.8939	6,155.6279	8,126.4901
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.2	0.22	0.61	0.81
Total basic earnings (loss) per share	0.2	0.22	0.61	0.81
Weighted average number of equity shares outstanding	40000	40000

Start Date	2018-07-01	2017-07-01	2018-01-01	2017-01-01
End Date	2018-09-30	2017-09-30	2018-09-30	2017-09-30
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	702	865	2,293	3,280
Total comprehensive income (loss) for period	702	865	2,293	3,280

Start Date	2018-07-01	2017-07-01	2018-01-01	2017-01-01
End Date	2018-09-30	2017-09-30	2018-09-30	2017-09-30
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	7,859	8,813	24,593	32,467
Other comprehensive income [abstract]
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets	151	-118	-791	-9
Total other comprehensive income (loss), available-for-sale financial assets	151	-118	-791	-9
Total other comprehensive income (loss), that will be reclassified to profit or loss	151	-118	-791	-9
Total other comprehensive income (loss)	151	-118	-791	-9
Total comprehensive income (loss) for period	8,010	8,695	23,802	32,458
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	6,005.097	6,518.6415
Total comprehensive income (loss), attributable to non-saudi shareholders of company	2,004.903	2,176.3585

Start Date	2018-01-01	2017-01-01	Note No.
End Date	2018-09-30	2017-09-30
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	2,293	3,280
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	339	44
Adjustments for employees end of service benefits	1,400	1,650
Adjustments for allowance for doubtful receivables	6,328	7,208
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	8,067	8,902
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	4,423	-32,840
Adjustments for decrease (increase) in prepayments and other assets	-342	-994
Adjustments for increase (decrease) in outstanding claims including IBNR	-28,552	-10,549
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	13,662	6,780
Adjustments for increase (decrease) in accrued expenses and other liabilities	-645	-8,440
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	14,117	1,369
Adjustments for decrease (increase) in deferred policy acquisition costs	-2,554	-1,913
Adjustments for decrease (increase) in deferred excess of loss expense	-2,103	-1,860
Adjustments for decrease (increase) in unearned commission income	410	-553
Adjustments for decrease (increase) in due from shareholders operations	17,700	29,348
Adjustments for movement in gross unearned premiums/ contributions	-63	-27,177
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	7,422	17,152
Adjustment for changes in other technical reserves	-262	-704
Adjustment for (increase) decrease in Accounts payables	2,295	6,476
Adjustments for the changes in (increase) decrease in due to related parties	1,004	-329
Adjustment for the changes in end of service indeminities paid	-473	-2,307	22
Adjustment for change in surplus paid to policy holders	-656	-786
Adjustments for the changes in due from related parties	31	3,701
Total changes in operating assets and liabilities	25,414	-23,626
Net cash flows from (used in) insurance/ takaful operations	35,774	-11,444
Net cash flows from (used in) operating activities, insurance/ takaful operations	35,774	-11,444
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Time (Murabaha) deposits, insurance/ takaful operations cash flow	-17,926	1,093
Purchase of property and equipment, insurance/ takaful operations cash flow	906	303	12
Net cash flows from (used in) investing activities, insurance/ takaful operations	-18,832	790
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Adjustments for decrease (increase) in due from shareholders operations	0	0
Other inflows (outflows) of cash classified as financing activities, insurance/ takaful operations cash flow	0	0
Net cash flows from (used in) financing activities, insurance/ takaful operations	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	16,942	-10,654
Net increase (decrease) in cash and cash equivalents	16,942	-10,654
Cash and cash equivalents at beginning of period	15,010	25,392
Cash and cash equivalents at end of period	31,952	14,738

Start Date	2018-01-01	2017-01-01
End Date	2018-09-30	2017-09-30
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	24,593	32,467
Net profit (loss) for period (before zakat expenses and income tax)	24,593	32,467
Adjustments to reconcile profit (loss) [abstract]
Adjustment for depreciation and amortisation	310	215
Total adjustments to reconcile profit (loss)	310	215
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	-2,405	-3,321
Adjustments for increase (decrease) in amount due to related parties, shareholders cash flow	0	-648
Adjustments for increase (decrease) in due to insurance/ takaful operations	-17,700	-29,348
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	-1,618	45
Total changes in operating assets and liabilities	-21,723	-33,272
Net cash flows from (used in) operations	3,180	-590
Net cash flows from (used in) operating activities	3,180	-590
Cash flows from (used in) investing activities [abstract]
Purchase of available-for-sale investments	15,548	0
Proceeds form Murabaha/ time deposits matured during the period	12,610	1,441
Net cash flows from (used in) investing activities	-2,938	1,441
Cash flows from (used in) financing activities [abstract]
Proceeds from issuing shares	0	0
Other inflows (outflows) of cash	0	0
Net cash flows from (used in) financing activities	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	242	851
Net increase (decrease) in cash and cash equivalents	242	851
Cash and cash equivalents at beginning of period	1,641	209
Cash and cash equivalents at end of period	1,883	1,060

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2018-07-01

End Date

2018-09-30

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]

1. ORGANISATION AND PRINCIPAL ACTIVITIES

Al Alamiya for Cooperative Insurance Company (“the Company”) is a Saudi joint stock company registered on 29 Dhu-al Qu’dah, 1430H (17 November 2009) under commercial registration (CR) number 4030194978. The registered head office of the Company is in Riyadh under CR number of 1010287831 with branches in Jeddah (CR 4030194978) and Khobar (CR 2051042939). The registered address of the Company's head office is as follows:

Al Alamiya for cooperative insurance company

Prince Mohammed bin Abdul Aziz Road,

Home Centre Building, P.O. Box: 6393,

Riyadh 11442, Kingdom of Saudi Arabia

The activities of the Company are to transact cooperative insurance and reinsurance operations and all related activities in accordance with the Law on Supervision of Cooperative Insurance Companies and its implementing regulations in the Kingdom of Saudi Arabia. On 26 Dhu Al Hijjah, 1430H (13 December 2009), the Company received the license from Saudi Arabian Monetary Authority (“SAMA”) to transact insurance business in the Kingdom of Saudi Arabia.

Disclosure of basis of preparation of financial statements [text block]

2. BASIS OF PREPERATION

(a) 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 modified by SAMA for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through shareholders equity under retained earnings.

The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available for sale investments. 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 current: cash and cash equivalents, term deposits, premiums and reinsurers’ receivable, net, re insurance share of unearned premiums, reinsurance share of outstanding claims, deferred policy acquisition costs, deferred excess of loss premiums, prepaid expenses and other assets and investments with the exception of available for sale investments in insurance operations. The following balances would generally be classified as non-current property and equipment, statutory deposit, accrued interest on statutory deposit and available for sale investments in insurance operations

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 interim condensed 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 15 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, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred below in note 15 reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.

In preparing the Company-level financial information in compliance with IFRS, 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. Surplus from insurance operations’ and actuarial reserves from employee benefits are shown separately as Insurance Operations’ Surplus in the statement of financial position.

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 Arabian Monetary Authority (“SAMA”). Any deficit arising on insurance operations is transferred to the shareholders’ operations in full.

The interim condensed financial information do not include all of the information required for full annual financial information and should be read in conjunction with the annual financial information as of and for the year ended December 31, 2017.

These interim condensed financial information are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.

(b) Critical accounting judgments, estimates and assumptions

The preparation of interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these 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 were applied to the annual financial information as at and for the year ended 31December 2017.

(c) Seasonality of operations

The Company operates in an industry where significant seasonal or cyclical variations in operating income are experienced during the financial year.

Disclosure of summary of significant accounting policies [abstract]

Disclosure of summary of significant accounting policies, general comment [text block]

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies used in the preparation of these interim condensed financial information are consistent with those used in the preparation of the annual financial information for the year ended 31 December 2017 except for the adoption of the following new standards and other amendments to existing standards mentioned below which have had no significant financial impact on the unaudited interim condensed financial statements of the Company in the current period or prior period and is expected to have no significant effect in future periods. Certain figures for the prior year have been reclassified to conform to the presentation made in the current period:

Amendments to IASs’ - “Disclosure Initiative” applicable from 1 January 2018.

IFRS 2 Share-based payment

Amendments to IFRS 2 – “Share-based Payment”, applicable for the period beginning on or after 1 January 2018. The amendments cover classification and measurement of three accounting areas, first, measurement of cash-settled share-based payments, second, classification of share-based payments settled net of tax withholdings, and third, accounting for a modification of a share-based payment from cash-settled to equity-settled. The application of this new standard has no material impact on the Company’s interim condensed financial statements.

IFRS 15 Revenue from contracts with customers

IFRS 15 – “Revenue from Contracts with Customers” applicable from 1 January 2018 presents a five-step model to determine when to recognize revenue, and at what amount. The application of this standard could have a significant impact on how and when revenue is recognized (except for contracts that are within the scope of the Standards on lease insurance contracts and financial instruments), with new estimates and judgments, and the possibility of revenue recognition being accelerated or deferred. The application of this new standard has no material impact on the Company’s interim condensed financial statements.

Standards issued but not yet effective

In addition to the above-mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s condensed financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards, which have been published and are mandatory for compliance for the Company with effect from future dates.

IFRS 9 Financial Instruments

The implementation of IFRS 9 is expected to result in a significant portion of financial assets currently classified as available-for-sale being re-classified as at fair value through profit or loss or fair value through other comprehensive income (OCI). Credit allowances for financial assets carried at amortized cost and debt securities measured at fair value, with changes in fair value recognized in OCI, are expected to increase due to the introduction of the expected credit loss methodology. The Company will avail of the exemptions available to insurers and is considering deferring the implementation of IFRS 9 until a later date, but no later than January 1, 2021. 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. At the date of publication of these financial statements, it was not practicable to quantify what the potential impact would be on the financial statements once IFRS 9 will be adopted.

IFRS 17 - Insurance Contracts

IFRS 17 ‘Insurance contracts’ was published on May 18, 2017 with the effective date of 1 January 2021. IFRS 17 provides comprehensive guidance on accounting for insurance contracts and investment contracts with discretionary participation features. For non-life and short-term life insurance contracts IFRS 17 introduces mandatory discounting of loss reserves as well as a risk adjustment for non-financial risk, for which confidence level equivalent disclosure will be required. Further, IFRS 17 will change the presentation of insurance contract revenue, as gross premiums written will no longer be presented in profit or loss. At the date of publication of these financial statements, it was not practicable to quantify what the potential impact would be on the financial statements once IFRS 17 will be adopted.

IFRS 16 Leases

IFRS 16 – “Leases”, is applicable for the period beginning on or after 1 January 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The management believes that the adoption of IFRS 16 will not have a material impact on the Company’s financial statements.

Description of accounting policy for segment reporting [text block]

10. OPERATING SEGMENTS

Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess their performance.

Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the condensed statement of income.

Segment assets and liabilities comprise operating assets and liabilities.

There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2017.

Segment assets do not include (in respect of insurance operations) property and equipment, due from shareholders’ operations, bank balances and cash and cash equivalents, prepaid expenses and other assets, premiums and reinsurance balances receivable, net. Accordingly, these are included in unallocated assets and are managed and reported to the chief operating decision maker on a centralized basis.

Segment liabilities do not include (in respect of insurance operations) employees’ end of service benefits, reinsurance balances payable, accrued expenses and other liabilities. Accordingly these are included in unallocated liabilities and are managed and reported to the chief operating decision maker on a centralized basis.

These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.

Disclosure of notes forming part of accounts [abstract]

Disclosure of investments [text block]

6. INVESTMENTS

Investments are classified as follows:

SAR’000

September 30, 2018

(Unaudited)

December

31, 2017

(Audited)

Available for sale investments – Insurance operations *

1,923

1,923

Available for sale investments – Shareholders’ operations

89,802

75,355

Total available for sale investments

91,725

77,278

* This represents an investment in respect of the Company’s shareholding in Najm for Insurance Services which is a Claim’s Service Provider. This investment has been carried at cost in the absence of an active market or other means of reliably measuring its fair value. There has been no movement in this investment during the period ended 30 September 2018 and during the year ended 31 December 2017.

Movement in the investment balance for shareholders’ operations is as follows:

	Shareholders’ operations
SAR’000	September 30, 2018 (Unaudited)	December 31, 2017 (Audited)
Opening balance	75,355	75,877
Purchases	23,048	18,945
Disposals	(7,500)	(18,750)
Amortization of investments	(310)	(545)
Changes in fair value of investments	(791)	(172)
Closing balance	89,802	75,355

The geographical split of investments held as available for sale comprise of sukuks/ bonds issued by Government of Kingdom of Saudi Arabia and GCC (Gulf Cooperation Council) based companies through international stock exchanges.

These investments include Bonds and Sukuks amounting to SAR 20.2 million which are maturing in the next twelve months.

The cumulative unrealized loss in fair value of available for sale investments amounts to SR 1.65 million (31 December 2017: loss of SR 0.86 million) is presented with in the shareholders’ equity in the statement of financial position.

Disclosure of investments at fair value through statement of income [text block]

9. FAIR VALUES OF FINANCIAL INSTRUMENTS

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 advantageous 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.

Determination of fair value and fair value hierarchy

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.

		Fair value
SAR’000s	Carrying value	Level 1	Level 2	Level 3	Total
September 30, 2018 (unaudited)

Available for sale investments measured at fair value
Bonds and Sukuks	89,802	89,802	--	--	89,802

		Fair value
SAR’000s	Carrying value	Level 1	Level 2	Level 3	Total
December, 2017 (unaudited)

Available for sale investments measured at fair value
Bonds and Sukuks	75,355	56,118	19,237	--	75,355

The unlisted security of SR 1.92 million (2017: SR 1.92 million) held as part of Company’s insurance operations, were stated at cost in the absence of active markets or other means of reliably measuring their fair value.

During the period ended 30 September 2018, there were no transfers into or out of level 3 fair value measurements. As at 31 March 2018, available-for-sale investments with a carrying amount of SR 19.2 million were transferred from Level 2 to Level 1 because these investments are now being actively traded in the market. To determine the fair value of such investments, management used a valuation technique in which all significant inputs were based on observable market data. There were no transfers from Level 1 to Level 2 during the period ended 30 September 2018.

Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block]

5. PREMIUMS AND REINSURERS’ RECEIVABLE - NET

Receivables comprise amounts due from the following:

	Insurance operations
SAR’000	September 30, 2018 (Unaudited)	December 31, 2017 (Audited)

Policyholders	35,572	41,236
Brokers and agents	45,044	28,713
Related parties (note 11)	6,725	5,960
Receivables from reinsurers	4,105	19,968
	91,446	95,877
Provision for doubtful receivables	(21,013)	(14,693)
Premiums and reinsurers’ receivable – net	70,433	81,184

Allowance for impairment of receivables includes SAR 1.4 million (31 December 2017: SAR 1.2 million) against receivables from related parties.

Disclosure of cash and cash equivalents [text block]

4. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise the following:

SAR’000

September 30, 2018

(Unaudited)

December 31, 2017

(Audited)

Bank balances and cash – Insurance operations

31,252

14,110

Bank balances and cash – Shareholders’ operations	1,883	1,641

Cash and cash equivalents in statement of cashflows	33,135	15,751

Deposits against letters of guarantee – Insurance operations

700

900

Total

33,835

16,651

The Company holds an amount of SAR 700 thousand (31 December 2017: SAR 900 thousand) in the statement of financial position of Insurance Operations, in respect of cash and cash equivalents against letters of guarantee in favor of the Company’s service providers.

Disclosure of zakat [text block]

12. ZAKAT AND INCOME TAX

Status of assessments

The Company’s zakat and tax calculations and corresponding accruals and payment of zakat and tax are based on the ownership percentages which are 74.97% for zakat and 25.03% for the tax.

The Company has submitted its zakat and tax returns up to the period / years ended 31 December 2017 and obtained the required certificates and acknowledgements. General Authority of Zakat and Tax “GAZT” has raised final assessments for the period / years ended 2009 to 2013 with additional Zakat and withholding tax (WHT) liabilities amounting to SR 11.2 million and SR 8.9 million respectively. The company has submitted an appeal against the GAZT’s assessments and GAZT’s review is awaited.

The zakat and tax charge for the nine-month period ended are as follows:

	30 Sept 2018 (Unaudited) SR	30 December 2017 (Unaudited) SR
Charge for zakat for the period	6,382	6,697
Charge for tax for the period	1,198	1,706
	7,580	8,403

Zakat and tax provision at the end of period	35,910	31,055

Disclosure of classes of share capital [text block]

13. SHARE CAPITAL

The authorized and paid up share capital of the Company is SAR 400 million divided into 40 million shares of SAR 10 each (31 December 2017: SAR 400 million divided into 40 million shares of SAR 10 each).

Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax.

	September 30, 2018
	No. of Shares	Authorized, issued and paid up capital
	‘000	SAR’000
Royal & Sun Alliance	20,028	200,280
Riyadh Bank	7,968	79,680
Others	12,004	120,040
	40,000	400,000

	December 31, 2017
	No. of Shares	Authorized, issued and paid up capital
	‘000	SAR’000
Royal & Sun Alliance	20,028	200,280
Riyadh Bank	7,968	79,680
Others	12,004	120,040
	40,000	400,000

Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block]

7. TECHNICAL RESERVES

7.1 NET OUTSTANDING CLAIMS AND RESERVES

Net outstanding claims and reserves comprise of the following:

	Insurance operations
SAR’000	September 30, 2018 (Unaudited)	December 31, 2017 (Audited)

Outstanding claims	113,959	103,920
Less: Realizable value of salvage and subrogation	(24,399)	(17,704)
Outstanding claims reserve	89,560	86,216
Claims incurred but not reported	45,863	77,759
Other technical reserves	1,471	1,733
	136,894	165,708
Less:
- Reinsurers’ share of outstanding claims	(42,367)	(41,545)
- Reinsurers’ share of claims Incurred but not reported	(10,399)	(25,338)
	(52,766)	(66,883)
Net outstanding claims and reserves	84,128	98,825

7.2 MOVEMENT IN UNEARNED PREMIUMS

Movement in unearned premiums comprise of the following

	Nine months ended September 30, 2018 (Unaudited)
SAR’000	Gross	Reinsurance	Net

Balance as at the beginning of the period	100,103	(49,140)	50,963
Premium written during the period	212,211	*(92,611)	119,600
Premium earned during the period	(212,274)	97,930	(114,344)
Balance as at the end of the period	100,040	(43,821)	56,219

* This amount includes SR 81.9 million for reinsurance premium ceded abroad, SR 3.1 million for reinsurance premium ceded locally and SR 7.7 million for excess of loss expenses.

	Three months ended September 30, 2018 (Unaudited)
SAR’000	Gross	Reinsurance	Net

Balance as at the beginning of the period	118,570	(46,680)	71,890
Premium written during the period	55,142	*(29,746)	25,396
Premium earned during the period	(73,672)	32,605	(41,067)
Balance as at the end of the period	100,040	(43,821)	56,219

* This amount includes SR 29.4 million for reinsurance premium ceded abroad, SR 0.3 million for reinsurance premium ceded locally.

	Year ended December 31, 2017 (Audited)
SAR’000	Gross	Reinsurance	Net
Balance as at the beginning of the year	120,085	(65,178)	54,907
Premium written during the year	263,369	*(117,001)	146,368
Premium earned during the year	(283,351)	133,039	(150,312)
Balance as at the end of the year	100,103	(49,140)	50,963

* This amount includes SR 107.7 million for reinsurance premium ceded abroad, SR 0.5 million for reinsurance premium ceded locally and SR 8.8 million for excess of loss expenses.

Disclosure of related party transactions [text block]

11. RELATED PARTY TRANSACTIONS AND BALANCES

Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances:

Entities controlled, jointly controlled	Transactions for the period ended
or significantly influenced by related parties	September 30,	September 30,
	2018	2017
	(Unaudited)	(Unaudited)
	SAR’ 000

Gross premiums written	70,746	45,842
Gross claims paid	30,323	14,406
Reinsurance premium ceded	18,045	20,740
Reinsurance share of gross claim paid	6,132	3,833
Reinsurance commission income	5,416	5,853
Profit commission incurred-Group Life	--	5,499
Technical service charges	5,143	4,229
Brand fees	23	23
Operational expenses paid on behalf of affiliates and reinsurance placements	215	299
Operational expenses paid by affiliates on behalf of Company	(1,281)	(703)
Key management personnel and Board members
Gross written premiums	34	32
Remuneration and meeting fee	473	472

	Balance receivable / (payable) as at
Entities controlled, jointly controlled	Balance receivable / (payable) as at
or significantly influenced by related parties	September 30,	December 31,
	2018	2017
	(Unaudited)	(Audited)
	SAR’000
Premium receivable, net	5,303	5,442
Reinsurance balance payable	(10,073)	(4,983)
Accrued and other liabilities	(7,846)	(7,729)
Reinsurance share of gross outstanding claims	8,451	11,264
Gross outstanding claim	(37,100)	(25,586)
Due from related parties	--	31
Due to related parties	(2,068)	(1,064)

The compensation of key management personnel during the period is as follows:

	September 30, 2018 (Unaudited)	September 30, 2017 (Unaudited)
	SAR’000
Salaries and other allowances	6,485	5,361
End of service indemnities	361	168
	6,846	5,529

Disclosure of entity's operating segments [text block]

As at September 30, 2018

(Unaudited)

Insurance operations

Operating segments

Property

Motor

Engineering

Medical

Marine

Group life

Others

Total - Insurance operations

Shareholders’ operations

Total

SAR’000

Assets

Reinsurers’ share of unearned premiums

25,327

538

10,228

897

2,571

340

3,920

43,821

Reinsurers’ share of outstanding claims

12,879

2,082

6,365

4,337

14,488

2,214

42,367

Reinsurers’ share of claims Incurred but not reported

2,702

242

431

(612)

5,392

2,244

10,399

Deferred policy acquisition costs

1,489

3,749

579

234

226

6,346

Unallocated assets

308,316

378,750

687,066

Total assets

42,397

6,369

17,414

1,352

6,530

20,267

8,604

411,249

378,750

789,999

Outstanding claim reserve

15,934

33,581

8,024

8,898

19,809

3,261

89,560

Claims incurred but not reported

3,451

32,424

399

696

(961)

7,191

2,663

45,863

Other technical reserves

520

303

648

1,471

Unearned premiums

30,375

45,085

11,177

1,591

4,443

499

6,870

100,040

Unearned reinsurance commission

2,607

1,456

682

128

4,875

Unallocated liabilities

121,804

426,386

548,190

Total Liabilities, Insurance operations’ surplus and shareholders’ equity

52,367

111,090

21,056

2,860

13,365

27,501

13,570

363,613

426,386

789,999

	As at December 31, 2017
							(Unaudited)
						Insurance operations
Operating segments	Property	Motor	Engineering		Medical			Marine	Group life	Others	Total - Insurance operations	Shareholders’ operations	Total
								SAR’000
Assets
Reinsurers’ share of unearned premiums	32,908	--		7,589	1,189			4,250	92	3,112	49,140	--	49,140
Reinsurers’ share of outstanding claims	17,579	--		6,525	--			6,291	7,618	3,532	41,545	--	41,545
Reinsurers’ share of claims Incurred but not reported	8,682	--		4,703	679			2,689	7,269	1,316	25,338	--	25,338
Deferred policy acquisition costs	697	1,765		781	196			208	31	114	3,792	--	3,792
Unallocated assets	--	--		--	--			--	--	--	283,322	374,197	657,519
Total assets	59,866	1,765		19,598	2,064			13,438	15,010	8,074	403,137	374,197	777,334

Liabilities and shareholders’ equity
Outstanding claims	23,117	31,950		8,049	52			8,206	10,691	4,151	86,216	--	86,216
Claims incurred but not reported	14,681	35,722		5,724	1,128			5,759	10,458	4,287	77,759	--	77,759
Other technical reserves	--	814		256	396			125	19	123	1,733	--	1,733
Unearned premiums	52,061	23,806		8,590	2,429			6,912	178	6,127	100,103	--	100,103
Unearned reinsurance commission	1,861	--		1,747	--			585	--	272	4,465	--	4,465
Unallocated liabilities	--	--		--	--			--	--	--	102,925	404,133	507,058
Total liabilities and shareholders’ equity	91,720	92,292		24,366	4,005			21,587	21,346	14,960	373,201	404,133	777,334

For the nine months ended September 30, 2018 - (Unaudited)

Operating segments

Property

Motor

Engineering

Medical

Marine

Group Life

Others

Total

REVENUES

Gross premiums written

54,422

89,781

18,163

2,201

15,938

20,313

11,393

212,211

Reinsurance premiums ceded

(43,812)

(15,526)

(1,224)

(7,781)

(11,807)

(4,820)

(84,970)

Excess of loss premium

(1,909)

(1,792)

(342)

(133)

(2,380)

(800)

(285)

(7,641)

Net premiums written

8,701

87,989

2,295

844

5,777

7,706

6,288

119,600

Changes in unearned premiums, net

14,106

(20,740)

546

790

(73)

(5,256)

Net premiums earned

22,807

67,249

2,348

1,390

6,567

7,633

6,350

114,344

Reinsurance commissions

5,008

2,826

1,364

(493)

388

9,093

TOTAL REVENUES

27,815

67,249

5,174

1,390

7,931

7,140

6,738

123,437

UNDERWRITING COSTS AND EXPENSES

Gross claims paid

(9,186)

(48,831)

(2,721)

(2,732)

(650)

(5,587)

(10,520)

(80,227)

Reinsurers’ share of claims paid

6,355

2,468

1,743

779

4,177

10,546

26,068

Net claims paid

(2,831)

(48,831)

(253)

(989)

129

(1,410)

(54,159)

Changes in outstanding claims, IBNR & technical reserves

7,740

5,090

985

595

(834)

1,058

14,696

Net claims incurred

4,909

(43,741)

732

(927)

724

(2,244)

1,084

(39,463)

Policy acquisition costs

(2,537)

(4,771)

(1,774)

(191)

(1,175)

(2,429)

(867)

(13,744)

Other underwriting expenses

(1,026)

TOTAL UNDERWRITING COSTS AND EXPENSES

(54,233)

NET UNDERWRITING INCOME

69,204

OTHER OPERATING (EXPENSES)/ INCOME

Allowance for doubtful debts

(6,328)

General and administrative expenses

(44,118)

Commission income on term deposits

6,485

Investment income

1,643

TOTAL OTHER OPERATING EXPENSES

(42,318)

TOTAL INCOME FOR THE PERIOD

26,886

NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS

(2,293)

TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’

24,593

	For the nine months ended September 30, 2017 - (Unaudited)
Operating segments	Property	Motor	Engineering	Medical	Marine	Group Life	Others	Total
REVENUES
Gross premiums written	52,292	77,584	14,062	4,398	19,093	11,063	13,108	191,600
Reinsurance premiums ceded	(41,498)	62	(11,683)	(2,184)	(8,853)	(7,398)	(5,255)	(76,809)
Excess of loss expenses	(2,570)	(1,770)	(1,349)	(223)	(2,430)	(400)	(412)	(9,154)
NET PREMIUMS WRITTEN	8,224	75,876	1,030	1,991	7,810	3,265	7,441	105,637
Changes in unearned premiums, net	17,488	(9,101)	658	(883)	1,106	461	2,156	11,885
NET PREMIUMS EARNED	25,712	66,775	1,688	1,108	8,916	3,726	9,597	117,522
Reinsurance commissions	6,209	--	2,641	(67)	2,112	(215)	411	11,091
TOTAL REVENUES	31,921	66,775	4,329	1,041	11,028	3,511	10,008	128,613

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	(2,960)	(35,672)	(3,756)	(1,994)	(5,238)	(5,072)	(1,387)	(56,079)
Reinsurers’ share of claims paid	2,539	--	3,492	1,158	2,473	3,826	1,215	14,703
Net claims paid	(421)	(35,672)	(264)	(836)	(2,765)	(1,246)	(172)	(41,376)
Changes in outstanding claims, IBNR & technical reserves	575	4,754	1,940	(512)	2,863	563	(298)	9,885
Net claims incurred	154	(30,918)	1,676	(1,348)	98	(683)	(470)	(31,491)
Policy acquisition costs	(2,843)	(6,135)	(1,890)	(130)	(1,147)	(7,039)	(747)	(19,931)
Other underwriting expenses								(1,007)
TOTAL UNDERWRITING COSTS AND EXPENSES								(52,429)

NET UNDERWRITING INCOME

OTHER OPERATING (EXPENSES)/ INCOME
Reversal for doubtful debts								(7,207)
General and administrative expenses								(39,640)
Commission income on term deposits								5,127
Investment income								1,267
Other income								16
TOTAL OTHER OPERATING EXPENSES								(40,437)
TOTAL INCOME FOR THE PERIOD								35,747
NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS								(3,280)
TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’								32,467

For the three months ended September 30, 2018 - (Unaudited)

Operating segments

Property

Motor

Engineering

Medical

Marine

Group Life

Others

Total

REVENUES

Gross premiums written

17,779

14,879

4,169

167

4,443

6,316

7,389

55,142

Reinsurance premiums ceded

(15,024)

(4,561)

(118)

(1,620)

(3,908)

(4,515)

(29,746)

NET PREMIUMS WRITTEN

2,755

14,879

(392)

2,823

2,408

2,874

25,396

Changes in unearned premiums, net

5,468

10,133

1,008

277

(944)

(281)

15,671

NET PREMIUMS EARNED

8,223

25,012

616

326

1,879

2,418

2,593

41,067

Reinsurance commissions

2,149

124

415

564

(94)

143

3,301

TOTAL REVENUES

10,372

25,136

1,031

326

2,443

2,324

2,736

44,368

UNDERWRITING COSTS AND EXPENSES

Gross claims paid

(8,588)

(17,177)

(882)

(930)

(389)

(1,286)

(9,507)

(38,759)

Reinsurers’ share of claims paid

6,046

763

514

968

9,112

17,436

Net claims paid

(2,542)

(17,177)

(119)

(416)

(356)

(318)

(395)

(21,323)

Changes in outstanding claims, IBNR & technical reserves

2,893

850

168

254

233

165

(354)

4,209

Net claims incurred

351

(16,327)

(162)

(123)

(153)

(749)

(17,114)

Policy acquisition costs

(639)

(1,755)

(326)

(228)

(759)

(670)

(197)

(4,574)

Other underwriting expenses

(355)

TOTAL UNDERWRITING COSTS AND EXPENSES

(22,043)

NET UNDERWRITING INCOME

22,325

OTHER OPERATING (EXPENSES)/ INCOME

Reversal for doubtful debts

(2,010)

General and administrative expenses

(14,720)

Commission income on term deposits

2,415

Investment income

551

Other income

TOTAL OTHER OPERATING EXPENSES

(13,764)

TOTAL INCOME FOR THE PERIOD

8,561

NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS

(702)

TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’

7,859

	For the three months ended September 30, 2017 - (Unaudited)
Operating segments	Property	Motor	Engineering	Medical	Marine	Group Life	Others	Total
REVENUES
Gross premiums written	25,456	5,474	2,308	1,241	7,405	7,392	7,886	57,162
Reinsurance premiums ceded	(18,889)	62	(1,999)	(592)	(4,166)	(5,219)	(4,901)	(35,704)
NET PREMIUMS WRITTEN	6,567	5,536	309	649	3,239	2,173	2,985	21,458
Changes in unearned premiums, net	2,646	14,465	46	(22)	(1,189)	569	1,026	17,541
NET PREMIUMS EARNED	9,213	20,001	355	627	2,050	2,742	4,011	38,999
Reinsurance commissions	2,049	--	347	(67)	477	(107)	136	2,835
TOTAL REVENUES	11,262	20,001	702	560	2,528	2,635	4,146	41,834

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	(357)	(13,146)	(28)	(1,044)	(976)	(2,486)	(111)	(18,148)
Reinsurers’ share of claims paid	140	--	23	692	450	1,865	29	3,199
Net claims paid	(217)	(13,146)	(5)	(352)	(526)	(621)	(82)	(14,949)
Changes in outstanding claims, IBNR & technical reserves	771	1,056	691	(720)	2,389	(363)	(695)	3,129
Net claims incurred	554	(12,090)	686	(1,072)	1,863	(984)	(777)	(11,820)
Policy acquisition costs	(823)	(2,171)	(421)	(130)	(384)	(1,167)	(433)	(5,529)
Other underwriting expenses								(329)
TOTAL UNDERWRITING COSTS AND EXPENSES								(17,678)

NET UNDERWRITING INCOME								24,156

OTHER OPERATING (EXPENSES)/ INCOME
Reversal for doubtful debts								(2,800)
General and administrative expenses								(13,778)
Commission income on term deposits								1,658
Investment income								442
Other income								--
TOTAL OTHER OPERATING EXPENSES								(14,478)
TOTAL INCOME FOR THE PERIOD								9,678
NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS								(865)
TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’								8,813

Disclosure of capital management [text block]

14. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it is able to continue as going concern and comply with the regulator’s capital requirements of the market in which the Company operates while maximizing the return to stakeholders through the optimization of equity balance. The capital structure of the Company consists of equity attributable to equity holders comprising paid share capital and reserves. The operations of the Company are subject to local regulatory requirements in the Kingdom of Saudi Arabia. Such regulations not only prescribe approval and monitoring of activities but also impose certain restrictive provisions e.g. capital adequacy to minimize the risk of default and insolvency on the part of the insurance companies and to enable them to meet unforeseen liabilities as these arise. In order to maintain or adjust the capital structure, the Company may issue right shares. As per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained, the Company maintains solvency margin equivalent to the highest of the three methods as per SAMA Implementing Regulations.

The Company has fully complied with the externally imposed capital requirements during the reported financial period.

Disclosure of commitments and contingencies, general [text block]

8. COMMITMENTS AND CONTINGENCIES

a) The Company’s commitments and contingencies are as follows:

SAR’000	September, 30, 2018 (Unaudited)	December 31, 2017 (Audited)
Letters of guarantee	700	900
Commitments for the rents	334	399
Total	1,034	1,299

b) The Company 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 believes that such proceedings (including litigations) will not have a material effect on its results and financial position. The Company did not have any significant outstanding legal proceedings as at the reporting date. There was no change in the status of legal proceedings as disclosed in the annual financials of December 31, 2017.

[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