	English [member]
Start Date	2019-07-01	2018-07-01
End Date	2019-09-30	2018-09-30
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	2019-07-01	2018-07-01
Reporting period end date	2019-09-30	2018-09-30
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	2019-07-01	2019-07-01
End Date	2019-09-30	2019-09-30
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Abdullah Hamad Al Fozan	Abdullah M.Al Basri
Registration number of auditor	348	171
Details of audit firm [abstract]
Name of audit firm	KPMG Al Fozan & Partners	Aldar Audit Bureau
Address of audit firm	P.O. Box 92876, Riyadh,11663 Kingdom of Saudi Arabia	P.O.Box 2195, Riyadh 11451, Kingdom of Saudi Arabia

	English [member]
Start Date	2019-07-01
End Date	2019-09-30
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 2019 of Al Alamiya for Cooperative Insurance Company are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia.
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 at 30 September 2019, the related interim condensed statements of income and comprehensive income, changes in shareholders’ equity and cash flows for the three month and nine-month periods 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 with International Accounting Standard 34 “Interim Financial Reporting” ("IAS 34") as endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these interim ِcondensed financial statements based on our review.
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	2019-11-07

Start Date	2019-01-01	2018-01-01	2018-01-01	Note No.
End Date	2019-09-30	2018-12-31	2018-09-30
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	2,425	1,541	1,253
Due from related parties, insurance/ takaful operations assets	0	630	0	11
Deferred policy acquisition costs	6,010	4,631	6,346
Reinsurers/ retakaful share of unearned premiums/ contributions	39,090	56,537	41,718	7.2
Prepayments and other assets, insurance/ takaful operations assets	6,311	3,000	3,292
Premiums/ insurance receivables/takaful contributions receivable, net	50,042	70,868	70,433	5
Reinsurers/ retakaful share of outstanding claims/ benefits, net	69,393	52,585	52,766	7.2
Time (Murabaha) deposits, insurance/ takaful operations assets	232,076	211,522	199,463
Deferred excess of loss premiums	864	0	2,103
Cash and cash equivalents, insurance/ takaful operations assets	13,290	12,875	31,952	4
Other assets, insurance/ takaful operations assets	1,923	1,923	1,923	6
Total insurance/ takaful operations assets	421,424	416,112	411,249
Shareholders assets [abstract]
Statutory deposit	40,000	40,000	40,000
Prepayments and other assets, shareholders assets	5,561	4,117	4,048
Time (Murabaha) deposits, shareholders assets	203,728	199,708	239,958
Available-for-sale investments, shareholders assets	131,003	91,059	89,802	6
Due from insurance/ takaful operations assets	69,944	52,677	47,636
Cash and cash equivalents, shareholders assets	2,238	42,801	1,883	4
Other assets, shareholders assets	4,151	3,059	3,059
Deferred tax asset	1,293	1,621	1,876
Total shareholders assets	457,918	435,042	428,262
Total assets	879,342	851,154	839,511
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	84,941	112,473	100,040	7.2
Unearned commission income	4,511	3,366	4,875
Employees end of service benefits, insurance/ takaful operations liabilities	10,299	11,650	11,848
Due to shareholders operations	69,944	52,677	47,636
Due to related parties, insurance/ takaful operations liabilities	1,524	632	1,655
Reinsurers/ retakaful balance payable	76,898	52,784	54,382
Gross outstanding claims/ benefits including IBNR payable	127,406	132,077	135,423	7.1
Other technical reserves	280	693	1,471	7.1
Accrued expenses payable, insurance/ takaful operations liabilities	36,299	39,954	44,341
Total insurance/ takaful operations liabilities	412,102	406,306	401,671
Insurance/ takaful operations surplus (deficit) [abstract]
Surplus (deficit) from insurance/ takaful fund	9,779	10,263	11,253
Total insurance/ takaful operations surplus (deficit)	9,779	10,263	11,253
Total insurance/ takaful operations liabilities and surplus (deficit)	421,881	416,569	412,924
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	41,008	35,911	33,906	12
Income tax payable	1,450	2,242	2,004	12
Due to related parties, shareholders liabilities	413	413	413
Accrued expenses payable, shareholders liabilities	3,893	4,301	3,917
Other liabilities, shareholders liabilities	4,151	3,059	3,059
Total shareholders liabilities	50,915	45,926	43,299
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	400,000	400,000	400,000	13
Statutory reserve	931	0	0
Fair value reserve on investments, shareholders equity	2,349	-1,669	-1,651
Retained earnings (accumulated losses)	3,723	-9,215	-13,386
Other reserves	-457	-457	-1,675
Total equity attributable to owners of parent	406,546	388,659	383,288
Total equity attributable to equity holders of company	406,546	388,659	383,288
Total shareholders liabilities and equity	457,461	434,585	426,587
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	879,342	851,154	839,511

Start Date	2019-07-01	2018-07-01	2019-01-01	2018-01-01	Note No.
End Date	2019-09-30	2018-09-30	2019-09-30	2018-09-30
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	55,281	55,142	168,090	212,211
Excess of loss expense	0	0	4,805	7,641
Reinsurance/ retakaful premiums ceded	32,551	29,746	78,542	84,970	7.2
Net premiums/ contributions written	22,730	25,396	84,743	119,600
Changes in unearned premiums/ contributions	-9,918	-18,530	-27,532	-63
Reinsurance/ retakaful share of unearned premiums/ contributions	-188	882	17,447	7,422
Changes in Excess of Loss premium	-1,276	-1,977	864	2,103
Net premiums/ contributions earned	31,560	41,067	95,692	114,344
Reinsurance/ retakaful commissions	2,521	3,301	9,295	9,093
Investment income from insurance/ takaful operations, net	1,670	1,028	5,036	2,754
Fees and other income from insurance/ takaful operations	0	0	2,190	0
Total income from insurance/ takaful operations	35,751	45,396	112,213	126,191
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	26,150	38,759	81,581	80,227
Reinsurance/ retakaful share of gross claims/ benefits paid	8,324	17,436	16,840	26,068
Net claims/ benefits paid	17,826	21,323	64,741	54,159
Changes in outstanding claims/ benefits including IBNR	-3,092	-6,854	-12,170	2,522
Changes in reinsurance/ retakaful share of outstanding claims/ benefits	2,214	2,116	-9,309	-16,956
Changes in other technical reserves	-194	529	-413	-262
Net claims/ benefits incurred	16,754	17,114	42,849	39,463
Policy acquisition costs	4,635	4,574	13,581	13,744
General and administrative expenses, insurance/ takaful operations	12,968	14,330	43,492	42,701
Other underwriting expenses	215	355	802	1,026
(Reversal)Allowence for Doubtful Debts	-2,191	2,010	-4,611	6,328
Total cost and expenses	32,381	38,383	96,113	103,262
Surplus (deficit) for period from insurance/ takaful operations	3,370	7,013	16,100	22,929
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	3,033	6,311	14,490	20,636
Net result for period from insurance/ takaful operations after shareholders appropriation	337	702	1,610	2,293
Policyholders share of accumulated surplus, at end of period	337	702	1,610	2,293

Start Date	2019-07-01	2018-07-01	2019-01-01	2018-01-01
End Date	2019-09-30	2018-09-30	2019-09-30	2018-09-30
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	3,033	6,311	14,490	20,636
Revenue [abstract]
Investment income	961	551	2,619	1,643
Income from murabaha/ time deposits	1,593	1,387	4,492	3,731
Total revenue	2,554	1,938	7,111	5,374
Expenses [abstract]
General and administrative expenses, shareholders operations	382	390	1,130	1,417
Total expenses	382	390	1,130	1,417
Income (loss) from continuing operations before zakat and income tax	5,205	7,859	20,471	24,593
Zakat expenses on continuing operations for period	1,917	2,299	5,752	6,382
Income tax on continuing operations for period	242	280	850	839
Profit (loss) from continuing operations	3,046	5,280	13,869	17,372
Profit (loss) for the period	3,046	5,280	13,869	17,372
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	2,283.5862	3,958.416	10,397.5893	13,023.7884
Profit (loss), attributable to non-saudi shareholders of company	762.4138	1,321.584	3,471.4107	4,348.2116
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.08	0.13	0.35	0.43
Total basic earnings (loss) per share	0.08	0.13	0.35	0.43

Start Date	2019-07-01	2018-07-01	2019-01-01	2018-01-01
End Date	2019-09-30	2018-09-30	2019-09-30	2018-09-30
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	337	702	1,610	2,293
Total comprehensive income (loss) for period	337	702	1,610	2,293

Start Date	2019-07-01	2018-07-01	2019-01-01	2018-01-01	Note No.
End Date	2019-09-30	2018-09-30	2019-09-30	2018-09-30
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	3,046	5,280	13,869	17,372
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	691	151	4,018	-791	6
Total other comprehensive income (loss), available-for-sale financial assets	691	151	4,018	-791
Total other comprehensive income (loss), that will be reclassified to profit or loss	691	151	4,018	-791
Total other comprehensive income (loss)	691	151	4,018	-791
Total comprehensive income (loss) for period	3,737	5,431	17,887	16,581
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	2,801.6289	4,071.6207	13,409.8839	12,430.7757
Total comprehensive income (loss), attributable to non-saudi shareholders of company	935.3711	1,359.3793	4,477.1161	4,150.2243

Start Date	2019-01-01	2018-01-01
End Date	2019-09-30	2018-09-30
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	1,610	2,293
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	472	339
Adjustments for employees end of service benefits	1,125	1,400
Adjustments for allowance for doubtful receivables	-4,611	6,328
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	-3,014	8,067
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	25,437	4,423
Adjustments for decrease (increase) in prepayments and other assets	-3,311	-342
Adjustments for increase (decrease) in outstanding claims including IBNR	-16,808	14,117
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	24,114	13,662
Adjustments for increase (decrease) in accrued expenses and other liabilities	-1,152	-645
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	-4,671	-28,552
Adjustments for decrease (increase) in deferred policy acquisition costs	-1,379	-2,554
Adjustments for decrease (increase) in deferred excess of loss expense	-864	-2,103
Adjustments for decrease (increase) in unearned commission income	1,145	410
Adjustments for decrease (increase) in due from shareholders operations	17,267	17,700
Adjustments for movement in gross unearned premiums/ contributions	-27,532	-63
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	17,447	7,422
Adjustment for changes in other technical reserves	-413	-262
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	630	31
Adjustment for (increase) decrease in Accounts payables	-2,503	2,295
Adjustments for the changes in (increase) decrease in due to related parties	892	1,004
Adjustment for the changes in end of service indeminities paid	-2,476	-473
Adjustment for change in surplus paid to policy holders	-2,094	-656
Deposit against letter of gurantees	0	200
Total changes in operating assets and liabilities	23,729	25,614
Net cash flows from (used in) insurance/ takaful operations	22,325	35,974
Net cash flows from (used in) operating activities, insurance/ takaful operations	22,325	35,974
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Time (Murabaha) deposits, insurance/ takaful operations cash flow	-20,554	-17,926
Proceeds from sales of property and equipment, insurance/ takaful operations cash flow	-1,356	-906
Net cash flows from (used in) investing activities, insurance/ takaful operations	-21,910	-18,832
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	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	415	17,142
Net increase (decrease) in cash and cash equivalents	415	17,142
Cash and cash equivalents at beginning of period	12,875	14,810
Cash and cash equivalents at end of period	13,290	31,952

Start Date	2019-01-01	2018-01-01
End Date	2019-09-30	2018-09-30
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	20,471	24,593
Net profit (loss) for period (before zakat expenses and income tax)	20,471	24,593
Adjustments to reconcile profit (loss) [abstract]
Adjustments for losses (gains) on disposal of investments	40	310
Total adjustments to reconcile profit (loss)	40	310
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	-2,377	-2,405
Adjustments for decrease (increase) in due from insurance/ takaful operations	-17,267	-17,700
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	-1,444	-1,618
Total changes in operating assets and liabilities	-21,088	-21,723
Net cash flows from (used in) operations	-577	3,180
Net cash flows from (used in) operating activities	-577	3,180
Cash flows from (used in) investing activities [abstract]
Purchase of available-for-sale investments	35,966	15,548
Purchase of term deposits investments	4,020	-12,610
Net cash flows from (used in) investing activities	-39,986	-2,938
Cash flows from (used in) financing activities [abstract]
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	-40,563	242
Net increase (decrease) in cash and cash equivalents	-40,563	242
Cash and cash equivalents at beginning of period	42,801	1,641
Cash and cash equivalents at end of period	2,238	1,883

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2019-07-01

End Date

2019-09-30

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 statements of the Company as at and for the period ended 30 September 2019 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization of Certified Public Accountants (SOCPA).

The interim condensed financial statements of the Company as at and for the three month period ended 31 March 2019 and annual financial statement for the year ended 31 December 2018, respectively, were prepared in compliance with the IAS 34 and the International Financial Reporting Standards (IFRS) respectively, as modified by SAMA for the accounting of zakat and income tax (relating to the application of IAS 12 – “Income Taxes” and IFRIC 21 – “Levies” so far as these relate to zakat and income tax and the Regulations for Companies in the Kingdom of Saudi Arabia.

On 23 July 2019, SAMA instructed the insurance companies in the Kingdom of Saudi Arabia to account for the zakat and income taxes in the statement of income. This aligns with the IFRS and its interpretations as issued by the International Accounting Standards Board (IASB) and as endorsed in the Kingdom of Saudi Arabia (collectively referred to as IFRS as endorsed in KSA).

Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (as disclosed in note 3) and the effects of this change are disclosed in note 12 to the interim condensed financial statements.

At the interim condensed financial statement are 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, reinsurance 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 income 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 statements 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 statement 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 Accumulated Surplus in the statement of financial position and as Actuarial reserve for employee benefits in the statement of equity.

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, 2018.

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

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

2 (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 statement as at and for the year ended 31 December 2018.

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 the interim condensed financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2018, except for the changes explained below:

Change in the accounting for zakat and income tax:

As mentioned above, the basis of preparation has been changed for the period ended 30 September 2019 as a result of the issuance of instructions from SAMA dated 23 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the instructions issued by SAMA dated 23 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively and the effects of the above change are disclosed in note 12 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the period ended 30 September 2018 by SAR 7.2 million. The change has had no impact on the statement of cash flows for the period ended 30 September 2018.

Income tax:

The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Adjustments arising from the final income tax assessments are recorded in the period in which such assessments are made.

IFRIC Interpretation 23 Uncertainty over Income Tax Treatment

The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:

- Whether an entity considers uncertain tax treatments separately.

- The assumptions an entity makes about the examination of tax treatments by taxation authorities.

- How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits andtax rates.

- How an entity considers changes in facts and circumstances.

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed.

The Company applies significant judgement in identifying uncertainties over income tax treatments. Since the Company operates in a complex multinational environment, it assessed whether the Interpretation had an impact on its interim condensed financial statements.

Upon adoption of the Interpretation, the Company considered whether it has any uncertain tax positions, particularly those relating to transfer pricing. The Company’s and the subsidiaries’ tax filings in different jurisdictions include deductions related to transfer pricing and the taxation authorities may challenge those tax treatments. The Company determined, based on its tax compliance and transfer pricing study, that it is probable that its tax treatments (including those for the subsidiaries) will be accepted by the taxation authorities. The Interpretation did not have an impact on the interim condensed financial statements of the Company.

Deferred income tax:

Deferred income tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for the taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available and the credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised.

Zakat:

The Company is subject to Zakat in accordance with the regulations of the General Authority of Zakat and Income Tax (GAZT). Zakat expense is charged to the statement of income. Zakat is not accounted for as income tax and as such no deferred tax is calculated relating to zakat.

Adoption of IFRS 16 Leases

The Company adopted IFRS 16 using the modified retrospective approach. The Company elected to apply the standard to contracts that were previously identified as leases applying IAS 17 and IFRIC 4. The Company elected to use the exemptions proposed by the standard regarding lease contracts for which the lease term ends within 12 months of the date of initial application, and lease contracts for which the underlying asset is of low value. The Company has performed an assessment of IFRS 16 and determined the difference as compared to IAS 17 and IFRC 4 is not material to the Company’s financial statements as a whole.

'The details of new significant accounting policy and the nature are set out below.

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

- Leases of low value assets; and

- Leases with a term of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Company’s incremental commission rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

On initial recognition, the carrying value of the lease liability also includes:

- Amounts expected to be payable under any residual value guarantee;

- The exercise price of any purchase option granted in favour of the Company if it is reasonable certain to assess that option;

- Any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.

Adoption of IFRS 16 Leases (continued)

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

- lease payments made at or before commencement of the lease;

- Initial direct costs incurred; and

- The amount of any provision recognised where the Company is contractually required to dismantle, remove or restore the leased asset (typically leasehold dilapidations.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

When the Company revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at the same discount rate that applied on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term.

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 January 1, 2022. 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.

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, 2018.

Segment assets do not include (in respect of insurance operations) property and equipment, due from shareholders’ operations, cash and bank balances, 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, Reinsurers 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, 2019

(Unaudited)

December 31, 2018

(Audited)

Available for sale investments – Insurance operations *

1,923

1,923

Available for sale investments – Shareholders’ operations

131,003

91,059

Total available for sale investments

132,926

92,982

* This represents an investment in respect of the Company’s shareholding in Najm for Insurance Services which provides loss determination services for motor class. 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 between the period ended 30 September 2019 and during the year ended 31 December 2018.

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

	Shareholders’ operations
SAR’000	September 30, 2019 (Unaudited)	December 31, 2018 (Audited)
Opening balance	91,059	75,355
Purchases	35,966	44,564
Maturities	--	(27,750)
Amortization of investments	(40)	(301)
Changes in fair value of investments	4,018	(809)
Closing balance	131,003	91,059

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 29.1 million which are maturing in the next twelve months.

The cumulative unrealized gain in fair value of available for sale investments amounts to SR 2.3 million, 31 December 2018: loss of (SR 1.67 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 September 30, 2019	Carrying value	Level 1	Level 2	Level 3	Total
*Shareholders’ operations*
Available for sale investments measured at fair value
Bonds and Sukuks	131,003	131,003	--	--	131,003

*Insurance Operations*
Najm	1,923	--	--	1,923	1,923
	132,926	131,003	--	1,923	132,926

		Fair value
SAR’000s December 31, 2018	Carrying value	Level 1	Level 2	Level 3	Total
Shareholders’ operations
Available for sale investments measured at fair value
Bonds and Sukuks	91,059	91,059	--	--	91,059

Insurance Operations
Najm	1,923	--	--	1,923	1,923
	92,982	91,059	--	1,923	92,982

The unlisted security of SR 1.92 million (31 December 2018: 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 nine month period ended 30 September 2019, there were no transfers into or out of level 3 fair value measurements. 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 nine month period ended 30 September 2019.

Disclosure of premium/ contributions written not invoiced [text block]

5. PREMIUMS AND REINSURERS’ RECEIVABLE - NET

Receivables comprise amounts due from the following:

	Insurance operations
SAR’000	September 30, 2019 (Unaudited)	December 31, 2018 (Audited)

Policyholders	22,889	46,443
Brokers and agents	26,862	28,424
Related parties (note 11)	9,281	8,496
Receivables from reinsurers	2,741	4,362
	61,773	87,725
Provision for doubtful receivables	(11,731)	(16,857)
Premiums and reinsurers’ receivable – net	50,042	70,868

Allowance for impairment of receivables includes SAR 0.14 million (31 December 2018: SAR 1.6 million) against receivables from related parties.

Movement in provision-doubtful receivables:

SAR ’000	September 30, 2019 (Unaudited)	December 31, 2018 (Audited)

Balance at 1 January	16,857	14,693
Debts written off against the provision	(515)	391
(Released)/charge of provision for the period	(4,611)	1,773
Balance at 31 December	11,731	16,857

Disclosure of cash and cash equivalents [text block]

4. CASH AND BANK BALANCES

Cash and cash equivalents comprise the following:

SAR’000

September 30, 2019

(Unaudited)

December 31, 2018

(Audited)

Bank balances and cash – Insurance operations

12,590

12,175

Bank balances and cash – Shareholders’ operations	2,238	1,374
Short term deposits – Shareholders’ operations	--	41,427
Total	2,238	42,801

Cash and cash equivalents in statement of cashflows	14,828	54,976

Deposits against letters of guarantee – Insurance operations

700

700

Total

15,528

55,676

The Company holds an amount of SAR 0.7 million (31 December 2018: SAR 0.7 million) as letters of guarantee in favor of the Company’s service providers.

Disclosure of zakat [text block]

12. ZAKAT AND INCOME TAX

The change in the accounting treatment for zakat and income tax (as explained in note 3) has the following impact on the line items of the statements of income, statement of financial position and changes in shareholders' equity:

As at and for the nine-month period ended 30 September 2018:

Financial statement impacted	Account	Before the restatement for the nine-month period ended 30 September 2018	Effect of restatement	As restated as at and for the nine-month period ended 30 September 2018
Statement of changes in equity	Provision for Zakat and Income tax (retained earnings)	7,580	7,580	--
Statement of income	Zakat and Income tax expenses	--	(7,221)	(7,221)
Statement of income	Earnings per share	0.61	(0.18)	0.43
Statement of financial position	Deferred tax asset	--	1,876	1,876

As at and for the three-month period ended 30 September 2018:

Financial statement impacted	Account	Before the restatement for the three-month period ended 30 September 2018	Effect of restatement	As restated as at and for the three-month period ended 30 September 2018
Statement of changes in equity	Provision for Zakat and Income tax (retained earnings)	2,682	2,682	--
Statement of income	Zakat and Income tax expenses	--	(2,579)	(2,579)
Statement of income	Earnings per share	0.20	(0.07)	0.13
Statement of financial position	Deferred tax asset	--	1,876	1,876

As at 31 December 2018

Financial statement impacted

Account

Before the restatement as at 31 December 2018

Effect of

restatement

As restated as at 31 December 2018

Statement of financial position

Deferred tax asset

1,621

Statement of financial position

Retained earnings

1,621

As at 1 January 2018

Financial statement impacted

Account

Before the restatement as at 1 January 2018

Effect of

restatement

As restated as at 1 January 2018

Statement of financial position

Deferred tax asset

1,517

Statement of financial position

Retained earnings

1,517

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 2018 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 September 2019 (Unaudited) SR	31 December 2018 (Audited) SR
Charge for zakat for the period	5,752	8,334
Charge for income tax for the period	522	1,490
Charge for deferred tax for the period	328	(104)
	6,602	9,720

Zakat and tax provision at the end of period	42,458	38,153

Disclosure of deferred tax [text block]

Deferred Tax

	30 September 2019	31 December 2018	30 September 2018
Opening deferred tax asset / liability	1,621	1,517	1,517
*Deferred tax (expense)/income*	(328)	104	359
Closing	1,293	1,621	1,876

	Nine-month period ended	Year ended	Nine-month period ended
	30 September 2019	31 December 2018	30 September 2018
Opening zakat, income tax liability and deferred tax Asset	36,532	29,538	29,538
Charge / (reversal) for the period
Current charge for zakat tax for the period	5,752	8,334	6,382
Current charge for income tax for the period	522	1,490	1,198
Deferred tax	328	(104)	(359)
Settled during the period	(1,969)	(2,726)	(2,725)
Closing zakat, income tax liability and deferred tax Asset	41,165	36,532	34,034

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 2018: 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, 2019 (Unaudited)
	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, 2018 (Audited)
	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, 2019 (Unaudited)	December 31, 2018 (Audited)

Outstanding claims	115,607	107,034
Less: Realizable value of salvage and subrogation	(26,340)	(21,314)
- Outstanding claims reserve	89,267	85,720
- Claims incurred but not reported	38,139	46,357
- Other technical reserves	280	693
	127,686	132,770
Less:
- Reinsurers’ share of outstanding claims	(60,072)	(44,355)
- Reinsurers’ share of claims Incurred but not reported	(9,321)	(8,230)
	(69,393)	(52,585)
Net outstanding claims and reserves	58,293	80,185

7.2 MOVEMENT IN UNEARNED PREMIUMS

Movement in unearned premiums comprise of the following

	Nine months ended September 30, 2019 (Unaudited)
SAR’000	Gross	Reinsurance	Net

Balance as at the beginning of the period	112,473	(56,537)	55,936
Premium written during the period	168,090	*(83,347)	84,743
Premium earned during the period	(195,622)	99,930	(95,692)
Balance as at the end of the period	84,941	**(39,954)	44,987

* This amount includes SR 76.6 million for reinsurance premium ceded abroad, SR 1.9 million for reinsurance premium ceded locally and SR 4.6 million for excess of loss expenses ceded abroad, SR 0.2 million ceded locally.

**This amount includes SR 39.1 million for Reinsurers’ share of unearned premiums and SR 0.9 million for Deferred excess of loss premiums.

7.2 MOVEMENT IN UNEARNED PREMIUMS (CONTINUED)

	Year ended December 31, 2018 (Audited)
SAR’000	Gross	Reinsurance	Net
Balance as at the beginning of the year	100,103	(49,140)	50,963
Premium written during the year	293,533	*(136,111)	157,422
Premium earned during the year	(281,163)	128,714	(152,449)
Balance as at the end of the year	112,473	(56,537)	55,936

* This amount includes SR 125.3 million for reinsurance premium ceded abroad, SR 3.2 million for reinsurance premium ceded locally and SR 7.7 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 nine-month period ended
or significantly influenced by related parties	September 30,		September 30,
	2019		2018
	(Unaudited)		(Unaudited)
	SAR’ 000

Gross premiums written		77,827	70,746
Gross claims paid		34,569	30,323
Reinsurance premium ceded		16,092	18,045
Reinsurance share of gross claim paid		1,948	6,132
Reinsurance commission income		5,077	5,416
Technical service charges		5,208	5,143
Brand fees		23	23
Operational expenses paid on behalf of affiliates and reinsurance placements		58	215
Operational expenses paid by affiliates on behalf of Company		(1,580)	(1,281)

	Balance receivable / (payable) as at
Entities controlled, jointly controlled	Balance receivable / (payable) as at
or significantly influenced by related parties	September 30,		December 31,
		2019	2018
		(Unaudited)	(Audited)
		SAR’000
Premium receivable		9,281	8,496
Reinsurance balance payable		(6,533)	(9,338)
Accrued and other liabilities		(8,189)	(9,559)
Reinsurance share of gross outstanding claims		5,201	8,487
Gross outstanding claim		(52,156)	(40,357)
Due from related parties		--	630
Due to related parties		(1,937)	(1,045)

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

	Transactions for the nine-month period ended
	September 30, 2019 (Unaudited)	September 30, 2018 (Unaudited)
	SAR’000
Salaries and other allowances	5,496	6,485
End of service indemnities	285	361
	5,781	6,846

Disclosure of entity's operating segments [text block]

As at September 30, 2019

(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

21,157

454

6,298

5,046

3,539

140

3,320

39,954

Reinsurers’ share of outstanding claims

20,130

2,082

6,571

3,132

25,928

2,222

60,072

Reinsurers’ share of claims Incurred but not reported

584

(572)

4,011

5,004

220

9,321

Deferred policy acquisition costs

1,533

3,589

284

374

211

6,010

Unallocated assets

306,067

457,918

763,985

Total assets

43,404

6,125

12,581

9,064

7,119

31,091

5,973

421,424

457,918

879,342

Outstanding claim reserve

22,804

14,758

7,589

5,910

34,548

3,600

89,267

Claims incurred but not reported

965

26,143

(642)

4,786

(197)

6,629

455

38,139

Other technical reserves

280

Unearned premiums

24,920

35,936

7,154

6,216

4,537

196

5,982

84,941

Unearned reinsurance commission

2,470

962

1,060

4,511

Unallocated liabilities

204,286

457,918

662,204

Total liabilities, insurance operations’ surplus and equity

51,159

76,837

15,063

11,340

11,310

41,392

10,037

421,424

457,918

879,342

	As at December 31, 2018
							(Restated)
				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	28,138	--	7,674		15,994	1,636		48	3,047	56,537	--	56,537
Reinsurers’ share of outstanding claims	14,859	2,083	4,918		2	4,752		15,517	2,224	44,355	--	44,355
Reinsurers’ share of claims Incurred but not reported	1,562	--	1,098		625	193		3,904	848	8,230	--	8,230
Deferred policy acquisition costs	762	3,037	497		4	110		58	163	4,631	--	4,631
Unallocated assets	--	--	--		--	--		--	--	302,359	435,042	737,401
Total assets	45,321	5,120	14,187		16,625	6,691		19,527	6,282	416,112	435,042	851,154

Liabilities and shareholders’ equity
Outstanding claim reserve	17,149	30,258	6,372		52	7,408		21,223	3,258	85,720	--	85,720
Claims incurred but not reported	1,805	35,938	1,132		905	188		5,204	1,185	46,357	--	46,357
Other technical reserves	--	--	--		693	--		--	--	693	--	693
Unearned premiums	37,368	37,970	8,431		19,164	3,135		444	5,961	112,473	--	112,473
Unearned reinsurance commission	1,239	--	1,590		--	360		1	176	3,366	--	3,366
Unallocated liabilities	--	--	--		--	--		--	--	167,503	435,042	602,545
Total liabilities, insurance operations’ surplus and equity	57,561	104,166	17,525		20,814	11,091		26,872	10,580	416,112	435,042	851,154

For the nine months ended September 30, 2019 - (Unaudited)

Operating segments

Property

Motor

Engineering

Medical

Marine

Group Life

Others

Total

SAR’000

REVENUES

Gross premiums written

43,523

63,785

11,769

3,007

9,725

26,832

9,449

168,090

Reinsurance premiums ceded

(38,936)

(9,767)

(2,197)

(6,761)

(16,410)

(4,471)

(78,542)

Excess of loss premium

(878)

(1,758)

(434)

(812)

(691)

(232)

(4,805)

Net premiums written

3,709

62,027

1,568

810

2,152

9,731

4,746

84,743

Changes in unearned premiums, net

5,467

2,488

(99)

2,000

501

340

252

10,949

Net premiums earned

9,176

64,515

1,469

2,810

2,653

10,071

4,998

95,692

Reinsurance commissions

4,983

2,909

1,279

(101)

225

9,295

TOTAL REVENUES

14,159

64,515

4,378

2,810

3,932

9,970

5,223

104,987

UNDERWRITING COSTS AND EXPENSES

Gross claims paid

(1,310)

(59,021)

(1,893)

(10,221)

(1,936)

(6,439)

(761)

(81,581)

Reinsurers’ share of claims paid

870

1,742

8,186

1,243

4,768

16,840

Net claims paid

(440)

(59,021)

(151)

(2,035)

(693)

(1,671)

(730)

(64,741)

Changes in outstanding claims, IBNR & technical reserves

(522)

25,294

540

(83)

144

(3,239)

(242)

21,892

Net claims incurred

(962)

(33,727)

389

(2,118)

(549)

(4,910)

(972)

(42,849)

Policy acquisition costs

(2,688)

(5,908)

(1,174)

(361)

(3,095)

(355)

(13,581)

Other underwriting expenses

(802)

TOTAL UNDERWRITING COSTS AND EXPENSES

(57,232)

NET UNDERWRITING INCOME

47,755

OTHER OPERATING (EXPENSES)/ INCOME

Reversal for doubtful debts

4,611

General and administrative expenses

(44,622)

Investment income on term deposits

9,528

Investment income on bonds, sukuks and others

2,619

Other income

2,190

TOTAL OTHER OPERATING EXPENSES

(25,674)

TOTAL INCOME FOR THE PERIOD BEFORE ZAKAT AND INCOME TAX

22,081

NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS

(1,610)

TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’

20,471

	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)	53	546		790		(73)	62	(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)	26	(54,159)
Changes in outstanding claims, IBNR & technical reserves	7,740	5,090	985	62		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 on bonds, sukuks and others										1,643
TOTAL OTHER OPERATING EXPENSES										(42,318)
TOTAL INCOME FOR THE PERIOD BEFORE ZAKAT AND INCOME TAX										26,886
NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS										(2,293)
TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDER’S										24,593
	For the three months ended September 30, 2019 - (Unaudited)
Operating segments	Property	Motor	Engineering	Medical		Marine		Group Life	Others		Total
				SAR’000
REVENUES
Gross premiums written	17,743	13,914	1,627	91		4,537		10,772	6,597	55,281
Reinsurance premiums ceded	(17,015)	--	(1,358)	--		(3,486)		(6,376)	(4,316)	(32,551)
Excess of loss premium	--	--	--	--		--		--	--	--
Net premiums written	728	13,914	269	91		1,051		4,396	2,281	22,730
Changes in unearned premiums, net	1,614	6,812	162	900		158		(29)	(787)	8,830
Net premiums earned	2,342	20,726	431	991		1,209		4,367	1,494	31,560
Reinsurance commissions	1,697	--	571	--		489		26	(262)	2,521
TOTAL REVENUES	4,039	20,726	1,002	991		1,698		4,393	1,232	34,081

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	(250)	(15,900)	(33)	(7,533)		(188)		(2,144)	(102)	(26,150)
Reinsurers’ share of claims paid	201	--	27	6,367		112		1,583	34	8,324
Net claims paid	(49)	(15,900)	(6)	(1,166)		(76)		(561)	(68)	(17,826)
Changes in outstanding claims, IBNR & technical reserves	188	2,836	338	413		(614)		(1,832)	(257)	1,072
Net claims incurred	139	(13,064)	332	(753)		(690)		(2,393)	(325)	(16,754)
Policy acquisition costs	(887)	(1,838)	(297)		--		(185)	(1,340)	(88)	(4,635)
Other underwriting expenses										(215)
TOTAL UNDERWRITING COSTS AND EXPENSES										(21,604)

NET UNDERWRITING INCOME										12,477
OTHER OPERATING (EXPENSES)/ INCOME
Reversal for doubtful debts										2,191
General and administrative expenses										(13,350)
Investment income on term deposits										3,263
Investment income on bonds, sukuks										961
Other income										--
TOTAL OTHER OPERATING EXPENSES										(6,935)
TOTAL INCOME FOR THE PERIOD BEFORE ZAKAT AND INCOME TAX										5,542
NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE INSURANCE OPERATIONS										(337)
TOTAL INCOME FOR THE PERIOD ATTRIBUTED TO THE SHAREHOLDERS’										5,205

	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)
Excess of loss premium	--	--	--	--	--	--	--	--
NET PREMIUMS WRITTEN	2,755	14,879	(392)	49	2,823	2,408	2,874	25,396
Changes in unearned premiums, net	5,468	10,133	1,008	277	(944)	10	(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	33	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)	49	(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
Allowance 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

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, 2019 (Unaudited)	December 31, 2018 (Audited)
Letters of guarantee	700	700
Commitments for the rents	53	186
Total	753	886

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.

[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