| 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 ACTIVITIESAl Alamiya for Cooperative Insurance Company (“the Company” or “Al Alamiya”) 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 companyPrince Mohammed bin Abdul Aziz Road, Home Centre Building, P.O. Box: 6393,Riyadh 11442, Kingdom of Saudi ArabiaThe 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 the Saudi Central Bank (SAMA) to transact insurance business in the Kingdom of Saudi Arabia. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2.BASIS OF PREPERATION(a)Basis of presentationThe interim condensed financial information of the Company as at and for the period ended September 30, 2021 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 for Chartered and Professional Accountants (SOCPA).The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available for sale investments end of service at present value of future obligations using projected unit credit method. 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, due from related parties, 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, intangible, statutory deposit, accrued income on statutory deposit, available for sale investments in insurance operations, and deferred tax assets.As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed financial statements accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity is 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 16 of the interim condensed 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 16 reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. 2.BASIS OF PREPERATION (CONTINUED)(a)Basis of presentation (continued)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 SAMA. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full. The interim condensed financial information does 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, 2020. These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.(b)Critical accounting judgments, estimates and assumptionsThe preparation of interim financial statement 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 statement, 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 2020. Further, the Company has considered the following:On 11 March 2020, the World Health Organisation (WHO) declared the Coronavirus (Covid-19) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews.In response to the spread of the Covid-19 virus in the Kingdom of Saudi Arabia where the Company operates and its consequential disruption to the social and economic activities, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure: -the health and safety of its employees and the wider community where it is operating-the continuity of its business throughout the Kingdom is protected and kept intact. | 2 |
| Disclosure of new standards and amendments in standards [text block] | 3.SIGNIFICANT ACCOUNTING POLICIESThe accounting policies used in the preparation of these unaudited interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2020.i)IFRS 9 Financial InstrumentsThis standard was published on July 24, 2014 to replace IAS 39. The new standard addresses the following items related to financial instruments:Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and;ii)the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i)the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale and;ii)the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. 3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)i)IFRS 9 Financial Instruments (continued) Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1)apply a temporary exemption from implementing IFRS 9 until the earlier of:a) the effective date of a new insurance contract standard; or b)annual reporting periods beginning on or after January 1, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or;2)adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.The Company has performed a preliminary assessment which included below: (1)The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2)the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s interim condensed financial statements.Impact assessmentThe Company is currently assessing the impact of the application and implementation of IFRS 9, however, the Company expects the classification and measurement of financial assets to be impacted from implementation of IFRS 9. As of the date of the publication of these interim condensed financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. 3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)ii)IFRS 17 Insurance Contracts (continued)OverviewThis standard was published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts: i)embedded derivatives, if they meet certain specified criteria;ii)distinct investment components; and iii)any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The General Measurement Model (GMM) is based on the following “building blocks”:a) the fulfilment cash flows (FCF), which comprise:probability-weighted estimates of future cash flows,an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows,and a risk adjustment for non-financial risk;b) the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date; and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. The effect of changes in discount rates will be reported in either profit or loss or other comprehensive income, determined by an accounting policy choice.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, in addition to adjustment under GMM, the CSM is also adjusted for: 3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)iii)IFRS 17 Insurance Contracts (continued)Measurement (continued)i)the entity’s share of the changes in the fair value of underlying items; ii) the effect of changes in the time value of money and in financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for remaining coverage if it provides a measurement that is not materially different from the General Measurement Model for the group of contracts or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The General Measurement Model remains applicable for the measurement of the liability for incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe Company intends to apply the Standard on its effective date i.e. 1 January 2023. The IASB issued an Exposure Draft Amendments to IFRS 17 proposing certain amendments to IFRS 17 during June 2019 and received comments from various stakeholders. On 17 March 2020, the IASB completed its discussions on the amendments to IFRS 17 Insurance Contracts that were proposed for public consultation in June 2019. It decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance and reinsurance contracts, together with amendments to presentation and disclosures.Impact assessment:The Company has recently completed the design phase of IFRS 17 implementation which required developing and designing new processes for the business including the system developments required under IFRS 17 and detailed assessment of business requirements. Following were the main areas under design phase and status of the progress made so far by the Company:Impact AreaSummary of ImpactReinsurance contracts heldUnder IFRS 17 reinsurance contracts held should be considered and measured separately from the gross business. Detailed assessment has also been performed on the Company’s reinsurance arrangements and concluded that all RI arrangements are eligible for PAA, company has opted to apply PAA for eligible products.Financial Impact During the financial impact exercised carried out as part of phase 2 of IFRS 17 Implementation, the Company has assessed the financial impact of the application and implementation of IFRS 17 and concluded that impact on adoption of IFRS 17 is immaterial as all of the portfolio are eligible for PAA measurement model. Data Impact IFRS 17 has additional data requirements. During the phase 2, company has carried out a detailed benchmarking exercise and identified the data required for IFRS 17 and come up with a data dictionary required under phase 3, in which the data elements were categorized into 16 different datasets, containing all elements required by the engine.IT Systems Impact Assessment was performed on existing systems capabilities for IFRS 17 calculations and user requirements specification needs to be anticipated prior to the setup and configuration of the new IT platform, storage and reporting and whether new systems / calculation engines should be implemented.Cost estimates were also evaluated along with the cost structures, and it was decided by the IFRS 17 Steering committee to adopt Tagetik at the Company level in KSA. 3.SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Implementation PlanGovernance and Control FrameworkThe Company has put in place a comprehensive IFRS 17 governance program which includes establishing oversight steering committee for monitoring the progress of implementation and assigning roles and responsibilities to various stakeholdersOperational FrameworkThe Company has designed operational aspects of the design phase which included:Establishing comprehensive data policy and data dictionary. Company obtained the software license of Tagetik to install their calculation engine in line with the Company’s group decision and also identified the future state architectural design and the requirements, which need to be embedded in the calculation engine to meet the requirements of IFRS 17.Finalizing various key processes needed for IFRS 17 transition.Carrying out assessment of new resources, if any, to be recruited due to Adoption of IFRS 17, and creation of a recruitment plan.Technical and Financial FrameworkThe Company has completed various policy papers encompassing various technical and financial matters after concluding on policy decisions required under the IFRS 17 standard. The policy decisions have been taken after due deliberations among various stakeholders. Currently majority of policy papers have been approved by the Company's IFRS 17 project steering committee.After the design phase, the company has started its journey towards executing the fourth phase, i.e., Implementation and Dry Runs, and has started the implementation, to come up with IFRS 17 numbers by performing the dry runs, on a timely basis. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments at fair value through statement of income [text block] | 5.TERM DEPOSITSTerm deposits are placed with counterparties which have credit ratings of A- to A+ ratings under Standard and Poor's and Fitch ratings methodology. Term deposits are placed with local banks with a maturity of more than three months from the date of original placement and earn investment income at weighted average rate of 1.5% per annum (2020: 1.5% per annum). The carrying amounts of the term deposits approximate the fair value at the statement of financial position date.6.AVAILABLE FOR SALE INVESTMENTSAvailable for sale investments are classified as follows:SR’000December 31, 2021December 31, 2020DomesticInternationalTotalDomesticInternationalTotalAvailable for sale investments – Insurance operations *1,923--1,9231,923--1,923Available for sale investments – Shareholders’ operations125,843--125,843128,093--128,093Total available for sale investments127,766--127,766130,016--130,016a)Insurance operations – Available for sale investments* This represents investments in respect of the Company’s shareholding in Najm for Insurance Services which is a claim’s service provider. b)Shareholders’ operations – Available for sale investments SR ’00020212020Amortised costSRMarket valueSRAmortised costSRMarket valueSRSukuks – Fixed rate (Quoted)Saudi Government Sukuk124,014125,843124,325128,093124,014125,843124,325128,093Movement in the available for sale investment balance for shareholders’ operations is as follows:Shareholders’ operationsSR’000December 31, 2021December 31, 2020Opening balance128,093155,927Purchases----Maturities--(29,100)Amortization of investments(311)(334)Changes in fair value of investments(1,939)1,600Closing balance125,843128,093The geographical split of investments held as available for sale comprise of sukuks issued by Government of Kingdom of Saudi Arabia.The cumulative unrealized gain in fair value of available for sale investments amounts to SR 1.83 million (2020: SR 3.77 million) is presented within the shareholders’ equity in the statement of financial position.7.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 liabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the financial information.Determination of fair value and fair value hierarchyThe 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; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a.Carrying amounts and fair value (1)The following table shows the carrying amount and fair values of financial assets 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 valueSR’000sDecember 31, 2021Carrying valueLevel 1Level 2Level 3TotalShareholders’ operationsAvailable for sale investments measured at fair valueSukuks125,843125,843----125,843Insurance OperationsNajm1,923----1,9231,923127,766125,843--1,923127,766Fair valueSR’000sDecember 31 , 2020Carrying valueLevel 1Level 2Level 3TotalShareholders’ operationsAvailable for sale investments measured at fair valueBonds and Sukuks128,093128,093----128,093Insurance OperationsNajm1,9231,9231,923130,016128,093--1,923130,016The unlisted security of SR 1.92 million (2020: SR 1.92 million) held as part of Company’s insurance operations, was stated at cost in the absence of active markets or other means of reliably measuring their fair value.During the year ended December 31, 2021, 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 in between levels during the year ended December 31, 2021. | 5,6,7 |
| Disclosure of investments reclassified [text block] | 10.FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)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 valueSAR’000sSeptember 30, 2021 (Unaudited)Carrying valueLevel 1Level 2Level 3TotalAvailable for sale investments measured at fair valueShareholders’ operationsBonds and Sukuk127,125127,125----127,125Insurance OperationsNajm1,923----1,9231,923129,048127,125--1,923129,048Fair valueSAR’000sDecember 31, 2020 (Audited)Carrying valueLevel 1Level 2Level 3TotalAvailable for sale investments measured at fair valueShareholders’ operationsBonds and Sukuk128,093128,093----128,093Insurance OperationsNajm1,923----1,9231,923130,016128,093--1,923130,016The unlisted security of SR 1.92 million (December 31, 2020: SR 1.92 million) held as part of the Company’s insurance operations, was stated at cost in the absence of active markets or other means of reliably measuring its fair value.During the period ended September 30, 2021, there were no transfers into or out of level 3 fair value measurements. Further, there were no transfers from Level 1 to Level 2 during the period ended September 30, 2021. | 10 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 8.PREMIUMS AND REINSURERS’ RECEIVABLE Receivables comprise amounts due from the following:Insurance operationsSR’000December 31, 2021December 31, 2020Policyholders15,90521,276Brokers and agents17,37016,656Related parties (Note 20)10,7014,958Receivables from reinsurers5,6134,27049,58947,160Provision for doubtful receivables(12,014)(11,108)Premiums and reinsurers’ receivable – net37,57536,052Allowance for impairment of receivables include SR Nil million (2020: SR 0.15 million) against receivables from related parties. Movement in the allowance for impairment of receivables is as follows:SR ’00020212020Balance at 1 January11,10810,030Charge of impairment for the year9061,078Balance at 31 December12,01411,108SR ’000Neither past due nor impairedPast due but not impairedPast due and impairedTotal Less than 30 days31 - 60 days61 - 90 days90 - 180 days181 - 360 daysMore than 360 daysPremium and reinsurance receivables- Policyholders15,9056251,1953478,1422,4403,156- Brokers and agents17,3709495569905,9472,6626,266- Due from related parties10,7015,6035,098---------- Receivable from reinsurers5,6133,129----1083422,03431 DECEMBER 202149,58910,3066,8491,33714,1975,44411,456Premium and reinsurance receivables- Policyholders21,2773065457,2317,9551,6223,618- Brokers and agents16,6562,0971,0199334,3924,0464,169- Due from related parties4,9574,327--5117236542- Receivable from reinsurers4,2701,801----21--2,44831 December 202047,1608,5311,5648,21512,5406,03310,277The Company classifies balances as “past due and impaired” on case by case basis and an impairment adjustment is recorded in the statement of income. Unimpaired premiums receivable are expected, on the basis of past experience, to be fully recoverable. It is the normal practice of the Company to not obtain collateral over premiums receivable. These balances are therefore unsecured. The credit quality of these financial assets that are neither past due nor impaired can be assessed by reference to respective policyholders’ credit history, where there are minimal account defaults and vast majority of the receivables have been fully recovered in the past.The Company does not have a formal internal credit ratings assessment process. Amounts which are neither past due nor impaired, in respect of premium receivable balances, are from individuals and unrated corporates.8.PREMIUMS AND REINSURERS’ RECEIVABLE (continued)Premiums and reinsurance balances receivables comprise a large number of customers mainly within the Kingdom of Saudi Arabia as well as reinsurance companies outside Kingdom of Saudi Arabia. The Company’s terms of business require amounts to be paid within 30 to 90 days of the date of transaction. Arrangements with reinsurers normally require settlement if the balance exceeds a certain agreed amount. As at December 31, 2021, no individual or corporate accounts is for more than 23% of the premium receivable (December 31, 2020: 17%). In addition, the five largest customers accounts amount to 55% of the premiums receivable as at December 31, 2021 (December 31, 2020: 57%). | 8 |
| Disclosure of cash and cash equivalents [text block] | 4.BANK BALANCES AND CASHBank balances and cash comprise the following:SR’000December 31, 2021December 31, 2020Bank balances and cash – Insurance operations 37,71420,174Bank balances and cash – Shareholders’ operations2,8782,182Short term deposits – Shareholders’ operations----Cash and cash equivalents in statement of cashflows40,59222,356Deposits against letters of guarantee – Insurance operations700700Total 41,29223,056The Company holds an amount of SR 0.7 million (31 December 2020: SR 0.7 million) in the statement of financial position as letters of guarantee in favor of the Company’s service providers. | 4 |
| Disclosure of zakat [text block] | 15.ZAKAT AND INCOME TAXStatus of assessmentsThe 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 years ended 31 December 2020. Zakat, Tax and Custom Authority (ZATCA) has raised 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 (together with 1% delay fine for each 30 days of delay) respectively. The Committee for Resolution of Tax Violations and Disputes (CRTVD) of the General Secretariat of Tax Committees (GSTC) has issued its decision on the above years accepting certain points and reducing the zakat liability to SR 7.1 million and no change in WHT liability. The Company has submitted an appeal to Appellate Committee for Tax Violations and Disputes Resolution (“ACTVDR”) against CRTVD’s decision. Based on ZATCA’s amnesty scheme, the Company settled additional WHT of SR 8.9 million to remove associated delay fines, such settled liability will be refunded by ZATCA in case of a favorable decision by ACTVDR. ACTVDR’s decision is awaited.15.ZAKAT AND INCOME TAX (Continued)In respect of the assessment for the year 2014, the ZATCA has issued a revised assessment with an additional zakat liability of SR 1.98 million. The Company has registered the case with CRTVD and submitted an appeal against ZATCA’s review points. Hearing session held on February 6, 2022 before the CRTVD, where the CRTVD has concluded about the case and delivered its verbal decision, through which the CRTVD has rejected the Company's appeal and supported ZATCA's assessment for all disputed items. The Company will file an appeal against the CRTVD decision to the ACTVDR.The ZATCA has also issued assessments for the years 2015 through 2018 with additional zakat liability of SR 21 million. The Company filed an appeal against ZATCA’s assessment with CRTVD no hearing has been conducted yet.The ZATCA has also issued assessments for the years 2019 and 2020 with additional zakat and income tax liability amounting to SR 17 million and SR 0.72 million and penalties of SR 0.09 million till the date of assessment (the penalties will increase by 1% for every 30 days of delay) respectively. The Company has appealed against the ZATCA’s assessment.The zakat and tax charge for the year ended are as follows:SR’000December 31, 2021December 31, 2020Zakat charge for the year (Note 15a)7,8487,477Income tax charge for the year (Note 15c) --125Deferred tax (income) / expense charge for the year (Note 15e)(134)(8)(134)1177,7147,594a)Zakat charge for the yearThe Company’s zakat and tax calculations and corresponding accruals and payments 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 year ended December 31, 2020 and obtained the required certificates and acknowledgements. The zakat charge is based on the following:SR’000December 31, 2021December 31, 2020Share capital400,000400,000Reserves and provisions36,501(12,208)Book value of long term assets(6,279)(5,442)Adjusted net profit for the year(24,832)4,543Zakat base405,390386,893Saudi shareholders’ share of zakat base303,901290,034Zakat charge 7,8487,477The differences between the financial and the zakatable results are mainly due to provisions which are not included in the calculation of zakatable income.b)Movement in the provision for zakat for the yearThe movement in the provision for zakat for the year is as follows:SR’00020212020Balance at 1 January49,86042,741Provided during the year7,8487,477Payments made during the year(4,824)(358)Balance at 31 December52,88449,86015.ZAKAT AND INCOME TAX (Continued)c)Movement in the provision for income tax for the yearThe movement in the provision for income tax for the year is as follows:SR’00020212020Balance at 1 January1,0561,526Provided during the year--125Payments made during the year(125)(595)Balance at 31 December9311,056d)Movement in the provision for zakat and income tax for the yearThe movement in the provision for zakat and income tax for the year is as follows:SR’00020212020Balance at 1 January50,91644,267Provided during the year7,8487,602Payments made during the year(4,951)(953)Balance at 31 December53,81350,916e) Deferred tax assetSR’00020212020Opening deferred tax asset1,0721,064Deferred tax income 1348Closing deferred tax asset1,2061,072SR’000December 31, 2021December 31, 2020Opening zakat, income tax liability and deferred tax Asset49,84443,203 Charge / (reversal) for the period Current charge for zakat for the year7,8487,477 Current charge for income tax for the year--125 Deferred tax income for the year(134)(8)Settled during the period(4,949)(953)Closing zakat, income tax liability and deferred tax asset52,60949,844 | 15 |
| Disclosure of classes of share capital [text block] | 16.SHARE CAPITALThe authorized and paid up share capital of the Company is SR 400 million divided into 40 million shares of SR 10 each(31 December 2020: SR 400 million divided into 40 million shares of SR 10 each).Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax.December 31, 2021No. of Shares Authorized, issued and paid up capital‘000SR’000Royal & Sun Alliance 20,028200,280Riyad Bank 7,96879,680Others12,004120,04040,000400,000December 31, 2020No. of Shares Authorized, issued and paid up capital‘000SR’000Royal & Sun Alliance 20,028200,280Riyadh Bank 7,96879,680Others12,004120,04040,000400,000 | 16 |
| Disclosure of statutory reserve [text block] | 17. STATUTORY RESERVEIn accordance with Regulations for Companies in Saudi Arabia and the by-laws of the Company, the Company is required to establish a statutory reserve by appropriating 20% of net income until the reserve equals 100% of the share capital. This reserve is not available for dividend distribution. | 17 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 9.TECHNICAL RESERVES9.1 NET OUTSTANDING CLAIMS AND RESERVESNet outstanding claims and reserves comprise of the following:Insurance operationsSR’000December 31, 2021December 31, 2020Outstanding claims147,80992,192Less: Realizable value of salvage and subrogation(16,567)(18,096)Outstanding claims reserve131,24274,096Claims incurred but not reported 22,22826,047Other technical reserves 6,7525,568160,222105,711Less:- Reinsurers’ share of outstanding claims(99,384)(60,296)- Reinsurers’ share of claims Incurred but not reported(6,844)(3,386)(106,228)(63,682)Net outstanding claims and reserves53,99442,0299.2MOVEMENT IN UNEARNED PREMIUMSMovement in unearned premiums comprise of the followingYear ended December 31, 2021SR’000GrossReinsuranceNetBalance as at the beginning of the year60,932(42,241)18,691Premium written during the year263,637*(114,189)149,448Premium earned during the year(224,264)130,587(93,677)Balance as at the end of the year100,305(25,843)74,462* This amount includes SR 104.3 million for reinsurance premium ceded abroad, SR 3.0 million for reinsurance premium ceded locally and SR 6.5 million for excess of loss expenses ceded abroad and, SR 0.3 million ceded locally.9.TECHNICAL RESERVES (Continued)9.2 MOVEMENT IN UNEARNED PREMIUMS (Continued)Year ended December 31, 2020SR’000GrossReinsuranceNetBalance as at the beginning of the year73,610(41,006)32,604Premium written during the year191,170*(137,580)53,590Premium earned during the year(203,848)136,345(67,503)Balance as at the end of the year60,932(42,241)18,691* This amount includes SR 111.0 million for reinsurance premium ceded abroad, SR 2.2 million for reinsurance premium ceded locally and SR 4.2 million for excess of loss expenses ceded abroad and, SR 0.2 million ceded locally.9.3DEFERRED POLICY ACQUISITION COSTSSR’00020212020Balance at 1 January2,5274,159Cost incurred during the year10,69613,458Amortised during the year(10,217)(15,090)Balance at 31 December3,0062,5279.4 UNEARNED REINSURANCE COMMISSIONSR’00020212020Balance at 1 January 7,1684,360Commission received during the year 11,41220,134Commission earned during the year (16,204)(17,326)Balance at 31 December2,3767,168 | 9 |
| Disclosure of compensation to key management personnel [text block] | 12.RELATED PARTY TRANSACTIONS AND BALANCESRelated 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 controlledTransactions for the nine-month period endedor significantly influenced by related parties September 30,September 30,20212020(Unaudited)(Unaudited)SAR’ 000Gross premiums written58,44053,593Gross claims paid11,36749,471Brokerage commission paid1,6313,708Reinsurance premium ceded24,34127,886Reinsurance share of gross claim paid10,854962Reinsurance commission income9,45410,434Investment income on term deposits8362,905Technical service charges4,5524,973Brand fees2323Operational expenses paid on behalf of affiliates and reinsurance placements1,626886Operational expenses paid by affiliates on behalf of Company(1,579)(1,215)Balance receivable / (payable) as atEntities controlled, jointly controlledor significantly influenced by related partiesSeptember 30,December 31,20212020(Unaudited)(Audited)SAR’000Bank balances 4,1212,237Term deposits230,309142,810Statutory deposit and accrued commission45,57245,297Accrued interest receivable370254Premium receivable5,5704,958Reinsurance balance payable (22,812)(15,912) Accrued expenses and other liabilities(14,421)(10,253) Reinsurance share of gross outstanding claims17,2146,908Gross outstanding claim (74,488)(53,028)Due from related parties--734Due to related parties(9,899)(3,763)The compensation of key management personnel during the period is as follows:Transactions for the nine month period endedSeptember 30, 2021(Unaudited)September 30, 2020(Unaudited)SAR’000Salaries and other allowances4,9385,554End of service indemnities3013085,2395,862 | 11 |
| Disclosure of related party transactions [text block] | 20.RELATED PARTY TRANSACTIONS AND BALANCESRelated 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 year and the related balances: Entities controlled, jointly controlledTransactions for the year endedor significantly influenced by related parties 20212020SR’ 000Gross premiums written79,62167,420Gross claims paid15,45441,327Brokerage commission paid1,6314,833Reinsurance premium ceded26,70642,752Reinsurance share of gross claim paid11,5072,970Reinsurance commission income10,36916,947Investment income on term deposits1,3313,179Technical service charges6,6286,919Brand fees3030Operational expenses paid on behalf of affiliates and reinsurance placements1,752979Operational expenses paid by affiliates on behalf of Company(2,224)(2,291)Key management personnel and Board members Gross written premiums114Remuneration and meeting fee630630Balance receivable / (payable) as atEntities controlled, jointly controlledor significantly influenced by related parties20212020SR’000Bank balances 4,4062,237Term deposits242,343142,810Statutory deposit45,57245,297Accrued interest receivable499254Premium receivable10,7014,957Reinsurance balance payable (16,661)(15,912) Accrued expenses and other liabilities(16,661)(10,253) Reinsurance share of gross outstanding claims14,4886,908Gross outstanding claim (81,459)(53,028)Due from related parties--734Due to related parties(10,419)(3,763)20.RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)The compensation of key management personnel during the year is as follows:December31, 2021December31, 2020SR’000Salaries and other allowances6,5846,956End of service indemnities4014036,9857,359 | 20 |
| Disclosure of entity's operating segments [text block] | 6,9857,35921.OPERATING SEGMENTSOperating 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 statement of income. Segment assets and liabilities comprise operating assets and liabilities.Segment assets do not include (in respect of insurance operations) property and equipment, Term deposits, Investments, bank balances and cash, prepaid expenses, 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 and other liabilities, account payables, due to related parties, zakat and income tax, accrued commission, income payable to SAMA and due from insurance operations. 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. 21.OPERATING SEGMENTS (Continued)The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at December 31, 2021 and December 31, 2020, its total revenues, expenses, and net income for the the year ended, are as follows:As at December 31, 2021 Insurance operationsOperating segments PropertyMotorEngineeringMedicalMarineGroup lifeOthersTotal - Insurance operationsShareholders’ operationsTotalSR’000Assets Reinsurers’ share of unearned premiums 17,206 - 2,990 - 1,387 210 4,050 25,843-25,843Reinsurers’ share of outstanding claims 21,736 2,082 4,503 9 2,275 64,425 4,354 99,384-99,384Reinsurers’ share of claims Incurred but not reported 2,483 - 205 (803) 137 4,822 -6,844-6,844Deferred policy acquisition costs 532 2,061 180 - 60 41 132 3,006-3,006Unallocated assets-------318,796428,446747,242Total assets 41,957 4,143 7,878 (794)3,859 69,498 8,536 453,873428,446882,319Liabilities and equity Outstanding claim reserve 25,852 5,257 5,862 11 3,984 84,946 5,330 131,242 - 131,242 Claims incurred but not reported 2,853 12,657 308 (12) 183 6,155 84 22,228 - 22,228 Other technical reserves 2,210 3,262 810 434 36 6,752 - 6,752 Unearned premiums 19,718 69,424 3,469 - 1,845 350 5,499 100,305 - 100,305 Unearned reinsurance commission 1,261 163 723 - 376 - (147) 2,376 - 2,376 Unallocated liabilities-------190,970428,446619,416Total Liabilities, Insurance operations’ surplus and equity 51,894 90,763 11,172 (1) 6,822 91,487 10,766 453,873428,446882,31921.OPERATING SEGMENTS (Continued)As at December 31, 2020 Insurance operationsOperating segments PropertyMotorEngineeringMedicalMarineGroup lifeOthersTotal - Insurance operationsShareholders’ operationsTotalSR’000Assets Reinsurers’ share of unearned premiums31,333--4,490--3,0935262,79942,241--42,241Reinsurers’ share of outstanding claims10,2042,0821,427102,76741,5262,28060,296--60,296Reinsurers’ share of claims Incurred but not reported116--319(502)(182)3,635--3,386--3,386Deferred policy acquisition costs830701276--3541272392,527--2,527Unallocated assets--------------266,428464,575731,003Total assets 42,4832,7836,512(492)6,03245,8145,318374,878464,575839,453Liabilities and equity Outstanding claims10,978(1,103)1,889624,45154,4143,40574,096--74,096Claims incurred but not reported15921,083449(11)(291)4,6342426,047--26,047Other technical reserves2,0632,630----78392--5,568--5,568Unearned premiums34,76610,4384,956--3,6518686,25360,932--60,932Unearned reinsurance commission5,090--1,142--987--(51)7,168--7,168Unallocated liabilities201,067464,575665,642Total Liabilities, Insurance operations’ surplus and equity53,05633,0488,436519,58160,0089,631374,878464,575839,45321.OPERATING SEGMENTS (Continued)For the year ended December 31, 2021 - (SR ‘000’)Operating segmentsPropertyMotorEngineeringMedicalMarineGroup LifeOthersTotalREVENUESGross premiums written 44,927 125,816 8,634 - 14,954 57,467 11,839 263,637 Reinsurance premiums ceded (38,831) - (7,369) - (10,615) (42,310) (8,184) (107,309)Excess of loss premium (1,460) (3,250) (289) - (993) (788) (100) (6,880)Net premiums written 4,636 122,566 976 - 3,346 14,369 3,555 149,448 Changes in unearned premiums, net 921 (58,986) (13) - 100 202 2,005 (55,771)Net premiums earned 5,557 63,580 963 - 3,446 14,571 5,560 93,677 Reinsurance commissions 9,605 - 2,431 - 3,784 1 383 16,204 TOTAL REVENUES 15,162 63,580 3,394 - 7,230 14,572 5,943 109,881 UNDERWRITING COSTS AND EXPENSESGross claims paid (16,482) (42,887) (1,251) (174) (1,825) (15,118) (5,852) (83,589)Reinsurers’ share of claims paid 13,531 - 1,022 156 1,245 11,643 5,122 32,719 Net claims paid (2,951) (42,887) (229) (18) (580) (3,475) (730) (50,870)Changes in outstanding claims, IBNR & technical reserves (3,816) 1,434 (1,680) (250) 169 (7,911) 89 (11,965)Net claims incurred (6,767) (41,453) (1,909) (268) (411) (11,386) (641) (62,835)Policy acquisition costs (1,800) (4,480) (413) - (1,454) (1,601) (469) (10,217)Other underwriting expenses-------(19,947)TOTAL UNDERWRITING COSTS AND EXPENSES (92,999)NET UNDERWRITING INCOME16,882OTHER OPERATING (EXPENSES)/ INCOMEProvision for doubtful debts (906)General and administrative expenses(56,591)Investment income on term deposits 2,629Investment income3,669Other Income6,654TOTAL OTHER OPERATING EXPENSES(44,545)TOTAL LOSS FOR THE YEAR(27,663)NET INCOME FOR THE YEAR ATTRIBUTABLE TO THE INSURANCE OPERATIONS -TOTAL LOSS FOR THE YEAR ATTRIBUTED TO THE SHAREHOLDERS’(27,663) 21.OPERATING SEGMENTS (Continued)For the year ended December 31, 2020 - SR (’000’)Operating segments PropertyMotorEngineeringMedicalMarineGroup LifeOthersTotalREVENUESGross premiums written76,17622,16515,15816214,09350,46412,952191,170Reinsurance premiums ceded (67,200)--(12,725)--(11,595)(34,034)(6,812)(132,366)Excess of loss expenses(1,865)(1,242)(366)-(642)(750)(349)(5,214)NET PREMIUMS WRITTEN7,11120,9232,0671621,85615,6805,79153,590Changes in unearned premiums, net(2,228)16,361(60)289(103)(32)(314)13,913NET PREMIUMS EARNED4,88337,2842,0074511,75315,6485,47767,503Reinsurance commissions 9,676--2,475--5,088--8717,326TOTAL REVENUES14,55937,2844,4824516,84115,6485,56484,829UNDERWRITING COSTS AND EXPENSESGross claims paid (4,253)(34,652)(227)(8,375)(1,725)(29,625)307(78,550)Reinsurers’ share of claims paid3,523--2167,4351,29822,623(794)34,301Net claims paid(730)(34,652)(11)(940)(427)(7,002)(487)(44,249)Changes in outstanding claims, IBNR & technical reserves10223,27936216510(2,195)(52)21,671Net claims incurred(628)(11,373)351(775)(417)(9,197)(539)(22,578)Policy acquisition costs(4,109)(3,408)(1,067)-(1,308)(4,463)(735)(15,090)Other underwriting expenses(1,378)TOTAL UNDERWRITING COSTS AND EXPENSES(39,046)NET UNDERWRITING INCOME45,783OTHER OPERATING (EXPENSES)/ INCOMEReversal for doubtful debts(1,078)General and administrative expenses(61,163)Investment income on term deposits 6,752Investment income3,849Other Income7,305TOTAL OTHER OPERATING EXPENSES(44,335)TOTAL INCOME FOR THE YEAR1,448NET INCOME FOR THE YEAR ATTRIBUTABLE TO THE INSURANCE OPERATIONS--TOTAL INCOME FOR THE YEAR ATTRIBUTED TO THE SHAREHOLDERS’1,448 21.OPERATING SEGMENTS (Continued)For the year ended December 31, 2021 SAR’000Gross premiums writtenMedical Motor Property,General Accident & OthersProtection (Group Life) & SavingsTotalLarge - 2,509 59,638 56,910 119,057 Medium - 6,646 15,784 518 22,948 Micro - 375 477 - 852 Small - 2,599 4,154 39 6,792 Individual - 113,687 301 113,988 - 125,816 80,354 57,467 263,637 For the year ended December 31, 2020 SAR’000Gross premiums writtenMedical Motor Property,General Accident & OthersProtection (Group Life) & SavingsTotalLarge1623,58690,98555,259149,992Medium--7,82415,24730623,377Micro--(130)10311(16)Small--2,8946,191339,118Individual --7,991708--8,69916222,165113,23455,609191,170 | 21 |
| Disclosure of capital management [text block] | 16.SHARE CAPITALThe authorized and paid up share capital of the Company is SR 400 million divided into 40 million shares of SR 10 each(31 December 2020: SR 400 million divided into 40 million shares of SR 10 each).Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax. | 16 |
| Disclosure of commitments and contingencies, general [text block] | 19.COMMITMENTS AND CONTINGENCIESThe Company’s commitments and contingencies are as follows:SR’000December 31, 2021December 31, 2020Letters of guarantee700700Commitments for the rents151151Total851851The 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. | 19 |
| Disclosure of risk management [abstract] | | |
| Disclosure of operational/ process risk [text block] | 27.IMPACT OF COVID 19 OUTBREAK AND SUBSEQUENT EVENTSThe outbreak of novel coronavirus (COVID-19) since early 2020, its spread across mainland China and then globally including the Kingdom of Saudi Arabia and the declaration of this pandemic by the World Health Organization has resulted globally in governmental authorities imposing quarantines and travel restrictions of varying scope; has led to significant disruptions in the retail, travel and hospitality industries, and in global trade. It has resulted in decreased economic activity and lowered estimates for future economic growth and has caused global financial markets to experience significant volatility. The Company has considered the following while assessing the impact of COVID-19 outbreak: Financial assetsThe Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired. These include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the Company has performed an assessment to determine whether there is a significant decline in the fair value of financial assets below their cost. Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the year ended December 31, 2021. The Company’s management continues to monitor the situation closely. Credit risk managementThe Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. Based on the review, the Company has identified the following sectors being impacted significantly by the Covid-19 pandemic and lower oil prices:FoodsAirlinesFreight companiesHotelsRetailConstructionEntertainmentTourismLiquidity RiskThe Company is aware of the need to keep a close focus on liquidity management during this period and has enhanced its monitoring of current liquidity needs as well as the pandemic in its entirety. The Company regularly reviews and updates the liquidity forecast based on the individual liquidity balance as well as the continued development of external economic factors. | 27 |
| Disclosure of board of director's approval of the financial statements [text block] | 28.APPROVAL OF THE FINANCIAL STATEMENTSThe financial statement have been approved by the Board of Directors on 9h March 2022, corresponding to 6th of Shaban 1443H. | 28 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 25.SUPPLEMENTARY INFORMATIONA)STATEMENT OF FINANCIAL POSITIONSR ’000 December 31, 2021 December 31, 2020 Insurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotalASSETSBank balances and cash38,4142,87841,29220,8742,18223,056Term deposits210,285222,786433,071190,845220,170411,015Premiums and reinsurers’ receivable, net37,575-37,57536,052--36,052Reinsurers’ share of unearned premiums25,843-25,84342,241--42,241Reinsurers’ share of outstanding claims99,384-99,38460,296--60,296Reinsurers’ share of claims Incurred but not reported6,844-6,8443,386--3,386Deferred policy acquisition costs3,006-3,0062,527--2,527Available for sale Investments1,923125,843127,7661,923128,093130,016Due from related parties---734--734Prepaid expenses and other assets25,2451,57326,81810,5581,38911,947Deferred tax asset-1,2061,206--1,0721,072Property and equipment 1,695-1,6951,413--1,413Intangible assets3,659-3,6594,029--4,029Statutory deposit-40,00040,000--40,00040,000Accrued commission income on statutory deposit-5,5725,572--5,2975,297TOTAL ASSETS IN THE STATEMENT OF FINANCIAL POSITION 453,873 399,858 853,731 374,878398,203773,081ASSETS NOT INCLUDED IN THE STATEMENT OF FINANCIAL POSITIONDue from insurance operations --28,58828,588--66,38066,380TOTAL ASSETS 453,873428,446882,319374,878464,583839,461 25.SUPPLEMENTARY INFORMATION (Continued)A)STATEMENT OF FINANCIAL POSITION (continued)SR ’000 December 31, 2021 December 31, 2020 Insurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotalLIABILITIESOutstanding claims reserve131,242- 131,242 74,096--74,096Claims incurred but not reported22,228- 22,228 26,047--26,047Other technical reserves 6,752 - 6,752 5,568--5,568Accrued expenses and other liabilities39,2772,536 41,813 33,3484,53137,879Reinsurers' balances payable91,117- 91,117 74,048--74,048Unearned premiums100,305- 100,305 60,932--60,932Accounts payables1,932- 1,932 4,569--4,569Unearned reinsurance commission2,376- 2,376 7,168--7,168Due to related parties10,006413 10,419 3,3504133,763End-of-service benefits 11,106- 11,106 10,713--10,713Zakat and income tax-53,815 53,815 --50,91650,916Accrued commission income payable to SAMA-5,572 5,572 --5,2975,297Accumulated surplus8,223- 8,223 8,404--8,404TOTAL LIABILITIES 424,564 62,336 486,900 308,24361,157369,400EQUITYShare capital--400,000400,000400,000400,000Statutory reserve--1,1611,1611,1611,161Accumulated losses--(36,880)(36,880)--(1,503)(1,503)Fair value reserve for available for sale investments1,8291,829--3,7683,768Actuarial reserve for employee benefits721-721255--255TOTAL EQUITY721366,110366,831255403,426403,681TOTAL LIABILITIES INSURANCE OPERATIONS’ SURPLUS AND EQUITY IN THE STATEMENT OF FINANCIAL POSITION425,285428,446853,731308,498464,583773,081LIABILITIES NOT INCLUDED IN THE STATEMENT OF FINANCIAL POSITIONDue to insurance operations28,588--28,58866,380--66,380TOTAL LIABILITIES INSURANCE OPERATIONS’ SURPLUS AND EQUITY453,873428,446882,319374,878464,583839,46125.SUPPLEMENTARY INFORMATION (Continued)B)STATEMENT OF INCOMESR ’000For the year ended December----------- 2021 ---------------------- 2020 ------------Insurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotalREVENUESGross premiums written-Direct263,370--263,370190,508--190,508-Reinsurance267--267662--662263,637--263,637191,170--191,170Reinsurance premiums ceded(107,309)--(107,309)(132,366)--(132,366)Excess of loss premium(6,880)--(6,880)(5,214)--(5,214)Net premiums written149,448--149,44853,590--53,590Changes in unearned premiums (39,373)-- (39,373)12,678--12,678Changes in reinsurers’ share of unearned premium (16,398)-- (16,398)1,235--1,235Net premiums earned93,677--93,67767,503--67,503Reinsurance commissions 16,204--16,20417,326--17,326TOTAL REVENUES109,881--109,88184,829--84,829UNDERWRITING COSTS AND EXPENSESGross claims paid (83,589)-- (83,589)(78,550)--(78,550)Reinsurers’ share of claims paid 32,719 -- 32,719 34,301--34,301Net claims and other benefits paid (50,870)--(50,870)(44,249)--(44,249)Changes in outstanding claims(57,146)--(57,146)8,219--8,219Changes in reinsurers’ share of outstanding claims39,088--39,0879,497--9,497Changes in IBNR, net 7,277 -- 7,278 4,736--4,736Other technical reserves (1,184)-- (1,184)(781)--(781)Net claims incurred(62,835)--(62,835)(22,578)--(22,578)Policy acquisition costs(10,217)--(10,217)(15,090)--(15,090)Other underwriting expenses(19,947)--(19,947)(1,378)--(1,378)TOTAL UNDERWRITING COSTS AND EXPENSES(92,999)--(92,999)(39,046) --(39,046)NET UNDERWRITING INCOME16,882--16,88245,783--45,78325.SUPPLEMENTARY INFORMATION (Continued)B)STATEMENT OF INCOME (Continued)SR ’000For the year ended December----------- 2021 ---------------------- 2020 ------------Insurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotalOTHER OPERATING (EXPENSES)/ INCOME Allowance for doubtful debts(906)-(906)(1,078)--(1,078)General and administrative expenses(55,136)(1,455)(56,591)(59,708)(1,455)(61,163)Investment income on term deposits1,0961,5332,6293,5823,1706,752Investment income on bonds and sukuks-3,6693,669--3,8493,849Other income6,654-6,6547,305--7,305TOTAL OTHER OPERATING (EXPENSES)(48,292)3,747(44,545)(49,899)5,564(44,335)TOTAL (LOSS) / INCOME FOR THE YEAR(31,410)3,747(27,663)(4,116)5,5641,448Total income for the year attributed to the insurance operations---------Shareholders’ absorption of deficit/ (Surplus transferred to Shareholders)31,410(31,410)--4,116(4,116)--TOTAL (LOSS) / INCOME BEFOREZAKAT AND INCOME TAX FOR THE YEAR ATTRIBUTABLE TO SHAREHOLDERS-(27,663)(27,663)--1,4481,448ZAKAT CHARGE FOR THE YEAR-(7,848)(7,848)--(7,477)(7,477)TAX CHARGE FOR THE YEAR-134134--(117)(117)-(35,377) (35,377) --(6,146)(6,146)Loss per share (Expressed in SR per share)Basic and diluted loss per share--(0.88)(0.88)(0.15)(0.15)C)STATEMENT OF COMPREHENSIVE INCOMESR ’000For the year ended December----------- 2021----------------------- 2020 -----------Insurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotalTotal loss for the year-(35,377) (35,377) --(6,146)(6,146)Other comprehensive loss Items that will not be reclassified to statement of income in subsequent periods Change in fair value of available for sale investments-(1,939)(1,939)1,6001,600-Items that will not be reclassified to statement of income in subsequent periodsRemeasurement gain on end-of-service benefits-466466--519519TOTAL COMPREHENSIVE LOSS FOR THE YEAR-(36,850)(36,850)--(4,027)(4,027)TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO INSURANCE OPERATIONS---------NET COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO SHAREHOLDERS-(36,850)(36,850)--(4,027)(4,027)25.SUPPLEMENTARY INFORMATION (Continued)D)STATEMENT OF CASH FLOWSInsurance operationsShareholders operationsTotalInsurance operationsShareholders operationsTotal ------------ 2021 ------------ ----------- 2020 ------------CASH FLOWS FROM OPERATING ACTIVITIES Total (Loss)/Income for the year before zakat and income tax--(27,663)(27,663)--1,4481,448Adjustments for non-cash items:Depreciation of property and equipment1,982--1,982995--995Amortization of intangible assets943943650--650Amortizations of investments--311311--334334Allowance for provisions for impairment of receivables906--9061,078--1,078Provision for end-of-service benefits 2,018--2,0182,017--2,017Changes in operating assets and liabilities:Premiums and reinsurers’ receivable (2,429)--(2,429)6,977--6,977Reinsurers’ share of unearned premiums16,398--16,398(1,235)--(1,235)Reinsurers’ share of outstanding claims(39,088)--(39,088)(9,497)--(9,497)Reinsurers’ share of claims Incurred but not reported(3,458)--(3,458)5,792--5,792Deferred policy acquisition costs(479)--(479)1,632--1,632Due from related parties734--734(665)--(665)Prepaid expenses and other assets(14,687)(184)(14,871)(4,991)3,673(1,318)Accrued income from statutory deposits--(275)(275)--(1,146)(1,146)Accounts payables(2,637)--(2,637)(10,491)--(10,491)Accrued expenses and other liabilities5,929(1,995)3,9342,142(156)1,986Reinsurers' balances payable17,069--17,069(7,372)--(7,372)Unearned premiums39,373--39,373(12,678)--(12,678)Unearned reinsurance commission(4,792)--(4,792)2,808--2,808Outstanding claims reserve57,146--57,146(8,219)--(8,219)Claims incurred but not reported(3,819)--(3,819)(10,528)-- (10,528)Other technical reserves1,184--1,184781--781Accrued commission income payable to SAMA--275275-- 1,1461,146Due to related parties6,656--6,6561,975--1,97578,949(29,531)49,418(38,829)5,299(33,530)Zakat and income tax paid--(4,949)(4,949)--(953)(953)End-of-service benefits paid(1,159)--(1,159)(1,401)--(1,401)Surplus paid to policy holders(181)--(181)(1,448)--(1,448)Net cash generated from operating activities77,609(34,480)43,129(41,678)4,346(37,332)CASH FLOWS FROM INVESTING Disposals / additions in available for sale investments, net---29,10029,100Disposals / additions in term deposits, net(19,440)(2,616)(22,056)58,024(37,274)20,750Additions in intangible assets(1,225)--(1,225)(3,117)--(3,117)Additions in property and equipment (1,612)--(1,612)(1,264) --(1,264) Net cash generated (used in)/from investing activities(22,277)(2,616)(24,893)53,643(8,174)45,469Net change in cash and cash equivalents55,332(37,096)18,23611,965(3,828)8,137Cash and cash equivalents, beginning of the year20,1742,18222,35613,31290714,219Due from/ (to) insurance operations(37,792)37,792--(5,103)5,103--Cash and cash equivalents, end of the year37,7142,87840,59220,1742,18222,356 | 25 |
