| 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] | Wataniya Insurance Company (the “Company”) is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia under Commercial Registration No. 4030200981 dated 1 Jumada II 1431H (corresponding to May 15, 2010) and Industry’s Resolution number 158/K dated Jumad-ul-Awal 12, 1431H (corresponding to April 26, 2010). The Registered Office address of the Company is Juffali Building, Madina Road, Jeddah, Saudi Arabia.The Company is licensed to conduct insurance business in Saudi Arabia under Cooperative insurance principles in accordance with Royal Decree No M/53 dated Shawwal 21, 1430H (corresponding to October 10, 2009) pursuant to Council of Ministers’ Resolution No. 330 dated Shawwal 16,1430H (corresponding to October 5, 2009). The Company was listed on the Saudi Arabian stock market (Tadawul) on September 6, 2010. The objectives of the Company are to provide general insurance and related services in accordance with its by-laws and applicable regulations in Saudi Arabia. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | The interim condensed financial statements of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as modified by SAMA for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax (hereinafter referred to as “IFRS as modified by SAMA”). As per the SAMA Circular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through shareholders equity under retained earnings. | 2 |
| Disclosure of new standards and amendments in standards [text block] | The accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2017 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Companya)The Company has adopted the following amendments, interpretations and revisions to existing standards , which were issued by the International Accounting Standards Board (IASB):StandardDescriptionIFRS 2Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.IAS 40Amendments to IAS 40 Transfers of investment propertyIFRIC 22 Foreign Currency Transactions and Advance considerationIFRS 1 and IAS 28Annual Improvements 2016 to IFRS 2014 - 2016 cycle.The adoption of the above amendments and interpretations did not have any significant impact on these interim condensed financial statements.b)The Company has adopted the following new standard issued IFRS 15 – Revenue from Contracts with Customers IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRSs. However, IFRS 15 does not apply to “revenue from insurance contracts”. However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurance contracts). Therefore, insurance entities will need to carefully evaluate the scope of this standard.b)The Company has adopted the following new standard issued (continued) IFRS 15 established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring of goods or services to a customer. Though there are changes in accounting policy, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 15 on 1 January 2018.Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they become effective.Standard/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 9Financial Instruments (note below)See note belowIFRS 16Leases1 January 2019IFRIC 23Uncertainty over Income Tax Treatments1 January 2019IFRS 17Insurance Contracts 1 January 2021 In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income.IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well as finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39.The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2021.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | The accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2017 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Companya)The Company has adopted the following amendments, interpretations and revisions to existing standards , which were issued by the International Accounting Standards Board (IASB):StandardDescriptionIFRS 2Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.IAS 40Amendments to IAS 40 Transfers of investment propertyIFRIC 22 Foreign Currency Transactions and Advance considerationIFRS 1 and IAS 28Annual Improvements 2016 to IFRS 2014 - 2016 cycle.The adoption of the above amendments and interpretations did not have any significant impact on these interim condensed financial statements.b)The Company has adopted the following new standard issued IFRS 15 – Revenue from Contracts with Customers IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRSs. However, IFRS 15 does not apply to “revenue from insurance contracts”. However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurance contracts). Therefore, insurance entities will need to carefully evaluate the scope of this standard.b)The Company has adopted the following new standard issued (continued) IFRS 15 established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring of goods or services to a customer. Though there are changes in accounting policy, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 15 on 1 January 2018.Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they become effective.Standard/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 9Financial Instruments (note below)See note belowIFRS 16Leases1 January 2019IFRIC 23Uncertainty over Income Tax Treatments1 January 2019IFRS 17Insurance Contracts 1 January 2021 In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income.IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well as finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39.The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2021.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. | 3 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2017 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Companya)The Company has adopted the following amendments, interpretations and revisions to existing standards , which were issued by the International Accounting Standards Board (IASB):StandardDescriptionIFRS 2Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.IAS 40Amendments to IAS 40 Transfers of investment propertyIFRIC 22 Foreign Currency Transactions and Advance considerationIFRS 1 and IAS 28Annual Improvements 2016 to IFRS 2014 - 2016 cycle.The adoption of the above amendments and interpretations did not have any significant impact on these interim condensed financial statements.b)The Company has adopted the following new standard issued IFRS 15 – Revenue from Contracts with Customers IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRSs. However, IFRS 15 does not apply to “revenue from insurance contracts”. However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurance contracts). Therefore, insurance entities will need to carefully evaluate the scope of this standard.b)The Company has adopted the following new standard issued (continued) IFRS 15 established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring of goods or services to a customer. Though there are changes in accounting policy, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 15 on 1 January 2018.Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s interim condensed financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they become effective.Standard/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 9Financial Instruments (note below)See note belowIFRS 16Leases1 January 2019IFRIC 23Uncertainty over Income Tax Treatments1 January 2019IFRS 17Insurance Contracts 1 January 2021 In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income.IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well as finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39.The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2021.The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalentsInsurance operationsJune 30, 2018(Unaudited)December 31, 2017(Audited)Cash in hand2527Bank balances15,38734,005Deposits maturing within 3 months from the acquisition date213,750191,875Total229,162225,907Shareholders operationsJune 30, 2018(Unaudited)December 31, 2017(Audited)Bank balances1,73813,652Deposits maturing within 3 months from the acquisition date75,00030,000Total76,73843,652Total of cash and cash equivalents305,900269,559Cash and cash equivalents are with a bank which is a related party and registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. The deposits yield income at prevailing market rates. | 4 |
| Description of accounting policy for zakat [text block] | Zakat and income tax14.1Components of zakat baseSignificant components of zakat base of the Company attributable to the Saudi shareholders, which are subject to adjustment under zakat and income tax regulations, are shareholders’ equity at the beginning of the period, adjusted net income and certain other items. Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the General Authority of Zakat and Tax (“GAZT”) could be different from the declaration filed by the Company.14.2Provision for zakat and income taxJune 30, 2018 (Unaudited)December 31, 2017 (Audited)Opening balance7,2054,444Charge for zakat 2,810 4,700Charge for income tax 2,0212,214Payments(6,617)(3,805)Reduction in tax recoverable(156)(162)Zakat paid under protest adjusted - -(186)Closing balance5,263 7,205Zakat is payable at 2.5% of higher of the approximate zakat base and adjusted net income attributable to Saudi shareholders.Provision for income tax is payable at 20% of the adjusted net income attributable to the foreign shareholders of the Company, less allowances for foreign shareholders’ share in the losses carry forwarded from previous year calculated in accordance with the guidelines provided in the income tax regulations. Income tax paid is recovered from foreign shareholders.The shareholding percentage subject to zakat and income tax is as follows:June 30, 2018 (Unaudited)December 31, 2017 (Audited)Zakat74.4474.44Income tax25.5625.56Status of assessmentsThe Company has filed its tax returns with the General Authority of Zakat and Tax (“GAZT”) from inception up to 2017. The Company’s tax and zakat position has been finalized up to the years ended December 31, 2012. The tax returns filed for the year ended December 31, 2013 to 2017 are currently being reviewed by the GAZT. | 14 |
| Description of accounting policy for fair value measurement [text block] | 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 advantages 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 these interim condensed financial statements.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.As at 30 June 2018 and 31 December 2017, all financial instruments which are fair valued are Level 3 instruments except for investment in sukuks and equity amounting to SR 34.8 million (2017: 29.9 million) and SR 4.2 million (2017: 2.9 million) which are Level 1 investments. The Company ascertains the Level 3 fair values based on a valuation technique which is primarily derived by net assets value of the respective investee at the period end. There are no transfers between Level 1, Level 2 and Level 3 during the period.Available for sale investment is carried at cost as its fair value cannot be measured reliably. | 11 |
| Description of accounting policy for investment income [text block] | Investments NoteJune 30, 2018(Unaudited)December 31, 2017(Audited)Fair value through income statement investments (FVIS)7.1104,146103,231Available-for-sale investment7.21,9231,923106,069105,1547.1Fair value through income statementMovement is as follows:Six-month period ended June 30,2018(Unaudited)Year ended December 31, 2017(Audited)Opening balance 103,231110,674Disposals-(10,000)Changes in fair value of investments915 3,032Investment income realized- (475)Closing balance 104,146 103,2317.2Available-for-sale investmentThis represents the Company’s 3.85% (31 December 2017: 3.85%) holding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. | 7 |
| Description of accounting policy for segment reporting [text block] | 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 its 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 income statement. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2017. Segment assets do not include cash and cash equivalents, premiums receivables, investments, due from reinsurers, prepaid expenses and other assets, property and equipment, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include policy holders claims payable, accrued and other liabilities, due to reinsurers, agents, brokers and third party administrators, surplus distribution payable, zakat and income tax, and accrued income on statutory deposit. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at June 30, 2018 and December 31, 2017, its total revenues, expenses, and net income for the the three-month periods then ended | 12 |
| Description of accounting policy for statutory deposit [text block] | Statutory DepositIn compliance with Article 58 of the Implementing Regulations of the Saudi Arabian Monetary Authority ("SAMA"), the Company has deposited 10% of its share capital, amounting to Saudi Riyals 20 million in a bank designated by SAMA. The statutory deposit is maintained with a reputed bank which is also a related party. The Company cannot withdraw this deposit without SAMA’s approval. Commission accruing on this deposit is payable to SAMA.In accordance with instructions received from the Saudi Arabian Monetary Authority (SAMA) vide their circular dated March 1, 2016; the Company has disclosed the commission due on the statutory deposit as an asset and a liability in these interim condensed financial statements. | 9 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | Investments NoteJune 30, 2018(Unaudited)December 31, 2017(Audited)Fair value through income statement investments (FVIS)7.1104,146103,231Available-for-sale investment7.21,9231,923106,069105,1547.1Fair value through income statementMovement is as follows:Six-month period ended June 30,2018(Unaudited)Year ended December 31, 2017(Audited)Opening balance 103,231110,674Disposals-(10,000)Changes in fair value of investments915 3,032Investment income realized- (475)Closing balance 104,146 103,2317.2Available-for-sale investmentThis represents the Company’s 3.85% (31 December 2017: 3.85%) holding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. | 7 |
| Disclosure of investments at fair value through statement of income [text block] | 7.1Fair value through income statementMovement is as follows:Six-month period ended June 30,2018(Unaudited)Year ended December 31, 2017(Audited)Opening balance 103,231110,674Disposals-(10,000)Changes in fair value of investments915 3,032Investment income realized- (475)Closing balance 104,146 103,231 | 7.1 |
| Disclosure of due from related parties [text block] | Related party matters 13.1Related party transactions Related parties represents major shareholders, directors and key management personnel of the Company, and entities controlled or significantly influenced by such parties.The Company in the normal course of business carries out transactions with its related parties. The transactions are made on terms equivalent to an arm’s length transaction and the transactions are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Three-month period ended June 30, 2018(Unaudited)Three-month period ended June 30, 2017 (Unaudited)Six-month period ended June 30, 2018 (Unaudited)Six-month period ended June 30, 2017 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses624191,3731,411Key management personnelRemuneration and related expenses2,6602,2485,0704,538- Loans & advances200226200226Shareholders’ and related parties (common ownership)- Insurance premiums written9,75112,17641,07745,645- Claims paid6,3496,94013,09313,044- Facultative premiums (net)2584221,8322,839- Expenses incurred1,3781,1922,7202,216- Commission income on deposits1,0086081,829 1,23213.2Related party balances Balances with related parties June 30,2018(Unaudited)December 31, 2017(Audited)Premiums receivable 3,811 4,580Cash and cash equivalents with a shareholder 305,875 269,532Amounts due from a shareholder for facultative premiums ceded 930 713Advances due from key management personnel 362 363Income tax receivable from foreign shareholders 2,021 2,214Statutory deposit with a shareholder 20,000 20,000Amount due to a related party for expenses(107) (75)Advance paid to a related party- 3,775Accrued income on statutory deposit551 487Rent paid in advance to a related party1,254 - | 13 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalentsInsurance operationsJune 30, 2018(Unaudited)December 31, 2017(Audited)Cash in hand2527Bank balances15,38734,005Deposits maturing within 3 months from the acquisition date213,750191,875Total229,162225,907Shareholders operationsJune 30, 2018(Unaudited)December 31, 2017(Audited)Bank balances1,73813,652Deposits maturing within 3 months from the acquisition date75,00030,000Total76,73843,652Total of cash and cash equivalents305,900269,559Cash and cash equivalents are with a bank which is a related party and registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. The deposits yield income at prevailing market rates. | 4 |
| Disclosure of statutory deposit [text block] | Statutory DepositIn compliance with Article 58 of the Implementing Regulations of the Saudi Arabian Monetary Authority ("SAMA"), the Company has deposited 10% of its share capital, amounting to Saudi Riyals 20 million in a bank designated by SAMA. The statutory deposit is maintained with a reputed bank which is also a related party. The Company cannot withdraw this deposit without SAMA’s approval. Commission accruing on this deposit is payable to SAMA.In accordance with instructions received from the Saudi Arabian Monetary Authority (SAMA) vide their circular dated March 1, 2016; the Company has disclosed the commission due on the statutory deposit as an asset and a liability in these interim condensed financial statements. | 9 |
| Disclosure of due to related parties [text block] | Related party matters 13.1Related party transactions Related parties represents major shareholders, directors and key management personnel of the Company, and entities controlled or significantly influenced by such parties.The Company in the normal course of business carries out transactions with its related parties. The transactions are made on terms equivalent to an arm’s length transaction and the transactions are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Three-month period ended June 30, 2018(Unaudited)Three-month period ended June 30, 2017 (Unaudited)Six-month period ended June 30, 2018 (Unaudited)Six-month period ended June 30, 2017 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses624191,3731,411Key management personnelRemuneration and related expenses2,6602,2485,0704,538- Loans & advances200226200226Shareholders’ and related parties (common ownership)- Insurance premiums written9,75112,17641,07745,645- Claims paid6,3496,94013,09313,044- Facultative premiums (net)2584221,8322,839- Expenses incurred1,3781,1922,7202,216- Commission income on deposits1,0086081,829 1,23213.2Related party balances Balances with related parties June 30,2018(Unaudited)December 31, 2017(Audited)Premiums receivable 3,811 4,580Cash and cash equivalents with a shareholder 305,875 269,532Amounts due from a shareholder for facultative premiums ceded 930 713Advances due from key management personnel 362 363Income tax receivable from foreign shareholders 2,021 2,214Statutory deposit with a shareholder 20,000 20,000Amount due to a related party for expenses(107) (75)Advance paid to a related party- 3,775Accrued income on statutory deposit551 487Rent paid in advance to a related party1,254 - | 13 |
| Disclosure of zakat [text block] | Zakat and income tax14.1Components of zakat baseSignificant components of zakat base of the Company attributable to the Saudi shareholders, which are subject to adjustment under zakat and income tax regulations, are shareholders’ equity at the beginning of the period, adjusted net income and certain other items. Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the General Authority of Zakat and Tax (“GAZT”) could be different from the declaration filed by the Company.14.2Provision for zakat and income taxJune 30, 2018 (Unaudited)December 31, 2017 (Audited)Opening balance7,2054,444Charge for zakat 2,810 4,700Charge for income tax 2,0212,214Payments(6,617)(3,805)Reduction in tax recoverable(156)(162)Zakat paid under protest adjusted - -(186)Closing balance5,263 7,205Zakat is payable at 2.5% of higher of the approximate zakat base and adjusted net income attributable to Saudi shareholders.Provision for income tax is payable at 20% of the adjusted net income attributable to the foreign shareholders of the Company, less allowances for foreign shareholders’ share in the losses carry forwarded from previous year calculated in accordance with the guidelines provided in the income tax regulations. Income tax paid is recovered from foreign shareholders.The shareholding percentage subject to zakat and income tax is as follows:June 30, 2018 (Unaudited)December 31, 2017 (Audited)Zakat74.4474.44Income tax25.5625.56Status of assessmentsThe Company has filed its tax returns with the General Authority of Zakat and Tax (“GAZT”) from inception up to 2017. The Company’s tax and zakat position has been finalized up to the years ended December 31, 2012. The tax returns filed for the year ended December 31, 2013 to 2017 are currently being reviewed by the GAZT. | 14 |
| Disclosure of income tax [text block] | 14.2Provision for zakat and income taxJune 30, 2018 (Unaudited)December 31, 2017 (Audited)Opening balance7,2054,444Charge for zakat 2,810 4,700Charge for income tax 2,0212,214Payments(6,617)(3,805)Reduction in tax recoverable(156)(162)Zakat paid under protest adjusted - -(186)Closing balance5,263 7,205Zakat is payable at 2.5% of higher of the approximate zakat base and adjusted net income attributable to Saudi shareholders.Provision for income tax is payable at 20% of the adjusted net income attributable to the foreign shareholders of the Company, less allowances for foreign shareholders’ share in the losses carry forwarded from previous year calculated in accordance with the guidelines provided in the income tax regulations. Income tax paid is recovered from foreign shareholders.The shareholding percentage subject to zakat and income tax is as follows:June 30, 2018 (Unaudited)December 31, 2017 (Audited)Zakat74.4474.44Income tax25.5625.56Status of assessmentsThe Company has filed its tax returns with the General Authority of Zakat and Tax (“GAZT”) from inception up to 2017. The Company’s tax and zakat position has been finalized up to the years ended December 31, 2012. The tax returns filed for the year ended December 31, 2013 to 2017 are currently being reviewed by the GAZT. | 14.2 |
| Disclosure of statutory reserve [text block] | Statutory reserveAs required by Saudi Arabian Insurance Regulations, 20% of the income for the year after adjusting accumulated losses shall be set aside from net income as a statutory reserve until this amounts to 100% of the paid up share capital. The required amount would be transferred at the year end. | 17 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | Technical reserves8.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:June 30, 2018(Unaudited)December 31, 2017(Audited)Outstanding claims 192,546 80,299Claims incurred but not reported 118,156 128,894Premium deficiency reserve 3,329 -Additional unexpired risk reserve 3,027 -Other technical reserves 2,127 3,597 319,185 212,790Less:Reinsurers’ share of outstanding claims (136,312) (33,854)Reinsurers’ share of claims incurred but not reported (80,324) (87,152) (216,636) (121,006)Net outstanding claims and reserves 102,549) 91,7848.2 Movement in unearned premiums Movement in unearned premiums comprise of the following:Six-month period ended June 30, 2018(Unaudited)GrossReinsuranceNetBalance as at the beginning of the period211,294109,585 101,709 Premium written during the period 432,583 177,178 255,405 Premium earned during the period (310,489) (145,622) (164,867) Balance as at the end of the period 333,388 141,141 192,247 Year ended December 31, 2017(Audited)GrossReinsuranceNetBalance as at the beginning of the year 207,071 112,442 94,629Premium written during the year 578,701 277,377 301,324Premium earned during the year (574,478) (280,234)(294,244)Balance as at the end of the year 211,294 109,585 101,709 | 8 |
| Disclosure of compensation to key management personnel [text block] | Related party matters 13.1Related party transactions Related parties represents major shareholders, directors and key management personnel of the Company, and entities controlled or significantly influenced by such parties.The Company in the normal course of business carries out transactions with its related parties. The transactions are made on terms equivalent to an arm’s length transaction and the transactions are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Three-month period ended March 31, 2018(Unaudited)Three-month period ended March 31, 2017 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses1,311992Key management personnelRemuneration and related expenses2,4102,290Shareholders’ and related parties (common ownership)- Insurance premiums written31,32633,469- Claims paid6,7446,104- Facultative premiums (net)1,5742,417- Expenses incurred1,3421,024- Commission income on deposits82162413.2Related party balances Balances with related parties March 31,2018(Unaudited)December 31, 2017(Audited)Premiums receivable 15,614 4,580Cash and cash equivalents with a shareholder 286,287 269,532Amounts due (to) / from as shareholder for facultative premiums ceded (120) -Advances due from key management personnel 134 363Income tax receivable from foreign shareholders 2,940 2,214Statutory deposit with a shareholder 20,000 20,000Amount due to a related party for expenses(193) (75)Advance paid to a related party - 3,775Accrued income on statutory deposit551 487Rent paid in advance to related party1,880 -Directors’ fees and expenses payable1,290 - | 13 |
| Disclosure of earnings per share [text block] | Share capital and earnings per share The authorized, issued and paid up capital of the Company is SAR 200 million divided into 20 million shares of SR 10 each (December 31, 2017: SAR 200 million divided into 20 million shares of SR 10 each).Earnings per share for the period have been calculated by dividing the net income for the period attributable to the shareholders by the weighted average number of ordinary shares at the statement of financial position date. Diluted earnings per share is not applicable to the Company. | 15 |
| Disclosure of investments held at fair value through statement of income [text block] | Available-for-sale investmentThis represents the Company’s 3.85% (31 December 2017: 3.85%) holding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. In the absence of reliable financial information, management believe that fair values cannot be ascertained reliably. | 7.2 |
| Disclosure of related party transactions [text block] | Related party matters 13.1Related party transactions Related parties represents major shareholders, directors and key management personnel of the Company, and entities controlled or significantly influenced by such parties.The Company in the normal course of business carries out transactions with its related parties. The transactions are made on terms equivalent to an arm’s length transaction and the transactions are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Three-month period ended March 31, 2018(Unaudited)Three-month period ended March 31, 2017 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses1,311992Key management personnelRemuneration and related expenses2,4102,290Shareholders’ and related parties (common ownership)- Insurance premiums written31,32633,469- Claims paid6,7446,104- Facultative premiums (net)1,5742,417- Expenses incurred1,3421,024- Commission income on deposits82162413.2Related party balances Balances with related parties March 31,2018(Unaudited)December 31, 2017(Audited)Premiums receivable 15,614 4,580Cash and cash equivalents with a shareholder 286,287 269,532Amounts due (to) / from as shareholder for facultative premiums ceded (120) -Advances due from key management personnel 134 363Income tax receivable from foreign shareholders 2,940 2,214Statutory deposit with a shareholder 20,000 20,000Amount due to a related party for expenses(193) (75)Advance paid to a related party - 3,775Accrued income on statutory deposit551 487Rent paid in advance to related party1,880 -Directors’ fees and expenses payable1,290 - | 13 |
| Disclosure of entity's operating segments [text block] | 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 its 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 income statement. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2017. Segment assets do not include cash and cash equivalents, premiums receivables, investments, due from reinsurers, prepaid expenses and other assets, property and equipment, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include policy holders claims payable, accrued and other liabilities, due to reinsurers, agents, brokers and third party administrators, surplus distribution payable, zakat and income tax, and accrued income on statutory deposit. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at March 31, 2018 and December 31, 2017, its total revenues, expenses, and net income for the the three-month periods then ended | 12 |
| Disclosure of capital management [text block] | Capital management Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximize shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares.In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period. | 18 |
| Disclosure of commitments and contingencies, general [text block] | Commitments and ContingenciesThe Company’s Bank has issued guarantee of SR 1,600,000 (2017: nil) to its suppliers on behalf of the Company. | 10 |
| Disclosure of comparative figures [text block] | Comparative figures Certain of the comparative figures have been reclassified and regrouped to conform to the in the current period presentation. These changes as summarised below, were mainly to conform with the SAMA requirements:As discussed in note 2 to these interim condensed financial statements, previously interim condensed statement of financial position, statement of income, and cash flows were presented separately for insurance operations and shareholders operations, which are now combined together to present the Company level interim condensed statement of financial position, statement of income and statement of cash flows. The amounts “due to/from” shareholders and insurance operations which previously reported separately in the respective statement of financial position, are now eliminated. (refer note 19). Share of insurance operations surplus split in the ratio of 90/10 between shareholders and insurance operations and presented separately is now presented as an expense in statement of income (refer note 19). | 20 |
| Disclosure of board of director's approval of the financial statements [text block] | Approval of the interim condensed financial statements These interim condensed financial statements have been approved by the Board of Directors on 2 May, 2018 | 21 |
