| 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 21 Shawwal 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] | (a)Statement of compliance The interim condensed financial statements of the Company as at and for the period ended 30 September 2019 have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting”. The interim condensed financial statements of the Company as at and for the period and year ended 31 March 2019 and 31 December 2018, respectively, were prepared in compliance with the IAS 34 and the International Financial Reporting Standards (“IFRS”) respectively, as modified by SAMA for the accounting of zakat and income tax (relating to the application of IAS 12 – “Income Taxes” and IFRIC 21 – “Levies” so far as these relate to zakat and income tax) and the Insurance Control Law and the Regulations for Companies in the Kingdom of Saudi Arabia.On 17 July 2019, SAMA instructed the insurance companies in the Kingdom of Saudi Arabia to account for the zakat and income taxes in the statement of income. This aligns with the IFRS as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements as endorsed by the Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referred to as “IFRS as endorsed in KSA”). Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (as disclosed in note 3) and the effects of this change are disclosed in note 3 to the interim condensed financial statements).The interim condensed financial statements is prepared under the going concern basis and the historical cost convention, except for the measurement of investments at their fair value. The Company’s interim condensed statement of financial position is presented in order of liquidity. Except for property and equipment, statutory deposit, end-of-service indemnities and warranty and engineering related unearned premiums, unearned reinsurance commission, deferred policy acquisition cost, outstanding claims, claims incurred but not reported and technical reserves, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations (the Implementation Regulations), the Company maintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. Accordingly, assets, liabilities, revenues and expenses clearly attributable to either operation, are recorded in the respective accounts. The interim condensed financial statements may not be considered indicative of the expected results for the full year.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 condensed financial statements 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.(b) Critical accounting judgments estimates and assumptions (continued)In preparing these interim condensed financial statements, 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 applied to the annual financial statements as at and for the year ended 31 December 2018 except for the following:Significant Judgement - The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.The Company has the option, under some of its leases to lease the assets for additional terms. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). The Company included the renewal period as part of the lease term for leases due to the significance of leased assets to its operations.(c) Seasonality of operations There are no seasonal changes that may affect insurance of the Company. | 2 |
| Disclosure of new standards and amendments in standards [text block] | 3 Significant accounting policiesThe accounting policies 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, 2018 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 and change in accounting policy relating to zakat and income tax.IFRS 16 – LeasesThe Company adopted IFRS 16 ‘Leases’ the standard replaces the existing guidance on leases, including IAS 17 ‘Leases”, IFRIC 4 ‘Determining whether an Arrangement contains a Lease”, SIC 15 “Operating Leases – Incentives” and SIC 27 “Evaluating the Substance of Transactions in the Legal Form of a Lease”. IFRS 16 was issued in January 2016 and is effective for annual periods commencing on or after 1 January 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ’low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees are required to separately recognise the special commission expense on the lease liability and the depreciation expense on the right-of-use assetb) The Company has adopted the following new standard issued and change in accounting policy relating to zakat and income tax (continued) Lessees are also required to re-measure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset.Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.The Company has elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. All existing operating leases consist of lease terms which ends within twelve months.Though there are changes in accounting policies, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 16 on 1 January 2019.Zakat and income taxAs mentioned under the note 2, the basis of preparation of the financial statements has changed as a result of the issuance on latest instructions from SAMA dated 17 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 17 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively (see note 3) and the effects of the above change are disclosed in note 3 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the period ended 30 September 2018 by SR 6.7 million. The change has had no impact on the statement of cash flows for the period ended 30 September 2018.As at and for the nine-month period ended 30 September 2018AccountFinancial statement impactedAs previously reported as at and for the nine-month period ended 30 September 2018 Effect ofRestatementAs restated as at and for the nine-month period ended 30 September 2018Zakat Interim condensed statement of income-(4,071)(4,071)Income tax Interim condensed statement of income-(2,644)(2,644)Net income for the periodInterim condensed statement of income29,288(6,715)22,573Earnings per share for the period (expressed in SR per share)Interim condensed statement of income1.46(0.33)1.13Zakat Interim condensed statement of changes in shareholders’ equity(4,071)4,071-Income tax chargeInterim condensed statement of changes in shareholders’ equity(2,644)2,644-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 29,288(6,715)22,573 As at and for the three-month period ended 30 September 2018:AccountFinancial statement impactedAs previously reported as at and for the three months period ended 30 September 2018Effect ofrestatementAs restated as at and for the three months period ended 30 September 2018Zakat and income taxInterim condensed statement of income-(1,261)(1,261)Income tax chargeInterim condensed statement of income-(623)(623)Net income for the periodInterim condensed statement of income4,690(1,884)2,806Earnings per share for the period (expressed in SR per share)Interim condensed statement of income0.23(0.09)0.14Zakat Interim condensed statement of changes in shareholders’ equity(1,261)1,261-Income tax chargeInterim condensed statement of changes in shareholders’ equity(623)623-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 4,690(1,884)2,806The financial impact of adoption of accounting policy for deferred tax is not material to the interim condensed financial statements, therefore prior period amounts for such impact have not been restated. As required under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the balances as of 1 January 2018 were not presented in the statement of financial position as change in the accounting policy has not resulted in restatement of the amounts relating to year ended 31 December 2017.Income tax:The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.Adjustments arising from the final income tax assessments are recorded in the period in which such assessments are made. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted for the changes in deferred tax assets and liabilities attributable to the temporary differences and to the unused tax losses. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: Whether an entity considers uncertain tax treatments separately The assumptions an entity makes about the examination of tax treatments by taxation authorities How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Company applies significant judgement in identifying uncertainties over income tax treatments. Upon adoption of the Interpretation, the Company considered whether it has any uncertain tax positions. The Company determined, based on its tax compliance study, that it is probable that its tax treatments will be accepted by the taxation authorities. The Interpretation did not have an impact on the interim condensed financial statements of the Company.Deferred income tax:Deferred income tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for the taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available and the credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised.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 See note belowIFRS 17Insurance Contracts 1 January 2022 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 amortized 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 recognized 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 recognized 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 2022. 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 2022.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 at 30 June 2019, management is in process to assess the effect of the adoption of IFRS 9. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | 3 Significant accounting policiesThe accounting policies 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, 2018 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 and change in accounting policy relating to zakat and income tax.IFRS 16 – LeasesThe Company adopted IFRS 16 ‘Leases’ the standard replaces the existing guidance on leases, including IAS 17 ‘Leases”, IFRIC 4 ‘Determining whether an Arrangement contains a Lease”, SIC 15 “Operating Leases – Incentives” and SIC 27 “Evaluating the Substance of Transactions in the Legal Form of a Lease”. IFRS 16 was issued in January 2016 and is effective for annual periods commencing on or after 1 January 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ’low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees are required to separately recognise the special commission expense on the lease liability and the depreciation expense on the right-of-use assetb) The Company has adopted the following new standard issued and change in accounting policy relating to zakat and income tax (continued) Lessees are also required to re-measure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset.Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.The Company has elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. All existing operating leases consist of lease terms which ends within twelve months.Though there are changes in accounting policies, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 16 on 1 January 2019.Zakat and income taxAs mentioned under the note 2, the basis of preparation of the financial statements has changed as a result of the issuance on latest instructions from SAMA dated 17 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 17 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively (see note 3) and the effects of the above change are disclosed in note 3 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the period ended 30 September 2018 by SR 6.7 million. The change has had no impact on the statement of cash flows for the period ended 30 September 2018.As at and for the nine-month period ended 30 September 2018AccountFinancial statement impactedAs previously reported as at and for the nine-month period ended 30 September 2018 Effect ofRestatementAs restated as at and for the nine-month period ended 30 September 2018Zakat Interim condensed statement of income-(4,071)(4,071)Income tax Interim condensed statement of income-(2,644)(2,644)Net income for the periodInterim condensed statement of income29,288(6,715)22,573Earnings per share for the period (expressed in SR per share)Interim condensed statement of income1.46(0.33)1.13Zakat Interim condensed statement of changes in shareholders’ equity(4,071)4,071-Income tax chargeInterim condensed statement of changes in shareholders’ equity(2,644)2,644-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 29,288(6,715)22,573 As at and for the three-month period ended 30 September 2018:AccountFinancial statement impactedAs previously reported as at and for the three months period ended 30 September 2018Effect ofrestatementAs restated as at and for the three months period ended 30 September 2018Zakat and income taxInterim condensed statement of income-(1,261)(1,261)Income tax chargeInterim condensed statement of income-(623)(623)Net income for the periodInterim condensed statement of income4,690(1,884)2,806Earnings per share for the period (expressed in SR per share)Interim condensed statement of income0.23(0.09)0.14Zakat Interim condensed statement of changes in shareholders’ equity(1,261)1,261-Income tax chargeInterim condensed statement of changes in shareholders’ equity(623)623-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 4,690(1,884)2,806The financial impact of adoption of accounting policy for deferred tax is not material to the interim condensed financial statements, therefore prior period amounts for such impact have not been restated. As required under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the balances as of 1 January 2018 were not presented in the statement of financial position as change in the accounting policy has not resulted in restatement of the amounts relating to year ended 31 December 2017.Income tax:The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.Adjustments arising from the final income tax assessments are recorded in the period in which such assessments are made. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted for the changes in deferred tax assets and liabilities attributable to the temporary differences and to the unused tax losses. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: Whether an entity considers uncertain tax treatments separately The assumptions an entity makes about the examination of tax treatments by taxation authorities How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Company applies significant judgement in identifying uncertainties over income tax treatments. Upon adoption of the Interpretation, the Company considered whether it has any uncertain tax positions. The Company determined, based on its tax compliance study, that it is probable that its tax treatments will be accepted by the taxation authorities. The Interpretation did not have an impact on the interim condensed financial statements of the Company.Deferred income tax:Deferred income tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for the taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available and the credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised.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 See note belowIFRS 17Insurance Contracts 1 January 2022 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 amortized 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 recognized 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 recognized 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 2022. 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 2022.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 at 30 June 2019, management is in process to 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] | 3 Significant accounting policiesThe accounting policies 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, 2018 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 and change in accounting policy relating to zakat and income tax.IFRS 16 – LeasesThe Company adopted IFRS 16 ‘Leases’ the standard replaces the existing guidance on leases, including IAS 17 ‘Leases”, IFRIC 4 ‘Determining whether an Arrangement contains a Lease”, SIC 15 “Operating Leases – Incentives” and SIC 27 “Evaluating the Substance of Transactions in the Legal Form of a Lease”. IFRS 16 was issued in January 2016 and is effective for annual periods commencing on or after 1 January 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ’low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees are required to separately recognise the special commission expense on the lease liability and the depreciation expense on the right-of-use assetb) The Company has adopted the following new standard issued and change in accounting policy relating to zakat and income tax (continued) Lessees are also required to re-measure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset.Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.The Company has elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. All existing operating leases consist of lease terms which ends within twelve months.Though there are changes in accounting policies, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 16 on 1 January 2019.Zakat and income taxAs mentioned under the note 2, the basis of preparation of the financial statements has changed as a result of the issuance on latest instructions from SAMA dated 17 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 17 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively (see note 3) and the effects of the above change are disclosed in note 3 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the period ended 30 September 2018 by SR 6.7 million. The change has had no impact on the statement of cash flows for the period ended 30 September 2018.As at and for the nine-month period ended 30 September 2018AccountFinancial statement impactedAs previously reported as at and for the nine-month period ended 30 September 2018 Effect ofRestatementAs restated as at and for the nine-month period ended 30 September 2018Zakat Interim condensed statement of income-(4,071)(4,071)Income tax Interim condensed statement of income-(2,644)(2,644)Net income for the periodInterim condensed statement of income29,288(6,715)22,573Earnings per share for the period (expressed in SR per share)Interim condensed statement of income1.46(0.33)1.13Zakat Interim condensed statement of changes in shareholders’ equity(4,071)4,071-Income tax chargeInterim condensed statement of changes in shareholders’ equity(2,644)2,644-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 29,288(6,715)22,573 As at and for the three-month period ended 30 September 2018:AccountFinancial statement impactedAs previously reported as at and for the three months period ended 30 September 2018Effect ofrestatementAs restated as at and for the three months period ended 30 September 2018Zakat and income taxInterim condensed statement of income-(1,261)(1,261)Income tax chargeInterim condensed statement of income-(623)(623)Net income for the periodInterim condensed statement of income4,690(1,884)2,806Earnings per share for the period (expressed in SR per share)Interim condensed statement of income0.23(0.09)0.14Zakat Interim condensed statement of changes in shareholders’ equity(1,261)1,261-Income tax chargeInterim condensed statement of changes in shareholders’ equity(623)623-Total comprehensive income for the periodInterim condensed statement of comprehensive income and Interim condensed statement of changes in shareholders’ equity 4,690(1,884)2,806The financial impact of adoption of accounting policy for deferred tax is not material to the interim condensed financial statements, therefore prior period amounts for such impact have not been restated. As required under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the balances as of 1 January 2018 were not presented in the statement of financial position as change in the accounting policy has not resulted in restatement of the amounts relating to year ended 31 December 2017.Income tax:The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.Adjustments arising from the final income tax assessments are recorded in the period in which such assessments are made. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted for the changes in deferred tax assets and liabilities attributable to the temporary differences and to the unused tax losses. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: Whether an entity considers uncertain tax treatments separately The assumptions an entity makes about the examination of tax treatments by taxation authorities How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Company applies significant judgement in identifying uncertainties over income tax treatments. Upon adoption of the Interpretation, the Company considered whether it has any uncertain tax positions. The Company determined, based on its tax compliance study, that it is probable that its tax treatments will be accepted by the taxation authorities. The Interpretation did not have an impact on the interim condensed financial statements of the Company.Deferred income tax:Deferred income tax is provided using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for the taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available and the credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised.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 See note belowIFRS 17Insurance Contracts 1 January 2022 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 amortized 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 recognized 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 recognized 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 2022. 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 2022.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 at 30 June 2019, management is in process to assess the effect of the adoption of IFRS 9. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | 4Cash and cash equivalentsInsurance operationsSeptember 30, 2019(Unaudited)December 31, 2018(Audited)Cash in hand3528Bank balances29,98620,455Deposits maturing within 3 months from the acquisition date232,500238,750Total262,521259,233Shareholders’ operationsSeptember 30, 2019(Unaudited)December 31, 2018(Audited)Bank balances37414,827Deposits maturing within 3 months from the acquisition date70,00050,000Total70,37464,827Total cash and cash equivalents332,895324,060Cash 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] | 11 Zakat and income tax11.1 Components 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. 11.2 Provision for zakat and income taxSeptember 30, 2019(Unaudited)December 31, 2018 (Audited)Opening balance7,3057,205Movement during the period/yearCharge for zakat3,1474,853Charge for income tax752,020Payments of zakat(4,784)(6,615)Payments of income tax(292)-Reduction in tax recoverable(185)(158)Tax paid in advance(1,543)-Closing balance3,7237,305Zakat 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:September 30, 2019(Unaudited)December 31, 2018 (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 2018. 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 2018 are currently being reviewed by the GAZT. | 11 |
| Description of accounting policy for fair value measurement [text block] | 17 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 liability.The 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 September 30, 2019 and December 31, 2018, all financial instruments which are fair valued are Level 3 instruments except for investment in sukuks and equity amounting to SR 30.24 million (2018: SR 40 million) and SR 2.58 million (2018:SR 3.86 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 | 17 |
| Description of accounting policy for investment income [text block] | 8 Investments NoteSeptember 30, 2019(Unaudited)December 31,2018(Audited)Fair value through income statement investments (FVIS)8.1108,842 105,004Available-for-sale investment8.21,923 1,923110,765 106,9278.1 Fair value through Income StatementMovement is as follows:Nine-month period ended September 30, 2019(Unaudited)Year ended December 31, 2018(Audited)Opening balance105,004103,231Changes in fair value of investments during the period/year3,8381,773Closing balance 108,842105,0048.2Available-for-sale investmentThis represents the Company’s 3.45% (31 December 2018: 3.45%) 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. | 8 |
| Description of accounting policy for segment reporting [text block] | 18 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, 2018. 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 September 30, 2019 and December 31, 2018, its total revenues, expenses, and net income for the nine-month periods then ended, are as follows: WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (Continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotalFor the three-monthperiod ended September 30,2019 (unaudited)RevenuesGross premiums written21,68721,22853,031 12,3664,0274,30414,197130,840Reinsurance premiums ceded (18,198) (19,317)(1,331) (11,564) (2,714)(4,304)(11,958) (69,386)Excess of loss expenses(1,300)(600)(1,250)(250)(75)--(3,475)Net premiums written2,1891,31150,4505521,238-2,23957,979Change in unearnedpremiums, net(1,176)89640,32819820-1,00941,896Net premiums earned1,0132,20790,7785712,058-3,24899,875Reinsurance commissions 1,9514,4885132,5851,5272,9824,83118,877Other underwriting income203-34-232Total revenues2,9846,69891,2913,1593,5892,9828,081118,784Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,52816,59992,1333,2289191,41110,447127,265Reinsurer’s share of claims paid(1,786)(15,697)(4,332)(3,067)(630)(1,411)(9,005)(35,928)Net claims paid74290287,801161289-1,44291,337Changes in outstanding claims, net1,292(1,175)(4,639)(248)(96) -711(4,155)Changes in claims incurred but not reported, net(951)(72)(7,449)(251)598-(111)(8,236)Net claims incurred1,083(345)75,713(338)791-2,04278,946Premium deficiency reserve-(4,048)6,750(1,173)---1,529Policy acquisition costs1,0992,2695,8581,4058302,4612,45016,372Total underwriting cost and expenses2,182(2,124)88,321(106)1,6212,4614,49296,847Net underwriting income 8028,8222,9703,2651,9685213,58921,937Other operating income /(expenses)Allowance for impairment for doubtful debts(4,229)General and administration expenses(26,551)Commission income on deposits1,897Unrealized gain on investments1,181Other income39Total Other operating expenses, net(27,663)Net loss for the period attributable to the shareholders, before zakat and income tax(5,726)Zakat(533)Income tax515Net loss for the period(5,744) WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (Continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the nine-monthperiod ended September 30,2019 (unaudited)RevenuesGross premiums written45,18595,091327,942 38,60825,81714,58462,464609,691Reinsurance premiums ceded (35,366)(85,026)(8,233)(36,010)(18,026)(14,584)(53,791)(251,036)Excess of loss expenses(1,989)(2,660)(4,175)(750)(225)-(119)(9,918)Net premiums written7,8307,405315,5341,8487,566-8,554348,737Change in unearned premiums, net(978)(1,734)(37,236)(351)(1,618)-(1,136)(43,053)Net premiums earned6,8525,671278,2981,4975,948-7,418305,684Reinsurance commissions 6,96714,2912,4936,8504,2849,32814,31358,526Other underwriting income63681002324-7285Total revenues13,88220,030280,8918,37010,2569,32821,738364,495Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries7,19021,159243,44712,3491,9044,06330,973321,085Reinsurer’s share of claims paid(5,438)(19,506)(14,513)(11,595)(1,424)(4,063)(25,746) (82,285)Net claims paid1,7521,653228,934754480-5,227238,800Changes in outstanding claims, net2,4885899,964(1,339)641-33412,677Changes in claims incurred but not reported, net(912)508,491(513)344-(548)6,912Net claims incurred3,3282,292247,389(1,098)1,465-5,013258,389Premium deficiency reserve(15)(1,721)(6,829)(820)---(9,385)Additional unexpired risk reserve---14---14Unallocated loss adjustment expense provision(142)922,660(111)(33)-(87)2,379Policy acquisition costs4,0247,01516,9673,6072,2677,7307,39449,004Total underwriting cost and expenses7,1957,678260,1871,5923,699773012,320300,401Net underwriting income 6,68712,35220,7046,7786,5571,5989,41864,094Other operating income / (expenses)Allowance for impairment for doubtful debts(21,531)General and administration expenses(78,468)Commission income on deposits5,250Unrealized gain on investments3,838Other income13,991Total Other operating expenses, net(76,920)Net loss for the period attributable to the shareholders, before zakat and income tax(12,826)Zakat(3,147)Income tax(75)Net loss for the period(16,048) WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to the interim condensed financial statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the three-monthperiod ended September 30,2018 (unaudited) (restated)RevenuesGross premiums written 8,96020,815116,2868,5254,1796,721 11,365176,851Reinsurance premiums ceded (6,530)(18,911)(8,666)(7,675)(3,304) (6,721)(10,807)(62,614)Excess of loss expenses (264) (546)(810)(180)(16)- (20)(1,836)Net premiums written2,166 1,358106,810 670859-538112,401 Change in unearned premiums, net816157(13,395)(8)1,278-1,370(9,782)Net premiums earned 2,9821,51593,4156622,137-1,908102,619Reinsurance commissions 1,3325,1801,4021,9751,4673,3232,94817,627Other underwriting income2434725-182Total revenues4,3386,69894,8642,6393,6093,3234,857120,328Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,9481,17763,3022,6877272,2677,96081,068Reinsurer’s share of claims paid(2,608)(1,045)(5,262)(2,540)(449)(2,267)(6,875)(21,046)Net claims paid34013258,040147278-1,08560,022Changes in outstanding claims, net(222)(19)13,299105121-20613,490Net claims incurred11811371,339252399-1,29173,512Reversal of unexpired risk reserve---(1,068)---(1,068)Policy acquisition costs7352,5416,8641,0968992,7531,17016,058Total underwriting cost and expenses8532,65478,2032801,2982,7532,46188,502Net underwriting income 3,4854,04416,6612,3592,3115702,39631,826Other operating (expenses) / income.Allowance for impairment of doubtful debts(5,360)General and administration expenses(23,929)Commission income on deposits1,507Unrealized gain on investments595Other income535Total other operating expenses, Net(26,652)Net income for the period5,174Total income attributed to the policy holders(484)Net income for the period attributable to the shareholders before zakat and income tax4,690Zakat(1,261)Income tax(623)Net income for the period2,806 WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the nine-month period ended September 30,2018 (unaudited) (restated)RevenuesGross premiums written28,91589,245372,89635,72525,69416,46840,491609,434Reinsurance premiums ceded (20,936)(82,350)(27,982)(33,076) (18,345)(16,468)(36,301)(235,458)Excess of loss expenses (789)(1,639)(3,092)(541)(50)- (59)(6,170)Net premiums written7,1905,256 341,822 2,1087,299-4,131 367,806Change in unearned premiums, net(865)(653)(100,355)1,656(904)-801(100,320)Net premiums earned 6,3254,603241,4673,7646,395-4,932267,486Reinsurance commissions 6,197 15,2533,9735,4984,2779.35010,10854,656Other underwriting income 71361551923-4308Total revenues12,59319,892245,5959,28110,6959,35015,044322,450Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries6,1384,014152,86012,1714,2026,11621,927207,428Reinsurer’s share of claims paid(5,019)(3,531)(14,121)(11,716)(2,436)(6,116)(19,177)(62,116)Net claims paid1,119483 138,7394551,766-2,750145,312Changes in outstanding claims, net49(161)23,363273(467)-22223,279Changes in claims incurred but not reported, net--(3,532)(378)---(3,910)Net claims incurred1,168322 158,5703501,299-2,972164,681Charge for reinsurance reserves-(2,451)(1,146)-----(3,597)Premium deficiency reserve6161,422999292---3,329Additional unexpired risk reserve---1,959---1,959Other technical reserves78377618178762-1142,127Policy acquisition costs3,3777,21220,2423,0222,6387,8034,66948,963Total underwriting cost and expenses5,2396,882179,2835,8014,6997,8037,755217,462Net underwriting income 7,35413,01066,3123,4805,9961,5477,289104,988Other operating (expenses) / incomeAllowance for impairment of doubtful debts(16,363)General and administration expenses(68,955)Commission income on deposits3,336Unrealized gain on investments1,510Other incomeTotal Other Operating Expenses, net8,148(72,324)Net income for the period32,664Total income attributed to the policy holders(3,376)Net income for the period attributable to the shareholders, before zakat and income tax29,288Zakat(4,071)Income tax(2,644)Net income for the period22,573 WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm Life TotalAs at September 30, 2019(Unaudited)AssetsReinsurers’ share of unearned premiums17,18039,8024,82319,25613,23617,71913,138125,154Reinsurers’ share of outstanding claims134,76811,6435,5437,755109,041237,039275,812Reinsurers’ share of claims incurred but not reported3,3761,9651,9017,51917,718-13,00045,479Deferred policy acquisition costs2,7323,83310,6592,3521,4714,6261,87227,545Unallocated assets 772,473Total assets1,246,463LiabilitiesUnearned premiums20,67944,166181,74720,75116,88917,71915,571317,522Unearned reinsurance commission4,1007,1137344,2482,4246,2503,74428,613Outstanding claims138,72013,09894,6738,200110,327238,263373,304Claims incurred but not reported4,4602,18736,8388,09420,716-15,22987,524Premium deficiency reserve--13,836----13,836Additional unexpired risk reserve---399---399Unallocated loss adjustment expense provision7143633,770193312-5345,886Unallocated liabilities196,806Total liabilities 1,023,890MarinePropertyMotorEngineeringAccident & LiabilityExtended WarrantyTerm Life TotalAs at December 31, 2018 (Audited)AssetsReinsurers’ share of unearned premiums6,03325,28011,34614,89513,72021,79410,971104,039Reinsurers’ share of outstanding claims4,6377,0947,39031,282105,58883,449159,448Reinsurers’ share of claims incurred but not reported12,8401,4093,56613,77631,839-15,45078,880Deferred policy acquisition costs1,2012,9287,2291,7307858,8961,51024,279Unallocated assets 709,356Total assets1,076,002LiabilitiesUnearned premiums8,55627,910151,03416,03915,75321,79412,268253,354Unearned reinsurance commission2,1305,4161,9863,3112,29910,8043,49729,443Outstanding claims6,1037,96086,55533,065106,23384,339244,263Claims incurred but not reported14,8351,58330,01214,86434,492-18,227114,013Premium deficiency reserve151,72120,665820---23,221Additional unexpired risk reserve---385---385Other technical reserves8532711,112305345-6213,507Unallocated liabilities168,241Total liabilities 836,427 | 18 |
| Description of accounting policy for statutory deposit [text block] | 10Statutory DepositIn compliance with Article 58 of the Implementing Regulations of 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. | 10 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 8 Investments NoteSeptember 30, 2019(Unaudited)December 31,2018(Audited)Fair value through income statement investments (FVIS)8.1108,842 105,004Available-for-sale investment8.21,923 1,923110,765 106,9278.1 Fair value through Income StatementMovement is as follows:Nine-month period ended September 30, 2019(Unaudited)Year ended December 31, 2018(Audited)Opening balance105,004103,231Changes in fair value of investments during the period/year3,8381,773Closing balance 108,842105,0048.2Available-for-sale investmentThis represents the Company’s 3.45% (31 December 2018: 3.45%) 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. | 8 |
| Disclosure of investments at fair value through statement of income [text block] | 8.1 Fair value through Income StatementMovement is as follows:Nine-month period ended September 30, 2019(Unaudited)Year ended December 31, 2018(Audited)Opening balance105,004103,231Changes in fair value of investments during the period/year3,8381,773Closing balance 108,842105,004 | 8.1 |
| Disclosure of due from related parties [text block] | 19Related party matters 19.1Related party transactions Related parties represent 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 September 30, 2019(Unaudited)Three-month period ended September 30, 2018 (Unaudited)Nine-month period ended September 30, 2019(Unaudited)Nine-month period ended September 30, 2018 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses45791,4501,453Key management personnelShareholders’ and related parties (common ownership)Remuneration and related expenses2,8462,3298,4287,399-Loans & advances487402687-Insurance premiums Written13,64617,16149,76358,238-Claims paid3,7338,58310,64321,677-Facultative premiums Ceded (net)1841,0562,4823,683-Facultative Commission received513385271001-Facultative claim recovered1401221,0971,585-Expenses incurred1,8478134,4333,533-Commission income on deposits1,8971,5075,2503,33619.2Related party balances Balances with related parties September 30,2019(Unaudited)December 31, 2018(Audited)Premiums receivable, net9,794 11,067Payable to policyholders(2,844)-Cash and cash equivalents with a shareholder 332,741324,032Amounts due to a shareholder for facultative transactions (71)(52)Advances due from key management personnel 411450Income tax receivable from foreign shareholders - 2,020Statutory deposit with a shareholder 20,00020,000Rent paid in advance to related party 735-Directors fees and expenses payable(90)-Accrued income on statutory deposit1,171848 | 19 |
| Disclosure of cash and cash equivalents [text block] | 4Cash and cash equivalentsInsurance operationsSeptember 30, 2019(Unaudited)December 31, 2018(Audited)Cash in hand3528Bank balances29,98620,455Deposits maturing within 3 months from the acquisition date232,500238,750Total262,521259,233Shareholders’ operationsSeptember 30, 2019(Unaudited)December 31, 2018(Audited)Bank balances37414,827Deposits maturing within 3 months from the acquisition date70,00050,000Total70,37464,827Total cash and cash equivalents332,895324,060Cash 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] | 10Statutory DepositIn compliance with Article 58 of the Implementing Regulations of 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. | 10 |
| Disclosure of due to related parties [text block] | 19Related party matters 19.1Related party transactions Related parties represent 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 September 30, 2019(Unaudited)Three-month period ended September 30, 2018 (Unaudited)Nine-month period ended September 30, 2019(Unaudited)Nine-month period ended September 30, 2018 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses45791,4501,453Key management personnelShareholders’ and related parties (common ownership)Remuneration and related expenses2,8462,3298,4287,399-Loans & advances487402687-Insurance premiums Written13,64617,16149,76358,238-Claims paid3,7338,58310,64321,677-Facultative premiums Ceded (net)1841,0562,4823,683-Facultative Commission received513385271001-Facultative claim recovered1401221,0971,585-Expenses incurred1,8478134,4333,533-Commission income on deposits1,8971,5075,2503,33619.2Related party balances Balances with related parties September 30,2019(Unaudited)December 31, 2018(Audited)Premiums receivable, net9,794 11,067Payable to policyholders(2,844)-Cash and cash equivalents with a shareholder 332,741324,032Amounts due to a shareholder for facultative transactions (71)(52)Advances due from key management personnel 411450Income tax receivable from foreign shareholders - 2,020Statutory deposit with a shareholder 20,00020,000Rent paid in advance to related party 735-Directors fees and expenses payable(90)-Accrued income on statutory deposit1,171848 | 19 |
| Disclosure of zakat [text block] | 11 Zakat and income tax11.1 Components 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. 11.2 Provision for zakat and income taxSeptember 30, 2019(Unaudited)December 31, 2018 (Audited)Opening balance7,3057,205Movement during the period/yearCharge for zakat3,1474,853Charge for income tax752,020Payments of zakat(4,784)(6,615)Payments of income tax(292)-Reduction in tax recoverable(185)(158)Tax paid in advance(1,543)-Closing balance3,7237,305Zakat 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:September 30, 2019(Unaudited)December 31, 2018 (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 2018. 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 2018 are currently being reviewed by the GAZT. | 11 |
| Disclosure of income tax [text block] | 11 Zakat and income tax11.1 Components 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. 11.2 Provision for zakat and income taxSeptember 30, 2019(Unaudited)December 31, 2018 (Audited)Opening balance7,3057,205Movement during the period/yearCharge for zakat3,1474,853Charge for income tax752,020Payments of zakat(4,784)(6,615)Payments of income tax(292)-Reduction in tax recoverable(185)(158)Tax paid in advance(1,543)-Closing balance3,7237,305Zakat 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:September 30, 2019(Unaudited)December 31, 2018 (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 2018. 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 2018 are currently being reviewed by the GAZT. | 11 |
| Disclosure of statutory reserve [text block] | 13Statutory 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. | 13 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 7Technical reserves7.1 Net outstanding claims and reserves a)Net outstanding claims and reserves comprise of the following:September 30,2019 December 31,2018Outstanding claims373,304244,263Claims incurred but not reported87,524114,013Premium deficiency reserve13,83623,221Additional unexpired risk reserve399385Unallocated loss adjustment expense provision5,8863,507480,949385,389Less:Reinsurers’ share of outstanding claims(275,812)(159,448)Reinsurers’ share of claims incurred but not reported(45,479)(78,880)(321,291) (238,328)Net outstanding claims and reserves159,658 147,0617.2 Movement in unearned premiums Movement in unearned premiums comprise of the following:Nine-month ended September 30, 2019(Unaudited)GrossReinsuranceNetBalance at the beginning of the period253,354104,039149,315Premium written during the period609,691260,954348,737Premium earned during the period(545,523)(239,839)(305,684)Balance at the end of the period317,522125,154192,368Year ended December 31, 2018(Audited)GrossReinsuranceNetBalance at the beginning of the year 211,294109,585101,709Premium written during the year712,324 291,655 420,669Premium earned during the year (670,264) (297,201)(373,063)Balance at the end of the year 253,354104,039 149,315 | 7 |
| Disclosure of compensation to key management personnel [text block] | 19Related party matters 19.1Related party transactions Related parties represent 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 September 30, 2019(Unaudited)Three-month period ended September 30, 2018 (Unaudited)Nine-month period ended September 30, 2019(Unaudited)Nine-month period ended September 30, 2018 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses45791,4501,453Key management personnelShareholders’ and related parties (common ownership)Remuneration and related expenses2,8462,3298,4287,399-Loans & advances487402687-Insurance premiums Written13,64617,16149,76358,238-Claims paid3,7338,58310,64321,677-Facultative premiums Ceded (net)1841,0562,4823,683-Facultative Commission received513385271001-Facultative claim recovered1401221,0971,585-Expenses incurred1,8478134,4333,533-Commission income on deposits1,8971,5075,2503,33619.2Related party balances Balances with related parties September 30,2019(Unaudited)December 31, 2018(Audited)Premiums receivable, net9,794 11,067Payable to policyholders(2,844)-Cash and cash equivalents with a shareholder 332,741324,032Amounts due to a shareholder for facultative transactions (71)(52)Advances due from key management personnel 411450Income tax receivable from foreign shareholders - 2,020Statutory deposit with a shareholder 20,00020,000Rent paid in advance to related party 735-Directors fees and expenses payable(90)-Accrued income on statutory deposit1,171848 | 19 |
| Disclosure of earnings per share [text block] | 12Share 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, 2018: 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. | 12 |
| Disclosure of investments held at fair value through statement of income [text block] | 8.2Available-for-sale investmentThis represents the Company’s 3.45% (31 December 2018: 3.45%) 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. | 8.2 |
| Disclosure of related party transactions [text block] | 19Related party matters 19.1Related party transactions Related parties represent 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 September 30, 2019(Unaudited)Three-month period ended September 30, 2018 (Unaudited)Nine-month period ended September 30, 2019(Unaudited)Nine-month period ended September 30, 2018 (Unaudited)Related PartyNature of TransactionsBoard MembersFees and related expenses45791,4501,453Key management personnelShareholders’ and related parties (common ownership)Remuneration and related expenses2,8462,3298,4287,399-Loans & advances487402687-Insurance premiums Written13,64617,16149,76358,238-Claims paid3,7338,58310,64321,677-Facultative premiums Ceded (net)1841,0562,4823,683-Facultative Commission received513385271001-Facultative claim recovered1401221,0971,585-Expenses incurred1,8478134,4333,533-Commission income on deposits1,8971,5075,2503,33619.2Related party balances Balances with related parties September 30,2019(Unaudited)December 31, 2018(Audited)Premiums receivable, net9,794 11,067Payable to policyholders(2,844)-Cash and cash equivalents with a shareholder 332,741324,032Amounts due to a shareholder for facultative transactions (71)(52)Advances due from key management personnel 411450Income tax receivable from foreign shareholders - 2,020Statutory deposit with a shareholder 20,00020,000Rent paid in advance to related party 735-Directors fees and expenses payable(90)-Accrued income on statutory deposit1,171848 | 19 |
| Disclosure of entity's operating segments [text block] | 18 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, 2018. 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 September 30, 2019 and December 31, 2018, its total revenues, expenses, and net income for the nine-month periods then ended, are as follows: WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (Continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotalFor the three-monthperiod ended September 30,2019 (unaudited)RevenuesGross premiums written21,68721,22853,031 12,3664,0274,30414,197130,840Reinsurance premiums ceded (18,198) (19,317)(1,331) (11,564) (2,714)(4,304)(11,958) (69,386)Excess of loss expenses(1,300)(600)(1,250)(250)(75)--(3,475)Net premiums written2,1891,31150,4505521,238-2,23957,979Change in unearnedpremiums, net(1,176)89640,32819820-1,00941,896Net premiums earned1,0132,20790,7785712,058-3,24899,875Reinsurance commissions 1,9514,4885132,5851,5272,9824,83118,877Other underwriting income203-34-232Total revenues2,9846,69891,2913,1593,5892,9828,081118,784Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,52816,59992,1333,2289191,41110,447127,265Reinsurer’s share of claims paid(1,786)(15,697)(4,332)(3,067)(630)(1,411)(9,005)(35,928)Net claims paid74290287,801161289-1,44291,337Changes in outstanding claims, net1,292(1,175)(4,639)(248)(96) -711(4,155)Changes in claims incurred but not reported, net(951)(72)(7,449)(251)598-(111)(8,236)Net claims incurred1,083(345)75,713(338)791-2,04278,946Premium deficiency reserve-(4,048)6,750(1,173)---1,529Policy acquisition costs1,0992,2695,8581,4058302,4612,45016,372Total underwriting cost and expenses2,182(2,124)88,321(106)1,6212,4614,49296,847Net underwriting income 8028,8222,9703,2651,9685213,58921,937Other operating income /(expenses)Allowance for impairment for doubtful debts(4,229)General and administration expenses(26,551)Commission income on deposits1,897Unrealized gain on investments1,181Other income39Total Other operating expenses, net(27,663)Net loss for the period attributable to the shareholders, before zakat and income tax(5,726)Zakat(533)Income tax515Net loss for the period(5,744) WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (Continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the nine-monthperiod ended September 30,2019 (unaudited)RevenuesGross premiums written45,18595,091327,942 38,60825,81714,58462,464609,691Reinsurance premiums ceded (35,366)(85,026)(8,233)(36,010)(18,026)(14,584)(53,791)(251,036)Excess of loss expenses(1,989)(2,660)(4,175)(750)(225)-(119)(9,918)Net premiums written7,8307,405315,5341,8487,566-8,554348,737Change in unearned premiums, net(978)(1,734)(37,236)(351)(1,618)-(1,136)(43,053)Net premiums earned6,8525,671278,2981,4975,948-7,418305,684Reinsurance commissions 6,96714,2912,4936,8504,2849,32814,31358,526Other underwriting income63681002324-7285Total revenues13,88220,030280,8918,37010,2569,32821,738364,495Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries7,19021,159243,44712,3491,9044,06330,973321,085Reinsurer’s share of claims paid(5,438)(19,506)(14,513)(11,595)(1,424)(4,063)(25,746) (82,285)Net claims paid1,7521,653228,934754480-5,227238,800Changes in outstanding claims, net2,4885899,964(1,339)641-33412,677Changes in claims incurred but not reported, net(912)508,491(513)344-(548)6,912Net claims incurred3,3282,292247,389(1,098)1,465-5,013258,389Premium deficiency reserve(15)(1,721)(6,829)(820)---(9,385)Additional unexpired risk reserve---14---14Unallocated loss adjustment expense provision(142)922,660(111)(33)-(87)2,379Policy acquisition costs4,0247,01516,9673,6072,2677,7307,39449,004Total underwriting cost and expenses7,1957,678260,1871,5923,699773012,320300,401Net underwriting income 6,68712,35220,7046,7786,5571,5989,41864,094Other operating income / (expenses)Allowance for impairment for doubtful debts(21,531)General and administration expenses(78,468)Commission income on deposits5,250Unrealized gain on investments3,838Other income13,991Total Other operating expenses, net(76,920)Net loss for the period attributable to the shareholders, before zakat and income tax(12,826)Zakat(3,147)Income tax(75)Net loss for the period(16,048) WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to the interim condensed financial statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the three-monthperiod ended September 30,2018 (unaudited) (restated)RevenuesGross premiums written 8,96020,815116,2868,5254,1796,721 11,365176,851Reinsurance premiums ceded (6,530)(18,911)(8,666)(7,675)(3,304) (6,721)(10,807)(62,614)Excess of loss expenses (264) (546)(810)(180)(16)- (20)(1,836)Net premiums written2,166 1,358106,810 670859-538112,401 Change in unearned premiums, net816157(13,395)(8)1,278-1,370(9,782)Net premiums earned 2,9821,51593,4156622,137-1,908102,619Reinsurance commissions 1,3325,1801,4021,9751,4673,3232,94817,627Other underwriting income2434725-182Total revenues4,3386,69894,8642,6393,6093,3234,857120,328Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,9481,17763,3022,6877272,2677,96081,068Reinsurer’s share of claims paid(2,608)(1,045)(5,262)(2,540)(449)(2,267)(6,875)(21,046)Net claims paid34013258,040147278-1,08560,022Changes in outstanding claims, net(222)(19)13,299105121-20613,490Net claims incurred11811371,339252399-1,29173,512Reversal of unexpired risk reserve---(1,068)---(1,068)Policy acquisition costs7352,5416,8641,0968992,7531,17016,058Total underwriting cost and expenses8532,65478,2032801,2982,7532,46188,502Net underwriting income 3,4854,04416,6612,3592,3115702,39631,826Other operating (expenses) / income.Allowance for impairment of doubtful debts(5,360)General and administration expenses(23,929)Commission income on deposits1,507Unrealized gain on investments595Other income535Total other operating expenses, Net(26,652)Net income for the period5,174Total income attributed to the policy holders(484)Net income for the period attributable to the shareholders before zakat and income tax4,690Zakat(1,261)Income tax(623)Net income for the period2,806 WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the nine-month period ended September 30,2018 (unaudited) (restated)RevenuesGross premiums written28,91589,245372,89635,72525,69416,46840,491609,434Reinsurance premiums ceded (20,936)(82,350)(27,982)(33,076) (18,345)(16,468)(36,301)(235,458)Excess of loss expenses (789)(1,639)(3,092)(541)(50)- (59)(6,170)Net premiums written7,1905,256 341,822 2,1087,299-4,131 367,806Change in unearned premiums, net(865)(653)(100,355)1,656(904)-801(100,320)Net premiums earned 6,3254,603241,4673,7646,395-4,932267,486Reinsurance commissions 6,197 15,2533,9735,4984,2779.35010,10854,656Other underwriting income 71361551923-4308Total revenues12,59319,892245,5959,28110,6959,35015,044322,450Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries6,1384,014152,86012,1714,2026,11621,927207,428Reinsurer’s share of claims paid(5,019)(3,531)(14,121)(11,716)(2,436)(6,116)(19,177)(62,116)Net claims paid1,119483 138,7394551,766-2,750145,312Changes in outstanding claims, net49(161)23,363273(467)-22223,279Changes in claims incurred but not reported, net--(3,532)(378)---(3,910)Net claims incurred1,168322 158,5703501,299-2,972164,681Charge for reinsurance reserves-(2,451)(1,146)-----(3,597)Premium deficiency reserve6161,422999292---3,329Additional unexpired risk reserve---1,959---1,959Other technical reserves78377618178762-1142,127Policy acquisition costs3,3777,21220,2423,0222,6387,8034,66948,963Total underwriting cost and expenses5,2396,882179,2835,8014,6997,8037,755217,462Net underwriting income 7,35413,01066,3123,4805,9961,5477,289104,988Other operating (expenses) / incomeAllowance for impairment of doubtful debts(16,363)General and administration expenses(68,955)Commission income on deposits3,336Unrealized gain on investments1,510Other incomeTotal Other Operating Expenses, net8,148(72,324)Net income for the period32,664Total income attributed to the policy holders(3,376)Net income for the period attributable to the shareholders, before zakat and income tax29,288Zakat(4,071)Income tax(2,644)Net income for the period22,573 WATANIYA INSURANCE COMPANY (A Saudi Joint Stock Company)Notes to The Interim Condensed Financial Statements (continued)At September 30, 2019(All amounts in Saudi Riyals thousands unless otherwise stated)18 Operating Segments (continued)MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm Life TotalAs at September 30, 2019(Unaudited)AssetsReinsurers’ share of unearned premiums17,18039,8024,82319,25613,23617,71913,138125,154Reinsurers’ share of outstanding claims134,76811,6435,5437,755109,041237,039275,812Reinsurers’ share of claims incurred but not reported3,3761,9651,9017,51917,718-13,00045,479Deferred policy acquisition costs2,7323,83310,6592,3521,4714,6261,87227,545Unallocated assets 772,473Total assets1,246,463LiabilitiesUnearned premiums20,67944,166181,74720,75116,88917,71915,571317,522Unearned reinsurance commission4,1007,1137344,2482,4246,2503,74428,613Outstanding claims138,72013,09894,6738,200110,327238,263373,304Claims incurred but not reported4,4602,18736,8388,09420,716-15,22987,524Premium deficiency reserve--13,836----13,836Additional unexpired risk reserve---399---399Unallocated loss adjustment expense provision7143633,770193312-5345,886Unallocated liabilities196,806Total liabilities 1,023,890MarinePropertyMotorEngineeringAccident & LiabilityExtended WarrantyTerm Life TotalAs at December 31, 2018 (Audited)AssetsReinsurers’ share of unearned premiums6,03325,28011,34614,89513,72021,79410,971104,039Reinsurers’ share of outstanding claims4,6377,0947,39031,282105,58883,449159,448Reinsurers’ share of claims incurred but not reported12,8401,4093,56613,77631,839-15,45078,880Deferred policy acquisition costs1,2012,9287,2291,7307858,8961,51024,279Unallocated assets 709,356Total assets1,076,002LiabilitiesUnearned premiums8,55627,910151,03416,03915,75321,79412,268253,354Unearned reinsurance commission2,1305,4161,9863,3112,29910,8043,49729,443Outstanding claims6,1037,96086,55533,065106,23384,339244,263Claims incurred but not reported14,8351,58330,01214,86434,492-18,227114,013Premium deficiency reserve151,72120,665820---23,221Additional unexpired risk reserve---385---385Other technical reserves8532711,112305345-6213,507Unallocated liabilities168,241Total liabilities 836,427 | 18 |
| Disclosure of capital management [text block] | 20Capital 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. | 20 |
| Disclosure of commitments and contingencies, general [text block] | 14Commitments and ContingenciesThe Company’s Bankers has issued guarantee of SR 2.1 million (2018: SR 1.9 million) to its suppliers on behalf of the Company. | 14 |
| Disclosure of board of director's approval of the financial statements [text block] | 22Approval of the interim condensed financial statements These interim condensed financial statements have been approved by the Board of Directors on 29 October 2019 corresponding to 1 Rabiʻ I 1441 H. | 22 |
