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| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1GeneralWataniya 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 Ministry of Commerce and Industry’s Resolution number 158/K dated Jumad-ul-Awal 12, 1431H (corresponding to April 26, 2010). The Registered Office address of the Company is Juffali Building, Madina Road, Jeddah, Saudi Arabia. The Company is licensed to conduct insurance business in Saudi Arabia under Cooperative insurance principles in accordance with Royal Decree No M/53 dated Shawwal 21, 1430H (corresponding to October 10, 2009) pursuant to Council of Ministers’ Resolution No. 330 dated Shawwal 16,1430H (corresponding to October 5, 2009). The Company has obtained Saudi Central Bank (“SAMA”) license number TMN/29/20106 valid up to Rajab 3,1443H (corresponding to February 5, 2022). The Company was listed on the Saudi Arabian stock market (Tadawul) on June 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.The Company has incurred a net loss attributable to the shareholders of Saudi Riyals 24.65 million for the three-month period ended March 31, 2022 (Net loss of Saudi Riyals 19.29 million for the three-month period ended March 31, 2021), and as of that date, its accumulated losses amounted to Saudi Riyals 29.19 million (accumulated losses of Saudi Riyals 4.16 million as at December 31, 2021) and the Company’s solvency margin stayed below the minimum solvency requirements set by the SAMA (refer note 23). The Company's Board of Directors in their meeting held on September 16, 2021, recommended to increase the share capital by offering rights issue amounting to Saudi Riyals 200 million in order to immediately improve the solvency margin and to provide the financial support necessary for the Company to undertake management’s proposed initiatives to reduce loss ratios and improve business profitability. The Company has received SAMA approval via letter dated November 6, 2021 relating to rights issue, subject to completion of other regulatory procedures and Company’s shareholders’ approval. The approval has a validity of one year from the date of the letter to complete the remaining formalities relating to the rights issue. The Company has obtained approval from the Capital Market Authority (“CMA”) on March 8, 2022 relating to rights issue. The Extraordinary General Assembly of the Company was held on April 13, 2022 where the share capital increase by way of rights issue was formally approved by the shareholders. As of the date of approval of these interim condensed financial statements, the rights issue subscription procedures, including the realization of proceeds thereagainst, were in progress which are expected to be completed by the end of May 2022. Further, the Company has entered into an underwriting agreement with a locally based underwriter to cover any shortfalls in the rights issue subscription . Management has also performed a detailed assessment of its going concern assumption and based on the business plan and cash flow projections, management believes that the Company will be able to continue business and meet its obligation as they fall due over the next twelve months. Management's assessment is based on a number of estimates and assumptions including successful subscription of the rights issue, expansion in business (gross written premiums growth), improvement of loss ratios and other cost saving measures. Accordingly, these interim condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2Basis of preparation (a)Statement of compliance The interim condensed financial statements of the Company have been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncement issued by Saudi Organization for Chartered and Professional Accountants (“SOCPA”). The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of investments held as fair value through statement of income (FVSI) and available-for-sale investments (except where fair value cannot be measured reliably) and measurement of employees defined benefit obligations at present value using projected credit unit method. The Company’s interim statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: Investments, Deferred policy acquisition costs, Property and equipment, Intangible assets, Outstanding claims and Technical reserves. All other financial statement line items would generally be classified as current unless stated otherwise.As required by the Saudi Arabian Insurance Regulations “SAMA Implementation Regulations”, the Company maintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. SAMA Implementation Regulations require a clear segregation of assets, liabilities, income and expenses of the insurance and shareholders operations. Accordingly, assets, liabilities, revenues and expenses attributable to either operation are recorded in the respective accounts. Note 24 to these interim condensed financial statements provides the interim statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders operations, separately.In preparing the Company’s financial statements in compliance with IFRS as endorsed in KSA, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, transactions and unrealized gains and losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.The interim condensed financial statements may not be considered indicative of the expected results for the full year.The interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands, except where otherwise stated.The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statement as of and for the year ended December 31, 2021.(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, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements as a result of the COVID-19 pandemic. For further details please see note 25 to these interim condensed financial statements. Management will continue to assess the situation and reflect any required changes in future reporting periods.(c) Seasonality of operations There are no seasonal changes that may affect insurance operations 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 Company’s annual financial statements for the year ended December 31, 2021 except as explained below:3.1New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe Company has adopted the following amendments to existing standards, which were issued by the IASB and are applicable from January 1, 2022:Standard / AmendmentsDescriptionAmendments to IAS 37Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37Amendments to IFRS 3Reference to the Conceptual FrameworkAmendments to IAS 16Property, Plant and Equipment: Proceeds before Intended UseThe adoption of the above amendments to standards did not have any significant impact on these interim condensed financial statements.3.2 Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s 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 9 Financial Instruments January 1, 2023IFRS 17Insurance Contracts January 1, 2023Amendments to IAS 1Classification of Liabilities as Current or Non-currentJanuary 1, 2023Amendments to IAS 1 and IFRSPractice Statement 2Disclosure of Accounting PoliciesJanuary 1, 2023Amendments to IAS 8Definition of Accounting EstimatesJanuary 1, 2023Amendments to IAS12Deferred Tax related to Assets and Liabilities arising from a Single TransactionJanuary 1, 2023IFRS 9 – Financial InstrumentsThis standard was published on July 24, 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a) Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; andii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale; andii. the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses on disposal), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.b) ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c) Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1.Apply a temporary exemption from implementing IFRS 9 until the earlier of:a)the effective date of a new insurance contract standard; orb)annual reporting periods beginning on or after January 1, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2.Adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.Effective date (continued)The Company has performed a detailed assessment in 2019: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption as its insurance liabilities exceed 90% of total liabilities. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of IFRS 17. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at March 31, 2022, the Company has total financial assets and insurance related assets amounting to SAR 723 million (December 31, 2021: SAR 572 million) and SAR 572 million (December 31, 2021: SAR 524 million), respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents, deposits, held to maturity investments, premiums receivable – net, due from reinsurers - net and certain other receivables amounting to SAR 723 million (2021: SAR 572 million). Investments are carried currently at fair value through statement of income at SAR 105 million (December 31, 2021: SAR 166 million). Credit risk exposure, concentration of credit risk and credit quality of the company’s receivables portfolio are mentioned in notes 6 and 7. However, the Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. The Company’s financial assets have low credit risk as at March 31, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects some effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. As required by the SAMA the Company is in the process of performing its detailed review of the IFRS 9 impact on the 2021 financial statement, accordingly at present it is not possible to provide reasonable estimate of the effects of application of this new standard as at the date of these financial statements IFRS 17 – Insurance ContractsOverviewThis standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i.embedded derivatives, if they meet certain specified criteria;ii.distinct investment components; andiii.any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models: 1)The General Measurement Model (GMM) is based on the following “building blocks”:a)the fulfilment cash flows (FCF), which comprises:probability-weighted estimates of future cash flows;an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows; and a risk adjustment for non-financial risk.b)the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately.At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.2)The Variable Fee Approach (VFA):VFA is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model:i.changes in the entity’s share of the fair value of underlying items;ii.changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of IFRS 9 temporary exemption in IFRS 4 is currently January 1, 2023. Earlier application is permitted if both IFRS 15 – ‘Revenue from Contracts with Customers’ and IFRS 9 – ‘Financial Instruments’ have also been applied. The Company intend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures. Impact assessmentThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these interim condensed financial statements, the financial impact of adopting the standard is yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key Gaps are as follows: Impact areaSummary of impactFinancial impactA dry run was conducted on the financial statements as at December 31, 2020. The financial impact of applying requirements of IFRS 17 compared to IFRS 4 was not significant as most of the Company’s insurance and reinsurance contracts are with terms of one year or less. As required by the Saudi Central Bank the company is in the process of preparing the December 31, 2021 financial statements under the requirements of IFRS 17.Data impactThe Company believes that the data impact is not likely to be significant as a major proportion of the Company’s business would qualify for measurement under the premium allocation approach.IT systemsDue to issues with the Oracle Financial Analyzer tool (OFSAA) the agreement has been terminated. A new software Addactic has been procured by the Company. This will be implemented by the Company’s appointed actuary.Process impactThe process impact is under evaluation, but no significant process changes are anticipated. However, should the Company shift its focus to majority long term business, the process impact would be significant.Impact on reinsurance arrangementsThe Company’s reinsurance arrangements have been evaluated under the requirements of the IFRS 17 standard. The initial conclusion is that the reinsurance arrangements qualify for the PAA assessment as most of the Company’s reinsurance arrangements are with terms of one year or less. Accordingly, no material impact on reinsurance arrangements is expected. Impact areaSummary of impactImpact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirement:UnbundlingLevel of aggregationMeasurement modelsRisk Adjustment MethodologiesNew presentation and disclosure requirementThe revised manual will be followed by Finance function to ensure that financial statements are in conformity with IFRS 17 on the effective date.Human resources The Company has recruited several key personnel, including the Financial Controller, Chief Technical Officer, who will play a key role in the IFRS 17 implementation. It has also developed a training plan and 3 training sessions have already been completed:1-IFRS 17 overview to all stake holders2-PAA Measurement Model3-GMM Measurement ModelRemaining sessions are planned to be competed in 2022.The Company has started with their implementation process and have set up a proper team, supervised by a steering committee.The Company has completed Phase 3 requirements of SAMA and has submitted its report on April 15, 2021. Feedback received has been incorporated in the Phase 3 documents. The Company has also hired an independent consultant to do a detailed review of the Phase 3 documentation and report their findings to the Audit Committee governance. The Company is now in the process of completing SAMA’s Phase 4 requirements. | 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 Company’s annual financial statements for the year ended December 31, 2021 except as explained below:3.1New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe Company has adopted the following amendments to existing standards, which were issued by the IASB and are applicable from January 1, 2022:Standard / AmendmentsDescriptionAmendments to IAS 37Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37Amendments to IFRS 3Reference to the Conceptual FrameworkAmendments to IAS 16Property, Plant and Equipment: Proceeds before Intended UseThe adoption of the above amendments to standards did not have any significant impact on these interim condensed financial statements.3.2 Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s 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 9 Financial Instruments January 1, 2023IFRS 17Insurance Contracts January 1, 2023Amendments to IAS 1Classification of Liabilities as Current or Non-currentJanuary 1, 2023Amendments to IAS 1 and IFRSPractice Statement 2Disclosure of Accounting PoliciesJanuary 1, 2023Amendments to IAS 8Definition of Accounting EstimatesJanuary 1, 2023Amendments to IAS12Deferred Tax related to Assets and Liabilities arising from a Single TransactionJanuary 1, 2023IFRS 9 – Financial InstrumentsThis standard was published on July 24, 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a) Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; andii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale; andii. the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses on disposal), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.b) ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c) Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1.Apply a temporary exemption from implementing IFRS 9 until the earlier of:a)the effective date of a new insurance contract standard; orb)annual reporting periods beginning on or after January 1, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2.Adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.Effective date (continued)The Company has performed a detailed assessment in 2019: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption as its insurance liabilities exceed 90% of total liabilities. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of IFRS 17. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at March 31, 2022, the Company has total financial assets and insurance related assets amounting to SAR 723 million (December 31, 2021: SAR 572 million) and SAR 572 million (December 31, 2021: SAR 524 million), respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents, deposits, held to maturity investments, premiums receivable – net, due from reinsurers - net and certain other receivables amounting to SAR 723 million (2021: SAR 572 million). Investments are carried currently at fair value through statement of income at SAR 105 million (December 31, 2021: SAR 166 million). Credit risk exposure, concentration of credit risk and credit quality of the company’s receivables portfolio are mentioned in notes 6 and 7. However, the Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. The Company’s financial assets have low credit risk as at March 31, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects some effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. As required by the SAMA the Company is in the process of performing its detailed review of the IFRS 9 impact on the 2021 financial statement, accordingly at present it is not possible to provide reasonable estimate of the effects of application of this new standard as at the date of these financial statements IFRS 17 – Insurance ContractsOverviewThis standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i.embedded derivatives, if they meet certain specified criteria;ii.distinct investment components; andiii.any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models: 1)The General Measurement Model (GMM) is based on the following “building blocks”:a)the fulfilment cash flows (FCF), which comprises:probability-weighted estimates of future cash flows;an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows; and a risk adjustment for non-financial risk.b)the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately.At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.2)The Variable Fee Approach (VFA):VFA is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model:i.changes in the entity’s share of the fair value of underlying items;ii.changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of IFRS 9 temporary exemption in IFRS 4 is currently January 1, 2023. Earlier application is permitted if both IFRS 15 – ‘Revenue from Contracts with Customers’ and IFRS 9 – ‘Financial Instruments’ have also been applied. The Company intend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures. Impact assessmentThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these interim condensed financial statements, the financial impact of adopting the standard is yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key Gaps are as follows: Impact areaSummary of impactFinancial impactA dry run was conducted on the financial statements as at December 31, 2020. The financial impact of applying requirements of IFRS 17 compared to IFRS 4 was not significant as most of the Company’s insurance and reinsurance contracts are with terms of one year or less. As required by the Saudi Central Bank the company is in the process of preparing the December 31, 2021 financial statements under the requirements of IFRS 17.Data impactThe Company believes that the data impact is not likely to be significant as a major proportion of the Company’s business would qualify for measurement under the premium allocation approach.IT systemsDue to issues with the Oracle Financial Analyzer tool (OFSAA) the agreement has been terminated. A new software Addactic has been procured by the Company. This will be implemented by the Company’s appointed actuary.Process impactThe process impact is under evaluation, but no significant process changes are anticipated. However, should the Company shift its focus to majority long term business, the process impact would be significant.Impact on reinsurance arrangementsThe Company’s reinsurance arrangements have been evaluated under the requirements of the IFRS 17 standard. The initial conclusion is that the reinsurance arrangements qualify for the PAA assessment as most of the Company’s reinsurance arrangements are with terms of one year or less. Accordingly, no material impact on reinsurance arrangements is expected. Impact areaSummary of impactImpact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirement:UnbundlingLevel of aggregationMeasurement modelsRisk Adjustment MethodologiesNew presentation and disclosure requirementThe revised manual will be followed by Finance function to ensure that financial statements are in conformity with IFRS 17 on the effective date.Human resources The Company has recruited several key personnel, including the Financial Controller, Chief Technical Officer, who will play a key role in the IFRS 17 implementation. It has also developed a training plan and 3 training sessions have already been completed:1-IFRS 17 overview to all stake holders2-PAA Measurement Model3-GMM Measurement ModelRemaining sessions are planned to be competed in 2022.The Company has started with their implementation process and have set up a proper team, supervised by a steering committee.The Company has completed Phase 3 requirements of SAMA and has submitted its report on April 15, 2021. Feedback received has been incorporated in the Phase 3 documents. The Company has also hired an independent consultant to do a detailed review of the Phase 3 documentation and report their findings to the Audit Committee governance. The Company is now in the process of completing SAMA’s Phase 4 requirements. | 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 Company’s annual financial statements for the year ended December 31, 2021 except as explained below:3.1New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyThe Company has adopted the following amendments to existing standards, which were issued by the IASB and are applicable from January 1, 2022:Standard / AmendmentsDescriptionAmendments to IAS 37Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37Amendments to IFRS 3Reference to the Conceptual FrameworkAmendments to IAS 16Property, Plant and Equipment: Proceeds before Intended UseThe adoption of the above amendments to standards did not have any significant impact on these interim condensed financial statements.3.2 Standards issued but not yet effectiveStandards issued but not yet effective up to the date of issuance of the Company’s 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 9 Financial Instruments January 1, 2023IFRS 17Insurance Contracts January 1, 2023Amendments to IAS 1Classification of Liabilities as Current or Non-currentJanuary 1, 2023Amendments to IAS 1 and IFRSPractice Statement 2Disclosure of Accounting PoliciesJanuary 1, 2023Amendments to IAS 8Definition of Accounting EstimatesJanuary 1, 2023Amendments to IAS12Deferred Tax related to Assets and Liabilities arising from a Single TransactionJanuary 1, 2023IFRS 9 – Financial InstrumentsThis standard was published on July 24, 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a) Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; andii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale; andii. the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses on disposal), dividends being recognized in statement of income.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in statement of income.b) ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c) Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1.Apply a temporary exemption from implementing IFRS 9 until the earlier of:a)the effective date of a new insurance contract standard; orb)annual reporting periods beginning on or after January 1, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2.Adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.Effective date (continued)The Company has performed a detailed assessment in 2019: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption as its insurance liabilities exceed 90% of total liabilities. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of IFRS 17. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at March 31, 2022, the Company has total financial assets and insurance related assets amounting to SAR 723 million (December 31, 2021: SAR 572 million) and SAR 572 million (December 31, 2021: SAR 524 million), respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents, deposits, held to maturity investments, premiums receivable – net, due from reinsurers - net and certain other receivables amounting to SAR 723 million (2021: SAR 572 million). Investments are carried currently at fair value through statement of income at SAR 105 million (December 31, 2021: SAR 166 million). Credit risk exposure, concentration of credit risk and credit quality of the company’s receivables portfolio are mentioned in notes 6 and 7. However, the Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. The Company’s financial assets have low credit risk as at March 31, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects some effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. As required by the SAMA the Company is in the process of performing its detailed review of the IFRS 9 impact on the 2021 financial statement, accordingly at present it is not possible to provide reasonable estimate of the effects of application of this new standard as at the date of these financial statements IFRS 17 – Insurance ContractsOverviewThis standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i.embedded derivatives, if they meet certain specified criteria;ii.distinct investment components; andiii.any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models: 1)The General Measurement Model (GMM) is based on the following “building blocks”:a)the fulfilment cash flows (FCF), which comprises:probability-weighted estimates of future cash flows;an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows; and a risk adjustment for non-financial risk.b)the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately.At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of:the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date;and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discount rate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will be released into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expected coverage duration of the remaining contracts in the group.2)The Variable Fee Approach (VFA):VFA is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model:i.changes in the entity’s share of the fair value of underlying items;ii.changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of IFRS 9 temporary exemption in IFRS 4 is currently January 1, 2023. Earlier application is permitted if both IFRS 15 – ‘Revenue from Contracts with Customers’ and IFRS 9 – ‘Financial Instruments’ have also been applied. The Company intend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures. Impact assessmentThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these interim condensed financial statements, the financial impact of adopting the standard is yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key Gaps are as follows: Impact areaSummary of impactFinancial impactA dry run was conducted on the financial statements as at December 31, 2020. The financial impact of applying requirements of IFRS 17 compared to IFRS 4 was not significant as most of the Company’s insurance and reinsurance contracts are with terms of one year or less. As required by the Saudi Central Bank the company is in the process of preparing the December 31, 2021 financial statements under the requirements of IFRS 17.Data impactThe Company believes that the data impact is not likely to be significant as a major proportion of the Company’s business would qualify for measurement under the premium allocation approach.IT systemsDue to issues with the Oracle Financial Analyzer tool (OFSAA) the agreement has been terminated. A new software Addactic has been procured by the Company. This will be implemented by the Company’s appointed actuary.Process impactThe process impact is under evaluation, but no significant process changes are anticipated. However, should the Company shift its focus to majority long term business, the process impact would be significant.Impact on reinsurance arrangementsThe Company’s reinsurance arrangements have been evaluated under the requirements of the IFRS 17 standard. The initial conclusion is that the reinsurance arrangements qualify for the PAA assessment as most of the Company’s reinsurance arrangements are with terms of one year or less. Accordingly, no material impact on reinsurance arrangements is expected. Impact areaSummary of impactImpact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirement:UnbundlingLevel of aggregationMeasurement modelsRisk Adjustment MethodologiesNew presentation and disclosure requirementThe revised manual will be followed by Finance function to ensure that financial statements are in conformity with IFRS 17 on the effective date.Human resources The Company has recruited several key personnel, including the Financial Controller, Chief Technical Officer, who will play a key role in the IFRS 17 implementation. It has also developed a training plan and 3 training sessions have already been completed:1-IFRS 17 overview to all stake holders2-PAA Measurement Model3-GMM Measurement ModelRemaining sessions are planned to be competed in 2022.The Company has started with their implementation process and have set up a proper team, supervised by a steering committee.The Company has completed Phase 3 requirements of SAMA and has submitted its report on April 15, 2021. Feedback received has been incorporated in the Phase 3 documents. The Company has also hired an independent consultant to do a detailed review of the Phase 3 documentation and report their findings to the Audit Committee governance. The Company is now in the process of completing SAMA’s Phase 4 requirements. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | 4Cash and cash equivalentsMarch 31, 2022(Unaudited)December 31, 2021(Audited)Cash in hand2020Bank balances44,76734,110Deposits with original maturity of 3 months or less63,0008,000Total107,78742,130The bank balances and deposits are with banks, registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. The deposits have an original maturity of less than three months and yield income at rates of 0.7% to 1.80% per annum (December 31, 2021: 0.7% per annum). | 4 |
| Description of accounting policy for receivables [text block] | 6Premiums receivables – netMarch 31, 2022(Unaudited)December 31, 2021(Audited)Receivable from policy holders350,346284,689Impairment allowance for doubtful receivables(36,998)(35,163)Premiums receivable – net313,348249,526Movement in the impairment allowance for doubtful receivables is as follows: March 31, 2022(Unaudited)December 31, 2021(Audited)Opening35,16340,775Provision charged for the period / year1,8353,959Write-offs-(9,571)Closing36,99835,163 | 6 |
| Description of accounting policy for zakat [text block] | 13 Zakat and income tax13.1 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 Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company.13.2 Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period558-558Payment during the period(3,647)-(3,647)March 31, 2022784-784ZakatIncome taxTotalJanuary 1, 20215,1131,4916,604Provision for the current year3,873-3,873Other adjustments11316129Payments during the year(5,016)(1,054)(6,070)Payment for prior years(210)(453)(663)December 31, 20213,873-3,873Zakat is payable at 2.58% of the approximate zakat base (excluding adjusted net income for the period) and 2.5% of adjusted net income for the period / year 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. No provision for income tax has been charged in these financial statements as the Company has incurred a taxable loss during the three-month period ended March 31, 2022 (March 31,2021: no provision due to taxable loss).The shareholding percentage subject to zakat and income tax is as follows:March 31, 2022(Unaudited)December 31, 2021 (Audited) % %Zakat share in capital and profit82.4476.24Income tax share in capital and profit17.5623.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favor of the Company.Year ended December 31, 2013The Tax and zakat position may be considered finalized under the Statute of Limitation.Year ended December 31, 2014 to 2018The ZATCA had issued assessments claiming additional taxes and Zakat amounting to SAR 0.82 million and SAR 0.29 million, respectively, which was duly accepted and settled by the Company. During 2019, the Company had received an assessment for the 2018 withholding tax liability in which the ZATCA had imposed additional taxes, including penalties aggregating to SAR 11.37 million. Management believes that the assessment raised is without merit and has appealed against this assessment. The Company’s initial appeal was rejected by the ZATCA and was escalated to the General Secretariat of Tax Committee (“GSTC”) online portal to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 5, 2021 the CRTVD issued its summary decision in which CRTVD agreed with the ZATCA's revised assessments. On September 21, 2021, the Company received the decision from CRTVD where the revised withholding tax liability was assessed to SAR 9.75 million in addition to its penalties. The Company appealed against the CRTVD decision and escalated its objection to the Advanced Committee for Tax Violations and Dispute Resolution (“ACTVDR”) and the Company is waiting to receive the ACRTVD decision. The management believes that the Company has a strong position and the Company’s view should prevail.Year ended December 31, 2019 and 2020The ZATCA had issued assessment for the year ended December 31, 2019 and 2020 claiming additional tax amounting to SAR 0.45 million and additional zakat amounting to SAR 0.21 million, which was duly accepted and settled by the Company. Accordingly, the tax and zakat assessments for 2019 and 2020 have been finalized.Year ended December 31, 2021The Company has filed its tax returns of December 31, 2021 with the ZATCA and has a certificate valid till April 30, 2023. | 13 |
| Description of accounting policy for fair value measurement [text block] | 20Fair 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. 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 year end. There are no transfers between Level 1, Level 2 and Level 3 during the year.As at March 31, 2022 and December 31, 2021, all financial instruments which are fair valued are Level 3 instruments except for investment in sukuks and equity amounting to SAR 25.47 million (December 31, 2021: SAR 28.18 million) and SAR 11.78 million (December 31, 2021: SAR 13.06 million) respectively, 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. Significant unobservable inputs used in the valuation of level 3 investments include the Fund administrator report based on NAV and assumptions about rates for other investments as confirmed by the discretionary portfolio manager.Significant unobservable inputs used in the valuation of level 3 investments include the Fund administrator report based on NAV and assumptions about rates for other investments as confirmed by the discretionary portfolio manager.Available-for-sale investment amounting to SAR 1.9 million (December 31, 2021: SAR 1.9 million) is carried at cost as its fair value cannot be measured reliably. | 20 |
| Description of accounting policy for investment income [text block] | 9 Investments NoteMarch 31, 2022(Unaudited)December 31,2021(Audited)Fair value through statement of income investments (FVSI)9.1104,567165,959Held-to-maturity investments9.212,00012,000Available-for-sale investment9.31,9231,923118,490179,8829.1 Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:Three-month period ended March 31, 2022(Unaudited)Year endedDecember 31, 2021(Audited)Opening balance165,959162,029Withdrawal during the period / year (62,000)-Changes in fair value of investments during the period / year6083,930Closing balance 104,567165,959FVSI includes investments managed by a Fund manager under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund manager. Fund manager keeps such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements.9.2 Held to maturity investmentsNoteThree-month period ended March 31, 2022(Unaudited)Year endedDecember 31, 2021(Audited)Saudi Fransi Bank Sukuksa3,0003,000Saudi Real Estate Refinance Company Sukuksb9,0009,000Total 12,00012,000أ)This represents the Company’s investment in Saudi Fransi Tier 1 Sukuks. These represent 3 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 4.50% per annum. These Sukuks have a maturity duration of 5 years commencing from November 3, 2020. The Company has earned commission income of SAR 0.056 million during the period (March 31, 2021: SAR 0.034 million).ب)These represent 5 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 2.11% per annum and 4 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 3.04% per annum. These Sukuks have a maturity duration of 7 years and 10 years, respectively. The Company has earned commission income of SAR 0.087 million during the period (March 31, 2021: Nil).9.3Available-for-sale investmentThis represents the Company’s 3.85% (December 31, 2021: 3.85%) holding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. In the absence of reliable financial information, management believe that fair values cannot be ascertained reliably.9.4 All investments are from the shareholders’ operations and are placed inside the Kingdom of Saudi Arabia | 9 |
| Description of accounting policy for segment reporting [text block] | 21Operating segmentsOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the interim condensed statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2021. Segment assets do not include cash and cash equivalents, short-term deposits, premiums receivables, investments, due from reinsurers, prepaid expenses and other assets, property and equipment, intangible assets, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders payable, accrued expenses and other liabilities, due to reinsurers, agents, brokers and third-party administrators, surplus distribution payable, zakat and income tax payable and accrued income on statutory deposit. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at March 31, 2022 and December 31, 2021, its total revenues, expenses, and net income for the three-month period ended March 31, 2022 and March 31, 2021, are as follows:MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotalFor the three-month period ended March 31,2022(unaudited)RevenuesGross premiums written16,25075,435119,83712,21823,2245,597 15,173267,734Reinsurance premiums ceded (11,816)(59,652)(91)(6,744)(19,209)(3,338)(8,113)(108,963)Excess of loss expenses(722)(1,750)(1,970)(521)---(4,963)Net premiums written3,71214,033117,7764,9534,0152,2597,060153,808Change in unearnedpremiums(3,738)(37,605)(10,566)5,442(5,965)(1,561)(4,507)(58,500)Change in reinsurers’ share of unearned premiums3,37628,84473(8,216)4,689(101)1,82930,494Net premiums earned3,3505,272107,2832,1792,7395974,382125,802Reinsurance commissions 1,9994,97822,4451,605892-11,921Other underwriting income179150413-3196Total revenues5,36610,259107,4354,6284,3571,4894,385137,919Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,5995,89198,6168212,4339636,459117,782Reinsurer’s share of claims paid(1,769)(4,550)(3,872)(677)(2,137)(961)(5,255)(19,221)Net claims paid8301,34194,74414429621,20498,561Changes in outstanding claims3512,5932,6791,326(1,775) 42(1,381)13,519Changes in reinsurers’ share of outstanding claims(98)(11,975)(10)(901)1,461(42)1,200(10,365)Changes in claims incurred but not reported(149)(712)394(2,774)(69) -(992)(4,302)Changes in reinsurers’ share of claims incurred but not reported78827902,822194-7944,805Net claims incurred6962,07497,8976171072825102,218Premium deficiency reserve--(1,285)----(1,285)Additional unexpired risk reserve---(162)189--27Unallocated loss adjustment expense provision353152(14)37-(34)107Policy acquisition costs1,2843,1907,3692,7041,5941,0321,30018,473Other underwriting expenses3007464,695367228134-6,470Total underwriting cost and expenses2,3156,041108,7283,5122,1551,1682,091126,010Net underwriting income (loss)3,0514,218(1,293)1,1162,2023212,29411,909Other operating (expenses) / incomeAllowance for impairment of doubtful premiums, reinsurers’ and other receivables(1,835)General and administration Expenses(35,504)Commission income on deposits587Unrealized gain on investments608Other investment income143Other income-Total other operating expenses, net(36,001)Net loss for the period attributable to the shareholders, before zakat and income tax(24,092)Zakat(558)Net loss for the period(24,650) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the three-month period ended March 31,2021 (unaudited) RevenuesGross premiums written13,24773,518143,84132,24321,8446,18317,547308,423 Reinsurance premiums ceded (8,822)(61,646)38(26,908)(17,986)(4,675)(9,213)(129,212)Excess of loss expenses(897)(922)(1,917)(495)---(4,231)Net premiums written3,52810,950141,9624,8403,8581,5088,334174,980Change in unearned premiums(2,585)(41,579)(37,720)(18,456)(9,328)(3,643)(7,619) (120,930)Change in reinsurers’ share of unearned premiums68633,403(974)14,7717,2762,1613,77161,094Net premiums earned1,6292,774103,2681,1551,806254,487115,144Reinsurance commissions 2,0814,9391442,1511,92187210112,209Other underwriting income21978412-3127Total revenues3,7317,722103,4903,3103,7398974,591127,480Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries 1,69514,82875,1927,7802411,28210,767111,785Reinsurer’s share of claims paid(1,188)(12,724)(1,118)(7,109)(29)(1,282)(8,792)(32,242)Net claims paid5072,10474,074671212-1,97579,543Changes in outstanding claims8,9198,8818,557(5,335)2,757-1,16824,947Changes in reinsurers’ share of outstanding claims (8,189)(7,616)2114,695(3,012)-(1,220)(15,131)Changes in claims incurred but not reported425727(1,831)(412)271-(3,919)(4,739)Changes in reinsurers’ share of claims incurred but not reported(460)(708)747478(553)-3,1362,640Net claims incurred1,2023,38881,75897(325)-1,14087,260Changes in premium deficiency reserve--(957)----(957)Changes in additional unexpired risk reserve---408---408Changes in unallocated loss Adjustment expense provision154(14)73(154)9-(66)2Policy acquisition costs1,0682,7456,6841,4311,1856411,15814,912Other underwriting expenses3021,3018,666387397179-11,232Total underwriting cost and Expenses2,7267,42096,2242,1691,2668202,232 112,857Net underwriting income1,0053027,2661,1412,473772,35914,623Other operating (expenses) / income.Allowance for impairment of doubtful premiums, reinsurers’ and other receivables(292)General and administration expenses(34,969)Commission income on deposits344Unrealized gain on investments1,548Other investment income34Other income221Total other operating expenses, net(33,114)Net loss for the period attributable to the shareholders, before zakat(18,491)Zakat(800)Net loss for the period(19,291) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm life TotalAs at March 31, 2022(Unaudited)AssetsReinsurers’ share of unearned Premiums13,14065,3917342,62632,53742,3587,566203,691Reinsurers’ share of outstanding claims13,26697,14414464,253110,154516,277291,289Reinsurers’ share of claims incurred but not reported4139,8215241,12011,036-2,91825,832Deferred policy acquisition costs1,6856,40115,2315,0753,46412,7691,72546,350Unallocated assets920,420Total assets1,487,582LiabilitiesUnearned premiums17,86081,953198,98149,63037,92350,65514,178451,180Unearned reinsurance commission2,40711,885764543,97310,190-34,916Outstanding claims16,721105,25079,56066,369111,800517,466387,217Claims incurred but not Reported47810,76042,7141,29712,848-3,64771,744Premium deficiency reserve--9,411----9,411Additional unexpired risk Reserve---680968--1,648Unallocated loss adjustment expense provision3537742,4752271,011-1304,970Unallocated liabilities340,329Total liabilities 1,301,415MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm life TotalAs at December 31, 2021 (Audited)AssetsReinsurers’ share of unearned premiums9,76336,547-50,84227,84942,4585,738173,197Reinsurers’ share of outstanding claims13,16885,16913463,352111,61597,477280,924Reinsurers’ share of claims incurred but not reported49110,6486153,94311,229 -3,71130,637Deferred policy acquisition Costs1,5044,46010,5996,0512,57312,4731,13038,790Unallocated assets823,689Total assets1,347,237LiabilitiesUnearned premiums14,12344,348188,41555,07231,95849,0939,671392,680Unearned reinsurance commission2,0035,063-8,3102,74311,081-29,200Outstanding claims16,68592,65776,88265,043113,57598,847373,698Claims incurred but not Reported62711,47142,3204,07212,917-4,63976,046Premium deficiency reserve 10,69610,696Additional unexpired risk reserve---842779- -1,621Unallocated loss adjustment expense provision3177432,423242975-1634,863Unallocated liabilities247,238Total liabilities 1,136,042 | 21 |
| Description of accounting policy for statutory deposit [text block] | 11Statutory 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 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. | 11 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 9 Investments NoteMarch 31, 2022(Unaudited)December 31,2021(Audited)Fair value through statement of income investments (FVSI)9.1104,567165,959Held-to-maturity investments9.212,00012,000Available-for-sale investment9.31,9231,923118,490179,8829.1 Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:Three-month period ended March 31, 2022(Unaudited)Year endedDecember 31, 2021(Audited)Opening balance165,959162,029Withdrawal during the period / year (62,000)-Changes in fair value of investments during the period / year6083,930Closing balance 104,567165,959FVSI includes investments managed by a Fund manager under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund manager. Fund manager keeps such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements.9.2 Held to maturity investmentsNoteThree-month period ended March 31, 2022(Unaudited)Year endedDecember 31, 2021(Audited)Saudi Fransi Bank Sukuksa3,0003,000Saudi Real Estate Refinance Company Sukuksb9,0009,000Total 12,00012,000أ)This represents the Company’s investment in Saudi Fransi Tier 1 Sukuks. These represent 3 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 4.50% per annum. These Sukuks have a maturity duration of 5 years commencing from November 3, 2020. The Company has earned commission income of SAR 0.056 million during the period (March 31, 2021: SAR 0.034 million).ب)These represent 5 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 2.11% per annum and 4 Sukuks at a face value of SAR 1 million per Sukuk with a coupon rate of 3.04% per annum. These Sukuks have a maturity duration of 7 years and 10 years, respectively. The Company has earned commission income of SAR 0.087 million during the period (March 31, 2021: Nil).9.3Available-for-sale investmentThis represents the Company’s 3.85% (December 31, 2021: 3.85%) holding in Najm for Insurance Services Company, a Saudi Closed Joint Stock Company. These shares are un-quoted and are carried at cost. In the absence of reliable financial information, management believe that fair values cannot be ascertained reliably.9.4 All investments are from the shareholders’ operations and are placed inside the Kingdom of Saudi Arabia | 9 |
| Disclosure of investments at fair value through statement of income [text block] | 9.1Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:20212020Balance at beginning of the year162,029110,645Additions-50,000Changes in fair value of investments3,9301,384Balance at end of the year165,959162,029The analysis of the composition of FVSI is as follows:20212020Equity13,0643,617Murabaha placements78,27077,646Mutual funds45,44452,347Sukuks 29,18128,419Total165,959162,029 | 9.1 |
| Disclosure of due from related parties [text block] | 22Related party matters 22.1Related 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 agreed terms with those related parties and are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Related partyNature of transactionsThree-month period endedMarch 31, 2022(Unaudited)Three-month period endedMarch 31,2021(Unaudited)Board members- Fees and related expenses 1,438 1,433Key management personnel-Remuneration and related expenses 2,755 2,728-Long term employee benefits accrued 132 178Major shareholders -Gross premium written 767 988-Claims paid 112 18-Facultative premiums ceded 922 967-Facultative claims recovered 59 6-Facultative commission received 1 94-Expenses incurred 1,361 1,192-Commission income on -Deposits - 231Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written 22,813 16,800-Claims paid 3,617 2,378-Expenses incurred 347 36122.2Related party balances March 31,2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremium’s receivable37332Claims payable 1112Amounts due to facultative transactions 950523Amount due to a related party for expenses 2,690-Entities controlled, jointly controlled, or significantly influenced by major shareholders Other related partiesPremium’s receivable14,9207,957Claims payable2,1581,652Amount due to a related party for expenses-2Employee benefits payable to key management personnel 2,5012,890Advances due from key management personnel 162284 | 22 |
| Disclosure of cash and cash equivalents [text block] | 4Cash and cash equivalentsMarch 31, 2022(Unaudited)December 31, 2021(Audited)Cash in hand2020Bank balances44,76734,110Deposits with original maturity of 3 months or less63,0008,000Total107,78742,130The bank balances and deposits are with banks, registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. The deposits have an original maturity of less than three months and yield income at rates of 0.7% to 1.80% per annum (December 31, 2021: 0.7% per annum). | 4 |
| Disclosure of statutory deposit [text block] | 11Statutory 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 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. | 11 |
| Disclosure of due to related parties [text block] | 22Related party matters 22.1Related 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 agreed terms with those related parties and are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Related partyNature of transactionsThree-month period endedMarch 31, 2022(Unaudited)Three-month period endedMarch 31,2021(Unaudited)Board members- Fees and related expenses 1,438 1,433Key management personnel-Remuneration and related expenses 2,755 2,728-Long term employee benefits accrued 132 178Major shareholders -Gross premium written 767 988-Claims paid 112 18-Facultative premiums ceded 922 967-Facultative claims recovered 59 6-Facultative commission received 1 94-Expenses incurred 1,361 1,192-Commission income on -Deposits - 231Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written 22,813 16,800-Claims paid 3,617 2,378-Expenses incurred 347 36122.2Related party balances March 31,2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremium’s receivable37332Claims payable 1112Amounts due to facultative transactions 950523Amount due to a related party for expenses 2,690-Entities controlled, jointly controlled, or significantly influenced by major shareholders Other related partiesPremium’s receivable14,9207,957Claims payable2,1581,652Amount due to a related party for expenses-2Employee benefits payable to key management personnel 2,5012,890Advances due from key management personnel 162284 | 22 |
| Disclosure of zakat [text block] | 13 Zakat and income tax13.1 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 Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company.13.2 Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period558-558Payment during the period(3,647)-(3,647)March 31, 2022784-784ZakatIncome taxTotalJanuary 1, 20215,1131,4916,604Provision for the current year3,873-3,873Other adjustments11316129Payments during the year(5,016)(1,054)(6,070)Payment for prior years(210)(453)(663)December 31, 20213,873-3,873Zakat is payable at 2.58% of the approximate zakat base (excluding adjusted net income for the period) and 2.5% of adjusted net income for the period / year 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. No provision for income tax has been charged in these financial statements as the Company has incurred a taxable loss during the three-month period ended March 31, 2022 (March 31,2021: no provision due to taxable loss).The shareholding percentage subject to zakat and income tax is as follows:March 31, 2022(Unaudited)December 31, 2021 (Audited) % %Zakat share in capital and profit82.4476.24Income tax share in capital and profit17.5623.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favor of the Company.Year ended December 31, 2013The Tax and zakat position may be considered finalized under the Statute of Limitation.Year ended December 31, 2014 to 2018The ZATCA had issued assessments claiming additional taxes and Zakat amounting to SAR 0.82 million and SAR 0.29 million, respectively, which was duly accepted and settled by the Company. During 2019, the Company had received an assessment for the 2018 withholding tax liability in which the ZATCA had imposed additional taxes, including penalties aggregating to SAR 11.37 million. Management believes that the assessment raised is without merit and has appealed against this assessment. The Company’s initial appeal was rejected by the ZATCA and was escalated to the General Secretariat of Tax Committee (“GSTC”) online portal to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 5, 2021 the CRTVD issued its summary decision in which CRTVD agreed with the ZATCA's revised assessments. On September 21, 2021, the Company received the decision from CRTVD where the revised withholding tax liability was assessed to SAR 9.75 million in addition to its penalties. The Company appealed against the CRTVD decision and escalated its objection to the Advanced Committee for Tax Violations and Dispute Resolution (“ACTVDR”) and the Company is waiting to receive the ACRTVD decision. The management believes that the Company has a strong position and the Company’s view should prevail.Year ended December 31, 2019 and 2020The ZATCA had issued assessment for the year ended December 31, 2019 and 2020 claiming additional tax amounting to SAR 0.45 million and additional zakat amounting to SAR 0.21 million, which was duly accepted and settled by the Company. Accordingly, the tax and zakat assessments for 2019 and 2020 have been finalized.Year ended December 31, 2021The Company has filed its tax returns of December 31, 2021 with the ZATCA and has a certificate valid till April 30, 2023. | 13 |
| Disclosure of income tax [text block] | 13 Zakat and income tax13.1 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 Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company.13.2 Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period558-558Payment during the period(3,647)-(3,647)March 31, 2022784-784ZakatIncome taxTotalJanuary 1, 20215,1131,4916,604Provision for the current year3,873-3,873Other adjustments11316129Payments during the year(5,016)(1,054)(6,070)Payment for prior years(210)(453)(663)December 31, 20213,873-3,873Zakat is payable at 2.58% of the approximate zakat base (excluding adjusted net income for the period) and 2.5% of adjusted net income for the period / year 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. No provision for income tax has been charged in these financial statements as the Company has incurred a taxable loss during the three-month period ended March 31, 2022 (March 31,2021: no provision due to taxable loss).The shareholding percentage subject to zakat and income tax is as follows:March 31, 2022(Unaudited)December 31, 2021 (Audited) % %Zakat share in capital and profit82.4476.24Income tax share in capital and profit17.5623.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favor of the Company.Year ended December 31, 2013The Tax and zakat position may be considered finalized under the Statute of Limitation.Year ended December 31, 2014 to 2018The ZATCA had issued assessments claiming additional taxes and Zakat amounting to SAR 0.82 million and SAR 0.29 million, respectively, which was duly accepted and settled by the Company. During 2019, the Company had received an assessment for the 2018 withholding tax liability in which the ZATCA had imposed additional taxes, including penalties aggregating to SAR 11.37 million. Management believes that the assessment raised is without merit and has appealed against this assessment. The Company’s initial appeal was rejected by the ZATCA and was escalated to the General Secretariat of Tax Committee (“GSTC”) online portal to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 5, 2021 the CRTVD issued its summary decision in which CRTVD agreed with the ZATCA's revised assessments. On September 21, 2021, the Company received the decision from CRTVD where the revised withholding tax liability was assessed to SAR 9.75 million in addition to its penalties. The Company appealed against the CRTVD decision and escalated its objection to the Advanced Committee for Tax Violations and Dispute Resolution (“ACTVDR”) and the Company is waiting to receive the ACRTVD decision. The management believes that the Company has a strong position and the Company’s view should prevail.Year ended December 31, 2019 and 2020The ZATCA had issued assessment for the year ended December 31, 2019 and 2020 claiming additional tax amounting to SAR 0.45 million and additional zakat amounting to SAR 0.21 million, which was duly accepted and settled by the Company. Accordingly, the tax and zakat assessments for 2019 and 2020 have been finalized.Year ended December 31, 2021The Company has filed its tax returns of December 31, 2021 with the ZATCA and has a certificate valid till April 30, 2023. | 13 |
| Disclosure of statutory reserve [text block] | 15Statutory reserveAs required by the Implementing Regulations issued by SAMA, 20% of the net 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, if applicable | 15 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 8Technical reserves8.1Net outstanding claims and reservesMarch 31, 2022(Unaudited)December 31, 2021(Audited)GrossReinsurer’s shareNetGrossReinsurer’s shareNetOpening449,744(311,561)138,183743,439(612,700)130,739Claims paid(117,782)19,221(98,561)(784,831)406,215(378,616)Claims incurred126,999(24,781)102,218491,136(105,076)386,060Closing458,961(317,121)141,840449,744(311,561)138,183Outstanding claims387,217(291,289)95,928373,698(280,924)92,774Claims incurred but not reported71,744(25,832)45,91276,046(30,637)45,409458,961(317,121)141,840449,744(311,561)138,183Premium deficiency reserve9,411-9,41110,696-10,696Additional unexpired risk reserve1,648-1,6481,621-1,621Unallocated loss adjustment expenses4,970-4,9704,863-4,863474,990(317,121)157,869466,924(311,561)155,3638.2 Movement in unearned premiums Movement in unearned premiums comprise of the following:Three-month ended March 31, 2022(Unaudited)GrossReinsuranceNetBalance at the beginning of the period392,680(173,197)219,483Premium written during the period267,734(113,926)153,808Premium earned during the period(209,234)83,432(125,802)Balance at the end of the period451,180(203,691)247,489Year ended December 31, 2021(Audited)GrossReinsuranceNetBalance at the beginning of the year329,632(129,371)200,261Premium written during the year902,100(379,330)522,770Premium earned during the year(839,052)335,504(503,548)Balance at the end of the year392,680(173,197)219,483 | 8 |
| Disclosure of compensation to key management personnel [text block] | 22Related party matters 22.1Related 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 agreed terms with those related parties and are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Related partyNature of transactionsThree-month period endedMarch 31, 2022(Unaudited)Three-month period endedMarch 31,2021(Unaudited)Board members- Fees and related expenses 1,438 1,433Key management personnel-Remuneration and related expenses 2,755 2,728-Long term employee benefits accrued 132 178Major shareholders -Gross premium written 767 988-Claims paid 112 18-Facultative premiums ceded 922 967-Facultative claims recovered 59 6-Facultative commission received 1 94-Expenses incurred 1,361 1,192-Commission income on -Deposits - 231Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written 22,813 16,800-Claims paid 3,617 2,378-Expenses incurred 347 36122.2Related party balances March 31,2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremium’s receivable37332Claims payable 1112Amounts due to facultative transactions 950523Amount due to a related party for expenses 2,690-Entities controlled, jointly controlled, or significantly influenced by major shareholders Other related partiesPremium’s receivable14,9207,957Claims payable2,1581,652Amount due to a related party for expenses-2Employee benefits payable to key management personnel 2,5012,890Advances due from key management personnel 162284 | 22 |
| Disclosure of earnings per share [text block] | 14Share capital and loss per share The authorized, issued and paid up capital of the Company is SAR 200 million divided into 20 million shares of SAR 10 each (December 31, 2021: SAR 200 million divided into 20 million shares of SAR 10 each).Loss per share for the period have been calculated by dividing the net loss for the period attributable to the shareholders by the weighted average number of ordinary shares at the statement of financial position date. Diluted loss per share is not applicable to the Company. | 14 |
| Disclosure of investments held at fair value through statement of income [text block] | 9.1Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:20212020Balance at beginning of the year162,029110,645Additions-50,000Changes in fair value of investments3,9301,384Balance at end of the year165,959162,029The analysis of the composition of FVSI is as follows:20212020Equity13,0643,617Murabaha placements78,27077,646Mutual funds45,44452,347Sukuks 29,18128,419Total165,959162,029 | 9.1 |
| Disclosure of related party transactions [text block] | 22Related party matters 22.1Related 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 agreed terms with those related parties and are approved by the Board of Directors.The significant transactions with related parties and the related amounts are as follows:Related partyNature of transactionsThree-month period endedMarch 31, 2022(Unaudited)Three-month period endedMarch 31,2021(Unaudited)Board members- Fees and related expenses 1,438 1,433Key management personnel-Remuneration and related expenses 2,755 2,728-Long term employee benefits accrued 132 178Major shareholders -Gross premium written 767 988-Claims paid 112 18-Facultative premiums ceded 922 967-Facultative claims recovered 59 6-Facultative commission received 1 94-Expenses incurred 1,361 1,192-Commission income on -Deposits - 231Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written 22,813 16,800-Claims paid 3,617 2,378-Expenses incurred 347 36122.2Related party balances March 31,2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremium’s receivable37332Claims payable 1112Amounts due to facultative transactions 950523Amount due to a related party for expenses 2,690-Entities controlled, jointly controlled, or significantly influenced by major shareholders Other related partiesPremium’s receivable14,9207,957Claims payable2,1581,652Amount due to a related party for expenses-2Employee benefits payable to key management personnel 2,5012,890Advances due from key management personnel 162284 | 22 |
| Disclosure of entity's operating segments [text block] | 21Operating segmentsOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the interim condensed statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2021. Segment assets do not include cash and cash equivalents, short-term deposits, premiums receivables, investments, due from reinsurers, prepaid expenses and other assets, property and equipment, intangible assets, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders payable, accrued expenses and other liabilities, due to reinsurers, agents, brokers and third-party administrators, surplus distribution payable, zakat and income tax payable and accrued income on statutory deposit. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at March 31, 2022 and December 31, 2021, its total revenues, expenses, and net income for the three-month period ended March 31, 2022 and March 31, 2021, are as follows:MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotalFor the three-month period ended March 31,2022(unaudited)RevenuesGross premiums written16,25075,435119,83712,21823,2245,597 15,173267,734Reinsurance premiums ceded (11,816)(59,652)(91)(6,744)(19,209)(3,338)(8,113)(108,963)Excess of loss expenses(722)(1,750)(1,970)(521)---(4,963)Net premiums written3,71214,033117,7764,9534,0152,2597,060153,808Change in unearnedpremiums(3,738)(37,605)(10,566)5,442(5,965)(1,561)(4,507)(58,500)Change in reinsurers’ share of unearned premiums3,37628,84473(8,216)4,689(101)1,82930,494Net premiums earned3,3505,272107,2832,1792,7395974,382125,802Reinsurance commissions 1,9994,97822,4451,605892-11,921Other underwriting income179150413-3196Total revenues5,36610,259107,4354,6284,3571,4894,385137,919Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries2,5995,89198,6168212,4339636,459117,782Reinsurer’s share of claims paid(1,769)(4,550)(3,872)(677)(2,137)(961)(5,255)(19,221)Net claims paid8301,34194,74414429621,20498,561Changes in outstanding claims3512,5932,6791,326(1,775) 42(1,381)13,519Changes in reinsurers’ share of outstanding claims(98)(11,975)(10)(901)1,461(42)1,200(10,365)Changes in claims incurred but not reported(149)(712)394(2,774)(69) -(992)(4,302)Changes in reinsurers’ share of claims incurred but not reported78827902,822194-7944,805Net claims incurred6962,07497,8976171072825102,218Premium deficiency reserve--(1,285)----(1,285)Additional unexpired risk reserve---(162)189--27Unallocated loss adjustment expense provision353152(14)37-(34)107Policy acquisition costs1,2843,1907,3692,7041,5941,0321,30018,473Other underwriting expenses3007464,695367228134-6,470Total underwriting cost and expenses2,3156,041108,7283,5122,1551,1682,091126,010Net underwriting income (loss)3,0514,218(1,293)1,1162,2023212,29411,909Other operating (expenses) / incomeAllowance for impairment of doubtful premiums, reinsurers’ and other receivables(1,835)General and administration Expenses(35,504)Commission income on deposits587Unrealized gain on investments608Other investment income143Other income-Total other operating expenses, net(36,001)Net loss for the period attributable to the shareholders, before zakat and income tax(24,092)Zakat(558)Net loss for the period(24,650) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal For the three-month period ended March 31,2021 (unaudited) RevenuesGross premiums written13,24773,518143,84132,24321,8446,18317,547308,423 Reinsurance premiums ceded (8,822)(61,646)38(26,908)(17,986)(4,675)(9,213)(129,212)Excess of loss expenses(897)(922)(1,917)(495)---(4,231)Net premiums written3,52810,950141,9624,8403,8581,5088,334174,980Change in unearned premiums(2,585)(41,579)(37,720)(18,456)(9,328)(3,643)(7,619) (120,930)Change in reinsurers’ share of unearned premiums68633,403(974)14,7717,2762,1613,77161,094Net premiums earned1,6292,774103,2681,1551,806254,487115,144Reinsurance commissions 2,0814,9391442,1511,92187210112,209Other underwriting income21978412-3127Total revenues3,7317,722103,4903,3103,7398974,591127,480Cost and expensesGross claims paid and loss adjustment expenses, net of recoveries 1,69514,82875,1927,7802411,28210,767111,785Reinsurer’s share of claims paid(1,188)(12,724)(1,118)(7,109)(29)(1,282)(8,792)(32,242)Net claims paid5072,10474,074671212-1,97579,543Changes in outstanding claims8,9198,8818,557(5,335)2,757-1,16824,947Changes in reinsurers’ share of outstanding claims (8,189)(7,616)2114,695(3,012)-(1,220)(15,131)Changes in claims incurred but not reported425727(1,831)(412)271-(3,919)(4,739)Changes in reinsurers’ share of claims incurred but not reported(460)(708)747478(553)-3,1362,640Net claims incurred1,2023,38881,75897(325)-1,14087,260Changes in premium deficiency reserve--(957)----(957)Changes in additional unexpired risk reserve---408---408Changes in unallocated loss Adjustment expense provision154(14)73(154)9-(66)2Policy acquisition costs1,0682,7456,6841,4311,1856411,15814,912Other underwriting expenses3021,3018,666387397179-11,232Total underwriting cost and Expenses2,7267,42096,2242,1691,2668202,232 112,857Net underwriting income1,0053027,2661,1412,473772,35914,623Other operating (expenses) / income.Allowance for impairment of doubtful premiums, reinsurers’ and other receivables(292)General and administration expenses(34,969)Commission income on deposits344Unrealized gain on investments1,548Other investment income34Other income221Total other operating expenses, net(33,114)Net loss for the period attributable to the shareholders, before zakat(18,491)Zakat(800)Net loss for the period(19,291) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm life TotalAs at March 31, 2022(Unaudited)AssetsReinsurers’ share of unearned Premiums13,14065,3917342,62632,53742,3587,566203,691Reinsurers’ share of outstanding claims13,26697,14414464,253110,154516,277291,289Reinsurers’ share of claims incurred but not reported4139,8215241,12011,036-2,91825,832Deferred policy acquisition costs1,6856,40115,2315,0753,46412,7691,72546,350Unallocated assets920,420Total assets1,487,582LiabilitiesUnearned premiums17,86081,953198,98149,63037,92350,65514,178451,180Unearned reinsurance commission2,40711,885764543,97310,190-34,916Outstanding claims16,721105,25079,56066,369111,800517,466387,217Claims incurred but not Reported47810,76042,7141,29712,848-3,64771,744Premium deficiency reserve--9,411----9,411Additional unexpired risk Reserve---680968--1,648Unallocated loss adjustment expense provision3537742,4752271,011-1304,970Unallocated liabilities340,329Total liabilities 1,301,415MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm life TotalAs at December 31, 2021 (Audited)AssetsReinsurers’ share of unearned premiums9,76336,547-50,84227,84942,4585,738173,197Reinsurers’ share of outstanding claims13,16885,16913463,352111,61597,477280,924Reinsurers’ share of claims incurred but not reported49110,6486153,94311,229 -3,71130,637Deferred policy acquisition Costs1,5044,46010,5996,0512,57312,4731,13038,790Unallocated assets823,689Total assets1,347,237LiabilitiesUnearned premiums14,12344,348188,41555,07231,95849,0939,671392,680Unearned reinsurance commission2,0035,063-8,3102,74311,081-29,200Outstanding claims16,68592,65776,88265,043113,57598,847373,698Claims incurred but not Reported62711,47142,3204,07212,917-4,63976,046Premium deficiency reserve 10,69610,696Additional unexpired risk reserve---842779- -1,621Unallocated loss adjustment expense provision3177432,423242975-1634,863Unallocated liabilities247,238Total liabilities 1,136,042 | 21 |
| Disclosure of capital management [text block] | 23Capital 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 amounts of dividends paid to shareholders or issue shares.The Company manages its capital to ensure that it is able to continue as going concern and comply with the regulators’ capital requirements of the markets in which the Company operates while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of equity attributable to equity holders comprising paid share capital, reserves and retained earnings.As per guidelines laid out by SAMA in Article 66 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations:Minimum Capital Requirement of SAR 100 millionPremium Solvency MarginClaims Solvency MarginThe Company’s solvency margin as at March 31, 2022 remained below the minimum solvency requirements set by SAMA. The Company received a letter from SAMA on September 13, 2021 requiring the Company to work on adjusting the solvency margin to become at least 100%, and another letter from SAMA on December 1, 2021 to submit its rectification measures according to Article 68 of the Implementing Regulations of the Cooperative Insurance Companies Control Law. The Company has submitted its rectification plan to improve and sustain the solvency margin. Management is at present taking following active steps to restore solvency to the minimum level: Increasing the share capital by issuing rights issue of Saudi Riyals 200 million; Increasing the revenue by offering new products and expanding into the current lines of business; Reduction in loss making businesses and non-renewal of loss making clients; Controlling the loss ratios across different lines of business; and Cost reduction measures with focus on automation and digitalization. Also, see Note 1 for further details. | 23 |
| Disclosure of commitments and contingencies, general [text block] | 16Commitments and contingencies16.1 The Company’s bankers have issued payment guarantee of SAR 2.6 million (December 31, 2021: SR 2.41 million) to its suppliers on behalf of the Company. 16.2 See note 13.3 for zakat and tax related contingencies.16.3 The Company is a defendant in a case that was filed by a client amounting to SAR 19 million (December 31, 2021: SAR 19 million). The preliminary decision of the Primary Committee for Resolution of Insurance Disputes and Violations ruled in favor of the Company and dismissed the case brought by the claimant. The Appeal Committee for Settlement of Insurance of Insurance Disputes and Violations has issued a verdict which cancels the preliminary decision and decided to return the case to the Primary Committee for Resolution of Insurance Disputes and Violations for consideration and review. The Primary Committees for Resolution of Insurance Disputes and Violation rejected the lawsuit filed by the Plaintiff against the Company. However, the Plaintiff has filed an appeal against such decision. Management believes that the case is without merit and has therefore not taken any provisions there against. 16.4 During 2021, ZATCA issued various VAT assessments to the Company for approximately SAR 18 millionwhich included VAT liabilities and penalties amounting to SAR 7.9 million and 10.1 million, respectively in respect of VAT Returns filed in 2018, 2019 and 2020. The assessments were issued primarily in connection with compensatory recovery amounts received by the Company relating to motor insurance claims from third parties. ZATCA has asserted that these recoveries were related to supplies made by the Company and therefore subject to VAT at the prevailing rate. The Company has treated these recoveries as out of scope for VAT purposes. Management believes the ZATCA assessments are without merit and has filed objections against these assessment with ZATCA on December 23, 2021.The 14 objections filed by the Company on the assessments issued by ZATCA in 2021 for SAR 18 million (VAT liabilities approximately SAR 7.9 million and penalties approximately SAR 10.1 million) were partially accepted by ZATCA for an amount of approximately SAR 1.5 million in VAT liabilities with corresponding reduction in penalties (ZATCA have yet to communicate the reduction in penalties).Management decided to appeal the rejected amount and had filed 14 appeals and 14 settlement applications respectively to the General Secretariat of the Tax Committee and the Internal Settlement Committee on 21st April 2022. The Company had decided to simultaneously appeal the rejections by ZATCA (on the rejected amounts) and file the applications with the Internal Settlement Committee (ISC). The appeal process will be suspended when the ISC applications are filed. Should the decision from the ISC be unfavourable, the Company can then decide to proceed with the appeal process. This approach gives the Company more options to challenge the rejections by ZATCA.Management believes the Company has a strong case and should ultimately prevail in the appeal process.16.5 The Company operates in the insurance industry and is subject to legal proceedings in the ordinary course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its results and financial position. | 16 |
| Disclosure of comparative figures [text block] | 26 Comparative figures Following comparative figures have been reclassified and regrouped on the face of interim statement of income to confirm to the current period presentation:For the Three months period ended March 31, 2022Reported as previouslyRestatementRestated amount Changes in unearned premiums(59,836)(61,094)(120,930)Changes in reinsurers’ share of unearned premiums-61,09461,094Changes in outstanding claims9,81615,13124,947Changes in reinsurance share of outstanding claims-(15,131)(15,131)Changes in claims incurred but not reported(2,099)(2,640)(4,739)Changes in reinsurance share of claims incurred but not reported-2,6402,640Such reclassification restatements have not resulted in any additional impact on equity, income, or total comprehensive income for comparative period. | 26 |
| Disclosure of board of director's approval of the financial statements [text block] | 27Approval of the interim condensed financial Statements These interim condensed financial statements have been approved by the Board of Directors on May 12, 2022G corresponding to Shawwal 11, 1443H. | 27 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 25Impact of COVID-19In response to the outbreak of novel coronavirus (“Covid-19 pandemic”) and its spread across mainland China and then globally caused disruptions to businesses and economic activities including the KSA over the last two years, hence management continues to proactively assess its impact on the Company’s operations.Globally, there has been significant drop in the number of registered cases including the KSA. As a result, restrictions related to Covid-19 pandemic such as social distancing, travel bans, requirement for travellers to present a negative PCR or rapid antigen test on arrival test have been lifted. Based on these factors, management believes that the Covid-19 pandemic has had no material effect on the Company’s reported financial results for the period ended 31 March 2022 including the significant accounting judgements, estimates and assumptions. The Company continues to monitor the Covid-19 pandemic situation closely although at this time management is not aware of any factors that are expected to change the impact of the Covid-19 pandemic on the Company’s operations during 2022 or beyond. | 25 |
