| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 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 Resolution number 158/K dated Jumada Al Awal 12, 1431H (corresponding to April 26, 2010). The Registered Office address of the Company is Juffali Building, Madina Road, Jeddah, Saudi Arabia.The Company is licensed to conduct insurance business in Saudi Arabia under Cooperative insurance principles in accordance with Royal Decree No M/53 dated 21 Shawwal 1430H (corresponding to October 10, 2009) pursuant to Council of Ministers’ Resolution No. 330 dated Shawwal 16,1430H (corresponding to October 5, 2009). The Company has obtained Saudi Central Bank (“SAMA”) license number TMN/29/20106 valid up to Rajab 2,1446H (corresponding to January 2, 2025). 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 the Kingdom of Saudi Arabia.During the period ended September 30, 2022 there was a transfer of shareholding where SNIC Insurance Company sold 1 million shares to E.A. Juffali and Brothers, accordingly, SNIC Insurance Company’s shareholding diluted from 27.5% to 25% and E.A. Juffali and Brothers’ shareholding increased from 8.63% to 11.12%. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2Basis of preparation (a)Statement of compliance The condensed interim 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 condensed interim financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement of investments at their fair value and defined benefits obligations, which are recognised at the present value of future obligation using Projected Unit Credit Method. The Company’s condensed statement of financial position is presented in order of liquidity. Except for property and equipment, intangible assets, investments, statutory deposit, end-of-service indemnities and warranty and engineering related unearned premiums, unearned reinsurance commission, deferred policy acquisition cost, outstanding claims, claims incurred but not reported and technical reserves, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations (the Implementation Regulations), the Company maintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. Accordingly, assets, liabilities, revenues and expenses clearly attributable to either operation, are recorded in the respective accounts. The condensed statements of financial position, statement of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in note 24 have been provided as supplementary information to comply with requirements of the guidelines issued by SAMA Implementing Regulations and is not required by International Financial Reporting Standards (IFRS).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 condensed interim financial statements may not be considered indicative of the expected results for the full year.The condensed interim financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.The condensed interim 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 assumptions The preparation of condensed interim 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 against the backdrop of the COVID-19 pandemic. For further details please see note 25 to these condensed interim 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 the insurance operations of the Company. | 2 |
| Disclosure of statement of compliance [text block] | (a)Statement of compliance The condensed interim 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 condensed interim financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement of investments at their fair value and defined benefits obligations, which are recognised at the present value of future obligation using Projected Unit Credit Method. The Company’s condensed statement of financial position is presented in order of liquidity. Except for property and equipment, intangible assets, investments, statutory deposit, end-of-service indemnities and warranty and engineering related unearned premiums, unearned reinsurance commission, deferred policy acquisition cost, outstanding claims, claims incurred but not reported and technical reserves, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations (the Implementation Regulations), the Company maintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. Accordingly, assets, liabilities, revenues and expenses clearly attributable to either operation, are recorded in the respective accounts. The condensed statements of financial position, statement of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in note 24 have been provided as supplementary information to comply with requirements of the guidelines issued by SAMA Implementing Regulations and is not required by International Financial Reporting Standards (IFRS).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 condensed interim financial statements may not be considered indicative of the expected results for the full year.The condensed interim financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.The condensed interim 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. | 2.a |
| Disclosure of new standards and amendments in standards [text block] | 3 Significant accounting policiesThe accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2021 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyA number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after January 01, 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards which are described below:Standard / InterpretationDescriptionIAS 37Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)Annual ImprovementsAnnual Improvements to IFRS Standards 2018–2020IAS 16Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)IFRS 3Reference to the Conceptual Framework (Amendments to IFRS 3)Standards issued but not yet effectiveStandards and interpretation issued but not yet effective up to the date of issuance of the Company’s condensed interim 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 are effective.Standard / InterpretationDescriptionEffective from periods beginning on or after the following dateIAS 1Classification of Liabilities as Current or Non-current – Amendments to IAS 1January 01, 2023Narrow scope amendments to IAS 1, IFRS Practice Statement 2 and IAS 8The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.January 01, 2023IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction`January 01, 2023IFRS 16Lease liability in a sale and leaseback – Amendments to IFRS 16January 01, 2024IFRS 10 and IAS 28Sale or contribution of assets between investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)Available for optional adoption / effective date deferred indefinitelyIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 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. On March 17, 2020, the International Accounting Standards Board (IASB) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from January 01, 2021 to January 01, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominantly 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.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 September 30, 2022, the Company has total financial assets and insurance related assets amounting to SAR 1,128 million (December 31, 2021: SAR 723 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 924 million (2021: SAR 557 million). Investments are carried currently at fair value through statement of income at SAR 204 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.The Company has performed 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 September 30, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further detailed analysis and 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. As required by SAMA the Company has performed impact assessment for IFRS 9 as of December 31, 2021. The Company is currently performing the impact assessment for IFRS 9 as of June 30, 2022 for submission to SAMA as of the date of these condensed interim 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; anda 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):The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, 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; andii.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 dateIFRS 17 is applied for annual reporting periods beginning on or after January 01, 2023. Earlier application is permitted for entities that apply IFRS 9 on or before the date of initial application of IFRS 17. The transition requirements define the date of initial application as the start of the annual reporting period in which an entity first applies IFRS 17. IFRS 17 supersedes IFRS 4, including the amendments to IFRS 4 introduced in 2016, which include: – the temporary exemption from IFRS 9; and – the overlay approach. From the date of initial application of IFRS 17, these approaches are no longer available and IFRS 9 is applied, without delay or adjustment. If an entity has already applied IFRS 9 before IFRS 17 (with or without the overlay approach), then IFRS 17 provides redesignation requirements and options.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 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 and for the year ended December 31, 2021 which was submitted to SAMA along with the auditors’ opinion thereon. The 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 term of one year or less. As required by SAMA, the Company is in the process of preparing the financial statements for the period ended June 30, 2022 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 systemsFor IFRS 17 implementation, Addactis software has been procured by the Company. This is currently being implemented on-premises 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. The initial conclusion is under constant review.Impact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirements: Unbundling Level of aggregation Measurement models Risk Adjustment Methodologies New 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 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 holders 2- PAA Measurement Model 3- GMM Measurement Model (Remaining sessions are planned to be completed in 2022)The Company has completed its implementation process and have set up a proper team, supervised by a steering committee. Further, the key focus areas of the IFRS 17 project team for the remainder of the year are as below:Completing any remaining system development and key controls required to implement IFRS 17.Commence with an IFRS 4 and IFRS 17 dual reporting run.Produce and request business sign-off, as well as external audit sign-off of transition balances.Update the budgeting process to ensure alignment to IFRS 17.Finalise the management reporting and key performance measures.Continue engaging with the executive committee and business through various training initiatives.Finalise and implement future financial and data governance processes and accountabilities. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | 3 Significant accounting policiesThe accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2021 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyA number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after January 01, 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards which are described below:Standard / InterpretationDescriptionIAS 37Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)Annual ImprovementsAnnual Improvements to IFRS Standards 2018–2020IAS 16Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)IFRS 3Reference to the Conceptual Framework (Amendments to IFRS 3)Standards issued but not yet effectiveStandards and interpretation issued but not yet effective up to the date of issuance of the Company’s condensed interim 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 are effective.Standard / InterpretationDescriptionEffective from periods beginning on or after the following dateIAS 1Classification of Liabilities as Current or Non-current – Amendments to IAS 1January 01, 2023Narrow scope amendments to IAS 1, IFRS Practice Statement 2 and IAS 8The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.January 01, 2023IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction`January 01, 2023IFRS 16Lease liability in a sale and leaseback – Amendments to IFRS 16January 01, 2024IFRS 10 and IAS 28Sale or contribution of assets between investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)Available for optional adoption / effective date deferred indefinitelyIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 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. On March 17, 2020, the International Accounting Standards Board (IASB) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from January 01, 2021 to January 01, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominantly 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.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 September 30, 2022, the Company has total financial assets and insurance related assets amounting to SAR 1,128 million (December 31, 2021: SAR 723 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 924 million (2021: SAR 557 million). Investments are carried currently at fair value through statement of income at SAR 204 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.The Company has performed 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 September 30, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further detailed analysis and 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. As required by SAMA the Company has performed impact assessment for IFRS 9 as of December 31, 2021. The Company is currently performing the impact assessment for IFRS 9 as of June 30, 2022 for submission to SAMA as of the date of these condensed interim 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; anda 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):The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, 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; andii.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 dateIFRS 17 is applied for annual reporting periods beginning on or after January 01, 2023. Earlier application is permitted for entities that apply IFRS 9 on or before the date of initial application of IFRS 17. The transition requirements define the date of initial application as the start of the annual reporting period in which an entity first applies IFRS 17. IFRS 17 supersedes IFRS 4, including the amendments to IFRS 4 introduced in 2016, which include: – the temporary exemption from IFRS 9; and – the overlay approach. From the date of initial application of IFRS 17, these approaches are no longer available and IFRS 9 is applied, without delay or adjustment. If an entity has already applied IFRS 9 before IFRS 17 (with or without the overlay approach), then IFRS 17 provides redesignation requirements and options.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 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 and for the year ended December 31, 2021 which was submitted to SAMA along with the auditors’ opinion thereon. The 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 term of one year or less. As required by SAMA, the Company is in the process of preparing the financial statements for the period ended June 30, 2022 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 systemsFor IFRS 17 implementation, Addactis software has been procured by the Company. This is currently being implemented on-premises 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. The initial conclusion is under constant review.Impact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirements: Unbundling Level of aggregation Measurement models Risk Adjustment Methodologies New 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 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 holders 2- PAA Measurement Model 3- GMM Measurement Model (Remaining sessions are planned to be completed in 2022)The Company has completed its implementation process and have set up a proper team, supervised by a steering committee. Further, the key focus areas of the IFRS 17 project team for the remainder of the year are as below:Completing any remaining system development and key controls required to implement IFRS 17.Commence with an IFRS 4 and IFRS 17 dual reporting run.Produce and request business sign-off, as well as external audit sign-off of transition balances.Update the budgeting process to ensure alignment to IFRS 17.Finalise the management reporting and key performance measures.Continue engaging with the executive committee and business through various training initiatives.Finalise and implement future financial and data governance processes and accountabilities. | 3 |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | 2Basis of preparation (continued)(b) Critical accounting judgments estimates and assumptions The preparation of condensed interim 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 against the backdrop of the COVID-19 pandemic. For further details please see note 25 to these condensed interim financial statements. Management will continue to assess the situation and reflect any required changes in future reporting periods. | 2.b |
| 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 condensed interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2021 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyA number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after January 01, 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards which are described below:Standard / InterpretationDescriptionIAS 37Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)Annual ImprovementsAnnual Improvements to IFRS Standards 2018–2020IAS 16Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)IFRS 3Reference to the Conceptual Framework (Amendments to IFRS 3)Standards issued but not yet effectiveStandards and interpretation issued but not yet effective up to the date of issuance of the Company’s condensed interim 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 are effective.Standard / InterpretationDescriptionEffective from periods beginning on or after the following dateIAS 1Classification of Liabilities as Current or Non-current – Amendments to IAS 1January 01, 2023Narrow scope amendments to IAS 1, IFRS Practice Statement 2 and IAS 8The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.January 01, 2023IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction`January 01, 2023IFRS 16Lease liability in a sale and leaseback – Amendments to IFRS 16January 01, 2024IFRS 10 and IAS 28Sale or contribution of assets between investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)Available for optional adoption / effective date deferred indefinitelyIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 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. On March 17, 2020, the International Accounting Standards Board (IASB) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from January 01, 2021 to January 01, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominantly 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.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 September 30, 2022, the Company has total financial assets and insurance related assets amounting to SAR 1,128 million (December 31, 2021: SAR 723 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 924 million (2021: SAR 557 million). Investments are carried currently at fair value through statement of income at SAR 204 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.The Company has performed 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 September 30, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further detailed analysis and 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. As required by SAMA the Company has performed impact assessment for IFRS 9 as of December 31, 2021. The Company is currently performing the impact assessment for IFRS 9 as of June 30, 2022 for submission to SAMA as of the date of these condensed interim 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; anda 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):The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, 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; andii.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 dateIFRS 17 is applied for annual reporting periods beginning on or after January 01, 2023. Earlier application is permitted for entities that apply IFRS 9 on or before the date of initial application of IFRS 17. The transition requirements define the date of initial application as the start of the annual reporting period in which an entity first applies IFRS 17. IFRS 17 supersedes IFRS 4, including the amendments to IFRS 4 introduced in 2016, which include: – the temporary exemption from IFRS 9; and – the overlay approach. From the date of initial application of IFRS 17, these approaches are no longer available and IFRS 9 is applied, without delay or adjustment. If an entity has already applied IFRS 9 before IFRS 17 (with or without the overlay approach), then IFRS 17 provides redesignation requirements and options.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 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 and for the year ended December 31, 2021 which was submitted to SAMA along with the auditors’ opinion thereon. The 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 term of one year or less. As required by SAMA, the Company is in the process of preparing the financial statements for the period ended June 30, 2022 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 systemsFor IFRS 17 implementation, Addactis software has been procured by the Company. This is currently being implemented on-premises 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. The initial conclusion is under constant review.Impact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirements: Unbundling Level of aggregation Measurement models Risk Adjustment Methodologies New 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 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 holders 2- PAA Measurement Model 3- GMM Measurement Model (Remaining sessions are planned to be completed in 2022)The Company has completed its implementation process and have set up a proper team, supervised by a steering committee. Further, the key focus areas of the IFRS 17 project team for the remainder of the year are as below:Completing any remaining system development and key controls required to implement IFRS 17.Commence with an IFRS 4 and IFRS 17 dual reporting run.Produce and request business sign-off, as well as external audit sign-off of transition balances.Update the budgeting process to ensure alignment to IFRS 17.Finalise the management reporting and key performance measures.Continue engaging with the executive committee and business through various training initiatives.Finalise and implement future financial and data governance processes and accountabilities. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | 4Cash and cash equivalentsSeptember 30, 2022(Unaudited)December 31, 2021(Audited)Cash in hand2020Bank balances60,50534,110Deposits with original maturity of less than 3 months-8,00060,52542,130The bank balances and deposits are with banks, registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. | 4 |
| Description of accounting policy for receivables [text block] | 6Premiums receivable - netSeptember 30, 2022(Unaudited)December 31, 2021(Audited)Receivable from policy holders439,520284,689Impairment allowance for doubtful premiums receivable(36,657)(35,163)Premiums receivable – net402,863249,526Movement in the impairment allowance for doubtful premiums receivable during the period / year is as follows:September 30, 2022(Unaudited)December 31, 2021(Audited)Opening 35,16340,775Provision for the period / year1,4943,959Write-offs-(9,571)Closing 36,65735,163 | 6 |
| Description of accounting policy for zakat [text block] | 13Zakat and income tax13.1Components of zakat baseSignificant components of zakat base of the Company attributable to the Saudi shareholders, which are subject to adjustment under zakat and income tax regulations, are shareholders’ equity at the beginning of the period, adjusted net income and certain other items. Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company. 13.2Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period3,620-3,620Payments during the period(3,647)-(3,647)September 30, 2022 (unaudited)3,846-3,846ZakatIncome 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, 2021 (audited)3,873-3,873Zakat is payable at 2.578% 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 condensed interim financial statements as the Company has incurred a taxable loss during the nine-month period ended September 30, 2022 (September 30, 2021: SAR 0.016 million).Up to May 31, 2022, the zakat share in capital and profit was 82.44% and the income tax share in capital and profit was 17.56%.The shareholding percentage subject to zakat and income tax is as follows:September 30, 2022(Unaudited)December 31,2021(Audited)%%Zakat share in capital and profit87.4376.24Income tax share in capital and profit12.5723.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favour 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 Zakat, Tax and Customs Authority (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, of 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 in order to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 05, 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 awaiting the ACTVDR 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, 2021 The 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] | 20Financial instruments – Fair values and risk management 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 condensed interim 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 period end. The following table presents the Company’s financial assets that are measured at fair values:Fair valueSeptember 30, 2022Fair value through FVSILevel 1Level 2Level 3Financial assets measured at fair valueEquity 13,31713,317--Mutual funds64,23356,5527,681-Sukuks68,026-68,026-Murabaha placements58,550--58,550204,12669,86975,70758,550Fair valueDecember 31, 2021Fair value through FVSILevel 1Level 2Level 3Financial assets measured at fair valueEquity 13,06413,064--Mutual funds45,44437,9347,510-Sukuks29,181-29,181-Murabaha placements78,270--78,270165,95950,99836,69178,270Significant unobservable inputs used in the valuation of level 3 investments include the Fund administrator report based on interest rates for Murabaha placements as confirmed by the discretionary portfolio manager. The fair value of investments in mutual funds and sukuks at level 2 is based on the net asset values and value of similar quoted sukuks communicated by the fund manager. The fair value of investments in equity securities at level 1 is based on quoted prices available in the market. There were no transfers between levels of the fair value hierarchy during the period ended September 30, 2022 and the year ended December 31, 2021. Additionally, there were no changes in the valuation techniques.Held-to-maturity investments include corporate sukuks which are carried at amortised cost. Available-for-sale investments comprises of an amount of SAR 1.9 million (December 31, 2021: SAR 1.9 million) which is carried at cost as its fair value cannot be measured reliably, accordingly SAR 1.9 million has not been considered either in Level 1, Level 2 or Level 3. 20.1 Credit riskCredit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. For all classes of financial instruments held by the Company, the maximum credit risk exposure to the Company is the carrying value as disclosed in the condensed statement of financial position. 20.1.1 Concentration of credit riskConcentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterparties whose aggregate credit exposure is significant in relation to the Company’s total credit exposure. All of the Company’s underwriting activities are carried out in Saudi Arabia. The Company’s portfolio of financial instruments is broadly diversified, and transactions are entered into with diverse credit-worthy counterparties thereby mitigating any significant concentrations of credit risk.20.2 Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in raising funds to meet obligations and commitments associated with financial liabilities. The Company has a proper cash management system, where daily cash collections and payments are strictly monitored and reconciled on regular basis. The Company manages liquidity risk by maintaining maturities of financial assets and financial liabilities and investing in liquid financial assets. | 20 |
| Description of accounting policy for investment income [text block] | 9 Investments NotesSeptember 30, 2022(Unaudited)December 31,2021(Audited)Fair value through statement of income investments (FVSI)9.1204,126165,959Held-to-maturity investments9.212,00012,000Available-for-sale investment9.31,9231,923218,049179,8829.1Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:Nine-month period ended September 30, 2022(Unaudited)Year ended December 31, 2021(Audited)Opening165,959162,029Withdrawal during the period / year(62,000)-Additions during the period / year 100,000-Changes in fair value of investments during the period / year1673,930Closing204,126165,959FVSI includes investments managed by three Fund managers under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund managers. These fund managers keep such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements. 9.2Held to maturity investmentsNotesSeptember 30, 2022(Unaudited)December 31, 2021(Audited)Saudi Fransi Bank Sukuksa3,0003,000Saudi Real Estate Refinance Company Sukuksb9,0009,00012,00012,000a)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 0.124 million during the period (September 30, 2021: SAR 0.101 million).b)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 0.197 million during the period (September 30, 2021: SAR 0.053 million).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 believes that fair value cannot be ascertained reliably.9.4All investments are from the shareholders operations and are placed inside the Kingdom of Saudi Arabia. | 9 |
| Description of accounting policy for reinsurers/ retakaful balance payable [text block] | 18Reinsurance premiums cededThree-month period ended Three-month period ended Nine-month period ended Nine-month period ended September 30,September 30,September 30,September 30,2022202120222021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Local companies4,6201,69515,46314,821Internationally including local brokers173,04067,266343,257264,309177,66068,961358,720279,130All excess of loss premiums are placed internationally through local brokers. | 18 |
| Description of accounting policy for segment reporting [text block] | 21 Operating segments Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the condensed statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2021. Segment assets do not include cash and cash equivalents, 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 September 30, 2022 and December 31, 2021, its total revenues, expenses, and net income for the three-month and nine-month periods ended September 30, 2022 and September 30, 2021, are as follows:MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Three-month period ended September 30, 2022 (unaudited)RevenuesGross premiums written14,94332,360113,512120,12226,0705,7535,806318,566Reinsurance premiums ceded (11,258)(27,461)6(110,493)(21,232)(3,486)(3,736)(177,660)Excess of loss expenses(378)(1,173)(824)(675)---(3,050)Net premiums written3,3073,726112,6948,9544,8382,2672,070137,856Change in unearned premiums(565)7,449(12,009)(94,952)(6,232)(1,373)4,513(103,169)Change in reinsurers’ share of unearned premiums620(4,871)(23)88,3004,587(202)(2,269)86,142Net premiums earned3,3626,304100,6622,3023,1936924,314120,829Reinsurance commissions 1,8785,52012,7651,766911-12,841Other underwriting income16436949-3405Total revenues5,25611,828101,0325,0714,9681,6034,317134,075Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries4,9274,91876,12612,3173,2991,1952,775105,557Reinsurers’ share of claims paid(4,410)(3,721)25(12,068)(2,779)(1,195)(2,155)(26,303)Net claims paid5171,19776,151249520-62079,254Changes in outstanding claims53824,512(5,212)(10,757)1,668(74)2,89713,572Changes in reinsurers’ share of outstanding claims754(24,520)2910,769(2,056)74(2,498)(17,448)Changes in claims incurred but not reported5323,395(2,015)(185)(1,148)-(1,285)(706)Changes in reinsurers’ share of claims incurred but not reported(441)(3,989)1061501,036-1,028(2,110)Net claims incurred1,90059569,05922620-76272,562Premium deficiency reserve--77----77Additional unexpired risk Reserve---797495--1,292Unallocated loss adjustment expense provision3165(116)92(64)-311Policy acquisition costs1,2213,3347,4622,3411,7381,0931,27618,465Other underwriting expenses2818273,129415255137-5,044Total underwriting costs and expenses3,4334,82179,6113,8712,4441,2302,04197,451Net underwriting income 1,8237,00721,4211,2002,5243732,27636,624Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(1,162)General and administration expenses(32,169)Commission income on term deposits2,367Unrealized gain on investments1,401Commission income on investments91Dividend income6Other income2,217Total other operating expenses, net(27,249)Profit for the period attributable to the shareholders, before zakat and income tax9,375Zakat(2,042)Income tax-Net profit for the period attributable to the shareholders7,333MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Nine-month period ended September 30, 2022 (unaudited)RevenuesGross premiums written43,524137,933328,952148,67262,68919,26739,540780,577Reinsurance premiums ceded (31,897)(111,992)(82)(129,607)(50,916)(11,530)(22,696)(358,720)Excess of loss expenses(916)(3,800)(2,545)(1,655)---(8,916)Net premiums written10,71122,141326,32517,41011,7737,73716,844412,941Change in unearned premiums(1,334)(23,784)(15,040)(89,383)(7,427)(6,662)(8,598)(152,228)Change in reinsurers’ share of unearned premiums 1,80119,3542778,6034,5578494,671109,862Net premiums earned11,17817,711311,3126,6308,9031,92412,917370,575Reinsurance commissions 6,25315,45557,7245,1982,705-37,340Other underwriting income50197701131-9890Total revenues17,48133,185312,08714,36514,1324,62912,926408,805Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries8,86316,777263,30813,2275,8793,58614,974326,614Reinsurers’ share of claims paid(7,158)(13,209)(3,903)(13,243)(5,055)(3,586)(12,182)(58,336)Net claims paid1,7053,568259,405(16)824-2,792268,278Changes in outstanding claims4,51992,5361,9282,2567420(594)100,739Changes in reinsurers’ share of outstanding claims(2,306)(86,155)40(1,347)(677)(20)683(89,782)Changes in claims incurred but not reported3688,617(8,312)(2,653)(2,986)-(2,429)(7,395)Changes in reinsurers’ share of claims incurred but not reported(351)(8,020)3742,6662,820-1,943(568)Net claims incurred3,93510,546253,43590655-2,395271,272Premium deficiency reserve--(2,201)----(2,201)Additional unexpired risk reserve---6341,024--1,658Unallocated loss adjustment expense provision146596(198)105(160)-(37)452Policy acquisition costs4,0569,63722,0766,1975,0153,1863,82053,987Other underwriting expenses9382,31811,6041,159769406-17,194Total underwriting costs and expenses9,07523,097284,7169,0016,7033,5926,178342,362Net underwriting income 8,40610,08827,3715,3647,4291,0376,74866,443Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(2,297)General and administration expenses(99,490)Commission income on term deposits4,125Unrealized gain on investments167Commission income on investments321Dividend Income12Other income3,146Total other operating expenses, net(94,016)Loss for the period attributable to the shareholders, before zakat and income tax(27,573)Zakat(3,620)Income tax-Net loss for the period attributable to the shareholders(31,193) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Three-month period ended September 30, 2021 (unaudited) RevenuesGross premiums written 10,483 36,214 90,460 10,682 18,212 5,782 6,179 178,012 Reinsurance premiums ceded (7,171)(30,313) (1) (7,968) (14,813) (4,403) (4,292) (68,961)Excess of loss expenses (723) (1,390) (1,970) (722) - - - (4,805)Net premiums written 2,589 4,511 88,489 1,992 3,399 1,379 1,887 104,246 Change in unearned premiums(1,057) 6,57822,7326,797 (1,919)(2,128)6,58537,588Changes in reinsurers’ share of unearned premiums487(5,658)-(6,730)732 1,177 (3,427) (13,419)Net premiums earned 2,019 5,431111,221 2,059 2,212 428 5,045 128,415 Reinsurance commissions 1,339 5,765 1 2,213 1,808 912 1 12,039 Other underwriting income 21 4 41 3 7 - 3 79 Total revenues 3,379 11,200 111,263 4,275 4,027 1,340 5,049 140,533Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries 2,127 7,643 93,690 320,978 308 1,217 12,256 438,219 Reinsurers’ share of claims paid (2,184) (6,155) (348)(318,909) (254) (1,217) (9,489)(338,556)Net claims paid (57) 1,488 93,342 2,069 54 - 2,767 99,663 Changes in outstanding claims(2,271)(7,144) 13,949(317,520) (2,133) (65) (2,518) (317,702)Changes in reinsurers’ share of outstanding claims2,276 6,636229 315,5862,050651,970328,812Changes in claims incurred but not reported(1,666)728 (9,296) (16,031)1,214 - (1,641) (26,692)Changes in reinsurers’ share of claims incurred but not reported1,625 (563)166 16,095 (1,096) - 1,31317,540Net claims incurred (93)1,14598,39019989 - 1,891101,621Premium deficiency reserve--413----413Additional unexpired risk reserve---33 290 --323Unallocated loss adjustment expense provision (41) 28 2096094 - (58)292Policy acquisition costs 884 3,359 7,523 1,930 1,442 938 1,409 17,485 Other underwriting expenses 201 865 3,993 332 271 136 - 5,798 Total underwriting costs and expenses 951 5,397110,5282,5542,186 1,074 3,242125,932Net underwriting income 2,428 5,8047351,7211,8402661,80714,601Other operating (expenses) / incomeAllowance for impairment of doubtful premium, reinsurers and other receivables(8,258)General and administration Expenses(33,226)Commission income on term deposits437Unrealized loss on investments(80)Commission income on investments87Dividend Income2Other income362Total other operating expenses, net(40,676)Net loss for the period attributable to the shareholders, before zakat and income tax(26,075)Zakat(1,116)Income tax(16)Net loss for the period attributable to the shareholders(27,207) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Nine-month period ended September 30, 2021 (unaudited) RevenuesGross premiums written33,118148,936355,71255,04159,77118,88941,725713,192Reinsurance premiums ceded (22,577)(124,001)51(45,067)(50,386)(13,045)(24,105)(279,130)Excess of loss expenses(2,830)(5,714)(6,528)(2,162)---(17,234)Net premiums written7,71119,221349,2357,8129,3855,84417,620416,828Change in unearned premiums762(36,588)(24,982)(6,994)(16,352)(9,590)(7,843)(101,587)Changes in reinsurers’ share of unearned premiums(1,506)27,506(1,287)3,91812,9804,4444,72250,777Net premiums earned6,96710,139322,9664,7366,01369814,499366,018Reinsurance commissions 5,46315,8501976,4285,5892,68510036,312Other underwriting income6218196936 - 10331Total revenues12,49226,007323,35911,17311,6383,38314,609402,661Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries5,26528,010256,011331,8971,1874,29532,307658,972Reinsurers’ share of claims paid(4,525)(23,323)(2,280)(329,038)(746)(4,295)(25,943)(390,150)Net claims paid7404,687253,7312,859441-6,364268,822Changes in outstanding claims5,69329,46219,622(320,776)4,592-(1,037)(262,444)Changes in reinsurers’share of outstanding claims(5,287)(27,006)1,561318,506(4,562)-601283,813Changes in claims incurred but not reported(1,501)2,453(10,934)(19,384)2,372-(5,086)(32,080)Changes in reinsurers’ share of claims incurred but not reported1,371(2,045)1,49518,908(2,641)-4,06921,157Net claims incurred1,0167,551265,475113202-4,911279,268Premium deficiency reserve--(2,793)----(2,793)Additional unexpired risk reserve---768547--1,315Unallocated loss adjustment expense provision759245(276)127-(130)50Policy acquisition costs3,3139,33821,2985,2703,9702,3713,94749,507Other underwriting expenses8202,37715,9999648384031521,416Total underwriting costs and expenses5,22419,275300,2246,8395,6842,7748,743348,763Net underwriting income 7,2686,73223,1354,3345,9546095,86653,898Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(15,306)General and administration expenses(94,411)Commission income on term deposits1,120Unrealized gain on investments2,250Commission income on investments154Dividend income12Other income606Total other operating expenses, net(105,575)Net loss for the period attributable to the shareholders, before zakat and income tax(51,677)Zakat(3,086)Income tax(16)Net loss for the period attributable to the shareholders(54,779) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal As at September 30, 2022(Unaudited)AssetsReinsurers’ share of unearned premiums11,56555,90127129,44532,40643,30710,408283,059Reinsurers’ share of outstanding claims15,474171,3249464,698112,293296,794370,706Reinsurers’ share of claims incurred but not reported84318,6692411,2768,409-1,76831,206Deferred policy acquisition costs1,4436,35813,7379,7363,54413,8152,25350,886Unallocated assets1,241,461Total assets1,977,318LiabilitiesUnearned premiums15,45868,132203,456144,45539,38455,75518,268544,908Unearned reinsurance commission2,1019,20735,4503,2828,376-28,419Outstanding claims21,204185,19378,81067,299113,649298,253474,437Claims incurred but not reported99520,08834,0101,4189,931-2,21068,652Premium deficiency reserve--8,495----8,495Additional unexpired risk reserve---1,4761,803--3,279Unallocated loss adjustment expense provision4631,3402,224346815-1275,315Unallocated liabilities475,234Total liabilities 1,608,739MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal As 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 costs1,5044,46010,5996,0512,57312,4731,130 38,790Unallocated 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--10,696--- -10,696Additional unexpired risk reserve---842779- -1,621Unallocated loss adjustment expense provision3177432,423242975-163 4,863Unallocated liabilities247,238Total liabilities 1,136,042 | 21 |
| Description of accounting policy for statutory deposit [text block] | 11Statutory depositsIn compliance with Article 58 of the Implementing Regulations of SAMA, the Company has deposited 10% of its share capital, amounting to SAR 40 million as at September 30, 2022 (December 31, 2021: SAR 20 million) in a bank designated by SAMA. As a result of an increase in the Company’s share capital due to the rights share issue completed during 2022 (see Note 14), the Company deposited a further amount of SAR 20 million during the period ended September 30, 2022. 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 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 condensed interim financial statements. | 11 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 9 Investments NotesSeptember 30, 2022(Unaudited)December 31,2021(Audited)Fair value through statement of income investments (FVSI)9.1204,126165,959Held-to-maturity investments9.212,00012,000Available-for-sale investment9.31,9231,923218,049179,8829.1Fair value through statement of income investments (FVSI)Movement in FVSI is as follows:Nine-month period ended September 30, 2022(Unaudited)Year ended December 31, 2021(Audited)Opening165,959162,029Withdrawal during the period / year(62,000)-Additions during the period / year 100,000-Changes in fair value of investments during the period / year1673,930Closing204,126165,959FVSI includes investments managed by three Fund managers under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund managers. These fund managers keep such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements. 9.2Held to maturity investmentsNotesSeptember 30, 2022(Unaudited)December 31, 2021(Audited)Saudi Fransi Bank Sukuksa3,0003,000Saudi Real Estate Refinance Company Sukuksb9,0009,00012,00012,000a)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 0.124 million during the period (September 30, 2021: SAR 0.101 million).b)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 0.197 million during the period (September 30, 2021: SAR 0.053 million).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 believes that fair value cannot be ascertained reliably.9.4All 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:Nine-month period ended September 30, 2022(Unaudited)Year ended December 31, 2021(Audited)Opening165,959162,029Withdrawal during the period / year(62,000)-Additions during the period / year 100,000-Changes in fair value of investments during the period / year1673,930Closing204,126165,959FVSI includes investments managed by three Fund managers under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund managers. These fund managers keep such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements. | 9.1 |
| Disclosure of due from related parties [text block] | 22Related party balances and transactions 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 the agreed terms 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 endedSeptember 30, 2022(Unaudited)Three-month period endedSeptember 30, 2021(Unaudited)Nine-month period endedSeptember 30, 2022(Unaudited)Nine-month period endedSeptember 30,2021(Unaudited)Board members- Fees and related expenses85(76)1,9641,432Key management personnel-Remuneration and related expense2,5312,5277,5567,930-Loans & advances85-602--Long term employee benefits accrued11080352389Major shareholders -Gross premiums written9(14)1,3281,373-Claims paid 573451931,181-Facultative premiums ceded 53681,4121,464-Facultative claims recovered-127153198-Facultative commission received371730-Expenses incurred1,1981,3043,7534,162-Commission income on term deposits-257-712Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written6,7017,36642,59538,514-Claims paid 6452,4659,3167,846-Expenses incurred 5912,2481,1032,74122.2Related party balances September 30, 2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremiums receivable- 32 Claims payable 3 12 Amounts due for facultative transactions 425 523 Amounts due for expenses154 - Entities controlled, jointly controlled, or significantly influenced by major shareholdersPremiums receivable10,860 7,957 Claims payable3,799 1,652 Amounts due for expenses- 2 Others (key management personnel)Employee benefits payable to key management personnel2,721 2,890 Advances due from key management personnel 717 284 | 22 |
| Disclosure of cash and cash equivalents [text block] | 4Cash and cash equivalentsSeptember 30, 2022(Unaudited)December 31, 2021(Audited)Cash in hand2020Bank balances60,50534,110Deposits with original maturity of less than 3 months-8,00060,52542,130The bank balances and deposits are with banks, registered in Saudi Arabia and are denominated in Saudi Riyals and US Dollars. | 4 |
| Disclosure of statutory deposit [text block] | 11Statutory depositsIn compliance with Article 58 of the Implementing Regulations of SAMA, the Company has deposited 10% of its share capital, amounting to SAR 40 million as at September 30, 2022 (December 31, 2021: SAR 20 million) in a bank designated by SAMA. As a result of an increase in the Company’s share capital due to the rights share issue completed during 2022 (see Note 14), the Company deposited a further amount of SAR 20 million during the period ended September 30, 2022. 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 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 condensed interim financial statements. | 11 |
| Disclosure of due to related parties [text block] | 22Related party balances and transactions 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 the agreed terms 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 endedSeptember 30, 2022(Unaudited)Three-month period endedSeptember 30, 2021(Unaudited)Nine-month period endedSeptember 30, 2022(Unaudited)Nine-month period endedSeptember 30,2021(Unaudited)Board members- Fees and related expenses85(76)1,9641,432Key management personnel-Remuneration and related expense2,5312,5277,5567,930-Loans & advances85-602--Long term employee benefits accrued11080352389Major shareholders -Gross premiums written9(14)1,3281,373-Claims paid 573451931,181-Facultative premiums ceded 53681,4121,464-Facultative claims recovered-127153198-Facultative commission received371730-Expenses incurred1,1981,3043,7534,162-Commission income on term deposits-257-712Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written6,7017,36642,59538,514-Claims paid 6452,4659,3167,846-Expenses incurred 5912,2481,1032,74122.2Related party balances September 30, 2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremiums receivable- 32 Claims payable 3 12 Amounts due for facultative transactions 425 523 Amounts due for expenses154 - Entities controlled, jointly controlled, or significantly influenced by major shareholdersPremiums receivable10,860 7,957 Claims payable3,799 1,652 Amounts due for expenses- 2 Others (key management personnel)Employee benefits payable to key management personnel2,721 2,890 Advances due from key management personnel 717 284 | 22 |
| Disclosure of zakat [text block] | 13Zakat and income tax13.1Components of zakat baseSignificant components of zakat base of the Company attributable to the Saudi shareholders, which are subject to adjustment under zakat and income tax regulations, are shareholders’ equity at the beginning of the period, adjusted net income and certain other items. Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company. 13.2Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period3,620-3,620Payments during the period(3,647)-(3,647)September 30, 2022 (unaudited)3,846-3,846ZakatIncome 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, 2021 (audited)3,873-3,873Zakat is payable at 2.578% 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 condensed interim financial statements as the Company has incurred a taxable loss during the nine-month period ended September 30, 2022 (September 30, 2021: SAR 0.016 million).Up to May 31, 2022, the zakat share in capital and profit was 82.44% and the income tax share in capital and profit was 17.56%.The shareholding percentage subject to zakat and income tax is as follows:September 30, 2022(Unaudited)December 31,2021(Audited)%%Zakat share in capital and profit87.4376.24Income tax share in capital and profit12.5723.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favour 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 Zakat, Tax and Customs Authority (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, of 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 in order to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 05, 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 awaiting the ACTVDR 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, 2021 The 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] | 13Zakat and income tax13.1Components of zakat baseSignificant components of zakat base of the Company attributable to the Saudi shareholders, which are subject to adjustment under zakat and income tax regulations, are shareholders’ equity at the beginning of the period, adjusted net income and certain other items. Zakat base has been computed based on the Company’s understanding of the zakat regulations enforced in the Kingdom of Saudi Arabia. The zakat regulations in Saudi Arabia are subject to different interpretations, and the assessments to be raised by the Zakat, Tax and Customs Authority (“ZATCA”) could be different from the declaration filed by the Company. 13.2Provision for zakat and income taxZakatIncome taxTotalJanuary 1, 20223,873-3,873Provision for the current period3,620-3,620Payments during the period(3,647)-(3,647)September 30, 2022 (unaudited)3,846-3,846ZakatIncome 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, 2021 (audited)3,873-3,873Zakat is payable at 2.578% 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 condensed interim financial statements as the Company has incurred a taxable loss during the nine-month period ended September 30, 2022 (September 30, 2021: SAR 0.016 million).Up to May 31, 2022, the zakat share in capital and profit was 82.44% and the income tax share in capital and profit was 17.56%.The shareholding percentage subject to zakat and income tax is as follows:September 30, 2022(Unaudited)December 31,2021(Audited)%%Zakat share in capital and profit87.4376.24Income tax share in capital and profit12.5723.7613.3Status of assessmentsYear ended December 31, 2011 and 2012The Tax and zakat position were finalized as the Higher Appeal Committee (HAC) ruled in favour 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 Zakat, Tax and Customs Authority (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, of 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 in order to assign the hearing session by the Committee for Resolution of Tax Violations and Disputes (“CRTVD”). On August 05, 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 awaiting the ACTVDR 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, 2021 The 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 deferred tax [text block] | 3 Significant accounting policiesThe accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2021 except as explained below:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the CompanyA number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after January 01, 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards which are described below:Standard / InterpretationDescriptionIAS 37Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)Annual ImprovementsAnnual Improvements to IFRS Standards 2018–2020IAS 16Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)IFRS 3Reference to the Conceptual Framework (Amendments to IFRS 3)Standards issued but not yet effectiveStandards and interpretation issued but not yet effective up to the date of issuance of the Company’s condensed interim 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 are effective.Standard / InterpretationDescriptionEffective from periods beginning on or after the following dateIAS 1Classification of Liabilities as Current or Non-current – Amendments to IAS 1January 01, 2023Narrow scope amendments to IAS 1, IFRS Practice Statement 2 and IAS 8The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies.January 01, 2023IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction`January 01, 2023IFRS 16Lease liability in a sale and leaseback – Amendments to IFRS 16January 01, 2024IFRS 10 and IAS 28Sale or contribution of assets between investor and its associate or joint venture (amendments to IFRS 10 and IAS 28)Available for optional adoption / effective date deferred indefinitelyIFRS 17Insurance Contracts See note belowIFRS 9Financial InstrumentsSee note belowIFRS 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. On March 17, 2020, the International Accounting Standards Board (IASB) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from January 01, 2021 to January 01, 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominantly 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.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 September 30, 2022, the Company has total financial assets and insurance related assets amounting to SAR 1,128 million (December 31, 2021: SAR 723 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 924 million (2021: SAR 557 million). Investments are carried currently at fair value through statement of income at SAR 204 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.The Company has performed 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 September 30, 2022 and December 31, 2021. The above is based on high-level impact assessment of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further detailed analysis and 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. As required by SAMA the Company has performed impact assessment for IFRS 9 as of December 31, 2021. The Company is currently performing the impact assessment for IFRS 9 as of June 30, 2022 for submission to SAMA as of the date of these condensed interim 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; anda 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):The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, 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; andii.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 dateIFRS 17 is applied for annual reporting periods beginning on or after January 01, 2023. Earlier application is permitted for entities that apply IFRS 9 on or before the date of initial application of IFRS 17. The transition requirements define the date of initial application as the start of the annual reporting period in which an entity first applies IFRS 17. IFRS 17 supersedes IFRS 4, including the amendments to IFRS 4 introduced in 2016, which include: – the temporary exemption from IFRS 9; and – the overlay approach. From the date of initial application of IFRS 17, these approaches are no longer available and IFRS 9 is applied, without delay or adjustment. If an entity has already applied IFRS 9 before IFRS 17 (with or without the overlay approach), then IFRS 17 provides redesignation requirements and options.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 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 and for the year ended December 31, 2021 which was submitted to SAMA along with the auditors’ opinion thereon. The 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 term of one year or less. As required by SAMA, the Company is in the process of preparing the financial statements for the period ended June 30, 2022 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 systemsFor IFRS 17 implementation, Addactis software has been procured by the Company. This is currently being implemented on-premises 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. The initial conclusion is under constant review.Impact on policies & control’s frameworksThe Company is in the process of updating Accounting and Finance Policies and Procedures to cover the new and additional requirements: Unbundling Level of aggregation Measurement models Risk Adjustment Methodologies New 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 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 holders 2- PAA Measurement Model 3- GMM Measurement Model (Remaining sessions are planned to be completed in 2022)The Company has completed its implementation process and have set up a proper team, supervised by a steering committee. Further, the key focus areas of the IFRS 17 project team for the remainder of the year are as below:Completing any remaining system development and key controls required to implement IFRS 17.Commence with an IFRS 4 and IFRS 17 dual reporting run.Produce and request business sign-off, as well as external audit sign-off of transition balances.Update the budgeting process to ensure alignment to IFRS 17.Finalise the management reporting and key performance measures.Continue engaging with the executive committee and business through various training initiatives.Finalise and implement future financial and data governance processes and accountabilities. | 3 |
| Disclosure of statutory reserve [text block] | 15Statutory reserveIn compliance with the Insurance 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, if any, would be transferred at the year end. | 15 |
| Disclosure of gross premiums/ contributions written [text block] | 17Gross premiums writtenThree-month period ended September 30, 2022 (unaudited)ClassCorporateIndividual Total gross premiums writtenVery smallSmallMediumLargeMotor3,75819,25319,59459,33211,575113,512Property and accident1,64059,87034,246103,128364199,248Protection and saving (term life)237501,6073,426-5,806Total5,42179,87355,447165,88611,939318,566Three-month period ended September 30, 2021 (unaudited)ClassCorporateIndividual Total gross premiums writtenVery smallSmallMediumLargeMotor3,92514,35622,51535,28114,38390,460Property and accident1,43817,06814,55647,97933281,373Protection and saving (term life)218191,9383,401-6,179Total5,38432,24339,00986,66114,715178,012Nine-month period ended September 30, 2022 (unaudited)ClassCorporateIndividualTotal gross premiums writtenVery smallSmallMediumLargeMotor14,52938,70852,857188,45134,407328,952Property and accident7,97694,20392,149213,2934,464412,085Protection and saving (term life)2182,2818,47628,565-39,540Total22,723135,192153,482430,30938,871780,577Nine-month period ended September 30, 2021 (unaudited)ClassCorporateIndividual Total gross premiums writtenVery smallSmallMediumLargeMotor7,94532,83363,255196,99554,684355,712Property and accident6,91437,60583,576183,8173,843315,755Protection and saving (term life)1841,7498,76731,025- 41,725Total15,04372,187155,598411,83758,527713,192 | 17 |
| Disclosure of other underwriting expenses [text block] | 19Other underwriting expenses This includes Value Added Tax (VAT) on reinsurance commission income of SAR 5.59 million (September 30, 2021: SAR 5.45 million) and Najm fee for motor insurance services of SAR 11.60 million (September 30, 2021: SAR 15.97 million). | 19 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 8Technical reserves8.1 Outstanding claims and reserves Movement in outstanding claims and reserves comprise of the following:September 30, 2022(Unaudited)December 31, 2021(Audited)GrossReinsurers’ shareNetGrossReinsurers’ shareNetOpening449,744(311,561)138,183743,439(612,700)130,739Claims paid(326,614)58,336(268,278)(784,831)406,215(378,616)Claims incurred419,959(148,687)271,272491,136(105,076)386,060Closing543,089(401,912)141,177449,744(311,561)138,183Outstanding claims474,437(370,706)103,731373,698(280,924)92,774Claims incurred but not reported68,652(31,206)37,44676,046(30,637)45,409543,089(401,912)141,177449,744(311,561)138,183Premium deficiency reserve8,495-8,49510,696-10,696Additional unexpired risk reserve3,279-3,2791,621-1,621Unallocated loss adjustment expense provision5,315-5,3154,863-4,863560,178(401,912)158,266466,924(311,561)155,3638.2Movement in unearned premiumsMovement in unearned premiums comprise of the following:Nine-month period ended September 30, 2022(Unaudited)GrossReinsuranceNetBalance at the beginning of the period392,680(173,197)219,483Premium written during the period780,577(367,636)412,941Premium earned during the period(628,349)257,774(370,575)Balance at the end of the period544,908(283,059)261,849Year 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 balances and transactions 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 the agreed terms 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 endedSeptember 30, 2022(Unaudited)Three-month period endedSeptember 30, 2021(Unaudited)Nine-month period endedSeptember 30, 2022(Unaudited)Nine-month period endedSeptember 30,2021(Unaudited)Board members- Fees and related expenses85(76)1,9641,432Key management personnel-Remuneration and related expense2,5312,5277,5567,930-Loans & advances85-602--Long term employee benefits accrued11080352389Major shareholders -Gross premiums written9(14)1,3281,373-Claims paid 573451931,181-Facultative premiums ceded 53681,4121,464-Facultative claims recovered-127153198-Facultative commission received371730-Expenses incurred1,1981,3043,7534,162-Commission income on term deposits-257-712Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written6,7017,36642,59538,514-Claims paid 6452,4659,3167,846-Expenses incurred 5912,2481,1032,74122.2Related party balances September 30, 2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremiums receivable- 32 Claims payable 3 12 Amounts due for facultative transactions 425 523 Amounts due for expenses154 - Entities controlled, jointly controlled, or significantly influenced by major shareholdersPremiums receivable10,860 7,957 Claims payable3,799 1,652 Amounts due for expenses- 2 Others (key management personnel)Employee benefits payable to key management personnel2,721 2,890 Advances due from key management personnel 717 284 | 22 |
| Disclosure of earnings per share [text block] | 14Share capital and basic and diluted earnings / (loss) per shareDuring the period ended September 30, 2022, the Company completed its right issue of SAR 200 million consisting of 20 million new shares of SAR 10 each. Accordingly, the authorized, issued and paid-up capital of the Company at September 30, 2022 is SAR 400 million divided into 40 million shares of SAR 10 each (December 31, 2021: SAR 200 million divided into 20 million shares of SAR 10 each). The Company incurred transaction costs of SAR 11.59 million on the right issue of shares which has been accounted for as a deduction from equity in accordance with the requirement of International Financial Reporting Standard (IFRS) as endorsed by SOCPA.Earnings / (loss) per share:Loss per share for the three-month and nine-month periods ended September 30, 2022 and 2021 has been calculated by dividing the net profit / (loss) for the respective periods attributable to the shareholders by the weighted average number of ordinary shares at the reporting date. Diluted earnings / (loss) per share is not applicable to the Company.The weighted average number of shares has been retrospectively adjusted for the prior period to reflect the element of the right issue as required by IAS 33, “Earnings per share” as follows: Three-month period ended September 30, 2022Three-month period ended September 30, 2021Nine-month period ended September 30, 2022Nine-month period ended September 30, 2021Issued ordinary shares as at 1 January 20,00020,00020,00020,000Adjusted right issue20,000-16,280-Effect of rights issue of shares-10,200-10,200Weighted average number of ordinary shares 40,00030,20036,28030,200The weighted average number of ordinary shares for prior period is computed using an adjustment factor of 1.51 which is a ratio of the theoretical ex-rights of SAR 20.48 and closing price per share of 30.95 on April 13, 2022, the last day on which the shares were traded before the rights issue.The basic and diluted earnings / (loss) per share is calculated as follows:Three-month period ended September 30, 2022Three-month period ended September 30, 2021Nine-month period ended September 30, 2022Nine-month period ended September 30, 2021Net profit / (loss) for the period attributable to the shareholders7,333(27,207)(31,193)(54,779)Weighted average number of ordinary shares40,00030,20036,28030,200Basic and diluted earnings / (loss) per share0.18(0.90)(0.86)(1.81) | 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:Nine-month period ended September 30, 2022(Unaudited)Year ended December 31, 2021(Audited)Opening165,959162,029Withdrawal during the period / year(62,000)-Additions during the period / year 100,000-Changes in fair value of investments during the period / year1673,930Closing204,126165,959FVSI includes investments managed by three Fund managers under the discretionary portfolio of investments where all such investments are carried at fair value as provided by the Fund managers. These fund managers keep such investments in various fixed income securities, mutual funds, equity investments, sukuks and murabaha placements. | 9.1 |
| Disclosure of related party transactions [text block] | 22Related party balances and transactions 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 the agreed terms 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 endedSeptember 30, 2022(Unaudited)Three-month period endedSeptember 30, 2021(Unaudited)Nine-month period endedSeptember 30, 2022(Unaudited)Nine-month period endedSeptember 30,2021(Unaudited)Board members- Fees and related expenses85(76)1,9641,432Key management personnel-Remuneration and related expense2,5312,5277,5567,930-Loans & advances85-602--Long term employee benefits accrued11080352389Major shareholders -Gross premiums written9(14)1,3281,373-Claims paid 573451931,181-Facultative premiums ceded 53681,4121,464-Facultative claims recovered-127153198-Facultative commission received371730-Expenses incurred1,1981,3043,7534,162-Commission income on term deposits-257-712Entities controlled, jointly controlled or significantly influenced by major shareholders -Gross premium written6,7017,36642,59538,514-Claims paid 6452,4659,3167,846-Expenses incurred 5912,2481,1032,74122.2Related party balances September 30, 2022(Unaudited)December 31, 2021(Audited)Major shareholdersPremiums receivable- 32 Claims payable 3 12 Amounts due for facultative transactions 425 523 Amounts due for expenses154 - Entities controlled, jointly controlled, or significantly influenced by major shareholdersPremiums receivable10,860 7,957 Claims payable3,799 1,652 Amounts due for expenses- 2 Others (key management personnel)Employee benefits payable to key management personnel2,721 2,890 Advances due from key management personnel 717 284 | 22 |
| Disclosure of entity's operating segments [text block] | 21 Operating segments Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the condensed statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2021. Segment assets do not include cash and cash equivalents, 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 September 30, 2022 and December 31, 2021, its total revenues, expenses, and net income for the three-month and nine-month periods ended September 30, 2022 and September 30, 2021, are as follows:MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Three-month period ended September 30, 2022 (unaudited)RevenuesGross premiums written14,94332,360113,512120,12226,0705,7535,806318,566Reinsurance premiums ceded (11,258)(27,461)6(110,493)(21,232)(3,486)(3,736)(177,660)Excess of loss expenses(378)(1,173)(824)(675)---(3,050)Net premiums written3,3073,726112,6948,9544,8382,2672,070137,856Change in unearned premiums(565)7,449(12,009)(94,952)(6,232)(1,373)4,513(103,169)Change in reinsurers’ share of unearned premiums620(4,871)(23)88,3004,587(202)(2,269)86,142Net premiums earned3,3626,304100,6622,3023,1936924,314120,829Reinsurance commissions 1,8785,52012,7651,766911-12,841Other underwriting income16436949-3405Total revenues5,25611,828101,0325,0714,9681,6034,317134,075Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries4,9274,91876,12612,3173,2991,1952,775105,557Reinsurers’ share of claims paid(4,410)(3,721)25(12,068)(2,779)(1,195)(2,155)(26,303)Net claims paid5171,19776,151249520-62079,254Changes in outstanding claims53824,512(5,212)(10,757)1,668(74)2,89713,572Changes in reinsurers’ share of outstanding claims754(24,520)2910,769(2,056)74(2,498)(17,448)Changes in claims incurred but not reported5323,395(2,015)(185)(1,148)-(1,285)(706)Changes in reinsurers’ share of claims incurred but not reported(441)(3,989)1061501,036-1,028(2,110)Net claims incurred1,90059569,05922620-76272,562Premium deficiency reserve--77----77Additional unexpired risk Reserve---797495--1,292Unallocated loss adjustment expense provision3165(116)92(64)-311Policy acquisition costs1,2213,3347,4622,3411,7381,0931,27618,465Other underwriting expenses2818273,129415255137-5,044Total underwriting costs and expenses3,4334,82179,6113,8712,4441,2302,04197,451Net underwriting income 1,8237,00721,4211,2002,5243732,27636,624Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(1,162)General and administration expenses(32,169)Commission income on term deposits2,367Unrealized gain on investments1,401Commission income on investments91Dividend income6Other income2,217Total other operating expenses, net(27,249)Profit for the period attributable to the shareholders, before zakat and income tax9,375Zakat(2,042)Income tax-Net profit for the period attributable to the shareholders7,333MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Nine-month period ended September 30, 2022 (unaudited)RevenuesGross premiums written43,524137,933328,952148,67262,68919,26739,540780,577Reinsurance premiums ceded (31,897)(111,992)(82)(129,607)(50,916)(11,530)(22,696)(358,720)Excess of loss expenses(916)(3,800)(2,545)(1,655)---(8,916)Net premiums written10,71122,141326,32517,41011,7737,73716,844412,941Change in unearned premiums(1,334)(23,784)(15,040)(89,383)(7,427)(6,662)(8,598)(152,228)Change in reinsurers’ share of unearned premiums 1,80119,3542778,6034,5578494,671109,862Net premiums earned11,17817,711311,3126,6308,9031,92412,917370,575Reinsurance commissions 6,25315,45557,7245,1982,705-37,340Other underwriting income50197701131-9890Total revenues17,48133,185312,08714,36514,1324,62912,926408,805Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries8,86316,777263,30813,2275,8793,58614,974326,614Reinsurers’ share of claims paid(7,158)(13,209)(3,903)(13,243)(5,055)(3,586)(12,182)(58,336)Net claims paid1,7053,568259,405(16)824-2,792268,278Changes in outstanding claims4,51992,5361,9282,2567420(594)100,739Changes in reinsurers’ share of outstanding claims(2,306)(86,155)40(1,347)(677)(20)683(89,782)Changes in claims incurred but not reported3688,617(8,312)(2,653)(2,986)-(2,429)(7,395)Changes in reinsurers’ share of claims incurred but not reported(351)(8,020)3742,6662,820-1,943(568)Net claims incurred3,93510,546253,43590655-2,395271,272Premium deficiency reserve--(2,201)----(2,201)Additional unexpired risk reserve---6341,024--1,658Unallocated loss adjustment expense provision146596(198)105(160)-(37)452Policy acquisition costs4,0569,63722,0766,1975,0153,1863,82053,987Other underwriting expenses9382,31811,6041,159769406-17,194Total underwriting costs and expenses9,07523,097284,7169,0016,7033,5926,178342,362Net underwriting income 8,40610,08827,3715,3647,4291,0376,74866,443Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(2,297)General and administration expenses(99,490)Commission income on term deposits4,125Unrealized gain on investments167Commission income on investments321Dividend Income12Other income3,146Total other operating expenses, net(94,016)Loss for the period attributable to the shareholders, before zakat and income tax(27,573)Zakat(3,620)Income tax-Net loss for the period attributable to the shareholders(31,193) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Three-month period ended September 30, 2021 (unaudited) RevenuesGross premiums written 10,483 36,214 90,460 10,682 18,212 5,782 6,179 178,012 Reinsurance premiums ceded (7,171)(30,313) (1) (7,968) (14,813) (4,403) (4,292) (68,961)Excess of loss expenses (723) (1,390) (1,970) (722) - - - (4,805)Net premiums written 2,589 4,511 88,489 1,992 3,399 1,379 1,887 104,246 Change in unearned premiums(1,057) 6,57822,7326,797 (1,919)(2,128)6,58537,588Changes in reinsurers’ share of unearned premiums487(5,658)-(6,730)732 1,177 (3,427) (13,419)Net premiums earned 2,019 5,431111,221 2,059 2,212 428 5,045 128,415 Reinsurance commissions 1,339 5,765 1 2,213 1,808 912 1 12,039 Other underwriting income 21 4 41 3 7 - 3 79 Total revenues 3,379 11,200 111,263 4,275 4,027 1,340 5,049 140,533Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries 2,127 7,643 93,690 320,978 308 1,217 12,256 438,219 Reinsurers’ share of claims paid (2,184) (6,155) (348)(318,909) (254) (1,217) (9,489)(338,556)Net claims paid (57) 1,488 93,342 2,069 54 - 2,767 99,663 Changes in outstanding claims(2,271)(7,144) 13,949(317,520) (2,133) (65) (2,518) (317,702)Changes in reinsurers’ share of outstanding claims2,276 6,636229 315,5862,050651,970328,812Changes in claims incurred but not reported(1,666)728 (9,296) (16,031)1,214 - (1,641) (26,692)Changes in reinsurers’ share of claims incurred but not reported1,625 (563)166 16,095 (1,096) - 1,31317,540Net claims incurred (93)1,14598,39019989 - 1,891101,621Premium deficiency reserve--413----413Additional unexpired risk reserve---33 290 --323Unallocated loss adjustment expense provision (41) 28 2096094 - (58)292Policy acquisition costs 884 3,359 7,523 1,930 1,442 938 1,409 17,485 Other underwriting expenses 201 865 3,993 332 271 136 - 5,798 Total underwriting costs and expenses 951 5,397110,5282,5542,186 1,074 3,242125,932Net underwriting income 2,428 5,8047351,7211,8402661,80714,601Other operating (expenses) / incomeAllowance for impairment of doubtful premium, reinsurers and other receivables(8,258)General and administration Expenses(33,226)Commission income on term deposits437Unrealized loss on investments(80)Commission income on investments87Dividend Income2Other income362Total other operating expenses, net(40,676)Net loss for the period attributable to the shareholders, before zakat and income tax(26,075)Zakat(1,116)Income tax(16)Net loss for the period attributable to the shareholders(27,207) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal Nine-month period ended September 30, 2021 (unaudited) RevenuesGross premiums written33,118148,936355,71255,04159,77118,88941,725713,192Reinsurance premiums ceded (22,577)(124,001)51(45,067)(50,386)(13,045)(24,105)(279,130)Excess of loss expenses(2,830)(5,714)(6,528)(2,162)---(17,234)Net premiums written7,71119,221349,2357,8129,3855,84417,620416,828Change in unearned premiums762(36,588)(24,982)(6,994)(16,352)(9,590)(7,843)(101,587)Changes in reinsurers’ share of unearned premiums(1,506)27,506(1,287)3,91812,9804,4444,72250,777Net premiums earned6,96710,139322,9664,7366,01369814,499366,018Reinsurance commissions 5,46315,8501976,4285,5892,68510036,312Other underwriting income6218196936 - 10331Total revenues12,49226,007323,35911,17311,6383,38314,609402,661Underwriting costs and expensesGross claims paid and loss adjustment expenses, net of recoveries5,26528,010256,011331,8971,1874,29532,307658,972Reinsurers’ share of claims paid(4,525)(23,323)(2,280)(329,038)(746)(4,295)(25,943)(390,150)Net claims paid7404,687253,7312,859441-6,364268,822Changes in outstanding claims5,69329,46219,622(320,776)4,592-(1,037)(262,444)Changes in reinsurers’share of outstanding claims(5,287)(27,006)1,561318,506(4,562)-601283,813Changes in claims incurred but not reported(1,501)2,453(10,934)(19,384)2,372-(5,086)(32,080)Changes in reinsurers’ share of claims incurred but not reported1,371(2,045)1,49518,908(2,641)-4,06921,157Net claims incurred1,0167,551265,475113202-4,911279,268Premium deficiency reserve--(2,793)----(2,793)Additional unexpired risk reserve---768547--1,315Unallocated loss adjustment expense provision759245(276)127-(130)50Policy acquisition costs3,3139,33821,2985,2703,9702,3713,94749,507Other underwriting expenses8202,37715,9999648384031521,416Total underwriting costs and expenses5,22419,275300,2246,8395,6842,7748,743348,763Net underwriting income 7,2686,73223,1354,3345,9546095,86653,898Other operating income / (expenses)Allowance for impairment of doubtful premium, reinsurers and other receivables(15,306)General and administration expenses(94,411)Commission income on term deposits1,120Unrealized gain on investments2,250Commission income on investments154Dividend income12Other income606Total other operating expenses, net(105,575)Net loss for the period attributable to the shareholders, before zakat and income tax(51,677)Zakat(3,086)Income tax(16)Net loss for the period attributable to the shareholders(54,779) MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal As at September 30, 2022(Unaudited)AssetsReinsurers’ share of unearned premiums11,56555,90127129,44532,40643,30710,408283,059Reinsurers’ share of outstanding claims15,474171,3249464,698112,293296,794370,706Reinsurers’ share of claims incurred but not reported84318,6692411,2768,409-1,76831,206Deferred policy acquisition costs1,4436,35813,7379,7363,54413,8152,25350,886Unallocated assets1,241,461Total assets1,977,318LiabilitiesUnearned premiums15,45868,132203,456144,45539,38455,75518,268544,908Unearned reinsurance commission2,1019,20735,4503,2828,376-28,419Outstanding claims21,204185,19378,81067,299113,649298,253474,437Claims incurred but not reported99520,08834,0101,4189,931-2,21068,652Premium deficiency reserve--8,495----8,495Additional unexpired risk reserve---1,4761,803--3,279Unallocated loss adjustment expense provision4631,3402,224346815-1275,315Unallocated liabilities475,234Total liabilities 1,608,739MarinePropertyMotorEngineeringAccident & liabilityExtended warrantyTerm lifeTotal As 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 costs1,5044,46010,5996,0512,57312,4731,130 38,790Unallocated 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--10,696--- -10,696Additional unexpired risk reserve---842779- -1,621Unallocated loss adjustment expense provision3177432,423242975-163 4,863Unallocated 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.As per guidelines laid out by SAMA in Article 66 of the Implementing 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 RequirementPremium Solvency MarginClaims Solvency MarginThe Company is in compliance with all externally imposed capital requirements with sound solvency margin. The capital structure of the Company as at September 30, 2022 consists of paid-up share capital of SAR 400 million, statutory reserve of SAR 15.35 million and accumulated losses of SAR 46.77 million (December 31, 2021: paid-up share capital of SAR 200 million, statutory reserves of SAR 15.35 million and accumulated losses of SAR 4.16 million), in the statement of financial position. In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements as at September 30, 2022. | 23 |
| Disclosure of commitments and contingencies, general [text block] | 16Commitments and contingencies16.1The Company’s bankers have issued payment guarantee of SAR 2.61 million (December 31, 2021: SAR 2.41 million) to its suppliers on behalf of the Company. 16.2See note 13.3 for zakat and tax related contingencies.16.3The Company is a defendant in a case that was filed by a client amounting to SAR 19 million (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 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. 16.4During 2021, ZATCA issued various VAT assessments to the Company for approximately SAR 18 million which included VAT liabilities and penalties amounting to SAR 7.9 million and SAR 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 were partially accepted by ZATCA for approximately SAR 1.5 million in VAT liabilities with the corresponding reduction in penalties, but ZATCA has yet to provide this information. There were deductions of approximately SAR 9.2 million made by ZATCA on Wataniya’s VAT Return Filing.Management decided to appeal the rejected amount and had filed 14 appeals and settlement applications respectively to the General Secretariat of the Tax Committee (GSTC) and the Internal Settlement Committee (ISC) on April 21, 2022. The appeal to the ISC had unfortunately failed, and the Company is proceeding with the appeal process to the GSTC and is currently waiting for GSTC to set a date for the hearing.On September 6, 2022, the Company has received replies from GSTC on the status of the 14 objections. GSTC informed that ZATCA has provided its VAT technical reasoning for rejecting the initial objections filed by the Company on December 23, 2021. The Company had analyzed ZATCA’s reasoning for the rejection and had prepared the counter arguments, which was successfully filed within the deadline on October 3, 2022. | 16 |
| Disclosure of risk management [abstract] | | |
| Disclosure of credit risk [text block] | 20.1 Credit riskCredit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. For all classes of financial instruments held by the Company, the maximum credit risk exposure to the Company is the carrying value as disclosed in the condensed statement of financial position. 20.1.1 Concentration of credit riskConcentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterparties whose aggregate credit exposure is significant in relation to the Company’s total credit exposure. All of the Company’s underwriting activities are carried out in Saudi Arabia. The Company’s portfolio of financial instruments is broadly diversified, and transactions are entered into with diverse credit-worthy counterparties thereby mitigating any significant concentrations of credit risk. | 20.1 |
| Disclosure of liquidity risk [text block] | 20.2 Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in raising funds to meet obligations and commitments associated with financial liabilities. The Company has a proper cash management system, where daily cash collections and payments are strictly monitored and reconciled on regular basis. The Company manages liquidity risk by maintaining maturities of financial assets and financial liabilities and investing in liquid financial assets. | 20.2 |
| Disclosure of comparative figures [text block] | 26Comparative figures Following comparative figures have been reclassified and regrouped on the face of condensed statement of income to conform to the current period presentation.For the three-month period ended September 30, 2021Reported as previouslyRestatementRestated amount Changes in unearned premiums24,16913,41937,588Changes in reinsurers’ share of unearned Premiums-(13,419)(13,419)Changes in outstanding claims11,110(328,812)(317,702)Changes in reinsurance share of outstanding Claims-328,812328,812Changes in claims incurred but not reported(9,152)(17,540)(26,692)Changes in reinsurance share of claims incurred but not reported-17,54017,540For the nine-month period ended September 30, 2021Reported as previouslyRestatementRestated amount Changes in unearned premiums(50,810)(50,777)(101,587)Changes in reinsurers’ share of unearned Premium-50,77750,777Changes in outstanding claims21,369(283,813)(262,444)Changes in reinsurance share of outstanding Claims-283,813283,813Changes in claims incurred but not reported(10,923)(21,157)(32,080)Changes in reinsurance share of claims incurred but not reported-21,15721,157 | 26 |
| Disclosure of board of director's approval of the financial statements [text block] | 28Approval of the condensed interim financial statements These condensed interim financial statements have been approved by the Board of Directors on October 30, 2022 corresponding to Rabi’ al-Akhir 05, 1444H. | 28 |
| 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 September 30, 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 |
