	English [member]
Start Date	2020-07-01	2019-07-01
End Date	2020-09-30	2019-09-30
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Amana Cooperative Insurance Co.
Company symbol code\| ISIN code	8310 \| SA12HG541R18
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Quarter 3
Reporting period start date	2020-07-01	2019-07-01
Reporting period end date	2020-09-30	2019-09-30
Description of nature of financial statements	Consolidated
Status of financial statements	Reviewed
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	English [member]
Start Date	2020-07-01
End Date	2020-09-30
Auditors report [line items]
Disclosures of auditors report [text block]	INTRODUCTION We have reviewed the accompanying interim statement of financial position of Amana Cooperative Insurance Company (the “Company”) as at 30 September 2020 and the related interim statements of income and comprehensive income for the three-month and nine-month periods then ended and interim statements of changes in equity and and cash flows for the nine-month period then ended and other explanatory notes (the “interim condensed financial information”). Management is responsible for the preparation and presentation of this interim condensed financial information in accordance with International Accounting Standard 34 - “Interim Financial Reporting” (“IAS 34”) that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on this interim condensed financial information based on our review.
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with IAS 34, that is endorsed in the Kingdom of Saudi Arabia.
Basis of opinion	SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagement 2410, “Review of interim financial information performed by the independent auditor of the antity”, that is endorsed in the Kingdom of Saudi Arabia. A review of interim condensed financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, that are endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion
Material uncertainty related to going concern	MATERIAL UNCERTAINTY RELATED TO GOING CONCERN We draw attention to Note 2 to the interim condensed financial information, which indicates, among other things that on 29 March 2020, the Company announced on Tadawul, indicating that its accumulated losses exceeded 35% of its share capital of SAR 240 million as of 31 December 2019. As of 30 September 2020, the accumulated losses represent 46% (31 Decembeer 2019: 36%) of the Company's share capital. These events and conditions indicate a material uncertainty on the Company's ability to continue as a going concern. However, various strategic options, including capital restructuring, are presently being considered by the Board of Directors to ensure the going concern of the Company. Among such strategic options, on 29 September 2020, the Boards of Directors of the Company and Saudi Enaya Cooperative Insurance Co. ("Enaya") entered into a discussion for a potential merger. If the merger is initially agreed upon, a non-binding memorandum of understanding will be signed between the Company and Enaya to assess the merger's feasibility subject to obtaining the required approvals. MATERIAL UNCERTAINTY RELATED TO GOING CONCERN (continued) Based on the above, the Company's management has assessed its ability to continue as a going concern and is satisfied that the Company's operations shall continue for the foreseeable future under the normal course of business. Accordingly, the interim condensed financial information has been prepared on the going concern basis and do not include any adjustments, which may be required, if the Company is not able to continue as a going concern. Our conclusion is not qualified in respect of this matter.
Date of signing audit report by auditor	2020-11-12

Start Date	2020-01-01	2019-01-01	2019-01-01
End Date	2020-09-30	2019-12-31	2019-09-30
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	7,525	5,970	3,939
Deferred policy acquisition costs	14,128	8,328	8,455
Reinsurers/ retakaful share of unearned premiums/ contributions	3,024	4,866	5,728
Prepayments and other assets, insurance/ takaful operations assets	21,492	17,337	18,555
Due from shareholders operations	94,602	111,315	120,097
Premiums/ insurance receivables/takaful contributions receivable, net	160,357	79,559	70,018
Reinsurers/ retakaful share of outstanding claims/ benefits, net	18,197	19,390	27,189
Available-for-sale investments, insurance/ takaful operations assets	1,923	1,923	1,923
Cash and cash equivalents, insurance/ takaful operations assets	41,556	21,230	19,865
Other assets, insurance/ takaful operations assets	423	516
Total insurance/ takaful operations assets	363,227	270,434	275,769
Shareholders assets [abstract]
Investments held-to-maturity, shareholders assets	18,826	17,375
Statutory deposit	36,000	36,000	36,000
Prepayments and other assets, shareholders assets	609	2,698	14,641
Time (Murabaha) deposits, shareholders assets	120,374	145,993	186,940
Accrued investment income	2,842	2,577	2,392
Available-for-sale investments, shareholders assets	48,943	48,640	62,787
Cash and cash equivalents, shareholders assets	10,429	23,285	1,935
Total shareholders assets	238,023	276,568	304,695
Total assets	601,250	547,002	580,464
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	167,899	100,911	99,398
Unearned commission income	717	1,057	1,224
Employees end of service benefits, insurance/ takaful operations liabilities	3,904	4,043	3,820
Surplus distribution payable	779	779	779
Reinsurers/ retakaful balance payable	4,990	12,976	2,745
Gross outstanding claims/ benefits including IBNR payable	97,836	79,830	75,494
Other technical reserves	25,580	26,360	21,946
Accrued expenses payable, insurance/ takaful operations liabilities	62,061	45,017	70,363
Other liabilities, insurance/ takaful operations	-539	-539
Total insurance/ takaful operations liabilities	363,227	270,434	275,769
Total insurance/ takaful operations liabilities and surplus (deficit)	363,227	270,434	275,769
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	4,008	2,859	19,476
Due to insurance/ takaful operations	94,602	111,315	120,097
Accrued expenses payable, shareholders liabilities	2,378	2,423	2,578
Other liabilities, shareholders liabilities	2,842	2,577	2,392
Total shareholders liabilities	103,830	119,174	144,543
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	240,000	240,000	240,000
Fair value reserve on investments, shareholders equity	4,511	3,060	1,353
Retained earnings (accumulated losses)	-110,318	-85,666	-77,354
Other equity interest			-3,847
Total equity attributable to owners of parent	134,193	157,394	160,152
Total equity attributable to equity holders of company	134,193	157,394	160,152
Total shareholders liabilities and equity	238,023	276,568	304,695
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	601,250	547,002	580,464

Start Date	2020-07-01	2019-07-01	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30	2020-09-30	2019-09-30
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	103,720	40,854	272,608	187,756
Excess of loss expense	15,368	1,224	27,346	3,924
Reinsurance/ retakaful premiums ceded	714	1,700	4,985	9,097
Net premiums/ contributions written	87,638	37,930	240,277	174,735
Changes in unearned premiums/ contributions	24,825	-14,143	68,830	34,065
Reinsurance/ retakaful share of unearned premiums/ contributions		1,977		11,460
Net premiums/ contributions earned	62,813	50,096	171,447	129,210
Reinsurance/ retakaful commissions	394	569	1,626	1,419
Investment income from insurance/ takaful operations, net	0	6	0	83
Fees and other income from insurance/ takaful operations	1,354	8,527	10,671	12,174
Total income from insurance/ takaful operations	64,561	59,198	183,744	142,886
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	60,742	57,287	156,567	127,754
Reinsurance/ retakaful share of gross claims/ benefits paid	-6,393	8,975	28,076	34,247
Net claims/ benefits paid	67,135	48,312	128,491	93,507
Changes in outstanding claims/ benefits including IBNR	5,096	-10,239	18,006	4,627
Changes in reinsurance/ retakaful share of outstanding claims/ benefits	291	1,063	1,193	5,975
Net claims/ benefits incurred	72,522	39,136	147,690	104,109
Policy acquisition costs	6,640	4,965	17,816	13,391
General and administrative expenses, insurance/ takaful operations	9,749	10,269	32,718	32,623
Other underwriting expenses	3,045	3,543	9,967	9,281
Other cost and expenses	4,416	1,813	2,752	10,796
Total cost and expenses	96,372	59,726	210,943	170,200
Surplus (deficit) for period from insurance/ takaful operations	-31,811	-528	-27,199	-27,314
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	-31,811	-528	-27,199	-27,314
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0	0	0
Policyholders share of accumulated surplus, at end of period	0	0	0	0

Start Date	2020-07-01	2019-07-01	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30	2020-09-30	2019-09-30
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	-31,811	-528	-27,199	-27,314
Revenue [abstract]
Investment income	1,409	2,033	4,704	5,689
Total revenue	1,409	2,033	4,704	5,689
Expenses [abstract]
General and administrative expenses, shareholders operations	286	-484	1,008	1,487
Total expenses	286	-484	1,008	1,487
Income (loss) from continuing operations before zakat and income tax	-30,688	1,989	-23,503	-23,112
Zakat expenses on continuing operations for period	293	9,270	1,149	9,670
Profit (loss) from continuing operations	-30,981	-7,281	-24,652	-32,782
Profit (loss) for the period	-30,981	-7,281	-24,652	-32,782
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	-30,441.9306	-7,206.7338	-24,223.0552	-32,447.6236
Profit (loss), attributable to non-saudi shareholders of company	-539.0694	-74.2662	-428.9448	-334.3764
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	-1.29	-0.32	-1.03	-1.43
Total basic earnings (loss) per share	-1.29	-0.32	-1.03	-1.43
Weighted average number of equity shares outstanding	24000000	22999118	24000000	22999118

Start Date	2020-07-01	2019-07-01	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30	2020-09-30	2019-09-30
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0	0	0
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Gains (losses) on revaluation of property and equipment	0	0	0	0
Total other comprehensive income that will not be reclassified to profit or loss	0	0	0	0
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss	0	0	0	0
Cash flow hedges [abstract]
Gains (losses) on cash flow hedges, net	0	0	0	0
Total other comprehensive income (loss), cash flow hedges	0	0	0	0
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets	0	0	0	0
Total other comprehensive income (loss), available-for-sale financial assets	0	0	0	0
Hedges of net investment in foreign operations [abstract]
Gains (losses) on hedges of net investments in foreign operations	0	0	0	0
Total other comprehensive income (loss), hedges of net investment in foreign operations	0	0	0	0
Total other comprehensive income (loss), that will be reclassified to profit or loss	0	0	0	0
Total other comprehensive income (loss)	0	0	0	0
Total comprehensive income (loss) for period	0	0	0	0

Start Date	2020-07-01	2019-07-01	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30	2020-09-30	2019-09-30
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	-30,981	-7,281	-24,652	-32,782
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Gains (losses) on revaluation of property, plant and equipment	0	0	0	0
Total other comprehensive income that will not be reclassified to profit or loss	0	0	0	0
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Share of other comprehensive income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss	0	0	0	0
Foreign currency translation [abstract]
Other comprehensive income, foreign currency translation	0	0	0	0
Total other comprehensive income (loss), foreign currency translation	0	0	0	0
Cash flow hedges [abstract]
Gains (losses) on cash flow hedges, net	0	0	0	0
Total other comprehensive income (loss), cash flow hedges	0	0	0	0
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets		0	0	1,236
Total other comprehensive income (loss), available-for-sale financial assets		0	0	1,236
Hedges of net investment in foreign operations [abstract]
Gains (losses) on hedges of net investments in foreign operations	0	0	0	0
Total other comprehensive income (loss), hedges of net investment in foreign operations	0	0	0	0
Total other comprehensive income (loss), that will be reclassified to profit or loss	0	0	0	1,236
Total other comprehensive income (loss)	0	0	0	1,236
Total comprehensive income (loss) for period	-30,981	-7,281	-24,652	-31,546
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	-30,441.9306	-7,206.7338	-24,223.0552	-31,224.2308
Total comprehensive income (loss), attributable to non-saudi shareholders of company	-539.0694	-74.2662	-428.9448	-321.7692
Total comprehensive income (loss), attributable to non-controlling interests	0	0	0	0

Start Date	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	0	0
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	1,259	1,196
Adjustments for employees end of service benefits	1,379	1,146
Adjustments for allowance for doubtful receivables	3,532	6,226
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	6,170	8,568
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-84,330	-54,725
Adjustments for decrease (increase) in prepayments and other assets	-4,155	-148
Adjustments for increase (decrease) in outstanding claims including IBNR	18,006	4,627
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	-7,986	-21,191
Adjustments for increase (decrease) in accrued expenses and other liabilities	17,255	18,399
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	1,193	6,082
Adjustments for decrease (increase) in deferred policy acquisition costs	-5,800	-3,059
Adjustments for decrease (increase) in unearned commission income	-340	340
Adjustments for decrease (increase) in due from shareholders operations	16,713	-13,323
Adjustments for movement in gross unearned premiums/ contributions	66,988	34,064
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	1,842	11,461
Adjustment for changes in other technical reserves	-780	4,463
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	-211	157
Total changes in operating assets and liabilities	18,395	-12,853
Net cash flows from (used in) insurance/ takaful operations	24,565	-4,285
Other inflows (outflows) of cash classified as operating activities, insurance/ takaful operations cash flow	-1,518	-89
Net cash flows from (used in) operating activities, insurance/ takaful operations	23,047	-4,374
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Purchase of property and equipment, insurance/ takaful operations cash flow	2,721	1,696
Net cash flows from (used in) investing activities, insurance/ takaful operations	-2,721	-1,696
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Adjustments for decrease (increase) in due from shareholders operations	0	0
Net cash flows from (used in) financing activities, insurance/ takaful operations	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	20,326	-6,070
Net increase (decrease) in cash and cash equivalents	20,326	-6,070
Cash and cash equivalents at beginning of period	21,230	25,935
Cash and cash equivalents at end of period	41,556	19,865

Start Date	2020-01-01	2019-01-01
End Date	2020-09-30	2019-09-30
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	-23,503	-23,112
Net profit (loss) for period (before zakat expenses and income tax)	-23,503	-23,112
Adjustments to reconcile profit (loss) [abstract]
Adjustments for unrealised loss (gain) on investments held as fair value through statement of income, shareholders cash flow	-303	134
Total adjustments to reconcile profit (loss)	-303	134
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	-45	-1,671
Adjustments for increase (decrease) in due to insurance/ takaful operations	-16,713	13,323
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	2,089	-2,700
Total changes in operating assets and liabilities	-14,669	8,952
Net cash flows from (used in) operations	-38,475	-14,026
Zakat expenses	0	75
Net cash flows from (used in) operating activities	-38,475	-14,101
Cash flows from (used in) investing activities [abstract]
Purchase of investments	10,000	7,663
Proceeds form Murabaha/ time deposits matured during the period	35,619
Purchase of term deposits investments		74,590
Net cash flows from (used in) investing activities	25,619	-82,253
Cash flows from (used in) financing activities [abstract]
Proceeds from issuing shares	0	100,000
Other inflows (outflows) of cash	0	-15,000
Net cash flows from (used in) financing activities	0	85,000
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-12,856	-11,354
Net increase (decrease) in cash and cash equivalents	-12,856	-11,354
Cash and cash equivalents at beginning of period	23,285	13,289
Cash and cash equivalents at end of period	10,429	1,935

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2020-07-01

End Date

2020-09-30

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]


1	ORGANIZATION AND PRINCIPAL ACTIVITIES

Amana Cooperative Insurance Company (the “Company”) is a Saudi joint stock company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/35 dated Jumada Al-Akher 3, 1431 H (corresponding to May 17, 2010), and registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010288711 dated Jumada Al-Akher 10, 1431 H (corresponding to May 24, 2010). The Company’s head office is at Salah-uddin Al-Ayubi Street P.O. Box 27986, Riyadh 11427, Kingdom of Saudi Arabia (KSA).






The objective of the Company is to engage in providing insurance services in accordance with its Articles of Association and By-laws and the applicable regulations in the KSA.


On 31 July 2003, corresponding to 2 Jumada II 1424H, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). During March 2008, the Saudi Arabian Monetary Authority (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the KSA.





It was approved to update the Company’s by-laws to comply with the new companies’ regulations, issued by royal decree no.m/3 on 28/01/1437 H and this is as per the extraordinary general assembly meeting on 23/09/1438 H, corresponding 18 June 2017.

Disclosure of basis of preparation of financial statements [text block]

BASIS OF PREPARATION

(a)

Basis of presentation and measurement

The interim condensed financial information (interim condensed financial statements) of the Company as at and for the period ended 30 September 2020 have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) as endorsed in Kingdom of Saudi Arabia and other standards and other pronouncements issued by the Saudi Organization of Certified Public Accountants (“SOCPA”).

The interim condensed financial statements have been prepared under the going concern basis and the historical cost basis except for the measurement at fair value of “available-for-sale investments” and employees end-of-service benefits at present value.

The Company presents its interim condensed statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed financial statements accordingly (note 19). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.

The interim condensed statement of financial position, interim condensed statement of income, interim condensed statement of comprehensive income and interim condensed statement of cash flows of the insurance operations and shareholders operations which are presented in Note 19 of the interim condensed financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim condensed statements of financial position, interim condensed statements of income, interim condensed statement of comprehensive income and interim condensed statement of cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.

BASIS OF PREPARATION (CONTINUED)

(a)

Basis of presentation and measurement (continued)

In preparing the Company-level financial statements in compliance with IFRSs, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances and transactions are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders operations are uniform for like transactions and events in similar circumstances.

The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at 31 December 2019.

(b)

Functional and presentation currency

The interim condensed financial statements have been prepared in Saudi Arabian Riyals (SR), which is also the functional currency of the Company. All financial information presented in SR has been rounded off to the nearest thousand, unless otherwise stated.

(c)

Critical accounting judgments, estimates and assumptions

The preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim condensed financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2019.

Going concern

On 29 March 2020, the Company announced on Tadawul, indicating that its accumulated losses exceeded 35% of its share capital of SAR 240 million as of 31 December 2020. As of 30 September 2020, the accumulated losses represent 46% (31 December 2019: 36%) of the Company's share capital. These events and conditions indicate a material uncertainty on the Company's ability to continue as a going concern. However, various strategic options, including capital restructuring, are presently being considered by the Board of Directors to ensure the going concern of the Company. Among such strategic options, on 29 September 2020, the Boards of Directors of the Company and Saudi Enaya Cooperative Insurance Co. ("Enaya") enter into a discussion for a potential merger. If the merger is initially agreed upon, a non-binding memorandum of understanding will be signed between the Company and Enaya to assess the merger's feasibility subject to obtaining the required approvals.

Based on the above, the Company's management has assessed its ability to continue as a going concern and is satisfied that the Company's operations shall continue for the foreseeable future under the normal course of business. Accordingly, the interim condensed financial statements have been prepared on the going concern basis and do not include any adjustments, which may be required, if the Company is not able to continue as a going concern.

Impact of COVID-19 on the medical technical reserves, premium deficiency reserve and financial assets

On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“COVID-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, issued social distancing guidelines and enforced country wide lockdowns and curfews.

In response to the spread of the Covid-19 virus, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure:

- the health and safety of its employees and the wider community where it is operating.

- the continuity of its business throughout the Kingdom is protected and kept intact.

The major impact of Covid-19 pandemic is seen in medical and motor line of business as explained below. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.

BASIS OF PREPARATION (CONTINUED)

(c)

Critical accounting judgments, estimates and assumptions (continued)

Impact of COVID-19 on the medical technical reserves, premium deficiency reserve and financial assets (continued)

Medical technical reserves

Based on the management’s assessment, the management believes that the Government’s decision to assume the medical treatment costs for both Saudi citizens and expatriates has helped in reducing any unfavourable impact. During the lockdown, the Company saw a decline in medical reported claims (majorly elective and non-chronic treatment claims) which resulted in a drop in claims experience. However, subsequent to the lifting of lockdown since June 21, 2020, the Company is experiencing a surge in claims which is in line with the expectations of the Company’s management. The Company’s management has duly considered the impact of surge in claims in the current estimate of future contractual cashflows of the insurance contracts in force as at September 30, 2020 for its liability adequacy test. Based on the results, the Company had and impact on premium deficiency reserve amounting to SR 1.54 million.

Motor technical reserves

In response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the circular instructed insurance companies to extend the period of validity of all existing retail motor insurance policies by further two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular.

The Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and concluded, that the Company considers the extension of two months in exiting motor policies as new policy and had an impact in premium deficiency reserve amounting to SR 0.11 million, based on the expected claims for the extended 2 months period.

For new policies written as per above circular, the premium is earned over the period of coverage i.e 14 month as per the Company accounting policy. There is no significant impact of two month extension in earned premium as of September 30, 2020 as no material amounts of premium have been written during the one month period.

Financial assets

The Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets are impaired. These include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the company has performed an assessment to determine whether there is a significant decline or prolonged decline in the fair value of financial assets below their cost. Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three-month and nine-month periods ended 30 September 2020. The Company’s management continues to monitor the situation closely.

Disclosure of issued IFRS not yet adopted [text block]

4	SIGNIFICANT ACCOUNTING POLICIES AND NEW STANDARDS ISSUED BUT NOT YET EFFECTIVE


(a)	Significant accounting policies

The accounting policies adopted in the preparation of these interim condensed financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2019. There are no new standards issued, however, there are number of amendments to standards which are effective from 1 January 2020 and has been explained in Company's annual Financial Statements, but they do not have a material effect on the Company’s Interim Condensed Financial Statements. The Company has not early adopted any standard (interpretation) or amendments that has been issued but which are not yet effective.






The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's interim financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.



IFRS 9 Financial Instruments

IFRS 9, as issued, reflects the first phase of the IASB's work though the adoption date is subject to the recently issued Exposure Draft on the replacement of IAS 39 and applies to classification and measurement of financial assets and liabilities as defined in IAS 39. The standard was initially effective for annual periods beginning on or after 1 January 2013, but Amendments to IFRS 9 Mandatory Effective Date of IFRS 9 and Transition Disclosures, issued in December 2011, moved the mandatory effective date to 1 January 2015.





However, on 19 November 2013, the IASB issued IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9) amending IFRS 9 to include the new general hedge accounting model. In its February 2014 meeting, the IASB decided that IFRS 9 would be mandatorily effective for annual reporting periods beginning on or after 1 January 2018 with an optional temporary exception to defer the application of IFRS 9 till 1 January 2022 for companies whose activities are predominantly connected with insurance. In line with other insurance companies in the Kingdom of Saudi Arabia, the Company deferred the application of IFRS 9 till 1 January 2023 to match with the adoption of IFRS 17.







IFRS 17 Insurance Contracts

The IASB issued IFRS 17 in May 2017. IFRS 17 will be mandatorily effective for annual reporting periods beginning on or after 1 January 2023. Once effective, IFRS 17 replaces IFRS 4 Insurance Contracts that was issued in 2005. The overall objective of IFRS 17 is to provide a more useful and consistent accounting model for insurance contracts among entities issuing insurance contracts globally. The Company is in the process of assessing the impact of IFRS 17.

Disclosure of notes forming part of accounts [abstract]

Disclosure of investments [text block]

8	INVESTMENTS

Investments are classified as follows:

		30 September 2020 (Unaudited)			31 December 2019 (Audited)
		Insurance operations	Shareholders' operations	Total	Insurance operations	Shareholders' operations	Total
		SR '000			SR '000

Investments
Available-for-sale		1,923	18,826	20,749	1,923	17,375		19,298
Held-to-maturity		-	48,943	48,943	-	48,640		48,640

		1,923	67,769	69,692	1,923	66,015		67,938

								13


8	INVESTMENTS (CONTINUED)
Insurance Operations
Available-for-sale investment represents unquoted securities amounted to SR 1.9 million in respect of the Company’s share in the capital of Najm for Insurance Services Company and represents a 3.85% of share holding.



Shareholders' Operations
Investments for shareholders’ operations comprised as follows:						30 September 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Available-for-sale investments - Listed shares and REIT Funds (Domestic)						18,826		17,375
Held-to-maturity investments - Debt instruments (Domestic)*						43,816		43,587
Held-to-maturity investments - Debt instruments (International) *						5,127		5,053

						67,769		66,015

*The investment represents sukuks earning average profit at a rate of 3.45% per annum (2019: 3.45% per annum) having maturities upto 20 April 2027. The fair value of the Held-to-Maturity investments as at 30 September 2020 was not materially different from its carrying value.



The movements in available-for-sale investments for shareholders’ operations are as follows:

						30 September 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Balance at the beginning of the period / year						17,375		6,548
Additions						-		9,212
Change in fair value of available-for-sale investments						1,451		2,951
Transferred from fair value reserve to income for the year						-		(8)
Disposals at cost						-		(1,328)

Balance at the end of the period / year						18,826		17,375

The movements in held-to-maturity investments for shareholders’
operations are as follows:

Balance at the beginning of the period / year						48,640		47,172
Amortization for the period / year						303		1,468

Balance at the end of the period / year						48,943		48,640

Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block]

7	PREMIUMS AND REINSURERS' RECEIVABLE - NET

		30 September 2020 (Unaudited)	31 December 2019 (Audited)
Receivables comprise of the amounts due from the following:		SR '000		SR '000

Policyholders		61,809		30,200
Brokers and agents		86,151		39,761
Related parties (Note 17)		736		1,211
Reinsurers		42,131		35,325
		190,827		106,497
Less: provision for doubtful receivables		(30,470)		(26,938)
Premiums and reinsurers’ receivable – net		160,357		79,559

The movement in the provision for doubtful receivables is as follows:
Balance at the beginning of the period / year		26,938		24,415
Charge made during the period / year		3,532		2,523
Balance at the end of the period / year		30,470		26,938

Disclosure of cash and cash equivalents [text block]

5	CASH AND CASH EQUIVALENTS

		30 September 2020 (Unaudited)			31 December 2019 (Audited)
		Insurance operations	Shareholders' operations	Total	Insurance operations	Shareholders' operations	Total
		SR '000			SR '000
Cash at bank		41,556	10,429	51,985	21,230	23,285		44,515
		41,556	10,429	51,985	21,230	23,285		44,515

Bank balances are placed with counterparties with sound credit ratings under Standard and Poor’s and Moody’s ratings methodology.


The carrying amounts disclosed above reasonably approximate their fair values at the reporting date.

6	DEPOSITS

(a)	Short term deposits

Short term deposits are placed with local banks with an original maturity of more than three months from the date of acquisition and earning profit at an average rate 2.2% per annum (31 December 2019: 3.1% per annum). The carrying amounts of short term deposits reasonably approximate their fair values at the reporting date.



(b)	Long term deposits

Long-term deposits represents murabaha deposit with an original maturity of more than one year from the date of acquisition earning profit at a rate of 4.6% per annum (31 December 2019: 5.35% per annum). The carrying amounts of the deposits reasonably approximate their fair values at the reporting date.



Both short term and long term deposits are placed with counterparties with sound credit ratings under Standard and Poor’s and Moody’s ratings methodology.

5, 6

Disclosure of statutory deposit [text block]

14	STATUTORY DEPOSIT

Statutory deposit represents 15% of the paid up capital of the Company which is maintained with local bank designated by SAMA in accordance with the Cooperative Insurance Companies Control Law for insurance companies. This statutory deposit cannot be withdrawn without the consent of SAMA.

Disclosure of gross unearned premiums/ contributions [text block]

10	TECHNICAL RESERVES

(a)	Net Outstanding Claims and Reserves					30 September 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000

Outstanding claims						52,770		51,474
Claims incurred but not reported						45,066		28,356
Premium deficiency reserve						21,744		15,420
Other technical reserves						3,836		10,940

						123,416		106,190
Less:
Reinsurers’ share of outstanding claims						(15,454)		(15,641)
Reinsurers’ share of claims incurred but not reported						(2,743)		(3,749)

						(18,197)		(19,390)

Net outstanding claims and other reserves						105,219		86,800

								15
10	TECHNICAL RESERVES (CONTINUED)

(b)	Movement in unearned premiums	30 September 2020 (Unaudited)			31 December 2019 (Audited)
		Gross	Reinsurance	Net	Gross	Reinsurance		Net
		SR '000			SR '000

Balance at the beginning of		100,911	(4,866)	96,045	65,334	(17,189)		48,145
the period / year
Premiums written during the		272,608	(4,985)	267,623	248,054	(10,461)		237,593
period / year
Excess of loss expense		-	(27,346)	(27,346)	-	(6,023)		(6,023)
Premiums earned during the		(205,620)	34,173	(171,447)	(212,477)	28,807		(183,670)
Balance at the end of the
period / year		167,899	(3,024)	164,875	100,911	(4,866)		96,045


(c)	Unearned reinsurance commission					30 September 2020 (Unaudited)	31 December 2019 (Audited)
						SR '000		SR '000
Balance at the beginning of the period / year						1,057		884
Reinsurance commission received during the period / year						1,286		2,148
Reinsurance commission earned during the period / year						(1,626)		(1,975)

Balance at the end of the period / year						717		1,057

(d)	Movement in deferred policy acquisition costs

Balance at the beginning of the period / year						8,328		5,396
Incurred during the period / year						23,616		20,442
Amortized during the period / year						(17,816)		(17,510)

Balance at the end of the period / year						14,128		8,328

Disclosure of zakat [text block]

11	PROVISION FOR ZAKAT	30 September 2020 (Unaudited)	31 December 2019 (Audited)
		SR '000		SR '000
Balance at the beginning of the period / year		2,859		9,516

Charge for the period / year		1,149		797
Charge for prior periods / year		-		8,744

		1,149		9,541
Paid during the period / year		-		(16,198)

Balance at the end of the period / year		4,008		2,859

The Company has filed its Zakat returns to General Authority for Zakat and Tax ("GAZT") till the year 2019. All the assessments upto the year 2016 have been duly settled with GAZT and there are no assessments for the year 2017 onwards. During the period ended September 30, 2020, the Company has received request from the GAZT for documents regarding Zakat and Tax returns for the year 2017/18 which may lead to Zakat and Tax assessments. On May 4, 2020, the Company has also received assessments along with penalties in respect of value added taxes ("VAT") for the year 2018-19 amounting to SR 1.61 million, for which the Company has filed objection with the relevant authorities and expects favorable outcome.

Disclosure of classes of share capital [text block]

SHARE CAPITAL

The authorized, issued and paid up share capital of the Company is SR 240 million as at 30 September 2020 (31 December 2019: SR 240 million) consisting of 24 million shares (31 December 2019: 24 million shares) of SR 10 each.

Disclosure of earnings per share [text block]

15	BASIC AND DILUTED LOSS PER SHARE

Basic and diluted loss per share for the period has been calculated by dividing the net income or loss for the period after zakat by the weighted average number of issued and outstanding shares as at the period end. The weighted average number of shares has been computed as follows:



		Number of shares in '000
		30 September 2020 (Unaudited)	30 September 2019 (Unaudited)

Weighted average number of shares outstanding		24,000	14,000
Effects of right issued		-	8,625
Weighted average number of shares outstanding		24,000	22,625

Disclosure of related party transactions [text block]

17	RELATED PARTY TRANSACTIONS AND BALANCES

Related parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the year and the related balances:





DUE FROM RELATED PARTIES		Amounts of transactions		Balances as at
		30 September 2020 (Unaudited)	30 September 2019 (Unaudited)	30 September 2020 (Unaudited)	31 December 2019 (Audited)
		SR '000	SR '000	SR '000	SR '000
Entities controlled, jointly controlled or significantly influenced by related parties


El Seif companies group
- Insurance premium written		27,494	34,547	379	755
- Paid claims		12,230	11,669	-	-
		39,724	46,216	379	755

El Tukhy companies group
- Insurance premium written		-	7	357	456
- Paid claims		-	65	-	-
		-	72	357	456
Total (Note 7)		39,724	46,288	736	1,211


Less: provision for doubtful receivables				(80)	(408)
Due from related parties, net				656	803



					18
17	RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED)

The movement in the provision for doubtful receivables regarding related parties was as following:

				30 September 2020 (Unaudited)	31 December 2019 (Audited)
				SR '000	SR '000

Balance at the beginning of the period / year				408	535
Reversal during the period / year				(328)	(127)
Balance at the end of the period / year				80	408

DUE TO RELATED PARTIES
		Amounts of transactions		Balances as at
		30 September 2020 (Unaudited)	30 September 2019 (Unaudited)	30 September 2020 (Unaudited)	31 December 2019 (Audited)
		SR '000	SR '000	SR '000	SR '000

Board of Directors & related committee
Bonus and other allowances		874	-	1,181	1,451

Globe-Med (Group entity)
Administration fees for handling medical claims and others		8,665	7,418	5,892	2,325

		9,539	7,418	7,073	3,776

Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer, and the Chief Financial Officer of the Company.



The compensation of key management personnel during the period is as follows:

				30 September 2020 (Unaudited)	30 September 2019 (Unaudited)
				SR '000	SR '000

Salaries and other allowances				3,016	3,476
End of service indemnities				226	145
				3,242	3,621

Disclosure of entity's operating segments [text block]

18	SEGMENT INFORMATION

Consistent with the Company’s internal reporting process, insurance operating segments have been approved by Management in respect of the Company’s activities, assets and liabilities as stated below.


Segment results do not include general and administrative expenses, allowance for doubtful debts. Accordingly, they are included in unallocated expenses or income.

18	SEGMENT INFORMATION (CONTINUED)

Segment assets do not include insurance operations’ property and equipment, investments, prepayments and other assets, premiums and reinsurance balances receivable, cash and cash equivalents and time deposits. Accordingly they are included in unallocated assets. Segment liabilities do not include employees’ end-of-service benefits, and reinsurance balances payable, accrued expenses and other liabilities and accrued surplus to policyholders. Accordingly they are included in unallocated liabilities.




		For the three-months period ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		11,983		-		-	-	11,983	-	11,983
- Medium		14,024		350		452	-	14,826	-	14,826
- Small		3		2,477		233	-	2,713	-	2,713
- Very small		16,118		1,401		388	-	17,907	-	17,907
- Individual		55,883		408		-	-	56,291	-	56,291
		98,011		4,636		1,073	-	103,720	-	103,720
Reinsurance premiums ceded
- Local		-		-		(43)	-	(43)	-	(43)
- International (includes premium ceded through local broker)		-		-		(671)	-	(671)	-	(671)

Excess of loss expenses		(14,994)		(316)		(58)	-	(15,368)	-	(15,368)

Net premiums written		83,017		4,320		301	-	87,638	-	87,638

Changes in unearned premiums - net		(25,504)		(243)		922	-	(24,825)	-	(24,825)
Net premiums earned		57,513		4,077		1,223	-	62,813	-	62,813
Reinsurance commissions		-		-		394	-	394	-	394
Other underwriting income		1,332		-		22	-	1,354	-	1,354

Total revenues		58,845		4,077		1,639	-	64,561	-	64,561
										20
18	SEGMENT INFORMATION (CONTINUED)

		For the three-months period ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment

Underwriting costs and expenses
Gross claims paid		(59,158)		(1,596)		12	-	(60,742)	-	(60,742)
Reinsurers' share of claims paid		(6,470)		57		20	-	(6,393)	-	(6,393)

Net claims paid		(65,628)		(1,539)		32	-	(67,135)	-	(67,135)
Changes in outstanding claims		(726)		(511)		799	-	(438)	-	(438)
Changes in reinsurers' share of outstanding claims		116		(107)		(722)	-	(713)	-	(713)
Changes in claims incurred but not reported		(3,511)		(392)		(755)	-	(4,658)	-	(4,658)
Changes in reinsurers' share of claims incurred		(266)		(36)		724	-	422	-	422
but not reported

Net claims incurred		(70,015)		(2,585)		78	-	(72,522)	-	(72,522)
Changes in premiums deficiency reserve		(9,804)		50		-	-	(9,754)	-	(9,754)
Changes in other technical reserves		7,232		(23)		98	-	7,307	-	7,307
Policy acquisition costs		(5,875)		(448)		(317)	-	(6,640)	-	(6,640)
Inspection and supervision fees		(2,722)		(277)		(46)	-	(3,045)	-	(3,045)

Total underwriting costs and expenses		(81,184)		(3,283)		(187)	-	(84,654)	-	(84,654)

Net underwriting (loss) / income		(22,339)		794		1,452	-	(20,093)	-	(20,093)






										21
18	SEGMENT INFORMATION (CONTINUED)

		For the three-months period ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Allowance for doubtful debts		-		-		-	(1,969)	(1,969)	-	(1,969)
General and administrative expenses		-		-		-	(9,749)	(9,749)	(286)	(10,035)
Dividends and investment income		-		-		-	-	-	1,409	1,409
Total other operating (expenses) / income		-		-		-	(11,718)	(11,718)	1,123	(10,595)
Total (loss) / income before zakat		(22,339)		794		1,452	(11,718)	(31,811)	1,123	(30,688)
Zakat charge		-		-		-	-	-	(293)	(293)

Net (loss) / income after zakat		(22,339)		794		1,452	(11,718)	(31,811)	830	(30,981)
Total income for the period attributed to the insurance operations		-		-		-	-	-	-	-

deficit / (Surplus) transferred to shareholders		22,339		(794)		(1,452)	11,718	31,811	(31,811)	-

Net loss attributable to the shareholders after zakat
		-		-		-	-	-	(30,981)	(30,981)








										22
18	SEGMENT INFORMATION (CONTINUED)

		For the three-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		8,929		283		2,498	-	11,710	-	11,710
- Medium		6,661		434		187	-	7,282	-	7,282
- Small		5,020		292		335	-	5,647	-	5,647
- Very small		16,054		-		8	-	16,062	-	16,062
- Individual		-		153		-	-	153	-	153
Gross premiums written		36,664		1,162		3,028	-	40,854	-	40,854
Reinsurance premiums ceded
- Local		-		-	-	(48)	-	(48)	-	(48)
- International (includes premium ceded through local broker)		-	-	-		(1,652)	-	(1,652)	-	(1,652)

Excess of loss expenses		(960)		(204)		(60)	-	(1,224)	-	(1,224)

Net premiums written		35,704		958		1,268	-	37,930	-	37,930

Changes in unearned premiums - net		10,655		1,573		(62)	-	12,166	-	12,166
Net premiums earned		46,359		2,531		1,206	-	50,096	-	50,096
Reinsurance commissions		-		-		569	-	569	-	569
Other underwriting income		7,717		767		43	-	8,527	-	8,527

Total revenues		54,076		3,298		1,818	-	59,192	-	59,192



										23
18	SEGMENT INFORMATION (CONTINUED)

		For the three-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Underwriting costs and expenses
Gross claims paid		(54,682)		(2,558)		(47)	-	(57,287)	-	(57,287)
Reinsurers' share of claims paid		8,819		94		62	-	8,975	-	8,975
		3
Net claims paid		(45,863)		(2,464)		15	-	(48,312)	-	(48,312)
Changes in outstanding claims		3,929		7,304		(335)	-	10,898	-	10,898
Changes in reinsurers' share of outstanding claims		3,446		(2,516)		385		1,315	-	1,315
Changes in claims incurred but not reported		(949)		(276)		566	-	(659)	-	(659)
Changes in reinsurers' share of claims incurred		(2,023)		165		(520)	-	(2,378)	-	(2,378)
but not reported
Net claims incurred		(41,460)		2,213		111	-	(39,136)	-	(39,136)
Changes in premiums deficiency reserve		(1,091)		250		-	-	(841)	-	(841)
Changes in other technical reserves		-		(47)		(60)	-	(107)	-	(107)
Policy acquisition costs		(4,322)		(249)		(394)	-	(4,965)	-	(4,965)
Inspection and supervision fees		(3,354)		(153)		(36)	-	(3,543)	-	(3,543)
Total underwriting costs and expenses		(50,227)		2,014		(379)	-	(48,592)	-	(48,592)
Net underwriting income		3,849		5,312		1,439	-	10,600	-	10,600






										24
18	SEGMENT INFORMATION (CONTINUED)

		For the three-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Allowance for doubtful debts		-		-		-	(865)	(865)	-	(865)
General and administrative expenses		-		-		-	(10,269)	(10,269)	484	(9,785)
Dividends and investment income		-		-		-	6	6	2,033	2,039
Total other operating (expenses) / income		-		-		-	(11,128)	(11,128)	2,517	(8,611)
Total income / (loss) before zakat		3,849		5,312		1,439	(11,128)	(528)	2,517	1,989
Zakat charge		-		-		-	-	-	(9,270)	(9,270)

Net income / (loss) after zakat		3,849		5,312		1,439	(11,128)	(528)	(6,753)	(7,281)
(Surplus) / Deficit transferred to shareholders		(3,849)		(5,312)		(1,439)	11,128	528	(528)	-

Net loss attributable to the shareholders after zakat
		-		-		-	-	-	(7,281)	(7,281)









										25
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-month periods ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		69,663		7,930		6,278	-	83,871	-	83,871
- Medium		39,156		1,892		861	-	41,909	-	41,909
- Small		29,189		4,025		477	-	33,691	-	33,691
- Very small		53,444		1,443		402	-	55,289	-	55,289
- Individual		55,883		1,965		-	-	57,848	-	57,848
		247,335		17,255		8,018	-	272,608	-	272,608
Reinsurance premiums ceded
- Local		-		-		(109)	-	(109)	-	(109)
- International (includes premium ceded through local broker)		-		-		(4,876)	-	(4,876)	-	(4,876)

Excess of loss expenses		(25,294)		(724)		(1,328)	-	(27,346)	-	(27,346)

Net premiums written		222,041		16,531		1,705	-	240,277	-	240,277

Changes in unearned premiums - net		(61,654)		(724)		(6,452)	-	(68,830)	-	(68,830)
Net premiums earned		160,387		15,807		(4,747)	-	171,447	-	171,447
Reinsurance commissions		-		-		1,626	-	1,626	-	1,626
Other underwriting income		8,260		390		2,021	-	10,671	-	10,671

Total revenues		168,647		16,197		(1,100)	-	183,744	-	183,744




										26
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-month periods ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment

Underwriting costs and expenses
Gross claims paid		(152,252)		(4,088)		(227)	-	(156,567)	-	(156,567)
Reinsurers' share of claims paid		27,679		162		235	-	28,076	-	28,076

Net claims paid		(124,573)		(3,926)		8	-	(128,491)	-	(128,491)
Changes in outstanding claims		(472)		(1,393)		569	-	(1,296)	-	(1,296)
Changes in reinsurers' share of outstanding claims		418		(66)		(539)	-	(187)	-	(187)
Changes in claims incurred but not reported		(16,304)		159		(565)	-	(16,710)	-	(16,710)
Changes in reinsurers' share of claims incurred		(1,576)		(248)		818	-	(1,006)	-	(1,006)
but not reported

Net claims incurred		(142,507)		(5,474)		291	-	(147,690)	-	(147,690)
Changes in premiums deficiency reserve		(6,939)		518		97	-	(6,324)	-	(6,324)
Changes in other technical reserves		7,169		(31)		(34)	-	7,104	-	7,104
Policy acquisition costs		(15,634)		(1,049)		(1,133)	-	(17,816)	-	(17,816)
Inspection and supervision fees		(9,458)		(462)		(47)	-	(9,967)	-	(9,967)

Total underwriting costs and expenses		(167,369)		(6,498)		(826)	-	(174,693)	-	(174,693)

Net underwriting income / (loss)		1,278		9,699		(1,926)	-	9,051	-	9,051






										27
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-months period ended 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Allowance for doubtful debts		-		-		-	(3,532)	(3,532)	-	(3,532)
General and administrative expenses		-		-		-	(32,718)	(32,718)	(1,008)	(33,726)
Dividends and investment income		-		-		-	-	-	4,704	4,704
Total other operating (expenses) / income		-		-		-	(36,250)	(36,250)	3,696	(32,554)
Total income / (loss) before zakat		1,278		9,699		(1,926)	(36,250)	(27,199)	3,696	(23,503)
Zakat charge		-		-		-	-	-	(1,149)	(1,149)

Net income / (loss) after zakat		1,278		9,699		(1,926)	(36,250)	(27,199)	2,547	(24,652)
Total income for the period attributed to the insurance operations		-		-		-	-	-	-	-

(Surplus) / deficit transferred to shareholders		(1,278)		(9,699)		1,926	36,250	27,199	(27,199)	-

Net loss attributable to the shareholders after zakat
		-		-		-	-	-	(24,652)	(24,652)








										28
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Revenues
Gross premiums written
- Corporate		71,039		5,089		10,110	-	86,238	-	86,238
- Medium		27,273		1,755		690	-	29,718	-	29,718
- Small		15,763		833		500	-	17,096	-	17,096
- Very small		54,119		21		17	-	54,157	-	54,157
- Individual		-		547		-	-	547	-	547
		168,194		8,245		11,317	-	187,756	-	187,756
Reinsurance premiums ceded
- Local		-		-	-	(1,003)	-	(1,003)	-	(1,003)
- International (includes premium ceded through local broker)		(1,246)	-	-		(6,848)	-	(8,094)	-	(8,094)

Excess of loss expenses		(2,880)		(825)		(219)	-	(3,924)	-	(3,924)

Net premiums written		164,068		7,420		3,247	-	174,735	-	174,735

Changes in unearned premiums - net		(45,391)		436		(570)	-	(45,525)	-	(45,525)
Net premiums earned		118,677		7,856		2,677	-	129,210	-	129,210
Reinsurance commissions		-		-		1,419	-	1,419	-	1,419
Other underwriting income		9,907		2,022		245	-	12,174	-	12,174

Total revenues		128,584		9,878		4,341	-	142,803	-	142,803



										29
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Underwriting costs and expenses
Gross claims paid		(119,720)		(8,305)		271	-	(127,754)	-	(127,754)
Reinsurers' share of claims paid		33,390		823		34	-	34,247	-	34,247

Net claims paid		(86,330)		(7,482)		305	-	(93,507)	-	(93,507)
Changes in outstanding claims		5,285		6,627		(226)	-	11,686	-	11,686
Changes in reinsurers' share of outstanding claims		(846)		(1,711)		323		(2,234)	-	(2,234)
Changes in claims incurred but not reported		(20,967)		2,539		2,115	-	(16,313)	-	(16,313)
Changes in reinsurers' share of claims incurred		(323)		(1,457)		(1,961)	-	(3,741)	-	(3,741)
but not reported
Net claims incurred		(103,181)		(1,484)		556	-	(104,109)	-	(104,109)
Changes in premiums deficiency reserve		(7,069)		436		1,941	-	(4,692)	-	(4,692)
Changes in other technical reserves		-		-		122	-	122	-	122
Policy acquisition costs		(11,876)		(746)		(769)	-	(13,391)	-	(13,391)
Inspection and supervision fees		(8,424)		(453)		(404)	-	(9,281)	-	(9,281)
Total underwriting costs and expenses		(130,550)		(2,247)		1,446	-	(131,351)	-	(131,351)
Net underwriting (loss) / income		(1,966)		7,631		5,787	-	11,452	-	11,452






										30
18	SEGMENT INFORMATION (CONTINUED)

		For the nine-months period ended 30 September 2019 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Other operating (expenses) / income
Allowance for doubtful debts		-		-		-	(6,226)	(6,226)	-	(6,226)
General and administrative expenses		-		-		-	(32,623)	(32,623)	(1,487)	(34,110)
Dividends and investment income		-		-		-	83	83	5,689	5,772
Investments
Total other operating (expenses) / income		-		-		-	(38,766)	(38,766)	4,202	(34,564)
Total (loss) / income before zakat		(1,966)		7,631		5,787	(38,766)	(27,314)	4,202	(23,112)
Zakat charge		-		-		-	-	-	(9,670)	(9,670)

Net (loss) / income after zakat		(1,966)		7,631		5,787	(38,766)	(27,314)	(5,468)	(32,782)
Deficit / (surplus) transferred to shareholders		1,966		(7,631)		(5,787)	38,766	27,314	(27,314)	-

Net loss attributable to the shareholders after zakat
		-		-		-	-	-	(32,782)	(32,782)







										31

18	SEGMENT INFORMATION (CONTINUED)

		As at 30 September 2020 (Unaudited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment
Assets
Cash and cash equivalents		-		-		-	41,556	41,556	10,429	51,985
Premiums and reinsurers' receivable - net		99,316		8,513		2,145	50,383	160,357	-	160,357
Reinsurers' share of unearned premiums		-		-		3,024	-	3,024	-	3,024
Reinsurers' share of outstanding claims		6,067		9,169		218	-	15,454	-	15,454
Reinsurers' share of claims incurred but not reported		183		16		2,544	-	2,743	-	2,743
Deferred policy acquisition costs		12,565		1,084		479	-	14,128	-	14,128
Investments		-		-		-	1,923	1,923	67,769	69,692
Unallocated assets		-		-		-	29,440	29,440	159,825	189,265
Total assets		118,131		18,782		8,410	123,302	268,625	238,023	506,648

Liabilities
Payable to policyholders		-		-		-	32	32	-	32
Reinsurers' balances payable		-		-		-	4,990	4,990	-	4,990
Unearned premiums		152,519		10,809		4,571	-	167,899	-	167,899
Unearned reinsurance commission		-		-		905	(188)	717	-	717
Outstanding claims		30,920		21,569		281	-	52,770	-	52,770
Claims incurred but not reported		39,859		1,945		3,262	-	45,066	-	45,066
Premium deficiency reserve		20,502		1,242		-	-	21,744	-	21,744
Other technical reserves		2,804		588		444	-	3,836	-	3,836
Unallocated liabilities		-		-		-	66,712	66,712	9,228	75,940
Total liabilities		246,604		36,153		9,463	71,546	363,766	9,228	372,994

										32
18	SEGMENT INFORMATION (CONTINUED)
		As at 31 December 2019 (Audited)
		SR '000
		Medical		Motor		Property & casualty	Unallocated	Total - Insurance operations	Shareholders' operations	Total

Operating segment

Assets
Cash and cash equivalents		-		-		-	21,230	21,230	23,285	44,515
Premiums and reinsurers' receivable - net		39,433		4,194		1,516	34,416	79,559	-	79,559
Reinsurers' share of unearned premiums		-		-		4,866	-	4,866	-	4,866
Reinsurers' share of outstanding claims		5,649		9,267		725	-	15,641	-	15,641
Reinsurers' share of claims incurred but not reported		1,759		264		1,726	-	3,749	-	3,749
Deferred policy acquisition costs		7,321		341		666	-	8,328	-	8,328
Investments		-		-		-	1,923	1,923	66,015	67,938
Unallocated assets		-		-		-	23,823	23,823	187,268	211,091
Total assets		54,162		14,066		9,499	81,392	159,119	276,568	435,687

Liabilities
Payable to policyholders		343		(1,287)		1,187	-	243	-	243
Reinsurers' balances payable		-		-		-	12,976	12,976	-	12,976
Unearned premiums		90,864		3,825		6,222	-	100,911	-	100,911
Unearned reinsurance commission		-		-		1,057	-	1,057	-	1,057
Outstanding claims		30,449		20,176		849	-	51,474	-	51,474
Claims incurred but not reported		23,825		2,661		1,870	-	28,356	-	28,356
Premium deficiency reserve		13,563		1,759		98	-	15,420	-	15,420
Other technical reserves		9,973		557		410	-	10,940	-	10,940
Unallocated liabilities		-		-		-	49,596	49,596	7,859	57,455
Total liabilities		169,017		27,691		11,693	62,572	270,973	7,859	278,832

Disclosure of capital management [text block]

16	CAPITAL MANAGEMENT

The Company manages its capital to ensure that it is able to continue as going concern and comply with the SAMA’s capital requirements while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of equity attributable to shareholders comprising paid capital and accumulated deficit.




The Company maintains its capital as per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Regulations detailing the solvency margin required to be maintained. According to the article, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations:




-	Minimum Capital Requirement of SAR 100 million
-	Premium Solvency Margin
-	Claims Solvency Margin

In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period.

16	CAPITAL MANAGEMENT (CONTINUED)

Management, through various scenario analyses as required by the regulator, has proactively assessed the potential of the COVID–19 by performing stress testing for various variables like: gross premium growth, employee costs, YTD loss ratio, outstanding premium provisions etc. and the related impact on the revenue, profitability, loss ratio and solvency ratio. Management has concluded that based on the preliminary stress testing performed the solvency of the Company can be reduced by 5% to 10% if the current situation persists longer. As with any forecasts, the projections and likelihoods of occurrence are underpinned by significant judgement and uncertainty and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.

Disclosure of board of director's approval of the financial statements [text block]

APPROVAL OF FINANCIAL STATEMENTS

The interim condensed financial statements have been approved by the Board of Directors on 4 November 2020 (corresponding to 18 Rabiʻ I 1442 AH).

Disclosure of other notes relevant to understanding of financial statements [text block]

19		SUPPLEMENTARY INFORMATION

19.1		Interim statement of financial position

			As at 30 September 2020 (Unaudited)						As at 31 December 2019 (Audited)
			Insurance Operations		Shareholders' Operations		Total		Insurance Operations		Shareholders' Operations		Total
			SR '000						SR '000

ASSETS
Cash and cash equivalents			41,556		10,429		51,985		21,230		23,285		44,515
Short-term deposits			-		80,374		80,374		-		115,993		115,993
Premiums and reinsurers' receivable - net			160,357		-		160,357		79,559		-		79,559
Reinsurers' share of unearned premiums			3,024		-		3,024		4,866		-		4,866
Reinsurers' share of outstanding claims			15,454		-		15,454		15,641		-		15,641
Reinsurers' share of claims incurred but not reported			2,743		-		2,743		3,749		-		3,749
Deferred policy acquisition costs			14,128		-		14,128		8,328		-		8,328
Available-for-sale investments			1,923		18,826		20,749		1,923		17,375		19,298
Held-to-maturity investments			-		48,943		48,943		-		48,640		48,640
Due from shareholders' operations			94,602		-		94,602		111,315		-		111,315
Prepayments and other assets			21,492		609		22,101		17,337		2,698		20,035
Property and equipment			7,525		-		7,525		5,970		-		5,970
Intangible assets			423		-		423		516		-		516
Long-term deposits			-		40,000		40,000		-		30,000		30,000
Statutory deposit			-		36,000		36,000		-		36,000		36,000
Accrued commission income on statutory deposit			-		2,842		2,842		-		2,577		2,577

TOTAL ASSETS			363,227		238,023		601,250		270,434		276,568		547,002
19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.1	Interim statement of financial position (continued)

				As at 30 September 2020 (Unaudited)						As at 31 December 2019 (Audited)
				Insurance Operations		Shareholders' Operations		Total		Insurance Operations		Shareholders' Operations		Total
				SR '000						SR '000

LIABILITIES
Payable to policyholders				32		-		32		243		-		243
Accrued expenses and other liabilities				62,029		2,378		64,407		44,774		2,423		47,197
Reinsurance balances payable				4,990		-		4,990		12,976		-		12,976
Unearned premiums				167,899		-		167,899		100,911		-		100,911
Unearned reinsurance commission				717		-		717		1,057		-		1,057
Outstanding claims				52,770		-		52,770		51,474		-		51,474
Claims incurred but not reported				45,066		-		45,066		28,356		-		28,356
Premium deficiency reserve				21,744		-		21,744		15,420		-		15,420
Other technical reserve				3,836		-		3,836		10,940		-		10,940
Due to insurance operation				-		94,602		94,602		-		111,315		111,315
Employees' end-of-service obligation				3,904		-		3,904		4,043		-		4,043
Surplus distribution payable				779		-		779		779		-		779
Provision for zakat				-		4,008		4,008		-		2,859		2,859
Accrued commission income payable to SAMA				-		2,842		2,842		-		2,577		2,577
TOTAL LIABILITIES				363,766		103,830		467,596		270,973		119,174		390,147
EQUITY
Share capital				-		240,000		240,000		-		240,000		240,000
Accumulated losses				-		(110,318)		(110,318)		-		(85,666)		(85,666)
Actuarial loss on end-of-service obligation				(539)		-		(539)		(539)		-		(539)
Fair value reserve for available-for-sale investments				-		4,511		4,511		-		3,060		3,060

TOTAL EQUITY				(539)		134,193		133,654		(539)		157,394		156,855

TOTAL LIABILITIES AND EQUITY				363,227		238,023		601,250		270,434		276,568		547,002

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim statement of income
		For the three-months period ended 30 Septmeber 2020 (Unaudited)					For the three-months period ended 30 September 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000						SR '000

REVENUES
Gross premiums written		103,720		-	103,720			40,854	-	40,854
Reinsurance premiums ceded
- Local		(43)		-	(43)			(48)	-	(48)
- Foreign		(671)		-	(671)			(1,652)	-	(1,652)
Excess of loss expenses		(15,368)		-	(15,368)			(1,224)	-	(1,224)

Net premiums written		87,638		-	87,638			37,930	-	37,930
Changes in unearned premiums		(24,825)		-	(24,825)			12,166	-	12,166

Net premiums earned		62,813		-	62,813			50,096	-	50,096
Reinsurance commissions		394		-	394			569	-	569
Other underwriting income		1,354		-	1,354			8,527	-	8,527

NET REVENUES		64,561		-	64,561			59,192	-	59,192

UNDERWRITING COSTS AND EXPENSES
Gross claims paid		(60,742)		-	(60,742)			(57,287)	-	(57,287)
Reinsurers' share of claims paid		(6,393)		-	(6,393)			8,975	-	8,975

Net claims paid		(67,135)		-	(67,135)			(48,312)	-	(48,312)
Changes in outstanding claims		(438)		-	(438)			10,898	-	10,898
Changes in reinsurers' share of outstanding claims		(713)		-	(713)			1,315	-	1,315
Changes in claims incurred but not reported		(4,658)		-	(4,658)			(659)	-	(659)
Changes in reinsurers' share of claims incurred but not reported		422		-	422			(2,378)	-	(2,378)

Net claims incurred		(72,522)		-	(72,522)			(39,136)	-	(39,136)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim statement of income (continued)
		For the three-months period ended 30 September 2020 (Unaudited)			For the three-months period ended 30 September 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

Changes in premiums deficiency reserve		(9,754)	-	(9,754)	(841)	-	(841)
Changes in other technical reserves		7,307	-	7,307	(107)	-	(107)
Policy acquisition costs		(6,640)	-	(6,640)	(4,965)	-	(4,965)
Inspection and supervision fees		(3,045)	-	(3,045)	(3,543)	-	(3,543)

TOTAL UNDERWRITING COSTS AND EXPENSES		(84,654)	-	(84,654)	(48,592)	-	(48,592)

NET UNDERWRITING INCOME / (LOSS)		(20,093)	-	(20,093)	10,600	-	10,600

OTHER OPERATING (EXPENSES) / INCOME
Allowance for doubtful debts		(1,969)	-	(1,969)	(865)	-	(865)
General and administrative expenses		(9,749)	(286)	(10,035)	(10,269)	484	(9,785)
Dividends and investment income		-	1,409	1,409	6	2,033	2,039
		hoh5
TOTAL OTHER OPERATING (EXPENSES) / INCOME		(11,718)	1,123	(10,595)	(11,128)	2,517	(8,611)

Total (loss) / income before zakat		(31,811)	1,123	(30,688)	(528)	2,517	1,989
Zakat charge		-	(293)	(293)	-	(9,270)	(9,270)

Net (loss) / income after zakat		(31,811)	830	(30,981)	(528)	(6,753)	(7,281)
Total income for the period attributed to the insurance operations			-	-	-	-	-

deficit / (Surplus) transferred to shareholders		31,811	(31,811)	-	528	(528)	-

Net loss attributable to the shareholders after zakat		-	(30,981)	(30,981)	-	(7,281)	(7,281)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim statement of income
		For the nine-months period ended 30 September 2020 (Unaudited)					For the nine-months period ended 30 September 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000						SR '000

REVENUES
Gross premiums written		272,608		-	272,608			187,756	-	187,756
Reinsurance premiums ceded
- Local		(109)		-	(109)			(1,003)	-	(1,003)
- Foreign		(4,876)		-	(4,876)			(8,094)	-	(8,094)
Excess of loss expenses		(27,346)		-	(27,346)			(3,924)	-	(3,924)

Net premiums written		240,277		-	240,277			174,735	-	174,735
Changes in unearned premiums		(68,830)		-	(68,830)			(45,525)	-	(45,525)

Net premiums earned		171,447		-	171,447			129,210	-	129,210
Reinsurance commissions		1,626		-	1,626			1,419	-	1,419
Other underwriting income		10,671		-	10,671			12,174	-	12,174

NET REVENUES		183,744		-	183,744			142,803	-	142,803

UNDERWRITING COSTS AND EXPENSES
Gross claims paid		(156,567)		-	(156,567)			(127,754)	-	(127,754)
Reinsurers' share of claims paid		28,076		-	28,076			34,247	-	34,247

Net claims paid		(128,491)		-	(128,491)			(93,507)	-	(93,507)
Changes in outstanding claims		(1,296)		-	(1,296)			11,686	-	11,686
Changes in reinsurers' share of outstanding claims		(187)		-	(187)			(2,234)	-	(2,234)
Changes in claims incurred but not reported		(16,710)		-	(16,710)			(16,313)	-	(16,313)
Changes in reinsurers' share of claims incurred but not reported		(1,006)		-	(1,006)			(3,741)	-	(3,741)

Net claims incurred		(147,690)		-	(147,690)			(104,109)	-	(104,109)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.2	Interim statement of income (continued)
		For the nine-months period ended 30 September 2020 (Unaudited)			For the nine-months period ended 30 September 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

Changes in premiums deficiency reserve		(6,324)	-	(6,324)	(4,692)	-	(4,692)
Changes in other technical reserves		7,104	-	7,104	122	-	122
Policy acquisition costs		(17,816)	-	(17,816)	(13,391)	-	(13,391)
Inspection and supervision fees		(9,967)	-	(9,967)	(9,281)	-	(9,281)

TOTAL UNDERWRITING COSTS AND EXPENSES		(174,693)	-	(174,693)	(131,351)	-	(131,351)

NET UNDERWRITING INCOME		9,051	-	9,051	11,452	-	11,452

OTHER OPERATING (EXPENSES) / INCOME
Allowance for doubtful debts		(3,532)	-	(3,532)	(6,226)	-	(6,226)
General and administrative expenses		(32,718)	(1,008)	(33,726)	(32,623)	(1,487)	(34,110)
Dividends and investment income		-	4,704	4,704	83	5,689	5,772

TOTAL OTHER OPERATING (EXPENSES) / INCOME		(36,250)	3,696	(32,554)	(38,766)	4,202	(34,564)

Total (loss) / income before zakat		(27,199)	3,696	(23,503)	(27,314)	4,202	(23,112)
Zakat charge		-	(1,149)	(1,149)	-	(9,670)	(9,670)

Net (loss) / income after zakat		(27,199)	2,547	(24,652)	(27,314)	(5,468)	(32,782)
Total income for the period attributed to the insurance operations		-	-	-	-	-	-

deficit / (Surplus) transferred to shareholders		27,199	(27,199)	-	27,314	(27,314)	-

Net (loss) attributable to the shareholders after zakat		-	(24,652)	(24,652)	-	(32,782)	(32,782)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.3	Interim statement of comprehensive income

		For the three-months period ended 30 September 2020 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000

Net lossincome after zakat		-	(30,981)	(30,981)	-	(7,281)	(7,281)

Other comprehensive income / (loss) :

Items that will not be reclassified to statement of income in subsequent years		-	-	-	-	-	-


Items that may be reclassified to statement of insurance operations' surplus in subsequent years


- Change in fair value of available-for-sale investments		-	529	529	-	-	-

Total comprehensive loss for the period		-	(30,452)	(30,452)	-	(7,281)	(7,281)

Total comprehensive loss attributable to the insurance operations		-	(30,452)	(30,452)	-	(7,281)	(7,281)


Net comprehensive loss attributable to the shareholders
			(30,452)	(30,452)	-	(7,281)	(7,281)

19	SUPPLEMENTARY INFORMATION (CONTINUED)

19.4	Interim statement of cash flows	For the nine-months period ended 30 September 2020 (Unaudited)			For the nine-month period ended 30 September 2019 (Unaudited)
		Insurance Operations	Shareholders' Operations	Total	Insurance Operations	Shareholders' Operations	Total
		SR '000			SR '000
CASH FLOWS FROM OPERATING ACTIVITIES
Total loss before zakat		-	(23,503)	(23,503)	-	(23,112)	(23,112)
Adjustments for non-cash items:
Depreciation and amortization		1,259	-	1,259	1,196	-	1,196
Change in allowance for doubtful debts		3,532	-	3,532	6,226	-	6,226
Realized loss on sale of available-for-sale investments		-	-	-	-	134	134
Amortization of held-to-maturity investments		-	(303)	(303)	-	-	-
Provision for employees' end-of-service benefits		1,379	-	1,379	1,146	-	1,146
		6,170	(23,806)	(17,636)	8,568	(22,978)	(14,410)
Changes in operating assets and liabilities:
Premiums and reinsurers’ receivable		(84,330)	-	(84,330)	(54,725)	-	(54,725)
Reinsurers’ share of unearned premiums		1,842	-	1,842	11,461	-	11,461
Reinsurers’ share of outstanding claims		187	-	187	2,234	-	2,234
Reinsurers’ share of claims incurred but not reported		1,006	-	1,006	3,848	-	3,848
Deferred policy acquisition costs		(5,800)	-	(5,800)	(3,059)	-	(3,059)
Due from shareholders		16,713	-	16,713	(13,323)	-	(13,323)
Prepaid expenses and other assets		(4,155)	2,089	(2,066)	(148)	(2,700)	(2,848)
Policyholders claims payable		(211)	-	(211)	157	-	157
Accrued expenses and other liabilities		17,255	(45)	17,210	18,399	(1,671)	16,728
Reinsurers' balances payable		(7,986)	-	(7,986)	(21,191)	-	(21,191)
Unearned premiums		66,988	-	66,988	34,064	-	34,064
Unearned reinsurance commission		(340)	-	(340)	340	-	340
Outstanding claims		1,296	-	1,296	(11,686)	-	(11,686)
Claims incurred but not reported		16,710	-	16,710	16,313	-	16,313
Premium deficiency reserve		6,324	-	6,324	4,692	-	4,692
Other technical reserves		(7,104)	-	(7,104)	(229)	-	(229)
Due to insurance operation		-	(16,713)	(16,713)	-	13,323	13,323
		24,565	(38,475)	(13,910)	(4,285)	(14,026)	(18,311)


							42
Employees' end-of-service benefits paid		(1,518)	-	(1,518)	(89)	-	(89)
Zakat paid		-	-	-	-	(75)	(75)
Net cash generated from / (used in) operating activities		23,047	(38,475)	(15,428)	(4,374)	(14,101)	(18,475)

CASH FLOWS FROM INVESTING ACTIVITIES
Short-term deposits		-	35,619	35,619	-	(74,590)	(74,590)
Purchase of available-for-sale investments		-	-	-	-	(6,599)	(6,599)
Purchase of held-to-maturity investments		-	-	-	-	(1,064)	(1,064)
Purchase of property, equipment and intangibles		(2,721)	-	(2,721)	(1,696)	-	(1,696)
Purchase of long term deposit		-	(10,000)	(10,000)	-	-	-
Net cash (used in) / generated from investing activities		(2,721)	25,619	22,898	(1,696)	(82,253)	(83,949)

CASH FLOWS FROM FINANCING ACTIVITY
Increase in statutory deposit		-	-	-		(15,000)	(15,000)
Proceeds from issuance of capital		-	-	-	-	100,000	100,000
Net cash generated from financing activities		-	-	-	-	85,000	85,000
Net change in cash and cash equivalents		20,326	(12,856)	7,470	(6,070)	(11,354)	(17,424)

Cash and cash equivalents at the beginning of the period		21,230	23,285	44,515	25,935	13,289	39,224
Cash and cash equivalents at the end of the period		41,556	10,429	51,985	19,865	1,935	21,800

Supplemental non-cash information:

Transfer from capital work in progress to fixed asset		480	-	480	-	-	-
Changes in fair values of available-for-sale investments - net		-	1,451	1,451	-	1,236	1,236
		480	1,451	1,931	-	1,236	1,236

[100010] Filing information	[200100] Independent auditors report	[300100] Statement of financial position, order of liquidity
[300200] Statement of insurance/ takaful operations, nature of expense	[300300] Statement of shareholders operations, nature of expense	[300400] Statement of other comprehensive income, before tax, insurance operations
[300500] Statement of other comprehensive income, before tax, shareholders operations	[300600] Statement of cash flows, indirect method, insurance operations	[300700] Statement of cash flows, indirect method, shareholders operations
[300800] Statement of changes in equity	[400100] Notes forming part of accounts