| 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] | Saudi Enaya Cooperative Insurance (a Joint Stock Company incorporated in Kingdom of Saudi Arabia), “the Company”, was formed pursuant to Royal Decree No. 98/Q dated 16 Rabi Awwal 1433H. (Corresponding to 8 February 2012). The Company operates under Commercial Registration no. 4030223528 dated 27 Rabi Awal 1433H (corresponding to 19 February 2012). The registered address of the Company's head office is as follows:Saudi Enaya Cooperative InsurancePrince Sultan Street, Al Rawdah DistrictP.O. Box 3528Jeddah 23435, Saudi ArabiaFollowing is the branch of the Company:BranchCommercial Registration Number:Riyadh1010421871The purpose of the Company is to transact cooperative insurance operations and all related activities including reinsurance and agency activities. Its principal line of business include only The Company is licensed to underwrite medical insurance only.On 27 Rajab 1432H (corresponding to 29 June 2011), the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/49). On 27 February 2012, 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 Kingdom of Saudi Arabia. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as modified by the Saudi Arabian Monetary Authority (“SAMA”) for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”). As per the SAMA Circular no. 381000074519 dated 11 April 2017 instead of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” and subsequent amendments through certain Clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the Zakat and Income tax are to be accrued on a quarterly basis through shareholders equity under retained earnings. As the Company’s accounting policy for zakat and tax has always been consistent with SAMA’s new guidance, the adoption of the guidance has not resulted in any changes in the accounting policies, accounting treatment or amounts reported in the current or prior years.The financial statements are prepared under the going concern basis (note 4) and the historical cost convention, except for the measurement of investments (excluding held-to-maturity) at their fair value. The Company’s statement of financial position is presented in order of liquidity. Except for property and equipment, statutory deposit, end-of-service indemnities, outstanding claims, claims incurred but not reported, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. Similarly, in the past, the Company’s annual financial statements presented separately the statements of financial position, income, comprehensive income and cash flows for the insurance operations and shareholders operations. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.During the current year, under the supervision of SAMA, the insurance companies’ management prepared and adopted the illustrative financial statements for the insurance sector in the Kingdom of Saudi Arabia. In preparing the Company level financial statements in compliance with IFRS as modified by SAMA, the balances and transactions of insurance operations are combined with those of shareholders’ operations. Inter-operation balances, transactions and unrealised gains or losses, if any, are eliminated in full. The accounting policies adopted for the insurance and shareholders’ operations are uniform for like transactions and events in similar circumstances | 2-A |
| Disclosure of new standards and amendments in standards [text block] | The Company has adopted the following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):Standard/AmendmentsDescriptionIFRS 2Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.IAS 40Amendments to IAS 40 Transfers of investment propertyIFRIC 22Foreign Currency Transactions and Advance considerationIFRS 15Revenue from Contracts with Customers (refer below)IFRS 1 and IAS 28Annual Improvements 2016 to IFRS 2014 – 2016 cycle.IFRS 15 – Revenue from Contracts with CustomersIFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRSs. However, IFRS 15 does not apply to “revenue from insurance contracts”. However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurance contracts).The Company’s management has assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 15 on 1 January 2018.Employees-end-of-service benefitsAccruals are made at the present value of expected future payments in respect of services provided by the employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. The benefit payments obligation is discharged as and when it falls due. Re-measurements (actuarial gains/ losses) as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of comprehensive income. | 3-A |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effective up to the date of issuance of the Company’s financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they are effective.Standard/InterpretationDescriptionEffective from periods beginning on or after the following dateIFRS 9Financial InstrumentsRefer belowIFRS 16Leases1 January 2019IFRIC 23Uncertainty over Income Tax Treatments1 January 2019IFRS 17Insurance Contracts (note below)1 January 2022IFRS 9 - Financial Instruments (including amendments to IFRS 4, Insurance Contracts)In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss (ECL) impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9: All financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the statement of income. IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well we finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2022. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2022.The impact of the adoption of IFRS 9 on the Company’s financial statements will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9IFRS 16 - “Leases”, applicable for the period beginning on or after 1 January 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The Company has decided not to early adopt this new standard.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2022, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the income statement and the statement of financial position. The Company has decided not to early adopt this new standard, and the Company is currently in the phase of assessing the impact of the above standards. | 3-B |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of the financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates.Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.Following are the accounting judgments and estimates that are critical in preparation of these financial statements:i) The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision.The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Actuary had also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims.ii) Impairment of financial assetsThe Company determines that financial assets are impaired when there has been a significant or prolonged decline in the fair value of the financial assets below its cost. The determination of what is significant or prolonged requires judgment. A period of 12 months or longer is considered to be prolonged and a decline of 25% from original cost is considered significant as per Company policy. In making this judgment, the Company evaluates among other factors, the normal volatility in share price, the financial health of the investee, industry and sector performance, changes in technology, and operational and financing cash flows.iii) Impairment of receivablesA provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial instrumentsFair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases the fair values are estimated from observable data in respect of similar financial instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of those that sourced them. All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and correlations require management to make estimates. | 2-d |
| Disclosure of functional and presentation currency [text block] | These financial statements have been presented in Saudi Arabian Riyals (SAR), which is also the functional currency of the Company. All financial information presented in Saudi Arabian Riyal has been rounded to the nearest thousand, except where otherwise indicated. | 2-b |
| Disclosure of other general disclosures about reporting entity [text block] | The Company follows a fiscal year ending December 31. | 2-C |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The significant accounting policies applied in the preparation of these financial statements are summarised below. These policies have been consistently applied to each of the years presented except for (change in accounting policy, if any) and adoption of the amendments to existing standards mentioned below which has had no material impact on these financial statements on the current year or prior years and is expected to have an insignificant effect in future years | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalents comprise cash in hand and balances with banks including murabaha deposits with less than three months maturity from the date of acquisition. | 3-xv |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Premiums receivable are stated at gross written premiums receivable from insurance contracts, less an allowance for any uncollectible amounts. Premiums and reinsurance balances receivable are recognised when due and measured on initial recognition at the fair value of the consideration received or receivable. The carrying value of receivable is reviewed for impairment and whenever events or circumstances indicate that the carrying amount may not be recoverable, the impairment loss is recorded in “Other general and administrative expenses” in the statement of income. Receivable balances are derecognised when the Company no longer controls the contractual rights that comprise the receivable balance, which is normally the case when the receivable balance is sold, or all the cash flows attributable to the balance are passed through to an independent third party. Receivables disclosed in note 7 fall under the scope of IFRS 4 “Insurance contracts”. | 3-vii |
| Description of accounting policy for deferred policy acquisition costs [text block] | Commissions and other costs directly related to the acquisition and renewal of insurance contracts are deferred and amortized over the terms of the insurance contracts to which they relate, similar to premiums earned. All other acquisition costs are recognized as an expense when incurred. Amortization is recorded in the “Policy acquisition costs” in the statement of income. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period and are treated as a change in accounting estimate. An impairment review is performed at each reporting date or more frequently when an indication of impairment arises. If the assumptions relating to future profitability of these policies are not realized, the amortization of these costs could be accelerated and this may also require additional impairment write-offs in the statement of income. Deferred policy acquisition costs are also considered in the liability adequacy test at each reporting date. | 3-V |
| Description of accounting policy for intangible assets and goodwill [text block] | Separately acquired intangible assets (mention category) are shown at historical cost. They have a finite useful life and are subsequent carried at cost less accumulated amortization and impairment losses. The Company amortises intangible assets with a limited useful life using straight-line method over the following periods:Software 4Licenses 4 | 3-X |
| Description of accounting policy for property and equipment [text block] | Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Land is not depreciated. The cost of other items of property and equipment is depreciated on the straight line method to allocate the cost over estimated useful lives, as follows:Leasehold improvements 3Computer equipment 4Motor vehicles 5Furniture, fittings and office equipment 4 – 10The assets’ residual values and useful lives are reviewed at each reporting date and adjusted if appropriate. The carrying values of these assets are reviewed for impairment when event or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount.Capital work-in-progress includes property that is being developed for future use. When commissioned, capital work-in-progress will be transferred to the respective category within property and equipment, and depreciated in accordance with the Company’s policy.Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in “Other income, net” in the statement of income. | 3-vii |
| Description of accounting policy for liability adequacy test [text block] | At each statement of financial position date, liability adequacy tests are performed to ensure the adequacy of the insurance contracts liabilities net of related deferred policy acquisition costs. In performing these tests management uses current best estimates of future contractual cash flows and claims handling and administration expenses. Any deficiency in the carrying amounts is immediately charged to the statement of income by establishing a provision for losses arising from liability adequacy tests accordingly. | 3-vi |
| Description of accounting policy for accounts payable and accruals [text block] | Liabilities are recognised for amounts to be paid in the future for goods or services received, whether billed by thesupplier or not. | 3-xxi |
| Description of accounting policy for settlement and trade date accounting [text block] | All regular way purchases and sales of financial assets are recognized / derecognized on the trade date (i.e. the date that the Company commits to purchase or sell the assets). Regular way purchases or sales are purchases or sales of financial assets that require settlement of assets within the time frame generally established by regulation or convention in the market place. | 3-vi |
| Description of accounting policy for provisions [text block] | Provisions are recognised when the Company has an obligation (legal or constructive) as a result of a past event,and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. | 3-XXIV |
| Description of accounting policy for statutory reserve [text block] | In accordance with the Company’s by-laws, the Company shall allocate 20% of its net income from shareholders operations each year to the statutory reserve until it has built up a reserve equal to the share capital. The reserve is not available for distribution. | 3-xxi |
| Description of accounting policy for employees end of service benefits [text block] | The Company operates an end of service benefit plan for its employees based on the prevailing Saudi Labor Laws. Accruals are made at the present value of expected future payments in respect of services provided by the employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. The benefit payments obligation is discharged as and when it falls due. Remeasurements (actuarial gains/ losses) as a result of experience adjustments and changes in actuarial assumptions are recognised in statement of comprehensive income. | 3-xiii |
| Description of accounting policy for zakat [text block] | The Company is subject to zakat in accordance with the regulations of the General Authority of Zakat and Tax (“GAZT”). Zakat is computed on the Saudi shareholders’ share of equity or net income using the basis defined under the Zakat regulations. Income taxes are computed on the foreign shareholders share of net adjusted income for the year. Zakat and income tax is accrued on a quarterly basis. Effective January 1, 2017, based on the Circular issued by SAMA, the Company amended its accounting policy to charge zakat and tax directly into retained earnings in the statement of changes in equity instead of statement of income. | 3-xiv |
| Description of accounting policy for impairment and uncollectibiity of financial assets [text block] | The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.Evidence of impairment may include: Significant financial difficulty of the issuer or debtor; A breach of contract, such as a default or delinquency in payments; It becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganization; The disappearance of an active market for that financial asset because of financial difficulties; or Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the Company, including: Adverse changes in the payment status of issuers or debtors in the Company; or National or local economic conditions at the country of the issuers that correlate with defaults on the assets.If there is objective evidence that an impairment loss on a financial asset exists, the impairment is determined as follows: For assets carried at fair value, impairment is the significant or prolong decline in the fair value of the financial asset. For assets carried at amortized cost, impairment is based on estimated future cash flows that are discounted at the original effective commission rate.For available-for-sale financial assets, the Company assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.In the case of debt instruments classified as available for sale, the Company assesses individually whether there is an objective evidence of impairment. Objective evidence may include indications that the borrower is experiencing significant financial difficulty, default or delinquency in special commission income or principal payments, the probability that it will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in economic conditions that correlate with defaults. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the statement of income and statement of comprehensive income. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to credit event occurring after the impairment loss was recognized in the statement of income and statement of comprehensive income, the impairment loss is reversed through the statement of income and statement of comprehensive income.In the case of debt instruments classified as available for sale, the Company assesses individually whether there is an objective evidence of impairment. Objective evidence may include indications that the borrower is experiencing significant financial difficulty, default or delinquency in special commission income or principal payments, the probability that it will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in economic conditions that correlate with defaults. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the statement of income and statement of comprehensive income. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to credit event occurring after the impairment loss was recognized in the statement of income and statement of comprehensive income, the impairment loss is reversed through the statement of income and statement of comprehensive income.For equity investments held as available-for-sale, a significant or prolonged decline in fair value below its cost represents objective evidence of impairment. The impairment loss cannot be reversed through statement of income as long as the asset continues to be recognised i.e. any increase in fair value after impairment has been recorded can only be recognised in other comprehensive income. On derecognition, any cumulative gain or loss previously recognised in other comprehensive income is included in the statement of income under “Realized gain / (loss) on investments available for sale investments.The determination of what is ‘significant’ or ‘prolonged’ requires judgement. A period of __ months or longer is considered to be prolonged and a decline of X% from original cost is considered significant as per Company policy. In making this judgement, the Company evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost.In making an assessment of whether an investment in debt instrument is impaired, the Company considers the factors such as market’s assessment of creditworthiness as reflected in the bond yields, rating agencies’ assessment of creditworthiness, country’s ability to access the capital markets for new debt issuance and probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness. The amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of income and statement of comprehensive income. | 3-xii |
| Description of accounting policy for cash dividend and non-cash distribution to equity holders [text block] | Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders. | 3-xiv |
| Description of accounting policy for reinsurance/ retakaful activities [text block] | Reinsurance is distributed between treaty, facultative, stop loss and excess of loss reinsurance contracts. Contracts entered into by the Company with reinsurers under which the Company is compensated for losses on one or more contracts issued by the Company and that meet the classification requirements for insurance contracts in Note 4(b) are classified as reinsurance contracts held. Contracts that do not meet these classification requirements are classified as financial assets. Insurance contracts entered into by the Company under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts. An asset or liability is recorded in the statement of financial position representing payments due from reinsurers, the share of losses recoverable from reinsurers and premiums due to reinsurers. Amounts receivable from reinsurance is estimated in a manner consistent with the claim liability associated with the insured parties. Reinsurance assets or liabilities are derecognised when the contractual rights are extinguished or expire or when the contract is transferred to another party. An impairment review is performed at each reporting date or more frequently when an indication of impairment arises during the reporting year. Impairment occurs when objective evidence exists that the Company may not recover outstanding amounts under the terms of the contract and when the impact on the amounts that the Company will receive from the reinsurer can be measured reliably. The impairment loss is recorded in the statement of income as incurred. For details please refer 4(n). Ceded reinsurance arrangements do not relieve the Company from its obligations to policyholders. Premiums and claims on assumed reinsurance are recognised as income and expenses in the same manner as they would be if the reinsurance were considered direct business, taking into account the product classification of the reinsured business. | 3-iv |
| Description of accounting policy for investment income [text block] | Available-for-sale financial assets are those non-derivative financial assets that are neither classified as held for trading or held to maturity or loans and receivables, nor are designated at fair value through profit or loss. Such investments are initially recorded at cost, being the fair value of the consideration given including transaction costs directly attributable to the acquisition of the investment and subsequently measured at fair value. Cumulative changes in fair value of such investments are recognized in other comprehensive income in the statement of comprehensive income under “Net change in fair value – Available for sale investments”. Realized gains or losses on sale of these investments are reported in the related statements of income under “Realized gain / (loss) on investments available for sale investments.” Dividend, commission income and foreign currency gain/loss on available-for-sale investments are recognized in the related statements of income or statement of comprehensive income - shareholders operations, as part of the net investment income / loss. Any significant or prolonged decline in fair value of available-for-sale investments is adjusted for and reported in the related statement of comprehensive income, as impairment charges. Fair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics. For unquoted investments, fair value is determined by reference to the market value of a similar investment or where the fair values cannot be derived from active markets, they are determined using a variety of valuation techniques. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values.Reclassification:The Company evaluates whether the ability and intention to sell its AFS financial assets in the near term is still appropriate. When, in rare circumstances, the Company is unable to trade these financial assets due to inactive markets, the Company may elect to reclassify these financial assets if management has the ability and intention to hold the assets for the foreseeable future or until maturity. Reclassification to loans and receivables is permitted when the financial asset meets the definition of loans and receivables and management has the intention and ability to hold these assets for the foreseeable future or until maturity. The reclassification to HTM is permitted only when the entity has the ability and intention to hold the financial asset until maturity. For a financial asset reclassified out of the available-for-sale category, the fair value at the date of reclassification becomes its new amortised cost and any previous gain or loss on that asset that has been recognised in equity is amortised to profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortised cost and the maturity amount is also amortised over the remaining life of the asset using the Effective Interest Rate “EIR”. If the asset is subsequently determined to be impaired, then the amount recorded in equity is reclassified to the statement of income. | 3-vii |
| Description of accounting policy for claims/ benefits [text block] | Claims consist of amounts payable to policyholders and third parties and related loss adjustment expenses, net of salvage and other recoveries. Gross outstanding claims comprise the gross estimated cost of claims incurred but not settled at the statement of financial position date together with related claims handling costs, whether reported by the insured or not. Provisions for reported claims not paid as of the statement of financial position date are made on the basis of individual case estimates. In addition, a provision based on management’s judgment and the Company’s prior experience is maintained for the cost of settling claims incurred but not reported including related claims handling costs at the statement of financial position date.The outstanding claims are shown on a gross basis and the related share of the reinsurers is shown separately. Further, the Company does not discount its liability for unpaid claims as substantially all claims are expected to be paid within one year of the statement of financial position date. | 3-iii |
| Description of accounting policy for life insurance/ takaful contracts [text block] | The Company issues insurance contracts that transfer insurance risk. Insurance contracts are those contracts where the insurer accepts significant insurance risk from the policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. As a general guideline, the Company defines significant insurance risk as the possibility of having to pay benefits on the occurrence of an insured event that are at least 10% more than the benefits payable if the insured event did not occur. | 3-I |
| Description of accounting policy for impairment of non-financial assets [text block] | Assets that have an indefinite useful life – for example, land – are not subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (cash-generating units). | 3-xii |
| Description of accounting policy for other revenue recognition [text block] | Recognition of premiumPremiums are recorded in the statement of income based on straight line method over the insurance policy coverage period. Unearned premiums are calculated on a straight line method over the insurance policy coverageUnearned premiums represent the portion of premiums written relating to the unexpired period of coverage. The change in the provision for unearned premium is taken to the statement of income in the same order that revenue is recognised over the period of risk.Reinsurance assumedThe Company also assumes reinsurance risk in the normal course of business for Medical insurance contracts where applicable. Premiums and claims on assumed reinsurance are recognised as revenue or expenses in the same manner as they would be if the reinsurance were considered direct business, taking into account the product classification of the reinsured business. Reinsurance liabilities represent balances due to insurance companies. Amounts payable are estimated in a manner consistent with the related reinsurance contract. Premiums and claims are presented on a gross basis for both ceded and assumed reinsurance. Reinsurance assets or liabilities are derecognised when the contractual rights are extinguished or expire or when the contract is transferred to another party.Reinsurance contracts that do not transfer significant insurance risk are accounted for directly through the statement of financial position. These are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any explicit identified premiums or fees to be retained by the reinsured. Investment income on these contracts is accounted for using the EIR method when accrued.Investment incomeInvestment income on debt instruments classified under held to maturity investments and murabaha deposits are accounted for on an effective interest basis.Dividend incomeDividend income on equity instruments classified under fair value through statement of income (FVSI) investments is recognized when the right to receive payment is established. | 3-ii |
| Description of accounting policy for segment reporting [text block] | A segment is a distinguishable component of the Company that is engaged in providing products or services (a business segment), which is subject to risk and rewards that are different from those of other segments. For management purposes, the Company is organized into business units based on their products and services and has the following reportable segments: Medical - coverage for health insurance.Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief executive officer that makes strategic decisions. No inter-segment transactions occurred during the year. | 3-xviii |
| Description of accounting policy for accounting of leases [text block] | Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to statement of income within operating expenses on a straight-line basis over the period of the lease. | 3-XI |
| Description of accounting policy for foreign currencies [text block] | Transactions in foreign currencies are recorded in Saudi Riyals at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated to Saudi Riyals at the rate of exchange prevailing at the statement of financial position date. All differences are taken to the statements of income and comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction and are not subsequently restated. Foreign exchange gains or losses on available-for-sale investments are recognized in “Other income, net” in the statement of income and statement of comprehensive income. As the Company’s foreign currency transactions are primarily in US dollars, foreign exchange gains and losses are not significant. | 3-xviii |
| Description of accounting policy for time (murabaha) deposit [text block] | Investment income on debt instruments classified under held to maturity investments and murabaha deposits are accounted for on an effective interest basis. | 3-ii |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of property and equipment [text block] | PROPERTY AND EQUIPMENTInsurance OperationsLeasehold improvementsComputer equipmentMotor vehiclesFurniture fittings and office equipmentTotalSR’000Cost:At 1 January 20174,1658,6812942,40915,549Additions during the year2403123391571,048Disposal during the year--(184)-(184)At 31 December 20174,4058,9934492,56616,413Additions during the year287964-661,317At 31 December 20184,6929,9574492,63217,730Accumulated depreciation:At 01 January 20174,0388,4972941,35414,183Charge for the year1189153222484Disposal during the year--(184)-(184)At 31 December 20174,1568,5881631,57614,483Charge for the year18732968217801At 31 December 20184,3438,9172311,79315,284Net book value asat 31 December 20183491,0402188392,446Net book value asat 31 December 20172494052869891,930 | 11 |
| Disclosure of investments [text block] | Investments are classified as follows:8.1Shareholders’ operations20182017SAR’000- Held as FVSI7,6957,638- Held to maturity5,00026,85112,69534,489Movement in the Fair value through statement of income (FVSI) investment balance is as follows:Shareholders’ operations20182017SAR’000Opening balance7,6389,964Purchases during the year-10,000Disposals during the year-(12,196)Changes in fair value of investments57(130)Closing balance7,6957,63820182017SR’000Al Badr Murabaha Fund7,0446,930Saudi Fransi GCC IPO Fund6517087,6957,638Movement in held to maturity investment balance is as follows:Shareholders’ operations20182017SAR’000Opening balance26,85125,028Placement during the year-6,851Matured during the year(21,886)(4,975)Amortization of held to maturity investments35(53)Closing balance5,00026,851 | 8 |
| Disclosure of investments held-to-maturity [text block] | Movement in held to maturity investment balance is as follows:Shareholders’ operations20182017SAR’000Opening balance26,85125,028Placement during the year-6,851Matured during the year(21,886)(4,975)Amortization of held to maturity investments35(53)Closing balance5,00026,851 | 8 |
| Disclosure of deferred policy acquisition costs [text block] | Insurance operations20182017SAR’000Balance at the beginning of the year8,9242,511Additions during the year6,89016,323Amortised during the year(14,779)(9,910)Balance at the end of the year1,0358,924 | 9 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivables comprise amounts due from the following:20182017SAR’000Policyholders16,63592,829Brokers and agents15,21135,773Related parties (note 20)1,9112,75733,757131,359Provision for doubtful receivables(16,328)(16,469)Premiums receivable – net17,429114,890Note: Premium balances receivable from brokers and agents at 31 December 2018 amounting to SAR 15.2 million (31 December 2017: SAR 35.7 million) are ultimately due from customers that are insured through brokers and agents.Movement in the allowance for doubtful premiums receivable during the year was as follows:20182017SR’000Balance at the beginning of the year16,4696,573Release / (provision) during the year(122)9,896Write-offs during the year(19)-Balance at the end of the year16,32816,469The ageing of unimpaired premium receivables arising from insurance contracts is as follows:Up to three monthsAbove three and up to six monthsAbove six and up to twelve monthsAbove twelve monthsTotalSR’00031 December 20181,1931,26210,7944,18017,42931 December 201770,82020,03422,1901,846114,890Balances up to three months are considered neither past due nor impaired. Balances above three months are past due but not impaired. Unimpaired receivables are expected, on the basis of experience, to be fully recoverable. It is not the practice of the Company to obtain collateral over receivables.In respect of premium receivables, ten major customers account for 19.3% of the balance as at 31 December 2018 (31 December 2017: 36.5%). | 7 |
| Disclosure of prepayments and other assets [text block] | 20182017SR’000Insurance OperationsPrepayments1,6241,696Advances to suppliers2,5572,798Input VAT6,5326,705Margin deposit (note 15 & 21)-13,045Others3,5493,56214,26227,806Shareholders’ Operations20182017SR’000Accrued income1,069819Prepaid expenses501021,119921 | 12 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents included in the statement of cash flows comprise the following:Insurance operations20182017SAR’000Bank balances and cash16,484A.32,38916,48432,389Shareholders’ operations20182017SAR’000Bank balances and cash21B.27Deposits maturing within 3 months from the acquisition date40,21639640,237423 | 5 |
| Disclosure of statutory deposit [text block] | As required by SAMA implementing Regulations, the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SR 30 million, in a bank designated by the Saudi Arabian Monetary Authority (“SAMA”). This statutory deposit cannot be withdrawn without the consent of SAMA, and commission accruing on this deposit is payable to SAMA. On 10 June 2018, the Company has reduced its share capital by SR 100 million (note 22) but has not withdrawn the surplus statutory deposit of SR 15 million as of 31 December 2018. | 13 |
| Disclosure of employees' end of service benefits [text block] | Accruals are made in accordance with the actuarial valuation under the projected unit credit method while the benefit payments obligation is discharged as and when it falls due. The amounts recognized in the statement of financial position and movement in the obligation during the year based on its present value are as follows:16.1 The amounts recognized in the statement of financial position and movement in the obligation during the year based on its present value are as follows:2018SAR’000Present value of defined benefit obligation5,8085,80816.2 Movement of defined indemnities obligation2018SAR’000Opening balance4,207Charge to statement of income2,834Charge to statement of other comprehensive income(774)Payment of benefits during the year(459)Closing balance5,80816.3 Reconciliation of present value of defined indemnities obligation2018SAR’000Opening balance4,207Current service costs2,621Financial costs213Actuarial loss from experience adjustments(774)Benefits paid during the year(459)5,80816.4 Principal actuarial assumptionsThe following range of significant actuarial assumptions was used by the Company for the valuation of defined indemnities obligation liability:2018Valuation discount rate5%Expected rate of increase in salary level across different age bands4%The impact of changes in sensitivities on present value of defined indemnities obligation is as follows:Valuation discount rate2018SAR’000- Increase by 1%(629)- Decrease by 1%752Expected rate of increase in salary level across different age bands- Increase by 1%752- Decrease by 1%(641)2018Projected future indemnities payment (5 years)SAR’000201948820204152021469202266420232,411The average duration of the defined indemnities plan obligation at the end of the reporting period is 13.5 years. | 16 |
| Disclosure of zakat [text block] | a. Charge for the yearThe differences between the financial and the Zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.Movements in provision during the year20182017SAR’000Balance at the beginning of the year8,2986,699Charge for the year2,4002,300Paid during the year-(701)Balance at the end of the year10,6988,298As the Company has incurred a loss during the year ended 31 December 2018, and in previous years, no provision has been established in respect of income tax in these financial statements.b. Status of zakat assessmentsThe Company has filed its Zakat and tax return for the first twelve month year ended 30 June 2012 with the General Authority of Zakat and Tax (“GAZT”). The Company has also filed its Zakat and income tax return for the long year from 8 February 2012 to 31 December 2013 and for the years from 2014 to 2017 and obtained restricted zakat certificates.The GAZT issued final assessment for the years 2011 to 2014 with an additional Zakat liability of SR 12.545 million. The Company has filed an appeal against such assessment. The Company submitted an appeal against the GAZT treatment and is confident of a favourable outcome. Accordingly, no provision has been established in this regard in these financial statements.During 2017, the Company filed an appeal to the Appellate Committee for Zakat and Tax Appeal (“ACZTA”) against the Preliminary Objection Committee’s (“POC”) decision for the years 2011 through 2014 and lodged a bank guarantee of SR 12.545 million, with respect to additional zakat liability.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 GAZT could be different from the declarations filed by the Company. The Zakat is applicable on 81% of the shareholders’ while Income Tax on 19% of the shareholders’. | 21 |
| Disclosure of classes of share capital [text block] | The authorized, subscribed and paid up share capital of the Company was SR 200 million, divided into 20 million shares of SR 10 each.On 9 May 2018, the Board of Directors had recommended reducing the Company's share capital from SR 200 million to SR 100 million divided into 10 million shares by offsetting with accumulated losses. In an extra-ordinary general meeting (second meeting) held on 26 Ramadan 1439H corresponding to 10 June 2018, the shareholders' of the Company have approved this reduction and the required changes in the Company by-laws relating to this reduction, accordingly the share capital and accumulated losses have been reduced by SR 100 million. The capital reduction was through reduction of 1 share for every 2 shares held by the shareholder. The purpose of capital reduction was to restructure the capital position of the Company in order to meet the compliance with the Companies Law. There will be no impact of capital reduction on the Company’s financial obligations.On 25 Rabi Al-Awwal 1439H, corresponding to 13 December 2017, the Board of directors had recommended an increase in the Company's capital through offering a rights issue with a total value of SR 200 million. The Company on 10 July 2018 and 1 November 2018 received approval from SAMA and CMA, respectively. On 12 December 2018, the shareholders in extra ordinary general meeting approved the increase of Share Capital by SR 200 million through right issue by offering 2 shares for every 1 share held by the shareholder. Subsequent to the year-ended 31 December 2018, the right share procedures had finalized and the capital deposited on 16 January 2019. As of the date of approval of these financial statements, the Company is in the process of finalizing the legal formalities including updating of Company Commercial Registration Certificate, by-laws amongst others legal formalities.As at 31 December 2018, the authorised, subscribed and paid up share capital of the Company is SR 100 million, divided into 10 million shares of SR 10 each. | 22 |
| Disclosure of statutory reserve [text block] | As required by SAMA implementing Regulations, the Company deposited an amount equivalent to 15% of its paid up share capital, amounting to SR 30 million, in a bank designated by the Saudi Arabian Monetary Authority (“SAMA”). This statutory deposit cannot be withdrawn without the consent of SAMA, and commission accruing on this deposit is payable to SAMA. On 10 June 2018, the Company has reduced its share capital by SR 100 million (note 22) but has not withdrawn the surplus statutory deposit of SR 15 million as of 31 December 2018. | 13 |
| Disclosure of general and administrative expense [text block] | 20182017Insurance OperationsSAR’000Employee costs39,53636,814Depreciation (note 11)801484Amortization (note 10)9421,973Rent expenses1602,260Legal and professional fees1,696929Repair and maintenance costs2,4601,224Marketing expenses435255Other expenses3,7393,42749,76947,36620182017Shareholders OperationsSAR’000Legal and professional fees2,106657Investment related expenses235231Subscriptions364251Committee fees1078Others484463,1991,263 | 26 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 14.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:20182017SAR’000Outstanding claims reserve44,40834,542Claims Incurred but not reported15,94314,10860,35148,650Premium deficiency reserve2,441-Other technical reserves57248763,36449,137Less:- Reinsurers’ share of outstanding claims reserve(5,857)-- Reinsurers’ share of claims incurred but not reported(2,103)(798)- Reinsurers’ share of premium deficiency reserve(610)-(8,570)(798)Net outstanding claims and reserves54,79448,33914.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following:2018GrossReinsuranceNetSAR’000Balance as at the beginning of the year148,377-148,377Premium written during the year138,244(22,358)115,886Premium earned during the year(266,283)22,358(243,925)Balance as at the end of the year20,338-20,3382017GrossReinsuranceNetSAR’000Balance as at the beginning of the year64,740(9,424)55,316Premium written during the year274,822(6,679)268,143Premium earned during the year(191,185)16,103(175,082)Balance as at the end of the year148,377-148,377 | 14 |
| Disclosure of earnings per share [text block] | Loss per share for the year has been calculated by dividing the net income/(loss) for the year by the weighted average number of issued and outstanding shares for the year. The Company has decreased its share capital by offsetting with accumulated losses (note 22), as a result the weighted average number of ordinary shares issued and outstanding in the prior year has been restated to 10 million shares and accordingly loss per share is restated. | 25 |
| Disclosure of related party transactions [text block] | 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:Nature oftransactionsTransactions for year endedBalance receivable / (payable) as at31 December31 December31 December31 December2018201720182017SAR’000Major shareholdersMunich ReReinsurance ceded-(1,153)--Claims paidClaims recovered-18,596--Other recoveriesOther recoveries--1,5871,587Entities controlled, jointly controlled or significantly influenced by related partiesRelated parties of Juffali Group – (affiliates)Insurance premium written2,6272,6911,9112,757Office rent-30--Claims paid3,7163,067--Purchase of computer equipment, licenses, vehicles and other services27216--Commission paid332153--The following table shows the annual salaries, remuneration and allowances obtained by the Board members and top executives for the year ended 31 December 2018 and 2017:20182017SAR’000Salaries and other allowances4,0744,043End of service indemnities1511494,2254,192 | 20 |
| Disclosure of entity's operating segments [text block] | A segment is a distinguishable component of the Company that is engaged in providing only Medical – coverage for health insurance, which is subject to risk and rewards. For management purposes, the Company is organized into business units based on their only Medical - coverage for health insurance product and service.Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief executive officer that makes strategic decisions. No inter-segment transactions occurred during the year. | 19 |
| Disclosure of capital management [text block] | Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximize shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares. In the opinion of the Board of Directors, the Company has not fully complied with the externally imposed capital requirements during the reported financial period. On 12 Ramadan 1439H, corresponding to 27 May 2018, the Company received a letter from Saudi Arabian Monetary Authority (SAMA) regarding the suspension of underwriting of new or renewal of existing medical policies. SAMA also required the Company to appoint an approved advisor to study the reasons for the weak financial position and recommend solutions to improve the situation. The Company has submitted the report as issued by the appointed consultant as required by SAMA.On 18 July 2018 corresponding to 5 Dhul Qaedah 1439H, the Company received a letter from SAMA concerning issues regarding risk assessment procedures, corporate governance, contingency planning and internal control environment amongst other things. The Company is required by SAMA to appoint an independent consultant approved by them within 15 working days and submit the required report and recommend solutions to improve the situation within 60 working days. The Company hired the consultant and submitted the report as received from consultant to SAMA.Subsequent to the year-end, on 24 January 2019, the Company received a letter from SAMA uplifting the ban on underwriting business. | 23 |
| Disclosure of risk management [abstract] | | |
| Disclosure of insurance/ takaful risk [text block] | Insurance risk is the risk that actual claims payable to policyholders exceed the carrying amount of insurance liabilities. The objective of the Insurance Operations is to ensure that sufficient reserves are available to cover these liabilities. The Insurance Operations manages this risk by ensuring that adequate reinsurance cover is taken to restrict the maximum loss payable for any individual claim. The Company only issues short term contracts not exceeding one year in connection with medical risks. | 27 |
| Disclosure of reinsurance/ retakaful risk [text block] | In common with other insurance companies, in order to minimise financial exposure arising from a high volume of claims or large claims, the Insurance Operations, in the normal course of business, enters into contracts with other parties for reinsurance purposes. Such reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth.Furthermore, to minimise its exposure to significant losses from reinsurers’ insolvencies, the Insurance Operations evaluates the financial condition of its reinsurers. The Company has an Excess of Loss arrangement (XOL) with an international reinsurance company with Standard and Poors rating of “AA-“. This reinsurance arrangement covers all individual and group contracts issued by the Insurance Operations in the Kingdom of Saudi Arabia.The credit risk exposure in respect of reinsurer’s share of outstanding claims, incurred but not reported claims and premium deficiency reserves is SR 8,570 thousand (31 December 2017: SR 798 thousand). | 27 |
| Disclosure of market risk [text block] | Market price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices.The Shareholders’ Operations are exposed to market risk with respect to their FVIS investments. A 5% change in the fair value of FVIS investments, with all other variables held constant, would impact the Shareholders’ Operations by SR 385 thousands (2017 : SR 382 thousands). | 27 |
| Disclosure of credit risk [text block] | Credit 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. The Company seeks to manage its credit risk with respect to customers by following the Company’s credit control policy and monitoring outstanding receivables on an ongoing basis in order to reduce the Company’s exposure to bad debts.For all classes of financial instruments held by the Company, the maximum credit risk exposure is the carrying value as disclosed in the statement of financial position. The Company’s credit risk exposure is primarily concentrated in Saudi Arabia. The Company maintains the exposures within limits. These limits have been set on the basis of the types of exposures and the credit rating or financial standing of the counterparty. The Company seeks to manage its credit risk with respect to other counterparties by placing deposits with reputable banks. The Company enters into reinsurance contracts with recognised, creditworthy parties (rated A or above). | 27 |
| Disclosure of liquidity risk [text block] | Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at an amount close to its fair value. Liquidity requirements are monitored on monthly basis and management ensures that sufficient liquid funds are available to meet any commitments as they arise. All assets of the Company are current, except for property and equipment, intangible assets and statutory deposit, which are non-current in nature.The Company’s financial liabilities consist of outstanding claims, reinsurance balances payable, amount due to insurance operations, amount due to related parties and certain other liabilities. All financial liabilities are non-commission bearing and are expected to be settled within 12 months from the date of statement of financial position, except end of service benefits, which are non-current in nature. | 27 |
| Disclosure of fair value of financial assets and liabilities [text block] | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantages accessible market for the asset or liabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the (consolidated) financial information.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.a. Carrying amounts and fair valueThe following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value.b. Carrying amounts and fair valueShareholders’ OperationsFair valueCarrying valueLevel 1Level 2Level 3TotalSAR’00031 December 2018Financial assets measured at fair value- Investments held as FVSI7,6957,695--7,6957,6957,695--7,695Financial assets not measured at fair value- Held to maturity investments5,000-5,008-5,008- Murabaha deposits82,882--83,72483,72487,882-5,00883,72488,732Shareholders’ OperationsFair valueCarrying valueLevel 1Level 2Level 3TotalSAR’00031 December 2017Financial assets measured at fair value- Investments held as FVSI7,6387,638--7,6387,6387,638--7,638Financial assets not measured at fair value- Held to maturity investments26,851-26,939-26,939- Murabaha deposits134,863--135,594135,594161,714-26,939135,594162,533 | 18 |
| Disclosure of comparative figures [text block] | Certain prior year figures have been reclassified to conform to current year presentation. | 30 |
| Disclosure of board of director's approval of the financial statements [text block] | The financial statements have been approved by the Board of Directors, on 14 Rajab 1440H, corresponding to 21 March 2019. | 31 |
