| 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 Company (the “Company”) is a Saudi Joint Stock Company incorporated in theKingdom of Saudi Arabia as per the Ministry of Commerce and Industry’s Resolution number 98/Q dated 16 RabiAwwal 1433H (corresponding to 8 February 2012). The Commercial Registration number of the Company is4030223528 dated 27 Rabi Awal 1433H (corresponding to 19 February 2012).The Registered Office address of the Company is:Building No. 8433Prince Sultan Street, Al Rawdah DistrictP.O. Box 3528Jeddah 23435Kingdom of Saudi ArabiaFollowing is the branch of the Company:Branch Commercial Registration Number:Riyadh 1010421871The Company is licensed to conduct insurance business in the Kingdom of Saudi Arabia under cooperative principlesin accordance with Royal Decree No. M/49 dated 27 Rajab 1432H (corresponding to 29 June 2011) pursuant to theCouncil of Ministers’ Resolution No 224 dated 25 Rajab 1432H (corresponding to 27 June 2011). As of the date ofincorporation, the Company is 77% owned by the Saudi shareholders and the general public and 23% owned by non-Saudi shareholders. The Company was listed on the Saudi Stock Exchange (Tadawul) on 27 February 2012.The objective of the Company is to engage in cooperative insurance operations and related activities, includingreinsurance, agencies, representation, correspondence and brokerage, in the Kingdom of Saudi Arabia in accordancewith its Articles of Association, and applicable regulations in the Kingdom of Saudi Arabia. The Company is licensedto underwrite medical insurance only. The Company commenced its commercial operations on 7 January 2013. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | The interim condensed financial statements for the three months period ended 31 March 2020 have been preparedin accordance with International Accounting Standard 34 - Interim Financial Reporting (“IAS 34”) endorsed in theKingdom of Saudi Arabia, pursuant to SAMA circular dated 17 July 2019.Until the period ended 31 March 2019, the interim condensed financial statements of the Company were preparedin accordance with the International Accounting Standard - Interim Financial Reporting (“IAS 34”) as modified bySAMA for the accounting of Zakat and income tax.The Company changed its accounting policy for zakat and income tax as mandated by International AccountingStandard 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”). The effects of this changeare disclosed in note 20 to the interim condensed financial statements.The interim condensed financial statement is prepared under the going concern basis and the historical costconvention, except for the measurement of investments at their fair value. The Company’s interim condensedstatement of financial position is not presented using a current / non-current classification. However, the followingbalances would generally be classified as current: cash and cash equivalents, investment in Murabaha deposits,premiums receivable-net, due from reinsurers-net, reinsurers’ share of unearned premiums, deferred policyacquisition costs, deferred excess of loss premiums, prepayments and other assets, due to policyholders, reinsurersand brokers, accrued expenses, unearned premiums and reinsurance commission, outstanding claims and claimsIBNR, provision for premium deficiency reserve, other technical reserves and accrued Zakat. The following balanceswould generally be classified as non-current: outstanding claims, claims IBNR, end-of-service indemnities, relatedparties balances, accrued interest on statutory deposit, investments held at fair value through income statement,available-for-sale investment, goodwill, statutory deposit, property and equipment, and intangible assets.As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts forInsurance 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 interim condensed and annual financial statements presented separately thestatements of financial position, income, comprehensive income and cash flows for the insurance operations andshareholders operations. The basis of allocation of expenses from joint operations is determined and approved bythe management and the Board of Directors.The interim condensed statement of financial position, statements of income and statement of comprehensiveincome and cash flows of the insurance operations and shareholders operations which are presented on pages 28to 33 of the interim condensed financial statements have been provided as supplementary financial information andto comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementingregulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operationsand the shareholders operations. Accordingly, the interim condensed statements of financial position, statementsof income, comprehensive income and cash flows prepared for the insurance operations and shareholdersoperations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains orlosses of the respective operations.In preparing the Company-level financial statements in compliance with IFRS, the balances and transactions of theinsurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperationbalances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. Theaccounting policies adopted for the insurance operations and shareholders operations are uniform for liketransactions and events in similar circumstances.The inclusion of separate information of the insurance operations with the financial information of the Company inthe interim condensed statements of financial position, statement of income, statement of comprehensive income,statement of cash flows as well as certain relevant notes to the financial statements represents additionalsupplementary information required as required by the implementing regulations.The interim condensed financial statements do not include all of the information required for full annual financialstatements and should be read in conjunction with the annual financial statements as of and for the year ended 31December 2019.The interim condensed financial statements may not be considered indicative of the expected results for the fullyear.These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off tothe nearest thousands. | 2-A |
| Disclosure of statement of compliance [text block] | The interim condensed statement of financial position, statements of income and statement of comprehensiveincome and cash flows of the insurance operations and shareholders operations which are presented on pages 28to 33 of the interim condensed financial statements have been provided as supplementary financial information andto comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementingregulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operationsand the shareholders operations. Accordingly, the interim condensed statements of financial position, statementsof income, comprehensive income and cash flows prepared for the insurance operations and shareholdersoperations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains orlosses of the respective operations.In preparing the Company-level financial statements in compliance with IFRS, the balances and transactions of theinsurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperationbalances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. Theaccounting policies adopted for the insurance operations and shareholders operations are uniform for liketransactions 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, whichwere issued by the International Accounting Standards Board (IASB):Standard/Amendments DescriptionIFRIC 23 Uncertainty over Income Tax TreatmentsIFRS 16 LeasesIFRS 16 - LeasesIFRS 16 replaces IAS 17 ‘Leases’, IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC 15 ‘OperatingLeases-Incentives’ and SIC 27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’.IFRS 16 ‘Leases’ introduces a single, on-balance sheet accounting model for lessees. A lessee recognises a right-ofuseasset representing its right to use the underlying asset and a lease liability representing its obligation to makelease payments. There are optional exemptions for short-term leases and leases of low-value items. Lessoraccounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operatingleases.The Company has assessed the impact and concludes that the relevant new standard and interpretations applicableto the Company did not have any significant impact on these interim condensed financial statements. Leaseagreement is not falling under qualified lease. Thus, no right of use has been recognized.Change in accounting for Zakat and income taxAs mentioned in note 2, the basis of preparation has changed as a result of the issuance of Circular by SAMA, dated17 July 2019. Previously, Zakat and income tax were recognized in the statement of changes in equity under retainedearnings as per the SAMA Circular No. 381000074519 dated 11 April 2017. With the latest instructions issued bySAMA dated 17 July 2019, Zakat and income tax shall be recognized in the interim statement of income.The Company amended its accounting policy relating to zakat and have started to apply International AccountingStandard – Income Taxes (“IAS 12”) and IFRIC 21 – Levies so far as these relate to Zakat. The Company has accountedfor this change in the accounting policy relating to zakat retrospectively (see note 2) and the effects of the abovechange are disclosed in note 20 to the interim condensed financial statements. The change has resulted in reductionof reported income for the period ended 31 March 2019 by SR 1.8 million. The change has had no impact on thestatement of cash flows for the period ended 31 March 2019.The financial impact of adoption of accounting policy for Deferred tax is not material to the interim condensedfinancial statements, therefore prior period amounts have not been restated. | 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 interim condensed financialstatements are listed below. The listing is of standards and interpretations issued, which the Company reasonablyexpects to be applicable at a future date. The Company intends to adopt these standards when they are effective.Standard/InterpretationDescriptionEffective from periodsbeginning on or afterthe following dateIFRS 9 Financial Instruments Refer belowIFRS 17 Insurance Contracts (note below) 1 January 2022IFRS 17 – Insurance ContractsOverviewThis standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement,presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contractswith discretionary participating features provided the entity also issues insurance contracts. It requires to separatethe following components from insurance contracts:A) embedded derivatives, if they meet certain specified criteria;B) distinct investment components; andC) any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS15).MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies formeasurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurementmodelsThe General model is based on the following “building blocks”:A) the fulfilment cash flows (FCF), which comprise: probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money (i.e. discounting) and the financial risksassociated with those future cash flows, and a risk adjustment for non-financial risk;B) the Contractual Service Margin (CSM). The CSM represents the unearned profit for a group of insurancecontracts and will be recognized as the entity provides services in the future. The CSM cannot be negativeat inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit orloss immediately. At the end of each subsequent reporting period the carrying amount of a group ofinsurance contracts is remeasured to be the sum of: the liability for remaining coverage, which comprises the FCF related to future services and the CSM of thegroup at that date; and the liability for incurred claims, which is measured as the FCF related to past services allocated to thegroup at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot benegative, so changes in future cash flows that are greater than the remaining CSM are recognized inprofit or loss. Interest is also accreted on the CSM at rates locked in at initial recognition of a contract (i.e. discountrate used at inception to determine the present value of the estimated cash flows). Moreover, the CSM will bereleased into profit or loss based on coverage units, reflecting the quantity of the benefits provided and the expectedcoverage duration of the remaining contracts in the group.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features(also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria ismade at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjustedfor in addition to adjustment under general model;A) changes in the entity’s share of the fair value of underlying items ,B) changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability forthe remaining coverage if it provides a measurement that is not materially different from the general model or if thecoverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coveragecorresponds to premiums received at initial recognition less insurance acquisition cash flows. The general modelremains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cashflows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/receivedin one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from variousstakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments toIFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferralof the IFRS 9 temporary exemption in IFRS 4,is currently January 1, 2021. Under the current exposure draft, it isproposed to amend the IFRS 17 effective date to reporting periods beginning on or after January 1, 2022. This is adeferral of 1 year compared to the previous date of January 1, 2021. Earlier application is permitted if both IFRS 15– Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Companyintend to apply the standard on its effective date.TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts isimpracticable, then the entity is required to choose either a modified retrospective approach or a fair valueapproach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contractstogether with amendments to presentation and disclosures.ImpactOn 17 March 2020, IASB has tentatively decided to defer the effective date of IFRS 17 by one year to reportingperiods beginning on or after 1 January 2023. The Company has setup steering committee to oversee the IFRS 17project. Work on data gaps, accounting policies and chart of accounts together with assessing the measurementmodel is in progress based on IFRS 17 project plan. The company submitted Financial impact assessment (FIA) andOperational Impact assessment (OIA) as required by Saudi Arabian Monetary Authority (SAMA).The Company hasundertaken a Gap Analysis and the key areas of Gaps are as follows:Impact Area Summary of ImpactFinancial Impact Company is still assessing Financial ImpactData Impact / IT Systems New chart of accounts to be developed for PAA/ GMM. Actuarial and accounting data will be needed at more granular level. Discount rates will need to be stored for group of contracts and tracked for interest accretion calculationunder GMM. Embedded risk adjustment calculation in the actuarial system. Confidence interval numbers to be sourcedfor risk adjustment. Identification of key inputs for onerous contracts test as well as defining ‘facts and circumstance’ for PAAcontracts. Calculation and tracking of contractual service margin. Calculation of coverage period of risk attaching reinsurance contract.Process Impact Finance, actuarial, underwriting and IT processes to be built suitable for IFRS 17 together with new set ofcontrols and governance framework. New reconciliation processes to be put in place between accounting, actuarial and underwriting datasources. Setting up new accounting policies each suitable for measurement model and technical decisions for eacharea. Monitor terms and conditions attaching to insurance and reinsurance contracts. New expense allocation process, acquisition costs, claims settlement costs and underwriting costs to beput in place to identify profitability at a contract level. For recognition, advance premium receipts to be compared to contract receipt date. Cash receipts for premiums need to be tracked at policy level. System to track coverage period for future products need to be put in place.Impact on RI Arrangements Insurance contract liabilities / assets is required to be reported gross of reinsurance and a separatereinsurance asset / liability shall be reported. The cash flows (after factoring any expected credit loss) shall be reported gross (before reinsurance) andundiscounted. Cancellation clauses to be reviewed to assess the impact on measurement models relevant for thesecontracts.Impact on Policies & Control Frameworks New Steering committee for IFRS 17 needs to be put in place Project plan for design and implementation to be set at activities levelThe Company has started with their implementation process and have set up an implementation committee.This standard was published on 24 July 2014 and has replaced IAS 39. The new standard addresses the followingitems related to financial instruments:a) Classification and measurement:IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair valuethrough other comprehensive income or fair value through profit or loss. A financial asset is measured at amortizedcost if both: the asset is held within a business model whose objective is to hold assets in order to collect contractualcash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses wouldbe recycled through profit or loss upon sale, if both conditions are met: the asset is held within a business model whose objective is to hold assets in order to collect contractualcash flows and for sale and the contractual terms of cash flows are SPPI,Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initialrecognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing soeliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present inother comprehensive income subsequent changes in the fair value of the instruments (including realized gains andlosses), dividends being recognized in profit or loss. Additionally, for financial liabilities that are designated as at fairvalue through profit or loss, the amount of change in the fair value of the financial liability that is attributable tochanges in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of theeffects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accountingmismatch in profit or loss.b) Impairment:The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses arerecognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses.The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initialrecognition.c) Hedge accounting:IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with RiskManagement. The requirements establish a more principles-based approach to the general hedge accounting model.The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk(commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedgeaccounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressingmacro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was January 1, 2018. However, amendments to IFRS 4 – Insurance Contracts:Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on September 12, 2016, changesthe existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effectsof applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomeseffective. The amendments introduce two alternative options:1. apply a temporary exemption from implementing IFRS 9 until the earlier ofa. the effective date of a new insurance contract standard; orb. annual reporting periods beginning on or after January 1, 2021. The IASB is proposing to extend theeffective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 to January 1, 2022. Additionaldisclosures related to financial assets are required during the deferral period. This option is onlyavailable to entities whose activities are predominately connected with insurance and have not appliedIFRS 9 previously; or2. adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accountingmismatches that may occur before the new insurance contract standard is implemented. During the interim period,additional disclosures are required.The Company has performed a detailed assessment beginning 1 January 2017: (1) The carrying amount of theCompany’s liabilities arising from contracts within the scope of IFRS 4 (including deposit componentsor embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of allits liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were comparedto the total carrying amount of all its liabilities. Based on these assessments the Company determined that it iseligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets requiredduring the deferral period are included in the Company’s financial statements.Impact assessmentThe IASB also tentatively decided to allow insurers qualifying for deferral of IFRS 9 an additional one year of deferral,meaning they could apply as at both standards for the first time in reporting periods beginning on or after 1 January2023. The Company has been progressing with addressing the data gaps for computation of expected credit loss forinsurance / reinsurance receivables identified as a part of completion of Bad Debt Provisioning reporting to SAMA. | 3-B |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses arerecognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses.The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initialrecognition. | 2-B |
| Disclosure of going concern [text block] | During the period ended 30 September 2019, the Company has suffered losses amounting to SR 79.976 million thatresulted in an increase of accumulated losses reaching 41.56% of the Share Capital of SR 300 million.As at 31 December 2019, the Company’s accumulated losses reached 50.29% of its share capital (31 December 2018:44.71%).As at 31 March 2020, the Company’s accumulated losses reached 53.90% of its share capital (31 December 2019:50.29%). The Company’s management is in the process of discussing and approving of the revised business plan bythe Board of Directors and exploring other alternate options. The Management is confident for having positiveoutcome of the strategy and satisfied that the Company’s operations shall continue for foreseeable future undernormal course of business.These conditions raised uncertainty on the Company’s ability to continue as a going concern. On 18 January 2020corresponding to 23 Jamada Al-Awwal 1441H, the Company Board of Directors recommended to reduce theCompany’s share capital by SR 150 million through netting-off with the accumulated losses. Accordingly, on 19January 2020 corresponding to 24 Jamada Al-Awwal 1441H, the Company appointed a Financial Advisor to initiatethe reduction process. However, subsequently to the period-end, on 22 April 2020, in an Extraordinary GeneralAssembly Meeting, it resolved to reduce the Company’s share capital from SR 300 million to SR 150 million. As ofthe date of approval of these interim condensed financial statements, the Company is in the process of finalising thelegal formalities related to the reduction of share capital. The management considered the interim condensedfinancial position and is satisfied that the going concern basis of preparation of the interim condensed financialstatements is appropriate. Accordingly, the interim condensed financial statements has been prepared on the goingconcern basis. | 4 |
| Disclosure of other general disclosures about reporting entity [text block] | There are no seasonal changes that may affect insurance operations of the Company. | 2-c |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies adopted by the Company for the preparation of these interim condensed financialstatements are in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom ofSaudi Arabia and are consistent with those used for the preparation of the annual financial statements for the yearended 31 December 2019 and new amended IFRS and International Financial Reporting Interpretations CommitteeInterpretations (IFRIC) as mentioned in note 3(a) which had no impact on the financial position or financialperformance of the Company. Certain comparative amounts have been reclassified / regrouped to conform with thecurrent period’s presentation. This did not have any impact on interim condensed statement of changes inshareholders’ equity for the period. Further, the Company has considered the following: On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“Covid-19”) outbreak asa pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC regionincluding the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of thevirus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines andenforced country wide lockdowns and curfews. In response to the spread of the Covid-19 virus in the GCC and other territories where the Company operatesand its consequential disruption to the social and economic activities, the Company’s management hasproactively assessed its impacts on its operations and has taken a series of proactive and preventative measuresand 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. Also refer subsequent event note 21 in relation to SAMA Circular 189 issued on 8 May 2020 in response to theCovid-19 pandemic. | 3 |
| Description of accounting policy for time (murabaha) deposit [text block] | Murabaha deposits having original maturity of more than three months but less than a year, amounting to SR 48,857thousand (2019: SR 76,036 thousand), which are held in Saudi Arabian Riyals in the Kingdom of Saudi Arabia, arepresented in the statement of financial position of the shareholders separately. As at 31 March 2020, the depositcarrying commission rates ranges from 2.1% to 2.7% (31 December 2019: 1.9% to 3.1%). | 6 |
| Description of accounting policy for statutory deposit [text block] | As required by the Saudi Arabian Insurance Regulations, the Company deposited an amount equivalent to 15% of itspaid up share capital, amounting to SR 45 million (31 December 2019: SR 45 million), in a bank designated by SAMA.This statutory deposit cannot be withdrawn without the consent of SAMA, and commission accruing on this depositis payable to SAMA. | 9 |
| Description of accounting policy for seasonality of operations [text block] | There are no seasonal changes that may affect insurance operations of the Company. | 2-c |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of accounting estimate [text block] | The preparation of interim condensed financial statements requires management to make judgments, estimatesand 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 inapplying the Company’s accounting policies and the key sources of estimation uncertainty including the riskmanagement policies were the same as those that applied to the annual financial statements as at and for the yearended 31 December 2019. | 2-B |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Receivables comprise amounts due from the following:31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Policyholders 37,120 44,929Brokers and agents 14,253 12,472Related parties (note 14) 38,637 10,74890,010 68,149Provision for doubtful premiums receivables (18,852) (23,290)Premiums receivable – net 71,158 44,859Note: Premium balance receivable from brokers and agents at 31 March 2020 amounting to SAR 14.25 million (31December 2019: SAR 12.4 million) are ultimately due from customers that are insured through brokers and agents.Movement in the allowance for doubtful premiums receivable during the period was as follows:31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Balance at beginning of the period/year 23,290 16,328(Released)/ provided during the period / year (4,438) 6,962Balance at end of the period / year 18,852 23,290 | 7 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents included in the statement of cash flows comprise the following:Insurance operations31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Bank balances and cash 16,303 14,59016,303 14,590Shareholders’ operations31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Bank balances and cash 18 18Murabaha deposits maturing within 3 months from the acquisitiondate 82,156 62,76782,174 62,785 | 5 |
| Disclosure of statutory deposit [text block] | As required by the Saudi Arabian Insurance Regulations, the Company deposited an amount equivalent to 15% of itspaid up share capital, amounting to SR 45 million (31 December 2019: SR 45 million), in a bank designated by SAMA.This statutory deposit cannot be withdrawn without the consent of SAMA, and commission accruing on this depositis payable to SAMA. | 9 |
| Disclosure of zakat [text block] | a. Charge for the period / yearThe differences between the financial and the Zakatable results are mainly due to certain adjustments in accordancewith the relevant fiscal regulations.Movements in provision during the period / year 31 March2020(Unaudited)31 December2019(Audited)SAR’000Balance at the beginning of the period / year 15,498 10,698Charge for the period / year 600 4,800Balance at the end of the period / year 16,098 15,498As the Company has incurred a loss during the three-month period ended 31 March 2020, and in previous years, noprovision has been established in respect of income tax in these interim condensed financial statements.b. Status of zakat assessmentsThe Company has filed its Zakat and tax return for the first twelve month period ended 30 June 2012 with the GeneralAuthority of Zakat and Tax (“GAZT”). The Company has also filed its Zakat and income tax return for the long periodfrom 8 February 2012 to 31 December 2013 and for the years from 2014 to 2017 and obtained restricted zakatcertificates. The Company has submitted its Zakat and income tax return for the year ended 31 December 2018.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 GAZTtreatment and is confident of a favourable outcome.During 2017, the Company filed an appeal to the Appellate Committee for Zakat and Tax Appeal (“ACZTA”) againstthe Preliminary Objection Committee’s (“POC”) decision for the years 2011 through 2014 and lodged a bankguarantee 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 theKingdom of Saudi Arabia. The Zakat regulations in Saudi Arabia are subject to different interpretations, and theassessments to be raised by the GAZT could be different from the declarations filed by the Company. The Zakat isapplicable on 81% of the shareholders’ while Income Tax on 19% of the shareholders’. | 15 |
| Disclosure of classes of share capital [text block] | As at 31 March 2020, the authorized, subscribed and paid up share capital of the Company was SR 300 million,divided into 30 million shares of SR 10 each.On 18 January 2020, the Board of Directors had recommended reducing the Company's share capital from SR 300million to SR 150 million divided into 15 million shares by off-setting with accumulated losses. In an extra-ordinarygeneral meeting (second meeting) held on 29 Sha’ban 1441H corresponding to 22 April 2020, the shareholders' ofthe Company have approved this reduction and the required changes in the Company by-laws relating to thisreduction, accordingly the share capital and accumulated losses have been reduced by SR 150 million. The capitalreduction is through reduction of 1 share for every 2 shares held by the shareholder. The purpose of capital reductionis to restructure the capital position of the Company in order to meet the compliance with the Companies Law. Therewill be no impact of capital reduction on the Company’s financial obligations. | 16 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 10.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Outstanding claims reserve 26,501 21,431Claims Incurred but not reported 21,509 18,49348,010 39,924Premium deficiency reserve 20,064 17,335Other technical reserves 1,738 1,46069,812 58,719Less:- Reinsurer share of outstanding claims reserve (381) (1,034)- Reinsurer share of claims incurred but not reported (43) (94)(424) (1,128)Net outstanding claims and reserves 69,388 57,59110.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following:Three-months period ended 31 March 2020(Unaudited)Gross Reinsurance NetSAR’000Balance as at the beginning of the period 75,920 - 75,920Premium written during the period 60,979 - 60,979Premium earned during the period (45,533) - (45,533)Balance as at the end of the period 91,366 - 91,366Year ended 31 December 2019(Audited)Gross Reinsurance NetSAR’000Balance as at the beginning of the year 20,338 - 20,338Premium written during the year 154,028 - 154,028Premium earned during the year (98,446) - (98,446)Balance as at the end of the year 75,920 - 75,920 | 10 |
| Disclosure of earnings per share [text block] | Loss per share for the period has been calculated by dividing the net loss for the period by the weighted averagenumber of issued and outstanding shares for the period.A) The weighted average number of shares has been retrospectively adjusted for prior period to reflect the bonuselement of right share issue as required by IAS 33 “Earnings per share” as follows:Three-months period ended31 March 2020(Unaudited)31 March 2019(Unaudited)SAR’000Issued ordinary shares as at 1 January 30,000 10,000Effect of bonus element of right share issue - -Effect of right share issue - 17,612Weighted average number of ordinary shares 30,000 27,612The weighted average number of ordinary shares for prior period is computed using an adjustment factor of 1.57which is a ratio of the theoretical ex-rights price of SR 13.96 per ordinary share and the closing price of SR 21.88 perordinary share on the last day on which the shares were traded before the right issue.B) The basic and diluted loss per share is calculated as follows:Three-month period ended31 March 2020(Unaudited)31 March 2019(Unaudited)(Restated)SAR’000Net loss for the period (10,854) (18,209)Weighted average number of ordinary shares 30,000 27,612Basic and diluted loss per share (SR) (0.36) (0.66 | 18 |
| Disclosure of related party transactions [text block] | Related parties represent major shareholders, directors and key management personnel of the Company, andcompanies of which they are principal owners and any other entities controlled, jointly controlled or significantlyinfluenced by them. Pricing policies and terms of these transactions are approved by the Company’s managementand Board of Directors. The following are the details of the major related party transactions during the period andthe related balances:Nature oftransactionsTransactions for thethree-months period endedBalance receivable / (payable)as at31 March 31 March 31 March 31 December2020 2019 2020 2019(Unaudited) (Unaudited) (Unaudited) (Audited)SAR’000Major shareholdersMunich Re Other recoveries (net) - - - -Entities controlled, jointly controlledor significantly influenced by relatedpartiesRelated parties of Juffali Group(affiliates)Insurance premiumwritten (4) (20) 1,111 1,231Claims paid 353 628 - -Purchase of computerequipment, licenses,vehicles and otherservices 410 274 405 -Commission paid 12 25 44 32Related parties of Dr. Soliman FakeehGroup– (affiliates)Insurance premiumwritten 382 - 9,917 9,517Claims paid 3,830 1,591 (6,688) (5,430)Related parties of InternationalMedical Center – (affiliates)Insurance premiumwritten 32,313 - 27,609 -Claims paid 805 1,360 (5,355) (1,381)The compensation of key management personnel during the three-months period is as follows:31 March 2020(Unaudited)31 March 2019(Unaudited)SAR’000Salaries and other allowances 736 1,017End of service indemnities 27 37763 1,054 | 14 |
| Disclosure of entity's operating segments [text block] | The Company only issues insurance contracts for providing health care services (‘medical insurance’) and all theinsurance operations of the Company are carried out in the Kingdom of Saudi Arabia. The insurance operations arebeing monitored by management under one segment; hence no separate information is required. | 13 |
| Disclosure of capital management [text block] | Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives andmaximize shareholders’ value.The Company manages its capital requirements by assessing shortfalls between reported and required capital levelson a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and riskcharacteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company mayadjust the amount of dividends paid to shareholders or issue shares. In the opinion of the Board of Directors thatthe Company has fully complied with the externally imposed capital requirements during the reported financialperiod.The Company’s management, through various scenario analysis as required by the regulator, has assessed thepotential of the Covid-19 pandemic by performing stress testing for various variables like: gross premium growth,increase in employee cost, YTD loss ratio, outstanding premium provisions etc. and the related impact on therevenue, profitability, loss ratio and solvency ratio. As with any forecasts, the projections and likelihoods ofoccurrence are underpinned by significant judgements and uncertainties and, therefore, the actual outcomes maybe different to those projected. As the situation is fluid and rapidly evolving, the Company will continue to reassessits position and the related impact on a regular basis. | 17 |
| Disclosure of commitments and contingencies, general [text block] | a. The Company’s commitments and contingencies are as follows:31 March2020(Unaudited)SAR’00031 December2019(Audited)SAR’000Letters of guarantee 12,545 12,545Total 12,545 12,545b. There were no capital commitments outstanding as at 31 March 2020 (31 December 2019: Nil).c. As at 31 March 2020, the Company has a letter of guarantee amounting to SR 12.545 million(31 December 2019: SR 12.545 million) in favor of General Authority of Zakat and Tax (GAZT),which is secured against the Company’s murabaha deposit of SR 14 million (31 December 2019: SR14 million) with Saudi Arabian British Bank (SABB). | 11 |
| 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 orderlytransaction between market participants at the measurement date. The fair value measurement is basedon 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 orliabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carryingamounts included in the interim condensed (consolidated) financial information.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financialinstruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access atthe measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques forwhich 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 doesnot include fair value information for financial assets and financial liabilities not measured at fair value ifthe carrying amount is a reasonable approximation to fair value. | 12 |
| Disclosure of comparative figures [text block] | COMPARATIVE FIGURESA) ZakatAs mentioned under note 2, the basis of preparation has changed as a result of the issuance on the new Circular bySAMA. The change in the accounting treatment for Zakat (as explained in note 3) has the following impact on theline items of the statements of income, comprehensive income and changes in shareholders’ equity:As at and for the three-months period ended 31 March 2019:AccountFinancial statement impactedBalancepreviouslyreportedEffect ofrestatementBalancerestatedSR’000 SR’000 SR’000Zakat Interim condensed statement ofincome -(600)(600)Net loss for the periodInterim condensed statement ofincome (17,609)(600)(18,209)Loss per share for the periodInterim condensed statement ofincome(0.64)(0.02)(0.66)ZakatInterim condensed statement ofchanges in shareholders’ equity(600)(600)-Total comprehensive loss forthe periodInterim condensed statementsof comprehensive income andchanges in shareholders’ equity(17,609)(600)(18,209) | 20 |
| Disclosure of board of director's approval of the financial statements [text block] | The interim condensed financial statements have been approved by Board of Directors, on 4 Shawwal 1441H,corresponding to 27 May 2020. | 23 |
