	English [member]
Start Date	2018-01-01	2017-01-01
End Date	2018-12-31	2017-12-31
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Aljazira Takaful Taawuni Co.
Company symbol code\| ISIN code	8012 \| SA13AG53T618
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Annual
Reporting period start date	2018-01-01	2017-01-01
Reporting period end date	2018-12-31	2017-12-31
Description of nature of financial statements	Consolidated
Status of financial statements	Audited
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	Primary auditor [member]	Second primary auditor [member]
	English [member]	English [member]
Start Date	2018-01-01	2018-01-01
End Date	2018-12-31	2018-12-31
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Ahmed I. Reda
Registration number of auditor	356	337
Details of audit firm [abstract]
Registration number of audit firm	45
Contact number of audit firm	Ernst & Young & Co
Address of audit firm	P. O. Box 1994Jeddah 21441Kingdom of Saudi Arabia	P. O. Box 15651Jeddah 21454Kingdom of Saudi Arabia

	English [member]
Start Date	2018-01-01
End Date	2018-12-31
Auditors report [line items]
Disclosures of auditors report [text block]	We have audited the financial statements of Aljazira Takaful Taawuni Company – a Saudi Joint Stock Company (the “Company”), which comprise the statement of financial position as at 31 December 2018, and the related statement of income, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2018, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”) as modified by the Saudi Arabian Monetary Authority (“SAMA”) for the accounting of zakat and income tax.
Basis of opinion	We conducted our audit in accordance with International Standards on Auditing (“ISAs”) that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the professional code of conduct and ethics endorsed in the Kingdom of Saudi Arabia, that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of management and those charged with governance for financial statements	Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs as modified by SAMA for the accounting of zakat and income tax, the applicable requirements of the Companies’ Law, the Company’s By-laws and for such internal control as management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditors responsibilities for audit of financial statements	Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs that are endorsed in the Kingdom of Saudi Arabia will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISA that are endorsed in the Kingdom of Saudi Arabia, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Date of signing audit report by auditor	2019-03-17

Start Date	2018-01-01	2017-01-01	Note No.
End Date	2018-12-31	2017-12-31
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	260	0	8
Due from related parties, insurance/ takaful operations assets	7,444	5,432	19
Investments held-to-maturity, insurance/ takaful operations assets	15,458	15,001	7
Reinsurers/ retakaful share of unearned premiums/ contributions	9,006	7,261	12
Prepayments and other assets, insurance/ takaful operations assets	679	708
Premiums/ insurance receivables/takaful contributions receivable, net	1,633	203	5
Reinsurers/ retakaful share of outstanding claims/ benefits, net	16,007	15,586	13
Available-for-sale investments, insurance/ takaful operations assets	128,230	106,626	6
Investments held at fair value through statement of income, insurance/ takaful operations assets	43,072	0	7
Cash and cash equivalents, insurance/ takaful operations assets	13,208	46,814	4
Total insurance/ takaful operations assets	234,997	197,631
Shareholders assets [abstract]
Investments held-to-maturity, shareholders assets	306,923	297,585	7
Statutory deposit	35,000	35,000	9
Prepayments and other assets, shareholders assets	41	46
Investments held at fair value through statement of income, shareholders assets	30,376	31,700	7
Due from insurance/ takaful operations assets	25,522	24,488
Cash and cash equivalents, shareholders assets	3,854	6,448	4
Total shareholders assets	401,716	395,267
Total assets	636,713	592,898
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	22,774	18,342	12
Premiums/ contributions received in advance	2,699	1,186	15
Employees end of service benefits, insurance/ takaful operations liabilities	2,050	1,960	16
Technical reserve for insurance/takaful operations	130,847	108,135	10, 11
Due to shareholders operations	25,522	24,488
Reinsurers/ retakaful balance payable	16,125	7,965	12
Gross outstanding claims/ benefits including IBNR payable	21,012	21,239
Accrued expenses payable, insurance/ takaful operations liabilities	11,059	11,603	15
Total insurance/ takaful operations liabilities	232,088	194,918
Insurance/ takaful operations surplus (deficit) [abstract]
Surplus (deficit) from insurance/ takaful fund	2,827	2,713
Other insurance/ takaful operations surplus (deficit)	82	0	16
Total insurance/ takaful operations surplus (deficit)	2,909	2,713
Total insurance/ takaful operations liabilities and surplus (deficit)	234,997	197,631
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	907	895	22
Income tax payable	132	128	22
Accrued expenses payable, shareholders liabilities	2,789	2,700	15
Total shareholders liabilities	3,828	3,723
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	350,000	350,000	17
Statutory reserve	23,253	16,885	18
Retained earnings (accumulated losses)	24,635	24,659
Total equity attributable to owners of parent	397,888	391,544
Total equity attributable to equity holders of company	397,888	391,544
Total shareholders liabilities and equity	401,716	395,267
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	636,713	592,898

Start Date	2018-01-01	2017-01-01	Note No.
End Date	2018-12-31	2017-12-31
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	101,145	85,620	12
Reinsurance/ retakaful premiums ceded	18,625	17,599	12
Net premiums/ contributions written	82,520	68,021	12
Changes in unearned premiums/ contributions	2,687	100
Net premiums/ contributions earned	79,833	67,921	12
Investment income from insurance/ takaful operations, net	1,165	842
Other non-operating income from insurance/ takaful operations	79	500
Total income from insurance/ takaful operations	81,077	69,263
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	11,191	13,895	13
Reinsurance/ retakaful share of gross claims/ benefits paid	9,145	11,436	13
Net claims/ benefits paid	2,046	2,459
Changes in outstanding claims/ benefits including IBNR	-648	263
Changes in reserve for takaful activities	48,112	38,618
Net claims/ benefits incurred	49,510	41,340
Policy acquisition costs	1,522	1,555
Supervision and inspection fees	506	428
General and administrative expenses, insurance/ takaful operations	5,815	4,994	20
Other underwriting income	4,545	6,180
Total cost and expenses	52,808	42,137
Surplus (deficit) for period from insurance/ takaful operations	28,269	27,126
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	25,442	24,413
Net result for period from insurance/ takaful operations after shareholders appropriation	2,827	2,713
Policyholders share of accumulated surplus, at end of period	2,827	2,713

Start Date	2018-01-01	2017-01-01	Note No.
End Date	2018-12-31	2017-12-31
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	25,442	24,413
Revenue [abstract]
Income from murabaha/ time deposits	9,375	8,961
Realised gain (loss) on investments held as fair value through statement of income	28
Unrealised gain (loss) on investments held as fair value through statement of income	148	494
Dividend income	8	39
Other income	32	51
Total revenue	9,591	9,545
Expenses [abstract]
General and administrative expenses, shareholders operations	3,193	2,889	20
Total expenses	3,193	2,889
Income (loss) from continuing operations before zakat and income tax	31,840	31,069
Zakat expenses on continuing operations for period	854	762	22
Income tax on continuing operations for period	142	127	22
Profit (loss) from continuing operations	30,844	30,180
Profit (loss) for the period	30,844	30,180
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	30,692.8644	30,089.46
Profit (loss), attributable to non-saudi shareholders of company	151.1356	90.54
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.91	0.888
Total basic earnings (loss) per share	0.91	0.888
Diluted earnings (loss) per share [abstract]
Diluted earnings (loss) per share from continuing operations	0.91	0.889
Total diluted earnings (loss) per share	0.91	0.889
Weighted average number of equity shares outstanding	35000	35000
Share closing price at the last trading day of financial year (in numbers)	17.52	27.4

Start Date	2018-01-01	2017-01-01
End Date	2018-12-31	2017-12-31
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	2,827	2,713
Other comprehensive income [abstract]
Components of other comprehensive income that will not be reclassified to profit or loss [abstract]
Remeasurement gains (losses) on defined benefit plans	82
Total other comprehensive income that will not be reclassified to profit or loss	82
Total other comprehensive income (loss)	82
Total comprehensive income (loss) for period	2,909	2,713

Start Date	2018-01-01	2017-01-01
End Date	2018-12-31	2017-12-31
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	30,844	30,180
Total comprehensive income (loss) for period	30,844	30,180
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	30,674.358	30,089.46
Total comprehensive income (loss), attributable to non-saudi shareholders of company	169.642	90.54

Start Date	2018-01-01	2017-01-01
End Date	2018-12-31	2017-12-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	2,827	2,713
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	42
Adjustments for unrealised (gains) losses on investments held as fair value through statement of income	-72
Adjustments for employees end of service benefits	951	620
Adjustments for allowance for doubtful receivables	55	2
Other adjustments to reconcile net income to net cash from insurance/ takaful operating activities	-457	-1
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	519	621
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-1,485	17
Adjustments for decrease (increase) in prepayments and other assets	29	-420
Adjustments for increase (decrease) in outstanding claims including IBNR	-227	3,840
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	8,160	-3,204
Adjustments for increase (decrease) in accrued expenses and other liabilities	969	2,271
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	-421	-3,577
Adjustments for decrease (increase) in due from shareholders operations	1,034	4,663
Adjustments for movement in gross unearned premiums/ contributions	4,432	449
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	-1,745	-349
Adjustment for changes in other technical reserves	22,712	36,982
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	-23,616	-38,440
Total changes in operating assets and liabilities	9,842	2,232
Net cash flows from (used in) insurance/ takaful operations	13,188	5,566
Other inflows (outflows) of cash classified as operating activities, insurance/ takaful operations cash flow	-3,492	-2,736
Net cash flows from (used in) operating activities, insurance/ takaful operations	9,696	2,830
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Purchase of held-to-maturity investments, insurance/ takaful operations cash flow		15,000
Purchase of investments held as fair value through statement of income, insurance/ takaful operations cash flow	43,000
Purchase of property and equipment, insurance/ takaful operations cash flow	302
Net cash flows from (used in) investing activities, insurance/ takaful operations	-43,302	-15,000
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Other inflows (outflows) of cash classified as financing activities, insurance/ takaful operations cash flow	0	0
Net cash flows from (used in) financing activities, insurance/ takaful operations	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-33,606	-12,170
Net increase (decrease) in cash and cash equivalents	-33,606	-12,170
Cash and cash equivalents at beginning of period	46,814	58,984
Cash and cash equivalents at end of period	13,208	46,814

Start Date	2018-01-01	2017-01-01
End Date	2018-12-31	2017-12-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	31,840	31,069
Net profit (loss) for period (before zakat expenses and income tax)	31,840	31,069
Adjustments to reconcile profit (loss) [abstract]
Adjustments for unrealised loss (gain) on investments held as fair value through statement of income, shareholders cash flow	-148	-494
Adjustments for realised loss (gain) on investments held as fair value through statement of income, shareholders cash flow	-28
Other adjustments for non-cash items	-9,338	-8,851
Total adjustments to reconcile profit (loss)	-9,514	-9,345
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	89	1,070
Adjustments for decrease (increase) in due from insurance/ takaful operations	-1,034	-4,663
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	5	-46
Total changes in operating assets and liabilities	-940	-3,639
Net cash flows from (used in) operations	21,386	18,085
Zakat expenses	842	1,084
Income taxes refund (paid)	138	112
Net cash flows from (used in) operating activities	20,406	16,889
Cash flows from (used in) investing activities [abstract]
Purchase of investments held at fair value through statement of income	23,000
Proceeds from investments held at fair value through statement of income	24,500
Purchase of held-to-maturity investments		295,000
Proceeds from disposal of held-to-maturity investments		270,000
Other inflows (outflows) of cash		9,166
Net cash flows from (used in) investing activities	1,500	-15,834
Cash flows from (used in) financing activities [abstract]
Dividends paid	24,500	17,500
Net cash flows from (used in) financing activities	-24,500	-17,500
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-2,594	-16,445
Net increase (decrease) in cash and cash equivalents	-2,594	-16,445
Cash and cash equivalents at beginning of period	6,448	22,893
Cash and cash equivalents at end of period	3,854	6,448

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2018-01-01

End Date

2018-12-31

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]

1. GENERALAlJazira Takaful Taawuni Company (the "Company"), is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia pursuant to the Council of Ministers’ resolution No. 137 dated 27 Rabi' Al-Thani 1431H (corresponding to 12 April 2010) and Royal Decree No. M/23 dated 28 Rabi' Al-Thani 1431H corresponding to 13 April 2010. The Company obtained its Commercial Registration 4030251980 on 2 Ramadan 1434H corresponding to 10 July 2013 and Ministry of Commerce and Industry’s Resolution dated 24 Sha’baan 1434H corresponding to 3 July 2013. The registered office address of the Company is:Al Musadia Plaza (3), Al Madinah Road, P.O. Box 6277, Jeddah 21442, Kingdom of Saudi Arabia.The objectives of the Company are to engage in providing insurance products including protection and saving insurance products and related services in accordance with its By-Laws and applicable regulations in the Kingdom of Saudi Arabia. The Company received licence number TMN/34/201312 dated 15 Safar 1435H (corresponding to 18 December 2013) from the Saudi Arabian Monetary Authority (SAMA) to conduct insurance business. The Company is owned 99.45% by Saudi founding shareholders and general public subject to zakat and 0.55% by non-Saudi founding shareholders subject to income tax.The insurance portfolio and related assets and liabilities will be acquired from a founding shareholder by the Company on completion of valuation and approval by SAMA. Furthermore, in accordance with the Transitional Agreement (the “Agreement”) between the Company and Bank Al Jazira (“a founding shareholder”), all the general and administrative costs up to the transfer of the insurance portfolio will be shared by the Company and the founding shareholder in the ratio of 17% and 83%, respectively. Currently, the Company is also using furniture and fixtures of a founding shareholder. Moreover, in accordance with the Agreement, the Company was also receiving a management fee in respect of managing the insurance portfolio of the founding shareholder, at a rate ranging from 10% to 20% of total revenue of the founding shareholder’s portfolio (“Portfolio Management fee”). The management fee is not effective for the period subsequent to 1 April 2015 as per the Agreement.

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

2. BASIS OF PREPARATION(a) Basis of presentation and measurementThese financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as modified by 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”) except for the application of International Accounting Standard (IAS) 12 - “Income Taxes” and IFRIC 21 - “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated April 11, 2017 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.The financial statements are prepared under the going concern basis 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 has presented in order of liquidity. Except for fixtures, furniture and equipment, statutory deposit, end-of-service indemnities, outstanding claims, claims incurred but not reported, unit reserve and mathematical reserve, all other assets and liabilities are of short-term nature, unless, stated otherwise.As required by the Saudi Arabian Insurance Regulations (the Implementation Regulations), the Company maintains separate books of accounts for “Insurance Operations” and “Shareholders’ Operations”. Accordingly, assets, liabilities, revenues and expenses clearly attributable to either operation, are recorded in the respective accounts. The Company’s financial statements until 31 December 2017, presented separately the statement of financial position, statements of income, comprehensive income and cash flows for the insurance operations and shareholders’ operations.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 and transactions, 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. BASIS OF PREPARATION (continued) (a) Basis of presentation and amusement (continued)In preparing these financial statements the comparative amounts were also combined to conform with the current year presentation in line with SAMA requirements and this has no impact on the previously reported net profit and retained earnings. However, note 29 to these financial statements provides the statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations, separately.(b) Functional and presentation currencyThese financial statements are presented in Saudi Arabian Riyals (SR), which is the Company’s functional currency. All financial information presented in SR has been rounded to the nearest thousand except where otherwise indicated.(c) Fiscal yearThe Company follows a fiscal year ending 31 December.(d) Critical judgments, accounting estimates and assumptionsThe 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:Provision for outstanding claimsJudgement by management is required in the estimation of amounts due to participants arising from claims made under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. The Company estimates its claims based on its experience of its insurance portfolio. Claims requiring court or arbitration decisions, if any, are estimated individually.The 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.Management reviews its provisions for claims incurred, and claims incurred but not reported, on a monthly basis. Any difference between the provisions at the statement of financial position date and settlements and provisions in the following year is included in the statement of income for that year. The provision for outstanding claims, as at 31 December, is also verified and certified by an independent actuary.Allowance for doubtful receivableA provision for impairment of contributions receivable 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 receivable. Significant financial difficulties of the debtor and default or delinquency in payments are considered indicators that the premiums receivable is impaired. 2. BASIS OF PREPARATION (continued) (d) Critical judgments, accounting estimates and assumptions (continued)Classification of investmentsThe management designates at the time of acquisition of investment securities whether these should be classified as FVIS or held-to-maturity or available-for-sale securities. In judging whether investment in securities are classified as at fair value or amortised cost, management has considered the detailed criteria for determination of such classification as set out in IFRS.Fair values of financial instrumentsThe fair value for financial instruments traded in active markets at the reporting date is based on their quoted market price. Where the fair values of financial assets and financial liabilities recorded on the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to these models are derived from observable market data where possible, but if this is not available, judgement is required to establish fair values.Impairment losses on available-for-sale financial assetsThe Company determines that available-for-sale equity financial assets are impaired when there has been a significant or prolonged decline in the fair value below its cost. This determination of what is significant or prolonged requires judgment. 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. Impairment may be appropriate when there is evidence of deterioration in the financial health of the investee, industry and sector performance, changes in technology, and financing and operational cash flows.Going concernThe Company’s management has made an assessment of the Company’s ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.(e) Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company.

Disclosure of summary of significant accounting policies [abstract]

Disclosure of summary of significant accounting policies, general comment [text block]

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe 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 adoption of the amendments to existing standards, IFRS 15 and accounting policy related to employees-end-of-service benefits as discussed below: .a) New IFRS, IFRIC and amendments thereof, adopted by the CompanyThe Company has adopted the following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):Standard/Amendments DescriptionIFRS 2 Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.IAS 40 Amendments to IAS 40 Transfers of investment propertyIFRIC 22 Foreign Currency Transactions and Advance considerationIFRS 15 Revenue from Contracts with Customers (refer below)IFRS 1 and IAS 28 Annual Improvements 2016 to IFRS 2014- 2016 cycle.The adoption of the amended standards and interpretations applicable to the Company did not have any significant impact on these financial statements. 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)a) New IFRS, IFRIC and amendments thereof, adopted by the Company (continued)IFRS 15 – Revenue from Contracts with Customers IFRS 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 the IFRS. 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 benefits 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. Re-measurements (actuarial gains/ losses) as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of comprehensive income. The impact of the above accounting policy on the previous years was not significant to the financial statements.b) Standards issued but not yet effective The following are the standards issued but not yet effective up to the date of issuance of the Company’s financial statements. The Company intends to adopt these standards when they become effective.IFRS 9 - Financial Instruments (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which replaced IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurement requirements for financial assets, introduces an expected credit loss (ECL) impairment model which replaces 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 as 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 1 January 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. 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)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 is eligible to and has applied the deferral approach.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 9.IFRS 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.

Description of accounting policy for cash and cash equivalents [text block]

1. CASH AND CASH EQUIVALENTS

	*30 September* *2018* *(Unaudited)* *SR'000*	31 December 2017 (Audited) SR'000
*Insurance Operations*
Cash at bank	9,293	6,814
Murabaha deposits	30,000	40,000

	39,293	46,814
*Shareholders’ Operations*
Cash at bank	4,135	4,648
Murabaha deposits	-	1,800

	4,135	6,448

	43,428	53,262

Cash at bank and Murabaha deposits, except for an amount SR 0.5 million (31 December 2017: SR 0.5 million) are held with a founding shareholder.

Disclosure of notes forming part of accounts [abstract]

Disclosure of property and equipment [text block]

8. FIXTURES, FURNITURE AND EQUIPMENT

	*Computer equipment*	*Furniture and Fixture*	*Total 2018*	Total 2017
	*SR'000*	*SR'000*	*SR'000*	SR'000

Cost:
At the beginning of the year			-	-
Additions	141	161	302	-

As at 31 December	141	161	302	-

Accumulated depreciation:
At the beginning of the year				-
Charge for the year	30	12	42	-

As at 31 December	30	12	42	-

Net book value
As at 31 December 2018	111	149	260	-

As at 31 December 2017	-	-	-	-

Disclosure of investments [text block]

	*2018*				2017
	*Insurance operations*	*Shareholders’ operations*	*Total*		Insurance operations	Shareholders’ operations	Total
	*SR’000*	*SR’000*	*SR’000*		SR’000	SR’000	SR’000

Held to maturity investments (7.1)	15,458	306,923	322,381		15,001	297,585	312,586
FVIS investments (7.2)	43,072	30,376	73,448	-	-	31,700	31,700
Total	58,530	337,299	395,829		15,001	329,285	344,286

7.1 Held-to-maturity investments

Held-to-maturity investments represents murabaha deposit with a maturity of three years made with a founding shareholder. The average commission rate on these investments at 31 December 2018 is 3% to 3.2% per annum (31 December 2017: 2.85% to 3.2% per annum). The Insurance operations investment will mature in 2021 and the Shareholders’ operation investments will mature in 2020 and 2021.

7. INVESTMENTS (continued)

7.1 Held-to-maturity investments (continued)

The movement in the held to maturity investments during year ended 31 December is as follows:


	*Insurance operations*	*Shareholders’* *operations*	*Total*
*2018*	*SAR‘000*	*SAR‘000*	*SAR‘000*

Balance at the beginning of the year	15,001	297,585	312,586
Placements	-	-	-
Maturity	-	-	-
Commission from held-to-maturity investments	457	9,338	9,795
Balance at the end of the year	15,458	306,923	322,381

	Insurance operations	Shareholders’ operations	Total
2017	SAR‘000	SAR‘000	SAR‘000

Balance at the beginning of the year	-	272,900	272,900
Placements	15,000	295,000	310,000
Maturity	-	(279,166)	(279,166)
Commission from held-to-maturity investments	1	8,851	8,852
Balance at the end of the year	15,001	297,585	312,586

7. INVESTMENTS (continued)

7.2 FVIS investments

The fair value through income statement (“FVIS”) investments represent investment in the ‘Al Jazira Capital’ managed by a founding shareholder, amounting to SR 73,073 thousand (31 December 2017: SR 31,145 thousand), and investment in shares of companies listed on Tadawul, amounting to SR 375 thousand (31 December 2017: SR 555 thousand).

Movement in FVIS investments year ended 31 December 2018 is as follows:

	*Insurance operations*	*Shareholders’* *operations*	*Total*
*2018*	*SAR‘000*	*SAR‘000*	*SAR‘000*

Balance at beginning of the year	-	31,700	31,700
Disposals during the year	-	(24,472)	(24,472)
Purchases	43,000	23,000	66,000
Changes in fair value	72	148	220
Balance at the end of the year	43,072	30,376	73,448

	Insurance operations	Shareholders’ operations	Total
2017	SAR‘000	SAR‘000	SAR‘000

Balance at beginning of the year	-	31,206	31,206
Disposals during the year	-	-	-
Purchases	-	-	-
Changes in fair value	-	494	494
Balance at the end of the year	-	31,700	31,700

Disclosure of investments in available-for-sale investments [text block]

6. AVAILABLE-FOR-SALE INVESTMENTS HELD TO COVER UNIT-LINKED LIABILITIES

Insurance Operations

Initial

cost value

SR'000

Change in fair value

SR'000

2018

SR'000

AlJazira Saudi Riyal Murabaha Fund

652

665

AlJazira Diversified Aggressive Fund

104,659

(5,794)

98,865

AlJazira Diversified Balanced Fund

25,850

(786)

25,064

AlJazira Diversified Conservative Fund

3,639

(3)

3,636

134,800

(6,570)

128,230

Insurance Operations

Initial

cost value

SR'000

Change in fair value

SR'000

2017

SR'000

AlJazira Saudi Riyal Murabaha Fund

525

535

AlJazira Diversified Aggressive Fund

74,346

10,414

84,760

AlJazira Diversified Balanced Fund

17,347

1,378

18,725

AlJazira Diversified Conservative Fund

2,512

2,606

94,730

11,896

106,626

Investment of Insurance operations comprises of units of mutual funds dominated in Saudi Riyal managed by a founding shareholder.

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

5. CONTRIBUTIONS RECEIVABLE, NET

	*2018* *SR'000*	2017 SR'000
Gross contributions receivable	1,688	203
Allowance for doubtful receivables	(55)	-
Contributions receivable, net	1,633	203

During the year, a provision of SR 55 thousand (2017: SR nil) was created in respect of gross contribution receivable. The age analysis of contributions receivable, net arising from insurance contracts is as follows:

	*2018*
		*Past due but* *not impaired*	*Past due and* *impaired*			*Total*
	*Neither past due nor impaired*	*From one to* *three months*	*Above three and up to six months*	*Above six and up to twelve months*	*Above twelve months*
	*SR’000*

2018	1,340	1	277	14	1	1,633
2017	78	124	1	-	-	203

Disclosure of due from related parties [text block]

a) Amount due from a related party represents receivable from Bank Al Jazira (founding shareholder) (see note 1).

19أ

Disclosure of statutory deposit [text block]

9. STATUTORY DEPOSIT

As required by the Implementation Regulations, the Company deposited 10% of its paid up capital, amounting to SR 35 million in a bank designated by the SAMA. The Company cannot withdraw this deposit without SAMA’s approval. This deposit is held with a founding shareholder.

Disclosure of employees' end of service benefits [text block]

16. END-OF-SERVICE INDEMNITIES

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:

	*2018*
	*SR’000*

Present value of defined benefit obligation	2,050

16.2 Movement of defined benefit obligation

	*2018*
	*SR’000*

Opening balance	1,960
Charge to statement of income	951
Charge to statement of other comprehensive income	(82)
Benefits paid during the year	(779)
Closing balance	2,050

16.3 Reconciliation of present value of defined benefit obligation

	*2018*
	*SR’000*

Balance at beginning of the year	1,960
Current service costs	873
Financial costs	78
Actuarial loss from experience adjustments	(82)
Benefits paid during the year	(779)
	2,050

16 END-OF-SERVICE INDEMNITIES (continued)

16.4 Principal actuarial assumptions

The following range of significant actuarial assumptions was used by the Company for the valuation of defined benefit obligation liability:

	*2018*

Valuation discount rate	3.80 %
Expected rate of increase in salary level across different age bands	4.00 %

The impact of changes in sensitivities on present value of defined benefit obligation is as follows:

Valuation discount rate	*2018*
	*SR’000*
- Increase by 1%	231
- Decrease by 1%	188
Expected rate of increase in salary level across different age bands
- Increase by 1%	215
- Decrease by 1%	188

	*2018*
Projected future benefit payment (6 years)	*SR’000*

2019	114
2020	154
2021	170
2022	188
2023	208
2024	272

The average duration of the defined benefit plan obligation at the end of the reporting period is 1.9 years.

Disclosure of gross unearned premiums/ contributions [text block]

12. MOVEMENT IN UNEARNED CONTRIBUTION

	*2018*			2017
	*Gross* *SR'000*	*Reinsurers’ share* *SR'000*	*Net* *SR'000*	Gross SR'000	Reinsurers’ share SR'000	Net SR'000

Balance at beginning of the year	18,342	(7,261)	11,081	17,893	(6,912)	10,981
Contributions written/(ceded) during the year	101,145	(18,625)	82,520	85,620	(17,599)	68,021

	119,487	(25,886)	93,601	103,513	(24,511)	79,002
Investible contributions and contributions earned during the year	(96,713)	16,880	(79,833)	(85,171)	17,250	(67,921)

Balance at the end of the year	22,774	(9,006)	13,768	18,342	(7,261)	11,081

Disclosure of gross outstanding claims/ benefits [text block]

13. OUTSTANDING CLAIMS INCLUDING IBNR

	*2018*			2017
	*Gross* *SR’000*	*Reinsurers’ share* *SR’000*	*Net* *SR’000*	Gross SR’000	Reinsurers’ share SR’000	Net SR’000
	*Gross* *SR’000*	*Reinsurers’ share* *SR’000*	*Net* *SR’000*	Gross SR’000	Reinsurers’ share SR’000	Net SR’000
At 1 January
Reported claims	12,901	(10,685)	2,216	10,083	(9,021)	1,062
IBNR	8,338	(4,901)	3,437	7,316	(2,988)	4,328
	21,239	(15,586)	5,653	17,399	(12,009)	5,390
Incurred during the year	10,964	(9,566)	1,398	17,735	(15,013)	2,722
(Paid)/recovered during the year	(11,191)	9,145	(2,046)	(13,895)	11,436	(2,459)

At 31 December	21,012	(16,007)	5,005	21,239	(15,586)	5,653
At 31 December	21,012	(16,007)	5,005	21,239	(15,586)	5,653
At 31 December
Reported claims	10,015	(7,918)	2,097	12,901	(10,685)	2,216
IBNR	10,997	(8,089)	2,908	8,338	(4,901)	3,437
	21,012	(16,007)	5,005	21,239	(15,586)	5,653

Disclosure of accrued expenses and other liabilities [text block]

15. ACCRUED EXPENES AND OTHER LIABILITIES

	*2018*			2017
	*Insurance operations*	*Shareholders’ operations*	*Total*	Insurance operations	Shareholders’ operations	Total
	*SR’000*	*SR’000*	*SR’000*	SR’000	SR’000	SR’000
Accrued expenses	9,869	2,734	12,603	9,887	2,662	12,549
Advance contribution	631	-	631	421	-	421
Contribution deposit	2,068	-	2,068	765	-	765
Other liabilities	1,190	55	1,245	1,716	38	1,754
Total	13,758	2,789	16,547	12,789	2,700	15,489

Disclosure of zakat [text block]

22. ZAKAT AND INCOME TAX

The Zakat and income tax payable by the Company has been calculated in accordance with Zakat and tax regulations in the Kingdom of Saudi Arabia.

(a) Zakat

The Zakat provision for the year, attributable to the Saudi shareholders, is based on the following:

	*2018* *SR’000*	2017 SR’000
Equity	391,544	378,864
Dividend paid	(24,500)	(17,500)
Provisions and other adjustments	1,960	1,924
Book value of long-term assets	(372,299)	(364,285)
	(3,295)	(997)
Zakatable profit for the year	34,844	31,096
Zakat base	34,844	31,096
Attributable to Saudi shareholders	34,147	30,472

The differences between the financial and the “Zakatable” results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.

The movement in the Zakat payable during the year ended 31 December is as follows:

	*2018* *SR'000*	2017 SR'000

Balance at the beginning of the year	895	1,217
Zakat for the year	854	762
Zakat paid during the year	(842)	(1,084)
Balance at the end of the year	907	895

(b) Income tax

Income tax has been provided based on the adjusted income attributable to the non-Saudi shareholders.

The movement in income tax payable during the year ended 31 December is as follows:

	*2018* *SR'000*	2017 SR'000

Balance at the beginning of the year	128	113
Income tax for the year	142	127
Income tax paid during the year	(138)	(112)

Balance at the end of the year	132	128

(d) Status of assessments

The Company has submitted its Zakat and income tax returns for the year ended 31 December 2014 and for the years ended 31 December 2015 to 2017 with General Authority of Zakat and Tax (“GAZT”) and obtained restricted certificates. GAZT has not yet raised their assessments.

Disclosure of statutory reserve [text block]

18. STATUTORY RESERVE

As required by Saudi Arabian Insurance Laws and Regulations, 20% of the net shareholders' income shall be set aside as a statutory reserve until this reserve amounts to 100% of paid capital.

Disclosure of general and administrative expense [text block]

20. GENERAL AND ADMINISTRATIVE EXPENSES, NET

	*2018*					2017
	*Insurance operations*		*Shareholders’ operations*	*Total*	Insurance operations			Shareholders’ operations	Total
	*SR’000*	*SR’000*		*SR’000*	SR’000		SR’000		SR’000

Staff costs	26,910		-	26,910	21,197			-	21,197
Advertising and marketing	227		-	227	370			-	370
Repair and maintenance	312		-	312	868			-	868
Rent for use of furniture and fixtures	701		-	701	808			-	808
Utilities, postage and telecommunications	1,317		-	1,317	1,478			-	1,478
Rent	779		-	779	754			-	754
Legal and professional fees	1,481		-	1,481	1,504			-	1,504
Travelling, hotel and conveyance	920		-	920	457			-	457
Computer expenses	638		-	638	1,689			-	1,689
Stationery	31		-	31	59			-	59
Depreciation	42		-	42	-			-	-
Board remuneration	-		900	900	-			900	900
Board attendance fees	-		380	380	-			395	395
Committees’ expenses	-		863	863	-			764	764
Legal and professional fees	-		1,319	1,319	-			1,286	1,286
Other expenses	328		439	767	182			274	456

	33,686		3,901	37,587	29,366			3,619	32,985
Allocated to a founding shareholder (note 1)	(27,926)		(708)	(28,634)	(24,374)			(730)	(25,104)

Total	5,760		3,193	8,953	4,992			2,889	7,881

a) Board remuneration is paid in accordance with by-laws of the Company.

b) Board attendance fee represents allowances for attending board meetings and committee meetings.

c) Committee expenses include fees of non-board members for attending the committee meetings and other related expenses.

Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block]

10. UNIT RESERVE

	*2018* *SR'000*	2017 SR'000
Balance at beginning of the year	107,177	70,282
Investible contributions	48,513	38,531
Surrenders	(18,830)	(13,532)
Change in fair value of available-for-sale investments (note 6)	(6,570)	11,896
Balance at the end of the year	130,290	107,177

11. MATHEMATICAL RESERVE

Mathematical reserve is created, as per the report received from the Independent Actuary, as detailed below:

	*2018* *SR'000*	2017 SR'000
Balance at beginning of the year	958	871
Change in mathematical reserve, net	(401)	87
Balance at the end of the year	557	958

(10)-(11)

Disclosure of other income [text block]

21. OTHER INCOME

	*2018*	2017
	*SR’000*	SR’000

Subsidy from Human Resources Development Fund	79	500
Rebate income	32	51

	111	551

Disclosure of earnings per share [text block]

23. EARNINGS PER SHARE

The basic earnings per share have been calculated by dividing the net income for the year attributable to the shareholders by the weighted average number of ordinary shares issued and outstanding at the year end. Diluted earnings per share is not applicable to the Company.

Disclosure of related party transactions [text block]

19. TRANSACTIONS WITH RELATED PARTIES

Related parties represent major shareholders, directors and key management personnel of the Company and entities controlled, jointly controlled or significantly influenced by such parties. All transactions with such related parties are conducted on normal terms and conditions, which are approved by management.

a) In addition to the disclosures set out in notes 1, 4, 6, 7 and 20 following are the details of major related party transactions during the year ended:

*Related party*	*Nature of transaction*	*Amount of transaction*
		*2018*	2017
		*SR'000*	SR'000
Bank Al Jazira	Commission earned from held-to- maturity investment	9,795	8,852
	Commission income on deposits	673	951
	Gross written contribution	41,453	37,828
	Claims paid	10,486	12,977
	Surplus distributed	1,450	1,524
Founding shareholders	Dividends paid	17,150	12,250
	Board of directors remuneration and fee	1,280	1,295
AlJazira Capital	Profit earned on mutual funds	429	590
Aman	Commission paid	130	-
Board of directors& committee members	Gross written contribution	55	56
Key management personnel	Short-term employee benefits	997	1,070
	Gross contribution written	34	21

= Contributions receivable shown in statement of financial position includes SR 1.126 million (31 December 2017: SR nil) from Bank Al Jazira (founding shareholder).

Disclosure of entity's operating segments [text block]

27. OPERATING SEGMENTS

Operating segments are reported in 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 Managing Director that makes strategic decisions. For management purposes, the activities of Insurance Operations, which are all in the Kingdom of Saudi Arabia, are reported under three business units, as detailed below:

Insurance – individual segment offers life insurance products on an individual basis including unit-linked investment oriented products.

Insurance – group life has segment offers life protection programmes to the members of organizations on a group basis, and credit protection benefits in respect of personal loan given by financing organization. This segment also includes protection benefits in respect of various credit facilities other than personal loans extended by the financing organizations to its customers.

The unallocated assets and liabilities are not reported to the chief operating decision maker under related segments and are monitored on a centralized basis.

	*2018*
	*Individual*	*Group*	*Total*
	*SR'000*	*SR'000*	*SR'000*

ASSETS
Contributions receivable, net	-	1,633	1,633
Reinsurers’ share of unearned contributions	-	9,006	9,006
Reinsurers’ share of outstanding claims	42	7,876	7,918
Reinsurers’ share of claims incurred but not reported	-	8,089	8,089
Available-for-sale investments held to cover unit link liabilities	128,230	-	128,230

	128,272	26,604	154,876
Unallocated assets:
Cash and cash equivalents			17,062
Investments			395,829
Due from a related party			7,444
Prepayments and other receivables			720
Fixtures, furniture and equipment			260
Statutory deposit			35,000

TOTAL ASSETS			611,191

LIABILITIES
Reinsurers' balances payable	449	15,676	16,125
Unearned contributions	-	22,774	22,774
Outstanding claims	141	9,874	10,015
Claims incurred but not reported	-	10,997	10,997
Unit reserve	130,290	-	130,290
Mathematical reserve	557	-	557

	131,437	59,321	190,758
Unallocated liabilities and surplus:
Accrued expenses and other liabilities			16,547
End-of-service indemnities			2,050
Zakat and income tax			1,039
Surplus from Insurance Operations			2,827

TOTAL LIABILITIES			213,221

EQUITY

Share capital			350,000
Statutory reserve			23,253
Retained earnings			24,635

TOTAL SHAREHOLDERS’ EQUITY			397,888
Remeasurement reserve of defined benefit obligation - related to insurance operations			82

TOTAL EQUITY			397,970

TOTAL LIABILITIES AND EQUITY			611,191

	2017
	Individual	Group	Total
	SR'000	SR'000	SR'000

ASSETS
Contributions receivable, net	-	203	203
Reinsurers’ share of unearned contributions	-	7,261	7,261
Reinsurers’ share of outstanding claims	-	10,685	10,685
Reinsurers’ share of claims incurred but not reported	-	4,901	4,901
Available-for-sale investments held to cover unit link liabilities	106,626	-	106,626

	106,626	23,050	129,676
Unallocated assets:
Cash and cash equivalents			53,262
Investments			344,286
Due from a related party			5,432
Prepayments and other receivables			754
Statutory deposit			35,000

TOTAL ASSETS			568,410

LIABILITIES
Reinsurers' balances payable	185	7,780	7,965
Unearned contributions	-	18,342	18,342
Outstanding claims	-	12,901	12,901
Claims incurred but not reported	-	8,338	8,338
Unit reserve	107,177	-	107,177
Mathematical reserve	958	-	958

	108,320	47,361	155,681
Unallocated liabilities and surplus:
Accrued expenses and other liabilities			15,489
End-of-service indemnities			1,960
Zakat and income tax			1,023
Surplus from Insurance Operations			2,713

TOTAL LIABILITES			176,866

EQUITY

Share capital			350,000
Statutory reserve			16,885
Retained earnings			24,659

TOTAL SHAREHOLDERS’ EQUITY			391,544
Remeasurement reserve of defined benefit obligation - related to insurance operations			-

TOTAL EQUITY			391,544

TOTAL LIABILITIES AND EQUITY			568,410

27. OPERATING SEGMENTS (continued)

Year ended 31 December 2018	*Individual*	*Group*	*Total*
	*SR'000*	*SR'000*	*SR'000*
REVENUES
Gross written contributions:
Individual	58,126	-	58,126
Small & Medium enterprises	-	766	766
Corporate	-	42,253	42,253
	58,126	43,019	101,145
Contributions ceded:
Local	-	-	-
Foreign	(804)	(17,821)	(18,625)

Net written contributions	57,322	25,198	82,520
Change in unearned contributions, net	-	(2,687)	(2,687)

Net contribution earned	57,322	22,511	79,833
Other underwriting income	4,545	-	4,545

TOTAL REVENUES	61,867	22,511	84,378

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	(250)	(10,941)	(11,191)
Reinsurance share of claims paid	150	8,995	9,145

Net claims paid	(100)	(1,946)	(2,046)
Changes in outstanding claims, net	(99)	218	119
Changes in IBNR, net	-	529	529

Net claims incurred	(199)	(1,199)	(1,398)
Investible contributions, net	(48,513)	-	(48,513)
Change in mathematical reserve	401	-	401
Policy acquisition costs	(1,387)	(135)	(1,522)
Supervision and inspection fees	(291)	(215)	(506)

TOTAL UNDERWRITING COSTS AND EXPENSES	(49,989)	(1,549)	(51,538)

NET UNDERWRITING INCOME	11,878	20,962	32,840

OTHER OPERATING (EXPENSES)/ INCOME
Allowance for doubtful receivables/written-off			(55)
General and administrative expenses			(8,953)
Commission from held-to-maturity Investments			9,795
Commission income on deposits			673
Unrealized gain on FVIS investments			220
Realized gain on FVIS investments			28
Dividend income			8
Other income			111

TOTAL OTHER OPERATING INCOME, NET			1,827

Net income for the year			34,667

Net income attributed to the insurance operations			(2,827)

Net income for the year attributable to the shareholders			31,840

Year ended 31 December 2017	Individual	Group	Total
	SR'000	SR'000	SR'000
REVENUES
Gross written contributions:
Individual	46,307	-	46,307
Small & Medium Enterprises	-	550	550
Corporate	-	38,763	38,763
	46,307	39,313	85,620
Contributions ceded:
Local	-	(13)	(13)
Foreign	(698)	(16,888)	(17,586)

Net written contributions	45,609	22,412	68,021
Change in unearned contributions, net	-	(100)	(100)

Net contribution earned	45,609	22,312	67,921
Other underwriting income	1,188	4,992	6,180

TOTAL REVENUES	46,797	27,304	74,101

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	(98)	(13,797)	(13,895)
Reinsurance share of claims paid	29	11,407	11,436

Net claims paid	(69)	(2,390)	(2,459)
Changes in outstanding claims, net	-	(1,154)	(1,154)
Changes in IBNR, net	-	891	891

Net claims incurred	(69)	(2,653)	(2,722)
Investible contributions, net	(38,531)	-	(38,531)
Change in mathematical reserve	(87)	-	(87)
Policy acquisition costs	(1,555)	-	(1,555)
Supervision and inspection fees	(231)	(197)	(428)

TOTAL UNDERWRITING COSTS AND EXPENSES	(40,473)	(2,850)	(43,323)

NET UNDERWRITING INCOME	6,324	24,454	30,778

OTHER OPERATING (EXPENSES)/ INCOME
Allowance for doubtful receivables/written-off			(2)
General and administrative expenses			(7,881)
Commission from held-to-maturity Investments			8,852
Commission income on deposits			951
Unrealized gain on FVIS investments			494
Realized gain on FVIS investments			-
Dividend income			39
Other income			551

TOTAL OTHER OPERATING INCOME, NET			3,004

Net income for the year			33,782

Net income attributed to the insurance operations			(2,713)

Net income for the year attributable to the shareholders			31,069

Disclosure of capital management [text block]

17-SHARE CAPITAL

The authorized, issued and paid up share capital of the Company is SR 350 million consisting of 35 million shares (2017: 35 million) of SR 10 each and subscribed by the following:

	% holding		*2018*	2017
	*2018*	2017	*SR’000*	SR’000

Founding Shareholders	70	70	245,000	245,000
General public	30	30	105,000	105,000
	100	100	350,000	350,000

Disclosure of claims/ benefits development table [text block]

14. CLAIMS DEVELOPMENT TABLE

The Company aims to maintain adequate reserves in respect of its takaful business in order to protect against adverse future claims experience and developments. As claims develop and the ultimate cost of claims becomes more certain, adverse claims experiences will be eliminated which result in the release of reserves from earlier accident years. In order to maintain adequate reserves, the Company will transfer much of this release to the current accident year reserves when the development of claim is less mature and there is much greater uncertainty attached to the ultimate cost of claims.

Claims triangulation analysis by accident year spanning a number of financial years is as follows:

Gross Accident year		2014	2015	2016	2017	*2018*	Total
		SR’000	SR’000	SR’000	SR’000	*SR’000*	SR’000

At end of accident year		716	4,232	4,271	4,161	6,341
One year later		3,736	8,817	13,245	14,553	-
Two years later		4,195	9,529	15,928	-	-
Three years later		4,195	10,840	-	-	-
Four years later		4,690	-	-	-	-

Current estimate of cumulative claims incurred		4,690	10,840	15,928	14,553	6,341	52,352
Cumulative payments to date		(4,402)	(9,970)	(14,042)	(10,269)	(3,654)	(42,337)

Total reported claims		288	870	1,886	4,284	2,687	10,015

IBNR							10,997

Total outstanding claims (note 13)							21,012

Net Accident year	2014	2015	2016	2017	*2018*	Total
	SR’000	SR’000	SR’000	SR’000	*SR’000*	SR’000

At end of accident year	120	748	1,028	1,187	1,130
One year later	480	1,435	1,983	3,191	-
Two years later	570	1,637	2,632	-	-
Three years later	570	1,877	-	-	-
Four years later	690	-	-	-	-

Current estimate of cumulative claims incurred	690	1,877	2,632	3,191	1,130	9,520
Cumulative payments to date	(630) (587)	(1,727)	(2,208)	(2,210)	(648)	(7,423)

Total reported claims	60	150	424	981	482	2,097

IBNR						2,908

Total outstanding claims (note 13)						5,005

Disclosure of commitments and contingencies, general [text block]

25. CONTINGENT LIABILITIES AND COMMITMENTS

As at the statement of financial position date, the Company had no contingent liabilities and commitments (2017: nil).

Disclosure of risk management [abstract]

Disclosure of insurance/ takaful risk [text block]

28. RISK MANAGEMENT

Risk is inherent in the Company’s activities but is managed through a process of on-going identifications, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Company’s continuing profitability and each individual within the Company is accountable for the risk exposures relating to his or her responsibilities. The Company’s policy is to monitor business risk through strategic planning process. The strategy considers the impact of market conditions and available expertise on inherent risks to which the Company is exposed.

Risk management structure

A cohesive organisational structure is established within the Company in order to identify, assess, mitigate and control risks.

Board of Directors

The Board of Directors is responsible for the overall risk management approach and for approving the risk management strategies and principles.

Senior management

Senior management is responsible for the day to day operations towards achieving the strategic goals within the Company’s Board authorised risk appetite parameters.

Audit Committee

The Audit Committee is elected by the General Assembly. The Audit Committee assists the Board in carrying out its responsibilities with respect to assessing the quality and integrity of financial reporting and risk management, the audit thereof and the soundness of the internal controls of the Company.

Risk Committee

The Risk Committee is elected by the Board of Directors. The Risk Committee is responsible for the Company's risk management strategy to ensure that the Company's exposure to risks is minimal.

Internal Audit

All key operational, financial and risk management processes are audited by Internal Audit. Internal Audit examines the adequacy of the relevant policies and procedures, the Company’s compliance with internal policies and regulatory guidelines. Internal Audit discusses the results of all assessments with management and reports its findings and recommendations to the Audit Committee.

The risks faced by the Company and the way these risks are mitigated by management are summarised below.

Operational / Process risk

Operational risk is the risk of loss arising from systems and control failures, fraud and human errors, which can result in financial and reputation loss, and legal and regulatory consequences. The Company manages operational risk through appropriate controls, risk mitigation measures, instituting segregation of duties and internal checks and balances.

Insurance risk

Insurance risk is the risk that actual claims payable to policyholders exceed the carrying amount of reserve for insurance activities. This is influenced by the frequency and amounts of claims paid and subsequent development of long term claims. Therefore, 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.

Concentration of insurance risk

The Company's insurance risk exposure relating to contract holders is concentrated in Kingdom of Saudi Arabia.

Key assumptions

The frequency and severity of claims can be affected by several factors like natural disasters, flood, environmental and economical, atmospheric disturbances, concentration of risk, civil riots, etc. The Company manages these risks through conservative underwriting strategies and effective use of reinsurance arrangements.

Frequency and amount of claims

For individual life business, the main risk is the mortality and morbidity (permanent or temporary disability) of the insured. This is managed through an effective and clearly defined underwriting strategy. There are various levels of understanding carried out, including declaration of good health, medical questionnaire, reports from specialist/ consultants and comprehensive medical tests.

28. RISK MANAGEMENT (continue)

Insurance risk (continue)

Frequency and amount of claims (continue)

The Company also assesses financial, lifestyle and occupational information to ascertain the degree of risk carried by the insured and to determine whether or not it could be classified as a standard life.

For group life and group credit protection, the main risks are mortality and morbidity (permanent or temporary disability) of the insured. The mortality risk is compounded due to the concentration of lives, for e.g. employees in the same workplace. The Company has a clearly defined underwriting strategy. There are various levels of understanding carried out, including declaration of good health, medical questionnaire, reports from specialist/ consultants and comprehensive medical tests. The Company also looks at the nature of activity carried out by the group, group size, mix of lives by geographical regions, cultural background and manual/non-manual worker split.

The individual life business and group credit protection portfolios are protected through an efficient reinsurance arrangement. This protects the Company from adverse mortality/morbidity experience.

Sensitivity of claims

Insurance claim liabilities are sensitive to the various assumptions mentioned above. It has not been possible to quantify the sensitivity of certain assumptions such as legislative changes or uncertainty in the estimation process. A hypothetical 5% change in the net claims ratio, with other variable held constant, would impact income for the year by approximately SR 1,586 thousand (2017: SR 1,465 thousand) in aggregate.

Independent actuarial review of claims and claims reserve.

In further mitigation of the insurance risk, the Company utilizes an independent actuary who performs periodical reviews of the Companys’ claims modeling and claims projections as well as verifying that the annual closing claims are adequate.

Reinsurance risk

In common with other insurance companies, in order to minimise the financial exposure arising from large claims, the Company in normal course of business, enters into reinsurance arrangements with the reinsurers. Such reinsurance arrangements provide for greater diversification of business, allow the management to control exposure potential losses arising from large risk, and provide additional capacity for growth. All of the reinsurance is affected under treaty, Quota share and Surplus reinsurance contracts.

To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers.

Reinsurers are selected using the following parameters and guidelines set by the Company’s Board of Directors and Reinsurance Committee. The criteria may be summarized as follows:

Minimum acceptable credit rating by recognized rating agencies (e.g. S&P) that is not lower than BBB or equivalent.

Reputation of particular reinsurance companies.

Existing or past business relationship with the reinsurer

Shariah compliant

The exception to this rule is in respect of local companies which do not carry any such credit rating. This, however, is limited to those companies registered and approved by the Local Insurance Regulators. Furthermore, the financial strength and managerial and technical expertise as well as historical performance, wherever applicable, are thoroughly reviewed by the Company and matched against a list of requirements pre-set by the Company’s management before approving them for exchange of reinsurance business.

Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders and as a result the Company remains liable for the portion of outstanding claims reinsured to the extent that the reinsurer fails to meet the obligations under the reinsurance agreements.

28. RISK MANAGEMENT (continue)

Regulatory framework risk

The operations of the Company are also subject to regulatory requirements in the Kingdom of Saudi Arabia. Such regulations not only prescribe approval and monitoring of activities, but also impose certain restrictive provisions (e.g. capital adequacy) to minimise the risk of default and insolvency on the part of the insurance companies to meet unforeseen liabilities as they arise.

Capital management (solvency) risk

Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximise 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 new shares.

The Company is required to maintain solvency margin in accordance with the calculation described under Article 67 of the Implementing Insurance Regulations. The Company complied with the relevant regulations.

Financial risk

The Company’s principal financial instruments are cash and cash equivalents, available-for-sale investments held to cover unit-linked liabilities, contribution receivable, reinsurance share of outstanding claims, other receivables, investments held-to-maturity, FVIS investments, due from insurance operations, reinsurance balances payable, accrued expenses and other liabilities, due to Shareholders’ operations and other payables. The Company does not enter into derivative transactions.

The main risks arising from the financial instruments of Insurance Operations and Shareholders’ Operations are foreign currency risk, commission rate risk, credit risk, liquidity risk and fund price risk. The management reviews and agrees policies for managing each of these risks and they are summarised below:

Foreign currency risk

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

Management believes that there is minimal risk of losses due to exchange rate fluctuations as the Insurance Operations and Shareholders’ Operations primarily deal in Saudi Riyals and in US Dollar. Saudi Riyal which is pegged to the US Dollar.

Commission rate risk

Commission rate risk arises from the possibility that changes in commission rates will affect future profitability or the fair values of financial instruments. The Company is exposed to commission rate risk on its murabaha deposits.

The sensitivity of the income is the effect of assumed changes in commission rates, with all other variables held constant, on the Company’s profit for one year, based on the floating rate financial assets held at 31 December 2018. A hypothetical 50 basis points change in the weighted average commission rates of the floating rate financial assets balances at 31 December 2018 would impact commission income on murabaha deposits by approximately SR 1,550 thousand (31 December 2017: SR 1,709 thousand) over the remaining period of maturity.

Credit risk

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 issues unit linked investment policies. In unit linked business the plan holder bears the investment risk on the assets held in the unit linked funds as the policy benefits are directly linked to the value of the assets in the fund. Therefore, the Company has no material credit risk on the unit linked financial assets.

The following policies and procedures are in place to mitigate the Company’s exposure to credit risk:

To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurance counterparties. Accordingly, as a pre-requisite, the parties with whom reinsurance is affected are required to have a minimum acceptable security rating level affirming their financial strength.

Contributions receivable are only receivable from corporate customers. The Company seeks to limit the credit risk by setting credit limits and monitoring outstanding receivables. In respect of contribution receivable one of the policy holders account for 67% of the balance as at 31 December 2018 (2017: 59%).

The Company’s investments comprise of murabaha securities and mutual funds. The Company limits its credit risk on investments by setting out a minimum acceptable security rating level affirming their financial strength.

Disclosure of fair value of financial assets and liabilities [text block]

26. FAIR VALUES OF FINANCIAL INSTRUMENTS

a) 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 Company’s financial assets consist of cash at banks and murabaha deposit, contribution receivables, available-for-sale investments held to cover unit-linked liabilities, FVIS investments, other receivables and its financial liabilities consist of other liabilities, reinsurance balances payable and outstanding claims. The fair values of financial instruments are not materially different from their carrying values. As at 30 September 2018, apart from the investments which are carried at fair value (notes 6 and 7), there were no other financial instruments held by the Company that were measured at fair value.

b) The 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 instrument (i.e. without modification or repackaging);

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; and

Level 3: valuation techniques for which any significant input is not based on observable market data.

As at 31 December 2018 and 31 December 2017, all financial instruments which are fair valued are Level 1 instruments (2017: Level 1). There are no transfers between Level 1, Level 2 and Level 3 during the year.

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

Movement in FVIS investments year ended 31 December 2018 is as follows:

Projected future benefit payment (6 years)