| 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] | AlJazira 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 03 July 2013. The Company operates only in the Kingdom of Saudi Arabia. The Company has the following branches and the assets, liabilities and results of operations of these branches and offices are included in these condensed interim financial statements:Branch CR Number DateRiyadh 1010519290 24 Jumada Al-Awal 1440Riyadh 1010339648 01 Rajab 1433Madinah 4650081845 21 Rabi’ Al-Awal 1438AlKhobar 2051224259 24 Jumada Al-Awal 1440The registered office address of the Company is:Al Musadia Plaza (3), Al Madinah Road, P.O. Box 5215, Jeddah 21422, Kingdom of Saudi Arabia.The objectives of the Company are to engage in providing insurance products that include protection and saving insurance products and related services in accordance with its By-Laws and applicable regulations in the Kingdom of Saudi Arabia. On 13 Jumada al-Thani 1442H (corresponding to 26 January 2021), the Company amended its By-Laws to include the objective of practicing general insurance and health insurance business. The Company received license number TMN/34/201312 dated 15 Safar 1435H (corresponding to 18 December 2013) from the Saudi Central Bank (SAMA) to conduct insurance business. The Company is owned 97.92% by Saudi shareholders’ and the general public subject to Zakat and 2.08% by non-Saudi shareholders’ subject to income tax.Further to receipt of regulatory approvals, shareholders of the Company and Solidarity Saudi Takaful Company (“Solidarity”) in the Extra Ordinary General Meeting held on 13 Jumada al-Thani 1442H (corresponding to 26 January 2021) approved the proposed merger of the Company and Solidarity pursuant to Articles 191-193 of the Companies Law and Article 49 (a) (1) of the Merger and Acquisitions Regulations issued by the Capital Markets Authority of the Kingdom of Saudi Arabia (the “CMA”). On 16 Rajab 1442 (corresponding to 28 February 2021), the Company announced the enforcement of the decision to merge Solidarity into the Company and transfer all the assets and liabilities of Solidarity to the Company after both the Company and Solidarity had fulfilled the merger terms according to the merger agreement concluded between the two companies as described in the shareholders ’circular and the offering document issued by the Company. Please refer to note 4 for details. | |
| Disclosure of basis of preparation of financial statements [text block] | a) Basis of presentationThe condensed interim financial statements of the Company as at and for the period ended 30 September 2022 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organisation for Chartered and Professional Accountants (“SOCPA”) (referred to as “IFRS as endorsed in KSA”). The condensed interim financial statements have been prepared on the historical cost basis, except for available-for-sale investments held to cover unit-linked liabilities and fair value through income statement (FVIS) investments that are measured at fair value and defined benefits obligations, which are recognised at the present value of future obligation using Projected Unit Credit Method. Further, the condensed interim financial statements are prepared using the accrual basis of accounting and the going concern assumption. The Company’s condensed statement of financial position is presented in order of liquidity. Except for property and equipment, intangible assets, right-of-use assets, goodwill, statutory deposit, employee benefits, lease liabilities, outstanding claims, claims incurred but not reported, premium deficiency reserves, unit reserves, mathematical reserves, and other technical reserves, all other assets and liabilities are of short-term nature, unless, stated otherwise. 2. BASIS OF PREPARATION (continued)a) Basis of presentation (continued)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 books of accounts.The condensed interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements of the Company as at and for the year ended 31 December 2021. The condensed interim financial statements may not be considered indicative of the expected results for the full year. These condensed interim financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.b) Critical judgments, accounting estimates and assumptionsThe preparation of condensed interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these 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. In preparing these condensed interim financial statements, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2021. Management will continue to assess the situation and reflect any required changes in future reporting periods.c) Seasonality of operationsOther than normal seasonality in the Medical Insurance Business in the Kingdom of Saudi Arabia, there are no seasonal changes that may affect the insurance operations of the Company. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2021. Based on the adoption of amendments to existing standards and in consideration of the current economic environment, the following accounting policies are applicable effective 01 January 2022, replacing, amending, or adding to the corresponding accounting policies set out in the 2021 annual financial statements.a) Amendments to existing accounting standardsA number of new standards and amendments became applicable for the current reporting period i.e. for reporting periods beginning on or after 01 January 2022. The Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting amended standards as these do not have a significant impact on the Company’s condensed interim financial statements. These are described below:Standard / Interpretation Description IAS 37 Onerous Contracts – Cost of Fulfilling a Contracts (Amendments to IAS 37)Annual Improvements Annual Improvements to IFRS Standards 2018–2020IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)IFRS 3 Reference to the Conceptual Framework (Amendments to IFRS 3)b) Standards issued but not yet effective Standards issued but not yet effective up to the date of issuance of the Company’s condensed interim financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at future date. The Company intends to adopt these standards when they are effective. 3. SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)Standard / Interpretation Description Effective from periods beginning on or after the following date IAS 1 Presentation of financial statements’, on classification of liabilities as current or non-current. 01 January 2023Narrow scope amendments to IA S 1, Practice statement 2 and IAS 8 The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. 01 January 2023IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction` 01 January 2023IFRS 16 Lease liability in a sale and leaseback – Amendments to IFRS 16 01 January 2024IFRS 10 and IAS 28 Sale or contribution of assets between investor and its associate or joint venture (amendments to IFRS 10 and IAS 28) Available for optional adoption / effective date deferred indefinitelyIFRS 17 Insurance Contracts See note belowIFRS 9 Financial Instruments See note belowThe management does not anticipate any significant impact on the Company's financial statements as the result of the implementation of the above standards except for the following:IFRS 17 – Insurance ContractsOverviewThis standard has been published on 18 May 2017, it establishes the principles for the recognition, measurement, presentation, and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts. The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i) embedded derivatives, if they meet certain specified criteria;ii) distinct investment components; andiii) any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The 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 risks associated 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 insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period the carrying amount of a group of insurance contracts is remeasured to be the sum of: 3. SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)IFRS 17 – Insurance Contracts (continued)Measurement (continued) the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date; and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services but the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. The effect of changes in discount rates will be reported in either profit or loss or other comprehensive income, determined by an accounting policy choice.The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under general model; Changes in the entity’s share of the fair value of underlying items, Changes in the effect of the time value of money and financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for the remaining coverage if it provides a measurement that is not materially different from the general model or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The general model remains applicable for the measurement of incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid / received in one year or less from the date the claims are incurred.Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4, is currently 01 January 2023. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends to apply the standard on its effective date.TransitionRetrospective application is required. However, if a full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts, together with amendments to presentation and disclosures. ImpactThe Company has completed design of IFRS 17 requirements in May 2021, and the First and Second Dry Run financial statements were submitted to SAMA on 15 December 2021 and 4 June 2022 respectively. As of the date of the publication of these condensed interim financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. Following are the main areas under design phase and status of the progress made so far by the Company: 3. SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)IFRS 17 – Insurance Contracts (continued)Impact (continued)Impact Area Summary of ImpactFinancial Impact The Company is still assessing the full financial impact along with the third Dry Run submissions to SAMA due on 15 November 2022.Data Impact / IT Systems Conceptual design of a new chart of accounts has been developed for PAA/ GMM / VFA Actuarial and accounting data requirements have been developed at a more granular level Discount rates will need to be stored for a group of contracts and tracked for interest accretion calculation under GMM / VFA Embedded risk adjustment calculation in the actuarial system. Confidence interval numbers to be sourced for risk adjustment. Conceptual design for identification of key inputs for onerous contracts tests as well as defining ‘facts and circumstance’ for PAA contracts has been developed Conceptual design for calculation and tracking of contractual service margin The company has selected a system vendor to update the above through an IFRS 17 engineProcess Impact Conceptual design for Finance, actuarial, underwriting, and IT processes has been built suitable for IFRS 17 together with a new set of the governance framework. New controls dealing with IFRS 17 will be developed during the implementation phase New reconciliation processes to be put in place between accounting, actuarial and underwriting data sources Conceptual design for new accounting policies each suitable for measurement model and technical decisions have been identified for each area Monitor terms and conditions attaching to insurance contracts Conceptual design for new expense allocation process, acquisition costs, claims settlement costs and underwriting costs has been put in place to identify profitability at a contract level. System to track coverage period for future products need to be put in placeImpact on Policies & Control Frameworks New Steering committee for IFRS 17 has been established Project plan for design and implementation has been set up at activities levelThe Company has started its implementation process and has set up an implementation committee. The Company submitted IFRS 17 Phase 3 Implementation plan report to SAMA in May 2021 to comply with the regulatory requirement for the design phase. Further, the Company is preparing to submit the third dry-run financial statements and results with SAMA by November 2022.IFRS 9 - Financial Instruments This standard was published on 24 July 2014 and has replaced IAS 39. The new standard addresses the following items relatedto financial instruments: 3. SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)IFRS 9 - Financial Instruments (continued)Classification and measurementIFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both:i) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and;ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met:i) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale and;ii) the contractual terms of cash flows are SPPI.Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss. Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss.ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was 01 January 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on 12 September 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1) apply a temporary exemption from implementing IFRS 9 until the earlier ofa) the effective date of a new insurance contract standard; orb) annual reporting periods beginning on or after 01 January 2023. On 17 March 2020, the International Accounting Standards Board (IASB) decided to extend the effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 from 01 January 2021 to 01 January 2023. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominantly connected with insurance and have not applied IFRS 9 previously.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)b) Standards issued but not yet effective (continued)Effective date (continued)2) adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.The Company has performed a detailed assessment beginning 01 January 2021 which are included below: 1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and 2) The total carrying amount of the Company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at 30 September 2022, the Company has total financial assets and insurance-related assets amounting to SAR 2,139,488 thousand (31 December 2021: SAR 1,937,676 thousand) and SAR 104,690 thousand (31 December 2021: SAR 129,468 thousand), respectively. Currently, financial assets held at amortized cost consist of cash and cash equivalents and certain other receivables amounting to SAR 631,829 thousand (31 December 2021: SAR 784,474 thousand). Other financial assets consist of available-for-sale investments amounting to SAR 1,485,371 thousand (31 December 2021: SAR 1,524,882 thousand). The Company expects to use the FVOCI classification of these financial assets based on the business model of the Company for debt securities and the strategic nature of equity investments. However, the Company has yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test required by IFRS 9. Investment in funds classified under available for sale investments will be at FVOCI under IFRS 9. As at 30 September 2022, these securities are measured at a fair value of SAR 1,245,533 thousand (31 December 2021: SAR 1,524,882 thousand) with changes in fair value during the period of SAR 237,824 thousand (31 December 2021: SAR 216,905 thousand). Other financial assets have a fair value as at 30 September 2022 of SAR 239,838 thousand (31 December 2021: 155,875 thousand) with a fair value change during the period of SAR 2,774 thousand (31 December 2021: 1,340 thousand). The above is based on a high-level impact assessment of IFRS 9. This assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. The Company is still finalizing its assessment to measure the impact of applying and implementing IFRS 9. The Company, however, does not expect IFRS 9 to have a material impact on the classification and measurement of financial assets. The management is in the process of building non-performance risk quantification for certain reinsurance held arrangements based on the IFRS 9 ECL simplified approach.Further, SAMA has issued instructions dated 08 February 2022, where the Company was required to submit an Operational Gap Assessment by 31 March 2022, which the Company has duly submitted on 4 April 2022. First Dry Run for IFRS 9 was submitted on 4th June 2022 and Second Dry Run is due to be submitted by November 2022. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of business combinations [text block] | As disclosed in note 1, on 28 February 2021, the Company completed a statutory merger with Solidarity during the year-ended 31 December 2021. Following the merger, the assets, liabilities, and all the business activities of Solidarity were transferred to the Company in exchange for newly issued shares of the Company. The purchase consideration was determined to be SAR 317,950 thousand, which consisted of the issue of 12,066,403 new shares to the shareholders of Solidarity. The fair value of the newly issued shares of the Company was determined based on the closing market price of the ordinary shares of SAR 26.35 per share on the Saudi Exchange on the last trading date prior to the merger date of 28 February 2021. As a result, there was an increase in share capital and share premium of SAR 120,664 thousand and SAR 197,286 thousand, respectively, during the year ended 31 December 2021. 4. BUSINESS COMBINATION (continued)The merger has been accounted for using the acquisition method under IFRS 3 – Business Combinations (the “Standard”), with the Company being the acquirer and Solidarity being the acquiree. The Company has accounted for the merger based on fair values of the acquired assets and assumed liabilities as of 28 February 2021 (“merger date”). During the year ended 31 December 2021, the Company completed the process of allocating the purchase consideration to the identifiable assets and liabilities in accordance with the requirements of IFRS 3. Accordingly, Goodwill amounting to SAR 232,948 thousand is recognised in the statement of financial position as a net result of purchase consideration paid amounting to SAR 317,950 thousand and fair value of net assets acquired amounting to SAR 85,002 thousand (refer below). Identifiable assets acquired and liabilities assumedThe following table summarises the fair value of assets acquired, and liabilities assumed as at 28 February 2021. Insurance Operations Shareholder Operations Total SAR'000 SAR'000 SAR'000Assets Cash and cash equivalents 48,215 92,635 140,850Short term deposits (note 4.1) - 37,500 37,500Premium receivable, net 29,081 - 29,081Due from reinsurers’, net 10,962 - 10,962Investments - 98,479 98,479Reinsurers’ share of unearned premiums 10,231 - 10,231Reinsurers’ share of outstanding claims 22,968 - 22,968Reinsurers’ share of claims incurred but not reported 8,281 - 8,281Deferred policy acquisition costs 8,818 - 8,818Prepayments and other assets 28,336 1,413 29,749Right of use assets, net 7,743 - 7,743Property and equipment 4,447 - 4,447Due from a related party - 56,291 56,291Due from Shareholder operations 147,218 - 147,218Intangible assets 4,760 - 4,760TOTAL ASSETS 331,060 286,318 617,378 Liabilities Payable to agents, policyholders and claimants 31,447 - 31,447Accrued expenses and other liabilities 41,141 49,887 91,028Reinsurers' balances payable 8,173 - 8,173Unearned premium 106,795 - 106,795Unearned reinsurance commission 1,356 - 1,356Outstanding claims 53,513 - 53,513Claims incurred but not reported 40,491 - 40,491Premium deficiency reserve 19,244 - 19,244Other technical reserves 18,544 - 18,544Lease liabilities 7,407 - 7,407Due to insurance operations - 147,218 147,218Due to a related party 146 838 984Employee benefits 2,738 - 2,738Zakat and income tax - 3,398 3,398Surplus from insurance operations 40 - 40TOTAL LIABILITIES 331,035 201,341 532,376 Purchase consideration 317,950Fair value of Solidarity's net assets at the merger date (85,002)Goodwill arising from the merger 232,9484.1 This amount represents the statutory deposit of Solidarity Saudi Takaful Company which was acquired through a business combination. During the year ended 31 December 2021, the amount was fully withdrawn upon receipt of SAMA approval. | |
| Disclosure of investments [text block] | INVESTMENTS 30 September 2022 (Unaudited) 31 December 2021 (Audited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 Held to maturity investments (note 8.1) - 513,032 513,032 - 466,815 466,815FVIS investments (note 8.2) 135,822 104,016 239,838 - 119,459 36,416 155,875 Total 135,822 617,048 752,870 119,459 503,231 622,690 | |
| Disclosure of investments held-to-maturity [text block] | Held to maturity investmentsHeld to maturity investments represent sukuks of SAR 513,032 thousand (31 December 2021: SAR 466,815 thousand) with a maturity of 12 to 30 years. The average coupon rate on these sukuks ranges between 1.83% to 5.65% per annum (31 December 2021: 1.83% to 5.65%).The movement in the held to maturity investments for the period / year ended 30 September 2022 and 31 December 2021 is as follows: 30 September 2022 (Unaudited) Insurance operations Shareholders’ operations Total SAR‘000 SAR‘000 SAR‘000 Balance at the beginning of the period - 466,815 466,815Placements during the period - 60,914 60,914Maturity of held to maturity investments - (12,411) (12,411)Commission from held to maturity investments - 10,667 10,667Commission received from held to maturity investments - (12,953) (12,953) Balance at the end of the period - 513,032 513,032 31 December 2021 (Audited) Insurance operations Shareholders’ operations Total SAR‘000 SAR‘000 SAR‘000 Balance at the beginning of the year 16,370 378,978 395,348Acquired through business combination (note 4) - 93,500 93,500Placements during the year - 149,202 149,202Commission from held to maturity investments 11 12,060 12,071Commission received from held to maturity investments (1,381) (30,061) (31,442)Maturity of held to maturity investments (15,000) (136,864) (151,864) Balance at the end of the year - 466,815 466,815 | |
| Disclosure of investments in available-for-sale investments [text block] | AVAILABLE FOR SALE INVESTMENTS HELD TO COVER UNIT-LINKED LIABILITIESInvestment of Insurance operations comprises of units of mutual funds denominated in Saudi Arabian Riyals (SAR) and United States Dollars (USD) managed by AlJazira Capital “the founding shareholder”. 30 September 31 December 2022 2021Insurance Operations Denomination (Unaudited) (Audited) SAR'000 SAR'000AlJazira Saudi Riyal Murabaha Fund SAR 148,269 151,981AlJazira Diversified Aggressive Fund SAR 200,612 225,949AlJazira Diversified Balanced Fund SAR 62,404 65,262AlJazira Diversified Conservative Fund SAR 19,862 17,227AlJazira Saudi Equities Fund SAR 361,962 364,509AlJazira International Equities Fund USD 173,286 258,520AlJazira European Equities Fund USD 129,316 199,517AlJazira Japanese Equities Fund USD 149,822 241,917 Total 1,245,533 1,524,882 The movement in the available for sale investments held to cover unit-linked liabilities during the period / year is as follows: Nine-month period ended30 September2022(Unaudited)SAR'000 Year ended31 December 2021 (Audited)SAR'000 Balance at the beginning of the period / year 1,524,882 1,343,823Redemption during the period / year, net (41,525) (35,846)Changes in fair value during the period / year (note 9) (237,824) 216,905 Balance at the end of the period / year 1,245,533 1,524,882 | |
| Disclosure of investments at fair value through statement of income [text block] | FVIS investmentsThe fair value through income statement (“FVIS”) investments represent investments in mutual funds managed by ‘AlJazira Capital’, a founding shareholder, amounting to SAR 233,961 thousand (31 December 2021: SAR 150,388 thousand), investment in quoted equity shares amounting to SAR 3,954 thousand (31 December 2021: SAR 3,564 thousand) and investment in Najm, amounting to SAR 1,923 thousand (31 December 2021: SAR 1,923 thousand). 8. INVESTMENTS (continued)8.2 FVIS investments (continued)The movement in FVIS investments for the period / year ended 30 September 2022 and 31 December 2021 is as follows: 30 September 2022 (Unaudited) Insurance operations Shareholders’ Operations Total SAR‘000 SAR‘000 SAR‘000 Balance at beginning of the period 119,459 36,416 155,875Purchases during the period 35,000 131,000 166,000Disposals during the period (19,992) (64,819) (84,811)Unrealized gain 1,355 1,419 2,774 Balance at the end of the period 135,822 104,016 239,838 31 December 2021 (Audited) Insurance operations Shareholders’ operations Total SAR‘000 SAR‘000 SAR‘000 Balance at beginning of the year 53,479 2,984 56,463Acquired through business combination (note 4) - 4,979 4,979Purchases during the year 89,950 175,000 264,950Disposals during the year (24,781) (147,076) (171,857)Unrealized gain 811 529 1,340 Balance at the end of the year 119,459 36,416 155,875 | |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | PREMIUM RECEIVABLE, NET 30 September2022 (Unaudited)SAR'000 31 December 2021 (Audited) SAR'000Insurance Operations Policyholders 35,234 27,050Brokers and agents 5,272 5,886Related parties (note 13.4) 7,564 9,233 Gross premium receivable 48,070 42,169Provision for impairment loss (20,220) (21,883) Premium receivable, net 27,850 20,286 Movement in provision for impairment loss during the period / year was as follows: Nine-month period ended30 September2022(Unaudited) Year ended 31 December 2021(Audited) SAR’000 SAR’000Balance at beginning of the period / year 21,883 202Acquired through business combination (note 4) - 15,505(Reversal) / provision during the period / year (1,663) 6,176 Balance at end of the period / year 20,220 21,883 | |
| Disclosure of due from related parties [text block] | RELATED PARTIESThe Company in the normal course of business, enters into transactions with other entities that fall within the definition of the related party contained in the International Accounting Standard (IAS) – 24. 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 approved by management. 13.1 In addition to the disclosures set out in notes 5, 6, 7, 8 and 16, the following are the details of major related party transactions during the nine-month period ended:Related parties Nature of transaction Amount of transactions (Unaudited) 30 September 2022 30 September 2021 SAR'000 SAR'000Bank AlJazira Commission income on deposits 29 - Gross written premium 13,852 5,544 Claims paid 26,684 19,714 Investment in equity shares - 371 Dividend received 15 7 AlJazira Capital Profit earned on mutual funds 2,573 1,674 Other income 7,353 - Custodian charges 197 -Durrah Advanced Development Company Gross written premium 2,756 -Consolidated Brother Company Gross written premium 33 - Commission 3 -Board of directors and committee members Gross written premium 188 39Key management personnel Salaries, benefits, and allowances, net 4,428 4,550 Gross written premium 7 43 13. RELATED PARTIES (continued)13.2 Due from a related party 30 September 2022(Unaudited)SAR'000 31 December2021(Audited)SAR'000 AlJazira Capital 3,726 60,788 3,726 60,788 13.3 Due to a related party 30 September 2022(Unaudited)SAR'000 31 December2021(Audited)SAR'000 Solidarity Group Holding - 984 - 984 13.4 Premium receivable, net shown in the condensed statement of financial position includes SAR 7,564 thousand (31 December 2021: SAR 9,233 thousand) from Bank AlJazira (the founding shareholder). 13.5 Outstanding claims shown in the condensed statement of financial position includes SAR 26,603 thousand (31 December 2021: SAR 35,783 thousand) to Bank AlJazira (the founding shareholder). | |
| Disclosure of cash and cash equivalents [text block] | CASH AND CASH EQUIVALENTS 30 September 2022 (Unaudited) 31 December 2021 (Audited) Insurance operations Shareholders’operations Total Insurance operations Shareholders’operations Total SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 Cash in hand 30 - 30 35 - 35Cash at banks 109,015 6,026 115,041 77,593 5,395 82,988 Total 109,045 6,026 115,071 77,628 5,395 83,023 5.1 Cash and cash equivalents include the amount of SAR 71,289 thousand (31 December 2021: SAR 39,169 thousand) held with Bank AlJazira “the founding shareholder”. | |
| Disclosure of statutory deposit [text block] | 16. STATUTORY DEPOSITIn compliance with Article 58 of the Implementing Regulations of SAMA, the Company has deposited 10% of its paid-up capital in a bank designated by SAMA, which amounted to SAR 55,000 thousand as at 30 September 2022 (31 December 2021: SAR 47,066 thousand). As a result of the bonus share issue on 30 November 2021, the Company deposited a further amount of SAR 7,934 thousand during the period ended 30 September 2022. The amount of the statutory deposit cannot be withdrawn without SAMA’s approval. This deposit is held with Bank AlJazira “the founding shareholder”. | |
| Disclosure of gross unearned premiums/ contributions [text block] | MOVEMENT IN UNEARNED PREMIUM Nine-month period ended30 September 2022 (Unaudited) Year ended31 December 2021 (Audited) Gross Reinsurers’ share Net Gross Reinsurers’ share Net SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 Balance at beginning of the period / year 76,567 (25,716) 50,851 34,533 (17,423) 17,110 Acquired through business combination (note 4) - - - 106,795 (10,231) 96,564Premium written / (ceded) during the period / year 269,797 (33,906) 235,891 299,031 (82,812) 216,219 346,364 (59,622) 286,742 440,359 (110,466) 329,893Investible premium and premium earned during the period / year (240,626) 47,944 (192,682) (363,792) 84,750 (279,042) Balance at the end of the period / year 105,738 (11,678) 94,060 76,567 (25,716) 50,851 | |
| Disclosure of gross outstanding claims/ benefits [text block] | 12. OUTSTANDING CLAIMS INCLUDING CLAIMS INCURRED BUT NOT REPORTED (IBNR) Nine-month period ended30 September 2022 (Unaudited) Year ended31 December 2021 (Audited) Gross Reinsurers’ share Net Gross Reinsurers’ share Net SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000At beginning of the period / year Reported claims 81,740 (52,471) 29,269 49,226 (43,483) 5,743 IBNR 62,123 (26,924) 35,199 17,835 (15,164) 2,671 143,863 (79,395) 64,468 67,061 (58,647) 8,414 Incurred during the period / year 53,522 (13,389) 40,133 160,539 (43,285) 117,254Acquired through business combination (note 4) - - - 94,004 (31,249) 62,755(Paid) / recovered during the period / year (77,868) 31,131 (46,737) (177,741) 53,786 (123,955) At end of the period / year 119,517 (61,653) 57,864 143,863 (79,395) 64,468 At end of the period / year Reported claims 68,343 (42,949) 25,394 81,740 (52,471) 29,269IBNR 51,174 (18,704) 32,470 62,123 (26,924) 35,199 119,517 (61,653) 57,864 143,863 (79,395) 64,468 | |
| Disclosure of zakat [text block] | The Zakat and income tax payable by the Company have been calculated in accordance with Zakat and income tax regulations in the Kingdom of Saudi Arabia. The movement in the Zakat and income tax payable during the nine-month period ended 30 September 2022 and the year ended 31 December 2021 is as follows:14.1 Zakat 30 September 2022(Unaudited)SAR'000 31 December2021(Audited)SAR'000 Balance at the beginning of period / year 2,838 1,137Acquired through business combination (note 4) - 4,119Zakat for the period / year 945 490Zakat paid during the period / year (753) (2,908) Balance at the end of the period / year 3,030 2,838 14. ZAKAT AND INCOME TAX (continued)14.2 Income tax 30 September 2022(Unaudited)SAR'000 31 December2021(Audited)SAR'000 Balance at the beginning of period / year (656) 145Acquired through business combination (note 4) - (721)Income tax for the period / year 845 51Income tax paid during the period / year (502) (131) Balance at the end of the period / year (313) (656) Total Zakat and Income tax at the end of the period / year 2,717 2,182 Status of assessmentsThe Company has submitted its Zakat and income tax returns for the years 2014 to 2021 with Zakat, Tax and Customs Authority (Formerly known as "the General Authority of Zakat and Income Tax") ("Authority" or "ZATCA") and obtained restricted certificates. During 2019, ZATCA has issued initial assessments for the years 2014 through 2018, disallowing investments from the Zakat base and withholding tax liability with additional Zakat liability of SAR 41,166 thousand. The Company has filed an appeal against these initial assessments. The Preliminary Appeal Committee (“PAC”) issued their decision upholding ZATCA’s treatment. The Company has filed an appeal against the PAC decision with the Higher Appeal Committee (“HAC”). The management and their independent Zakat and income tax consultant believe that the Company is in a strong position with respect to the aforementioned appeal.In addition, Solidarity has also submitted its Zakat and income tax returns for the years 2014 to 2020 with ZATCA and obtained restricted certificates. During the previous years, ZATCA has issued the following initial assessments in respect of Solidarity: Income tax, zakat and withholding tax for the years amounting to SAR 18.5 million; Zakat and income tax assessment for the years from 2013 to 2016 amounting to SAR 22.1 million; Withholding tax assessment for 2017 and 2018 amounting to SAR 1.9 million; VAT assessment for the year 2018 and for November and December 2019 amounting to SAR 2.8 million; Zakat assessment for the year 2017 amounting to SAR 4.2 million.Solidarity has filed an appeal against these initial assessments and is confident of a favorable outcome. The management of the Company and their independent Zakat and income tax consultant strongly believe that Solidarity is in a strong position with respect to the aforementioned appeal. | |
| Disclosure of investments income [text block] | UNIT RESERVES Nine-month period ended30 September2022(Unaudited)SAR'000 Year ended31 December 2021 (Audited)SAR'000 Balance at beginning of the period / year 1,526,927 1,349,364Investible premium 91,515 125,493Surrenders (105,326) (132,884)Maturities (26,624) (31,951)Change in fair value of available for sale investments (note 7) (237,824) 216,905 Balance at the end of the period / year 1,248,668 1,526,927 10. MATHEMATICAL, PREMIUM DEFICIENCY AND OTHER TECHNICAL RESERVES 30 September2022(Unaudited)SAR'000 31 December2021 (Audited)SAR'000 Mathematical reserve (note 10.1) 5,625 5,468Premium deficiency reserves (note 10.2) 11,401 9,617Other technical reserves (note 10.3) 209 259 17,235 15,344 Mathematical, premium deficiency, and other technical reserves are created, as per the report received from the Independent Actuary.10.1 Mathematical reserve Nine-month period ended30 September2022(Unaudited)SAR'000 Year ended31 December2021(Audited)SAR'000 Balance at beginning of the period / year 5,468 9,160Changes in mathematical reserve, net 157 (3,692) Balance at the end of the period / year 5,625 5,468 10.2 Premium deficiency reserve Nine-month period ended30 September2022(Unaudited)SAR'000 Year ended31 December2021(Audited)SAR'000 Balance at beginning of the period / year 9,617 -Acquired through business combination (note 4) - 19,244Changes in premium deficiency reserve 1,784 (9,627) Balance at the end of the period / year 11,401 9,617 10. MATHEMATICAL, PREMIUM DEFICIENCY AND OTHER TECHNICAL RESERVES (continued)10.3 Other technical reserves Nine-month period ended30 September2022(Unaudited)SAR'000 Year ended31 December2021(Audited)SAR'000 Balance at beginning of the period / year 259 322Acquired through business combination (note 4) - 18,544Changes in other technical reserves, net (50) (18,607) Balance at the end of the period / year 209 259 11. MOVEMENT IN UNEARNED PREMIUM Nine-month period ended30 September 2022 (Unaudited) Year ended31 December 2021 (Audited) Gross Reinsurers’ share Net Gross Reinsurers’ share Net SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 Balance at beginning of the period / year 76,567 (25,716) 50,851 34,533 (17,423) 17,110 Acquired through business combination (note 4) - - - 106,795 (10,231) 96,564Premium written / (ceded) during the period / year 269,797 (33,906) 235,891 299,031 (82,812) 216,219 346,364 (59,622) 286,742 440,359 (110,466) 329,893Investible premium and premium earned during the period / year (240,626) 47,944 (192,682) (363,792) 84,750 (279,042) Balance at the end of the period / year 105,738 (11,678) 94,060 76,567 (25,716) 50,851 | |
| Disclosure of earnings per share [text block] | 15. EARNINGS PER SHAREThe basic and diluted earnings per share have been calculated by dividing the net income for the period by the weighted average number of ordinary shares issued and outstanding at the period / year end. Diluted earnings per share is not applicable to the Company. | |
| Disclosure of related party transactions [text block] | 18. OPERATING SEGMENT INFORMATIONOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Chief Operating Decision Maker, who is responsible for allocating resources and assessing the 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 four business units, as detailed below:The medical segment offers comprehensive medical care to the members of organizations and their dependents on a group basis and individuals in a wide network of hospitals and medical centers throughout the Kingdom of Saudi Arabia.The Motor Segment offers Third-Party Liability Vehicle Insurance product, which solely covers the amounts payable to third parties by the insured, and a Vehicle comprehensive Insurance product, which covers all losses or damages incurred to the vehicle, including third party liability.The general segment offers Fire and property insurance products, Marine insurance products, Engineering insurance products, Other liability insurance contracts, and others.Life segment offers life insurance products on an individual basis, including unit-linked investment-oriented products to individuals and offers life protection programmers 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.Operating segments do not include Shareholders’ operations of the Company. 18. OPERATING SEGMENT INFORMATION (continued) As at 30 September 2022 (Unaudited) Medical Motor General Individual Life Group Life Total SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000ASSETS Reinsurers’ share of unearned premium - - 9,626 - 2,052 11,678Reinsurers’ share of outstanding claims 156 2,524 11,954 3,425 24,890 42,949Reinsurers’ share of claims incurred but not reported - - 8,708 - 9,996 18,704Deferred policy acquisition costs 1,439 1,890 382 - - 3,711Available for sale investments held to cover unit-linked liabilities - - - 1,245,533 - 1,245,533Total segment assets 1,595 4,414 30,670 1,248,958 36,938 1,322,575Unallocated assets Cash and cash equivalents 115,071Premium receivable, net 27,850Due from reinsurers, net 1,850Investments 752,870Due from a related party 3,726Prepayments and other assets 22,288Property and equipment 3,468Intangible assets 2,502Right of use assets 3,272Goodwill 232,948Statutory deposit 55,000Total assets 2,543,420 LIABILITIES Unearned reinsurance commission - - 1,079 - - 1,079Unearned premium 23,351 67,435 11,710 - 3,242 105,738Outstanding claims 1,905 13,799 19,294 3,637 29,708 68,343Claims incurred but not reported 8,348 19,220 11,438 - 12,168 51,174Premium deficiency reserve - 10,711 690 - - 11,401Unit reserves - - - 1,248,668 - 1,248,668Mathematical reserve - - - 5,625 - 5,625Other technical reserves - - - - 209 209Total segment liabilities 33,604 111,165 44,211 1,257,930 45,327 1,492,237Unallocated liabilities and surplus Reinsurance balances payable 21,554Accrued expenses and other liabilities 115,161Lease liabilities 2,983Payable to agents, policyholders and claimants 51,117Employee benefits 5,013Zakat and income tax 2,717Surplus from Insurance Operations 14,301TOTAL LIABILITIES 1,705,083 EQUITY Share capital 550,000Share Premium 197,286Statutory reserve 42,632Retained earnings 47,177TOTAL SHAREHOLDERS’ EQUITY 837,095Remeasurement reserve of employee benefits - related to Insurance Operations 1,242TOTAL EQUITY 838,337TOTAL LIABILITIES AND EQUITY 2,543,420 18. OPERATING SEGMENT INFORMATION (continued) As at 31 December 2021 (Audited) Medical Motor General Individual Life Group Life Total SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000ASSETS Reinsurers’ share of unearned premium - - 5,252 - 20,464 25,716 Reinsurers’ share of outstanding claims 1,883 1,749 12,710 3,373 32,756 52,471 Reinsurers’ share of claims incurred but not reported - - 6,767 - 20,157 26,924 Deferred policy acquisition costs 1,737 426 523 - - 2,686 Available for sale investments held to cover unit-linked liabilities - - - 1,524,882 - 1,524,882 Total segment assets 3,620 2,175 25,252 1,528,255 73,377 1,632,679 Unallocated assets Cash and cash equivalents 83,023Premium receivable, net 20,286 Due from reinsurers, net 1,385 Investments 622,690Due from a related party 60,788 Prepayments and other assets 79,261Property and equipment 3,818 Intangible assets 3,562 Right of use assets 1,212 Goodwill 232,948 Statutory deposit 47,066 Total assets 2,788,718 LIABILITIES Unearned reinsurance commission - - 632 - - 632 Unearned premium 20,944 8,138 7,404 - 40,081 76,567 Outstanding claims 6,086 13,030 20,100 3,837 38,687 81,740Claims incurred but not reported 14,751 14,628 9,146 - 23,598 62,123 Premium deficiency reserve 6,980 1,048 1,589 - - 9,617 Unit reserves - - - 1,526,927 - 1,526,927 Mathematical reserve - - - 5,468 - 5,468 Other technical reserves - - - - 259 259 Total segment liabilities 48,761 36,844 38,871 1,536,232 102,625 1,763,333 Unallocated liabilities and surplus Reinsurance balances payable 34,389Accrued expenses and other liabilities 114,011Lease liabilities 1,190 Payable to agents, policyholders and claimants 36,194Employee benefits 5,248 Zakat and income tax 2,182 Due to a related party 984 Surplus from Insurance Operations 17,215 TOTAL LIABILITIES 1,974,746 EQUITY Share capital 550,000Share Premium 197,286Statutory reserve 42,632Retained earnings 22,812TOTAL SHAREHOLDERS’ EQUITY 812,730Remeasurement reserve of employee benefits - related to Insurance Operations 1,242TOTAL EQUITY 813,972TOTAL LIABILITIES AND EQUITY 2,788,718 18. OPERATING SEGMENT INFORMATION (continued) For the three-month period ended 30 September 2022 (Unaudited) Medical Motor General Individual Life Group Life Total Insurance Operations SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 REVENUES Gross written premium: Individual - 59,318 - 41,488 - 100,806 Very Small Enterprises 7,212 (7) - - - 7,205 Small Enterprises 6,080 80 - - 68 6,228 Medium Enterprises 5,524 1,425 5,608 - 31 12,588 Corporate 20 474 - - 3,390 3,884 Total gross written premium 18,836 61,290 5,608 41,488 3,489 130,711Investible premium - - - (30,946) (88) (31,034)Reinsurance premium ceded: Local - - (5,059) - - (5,059)Foreign (344) (83) (322) (2,888) (1,386) (5,023)Excess of loss expense (61) (158) (211) - - (430)Net premium written 18,431 61,049 16 7,654 2,015 89,165 Change in unearned premium, net (9,339) (44,715) 428 - 4,325 (49,301)Net premium earned 9,092 16,334 444 7,654 6,340 39,864 Reinsurance commission earned - - 1,178 - - 1,178 Other underwriting income 5,896 58 3,854 286 - 10,094TOTAL REVENUES 14,988 16,392 5,476 7,940 6,340 51,136 UNDERWRITING COSTS AND EXPENSES Gross claims paid (3,241) (12,816) (527) (3,911) (10,523) (31,018)Reinsurers’ share of claims paid 246 (52) 224 3,712 9,790 13,920 Net claims paid (2,995) (12,868) (303) (199) (733) (17,098)Changes in outstanding claims, net (56) (714) (227) 291 181 (525)Changes in claims incurred but not reported, net 885 (3,448) (145) - (93) (2,801)Net claims incurred (2,166) (17,030) (675) 92 (645) (20,424)Changes in mathematical reserve - - - (77) - (77)Changes in premium deficiency reserve 447 (5,457) 511 - - (4,499)Change in other technical reserve - - - (18) - (18)Policy acquisition costs (666) (949) (245) (530) (162) (2,552)Other direct underwriting expenses (354) (3,368) (218) - - (3,940)TOTAL UNDERWRITING COSTS AND EXPENSES (2,739) (26,804) (627) (533) (807) (31,510)NET UNDERWRITING INCOME / (LOSS) 12,249 (10,412) 4,849 7,407 5,533 19,626 OTHER OPERATING INCOME / (EXPENSES) Impairment reversal on premium receivable 1,734 General and administrative expenses (17,477)Commission from held to maturity investments 3,863 Commission income on deposits 27 Unrealized gain on FVIS investments 880 Realized gain on FVIS investments 78 Dividends from FVIS investments 39 Other income 2,320 TOTAL OTHER OPERATING EXPENSES, NET (8,536)Income before surplus, Zakat and income tax 11,090Net income attributed to the Insurance Operations (821)Income for the period attributable to the shareholders before Zakat and income tax 10,269Zakat (263)Income tax (148)NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS 9,858 18. OPERATING SEGMENT INFORMATION (continued) For the three-month period ended 30 September 2021 (Unaudited) Medical Motor General Individual Life Group Life Total Insurance Operations SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 REVENUES Gross written premium: Individual - 3,775 206 43,028 - 47,009 Very Small Enterprises 4,522 - - - - 4,522 Small Enterprises 5,792 14 - - 43 5,849 Medium Enterprises 4,695 1,197 6,321 - 76 12,289 Corporate 4,058 - - - 359 4,417Total gross written premium 19,067 4,986 6,527 43,028 478 74,086 Investible premium - - - (33,223) - (33,223)Reinsurance premium ceded: Local - - (250) - - (250)Foreign - - (5,506) (2,836) (142) (8,484)Excess of loss expense (8,066) (805) (327) - - (9,198)Net premium written 11,001 4,181 444 6,969 336 22,931 Change in unearned premium, net 4,157 3,046 149 - 6,243 13,595 Net premium earned 15,158 7,227 593 6,969 6,579 36,526Reinsurance commission earned - - 573 - - 573Other underwriting income 4,639 24 1 2,997 1,493 9,154TOTAL REVENUES 19,797 7,251 1,167 9,966 8,072 46,253 UNDERWRITING COSTS AND EXPENSES Gross claims paid (28,806) (10,642) (322) (817) (10,937) (51,524)Reinsurers’ share of claims paid 5,150 (18) 17 805 9,072 15,026 Net claims paid (23,656) (10,660) (305) (12) (1,865) (36,498)Changes in outstanding claims, net 9,063 (151) (155) (211) 468 9,014Changes in claims incurred but not reported, net (1,207) 1,696 (32) - (331) 126Net claims incurred (15,800) (9,115) (492) (223) (1,728) (27,358)Changes in mathematical reserve - - - 21 - 21 Changes in premium deficiency reserve 2,016 - (12) - 442 2,446 Change in other technical reserve - - - 61 30 91 Policy acquisition costs (2,153) (498) (446) (191) (142) (3,430)Other direct underwriting expenses (1,235) (630) (184) - (176) (2,225)TOTAL UNDERWRITING COSTS AND EXPENSES (17,172) (10,243) (1,134) (332) (1,574) (30,455)NET UNDERWRITING INCOME / (LOSS) 2,625 (2,992) 33 9,634 6,498 15,798OTHER OPERATING INCOME / (EXPENSES) Impairment loss on premium receivable (912)General and administrative expenses (16,596)Commission from held to maturity investments 3,120 Commission income on deposits 258 Unrealized gain on FVIS investments 688 Realized gain on FVIS investments 72 Dividends from FVIS investments 38 Other income 3,299 TOTAL OTHER OPERATING EXPENSES, NET (10,033)Income before surplus, Zakat and income tax 5,765Net income attributed to the Insurance Operations (404)Income for the period attributable to the shareholders before Zakat and income tax 5,361 Zakat (704)Income tax (20)NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS 4,637 18. OPERATING SEGMENT INFORMATION (continued) For the nine-month period ended 30 September 2022 (Unaudited) Medical Motor General Individual Life Group Life Total Insurance Operations SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 REVENUES Gross written premium: Individual - 84,214 124 121,592 - 205,930 Very Small Enterprises 10,590 (1,306) - - - 9,284 Small Enterprises 9,773 80 - - 68 9,921 Medium Enterprises 10,151 5,619 21,824 - 99 37,693 Corporate 508 1,833 - - 4,628 6,969 Total gross written premium 31,022 90,440 21,948 121,592 4,795 269,797 Investible premium - - - (91,427) (88) (91,515)Reinsurance premium ceded: Local - - (18,926) - - (18,926)Foreign (1,031) (384) (1,432) (8,623) (2,888) (14,358)Excess of loss expenses (183) (217) (222) - - (622)Net premium written 29,808 89,839 1,368 21,542 1,819 144,376 Change in unearned premium, net (2,405) (59,297) 67 - 18,426 (43,209)Net premiums earned 27,403 30,542 1,435 21,542 20,245 101,167 Reinsurance commission earned - - 2,806 - - 2,806 Other underwriting income 6,427 88 3,885 828 - 11,228TOTAL REVENUES 33,830 30,630 8,126 22,370 20,245 115,201 UNDERWRITING COSTS AND EXPENSES Gross claims paid (18,322) (26,840) (838) (5,069) (26,799) (77,868)Reinsurers’ share of claims paid 2,406 863 484 4,778 22,600 31,131 Net claims paid (15,916) (25,977) (354) (291) (4,199) (46,737)Changes in outstanding claims, net 2,454 6 50 252 1,113 3,875Changes in claims incurred but not reported, net 6,403 (4,592) (351) - 1,269 2,729Net claims incurred (7,059) (30,563) (655) (39) (1,817) (40,133)Changes in mathematical reserve - - - (157) - (157)Changes in premium deficiency reserve 6,980 (9,663) 899 - - (1,784)Changes in other technical reserve - - - 50 - 50 Policy acquisition costs (2,147) (2,326) (976) (887) (509) (6,845)Other direct underwriting expenses (7,159) (3,012) (191) - - (10,362)TOTAL UNDERWRITING COSTS AND EXPENSES (9,385) (45,564) (923) (1,033) (2,326) (59,231)NET UNDERWRITING INCOME / (LOSS) 24,445 (14,934) 7,203 21,337 17,919 55,970 OTHER OPERATING INCOME / (EXPENSES) Impairment reversal on premium receivable 1,663 General and administrative expenses (51,025)Commission from held to maturity investments 10,667 Commission income on deposits 28 Unrealized gain on FVIS investments 2,774 Realized gain on FVIS investments 100 Dividends from FVIS investments 197 Other income 7,759 TOTAL OTHER OPERATING EXPENSES, NET (27,837)Income before surplus, Zakat and income tax 28,133Net income attributed to the Insurance Operations (1,978)Income for the period attributable to the shareholders before zakat and income tax 26,155Zakat (945)Income tax (845)NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS 24,36518. OPERATING SEGMENT INFORMATION (continued) For the nine-month period ended 30 September 2021 (Unaudited) Medical Motor General Individual Life Group Life Total Insurance Operations SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 REVENUES Gross written premium: Individual - 9,240 640 127,607 - 137,487 Very Small Enterprises 6,756 - - - - 6,756 Small Enterprises 11,062 14 - - 221 11,297 Medium Enterprises 10,351 2,496 12,553 - 104 25,504 Corporate 5,731 - - - 6,158 11,889Total gross written premium 33,900 11,750 13,193 127,607 6,483 192,933Investible premium - - - (96,134) - (96,134)Reinsurance premium ceded: Local - - (349) - - (349)Foreign - - (11,132) (8,375) (3,645) (23,152)Excess of loss expenses (17,189) (3,384) (883) - - (21,456)Net premium written 16,711 8,366 829 23,098 2,838 51,842Change in unearned premium, net 40,053 14,743 556 - 16,591 71,943Net premiums earned 56,764 23,109 1,385 23,098 19,429 123,785Reinsurance commission earned - - 1,446 - - 1,446Other underwriting income 8,039 24 1 9,146 1,493 18,703TOTAL REVENUES 64,803 23,133 2,832 32,244 20,922 143,934 UNDERWRITING COSTS AND EXPENSES Gross claims paid (81,676) (34,361) (414) (2,918) (21,215) (140,584)Reinsurers’ share of claims paid 15,963 178 93 2,818 17,557 36,609 Net claims paid (65,713) (34,183) (321) (100) (3,658) (103,975)Changes in outstanding claims, net 7,588 828 (392) (291) (304) 7,429Changes in claims incurred but not reported, net 9,987 (14,659) 388 - (384) (4,668)Net claims incurred (48,138) (48,014) (325) (391) (4,346) (101,214)Changes in mathematical reserve - - - 3,220 - 3,220 Changes in premium deficiency reserve 1,987 10,243 (1,132) - - 11,098 Changes in other technical reserve 16,769 - - 61 - 16,830 Policy acquisition costs (6,608) (1,145) (1,236) (983) (401) (10,373)Supervision and inspection fees (114) (5) (1) (191) (31) (342)Other direct underwriting expenses (3,605) (4,544) (376) - (359) (8,884)TOTAL UNDERWRITING COSTS AND EXPENSES (39,709) (43,465) (3,070) 1,716 (5,137) (89,665)NET UNDERWRITING INCOME / (LOSS) 25,094 (20,332) (238) 33,960 15,785 54,269 OTHER OPERATING INCOME / (EXPENSES) Impairment loss on premium receivable (1,568)General and administrative expenses (50,618)Commission from held to maturity investments 8,359 Commission income on deposits 635 Unrealized gain on FVIS investments 2,636 Realized gain on FVIS investments 73 Dividends from FVIS investments 99 Other income 8,914 TOTAL OTHER OPERATING EXPENSES, NET (31,470)Income before surplus, Zakat and income tax 22,799 Net income attributed to the Insurance Operations (1,677)Income for the period attributable to the shareholders before zakat and income tax 21,122 Zakat (1,128)Income tax (61)NET INCOME FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS 19,933 | |
| Disclosure of fair value of financial assets and liabilities [text block] | 17. FAIR VALUES OF FINANCIAL INSTRUMENTSa) 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 and cash equivalents, premium receivable, due from reinsurers, available for sale investments held to cover unit-linked liabilities, FVIS investments, held to maturity investments, other receivables, and its financial liabilities consist of other liabilities, reinsurance balances payable, lease liabilities, due to a related party, payable to agents policyholders and claimants, and outstanding claims. The fair values of financial instruments are not materially different from their carrying values. As at 30 September 2022, apart from the investments which are carried at fair value (note 7 and 8), 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; andLevel 3: valuation techniques for which any significant input is not based on observable market data.The following table presents the carrying amounts and the fair values of financial assets, including their levels in fair value hierarchy. It does not include fair value information for financial assets not measured at fair value if the carrying amount is a reasonable approximation of fair value: 30 September 2022 (SAR’000)Fair value (Unaudited) Carrying value Amortised cost Level 1 Level 2 Level 3 TotalFinancial assets measured at fair value: Available for sale investments held to cover unit- linked liabilities 1,245,533 - - 1,245,533 - 1,245,533Held to maturity investments 513,032 513,032 - - - 513,032FVIS investments 239,838 - 3,954 233,961 1,923 239,838Total 1,998,403 513,032 3,954 1,479,494 1,923 1,998,403 31 December 2021 (SAR’000)Fair value (Audited) Carrying value Amortised cost Level 1 Level 2 Level 3 TotalFinancial assets measured at fair value: Available for sale investments held to cover unit-linked liabilities 1,524,882 - - 1,524,882 - 1,524,882Held to maturity investments 466,815 466,815 - - - 466,815FVIS investments 155,875 - 3,564 150,388 1,923 155,875Total 2,147,572 466,815 3,564 1,675,270 1,923 2,147,572There are no transfers between Level 1, Level 2 and Level 3 during the period / year. | |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 19. SUPPLEMENTARY INFORMATIONa) CONDENSED STATEMENT OF FINANCIAL POSITION 30 September 2022 (Unaudited) 31 December 2021 (Audited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total SAR'000 SAR'000 SAR'000 SAR'000 SAR'000 SAR'000ASSETS Cash and cash equivalents 109,045 6,026 115,071 77,628 5,395 83,023 Premium receivable, net 27,850 - 27,850 20,286 - 20,286Due from reinsurers, net 1,850 - 1,850 1,385 - 1,385 Reinsurers’ share of unearned premium 11,678 - 11,678 25,716 - 25,716 Reinsurers’ share of outstanding claims 42,949 - 42,949 52,471 - 52,471 Reinsurers’ share of claims incurred but not reported 18,704 - 18,704 26,924 - 26,924 Deferred policy acquisition costs 3,711 - 3,711 2,686 - 2,686 Available for sale investments held to cover unit-linked liabilities 1,245,533 - 1,245,533 1,524,882 - 1,524,882 Investments 135,822 617,048 752,870 119,459 503,231 622,690Due from a related party - 3,726 3,726 - 60,788 60,788 Prepayments and other assets 16,494 5,794 22,288 23,105 56,156 79,261Property and equipment 3,468 - 3,468 3,818 - 3,818 Intangible assets 2,502 - 2,502 3,562 - 3,562 Right of use assets 3,272 - 3,272 1,212 - 1,212Goodwill - 232,948 232,948 - 232,948 232,948 Statutory deposit - 55,000 55,000 - 47,066 47,066 Due from Shareholders’ / Insurance operations 19,432 - 19,432 33,478 - 33,478 1,642,310 920,542 2,562,852 1,916,612 905,584 2,822,196Less: Inter-operations eliminations (19,432) - (19,432) (33,478) - (33,478) TOTAL ASSETS 1,622,878 920,542 2,543,420 1,883,134 905,584 2,788,718 LIABILITIES Accrued expenses and other liabilities 53,863 61,298 115,161 57,655 56,356 114,011 Lease liabilities 2,983 - 2,983 1,190 - 1,190Payable to agents, policyholders and claimants 51,117 - 51,117 36,194 - 36,194Unearned reinsurance commission 1,079 - 1,079 632 - 632Reinsurance balances payable 21,554 - 21,554 34,389 - 34,389Unearned premium 105,738 - 105,738 76,567 - 76,567 Outstanding claims 68,343 - 68,343 81,740 - 81,740Claims incurred but not reported 51,174 - 51,174 62,123 - 62,123Premium deficiency reserve 11,401 - 11,401 9,617 - 9,617Unit reserves 1,248,668 - 1,248,668 1,526,927 - 1,526,927 Mathematical reserve 5,625 - 5,625 5,468 - 5,468 Other technical reserves 209 - 209 259 - 259Employee benefits 5,013 5,013 5,248 - 5,248 Zakat and income tax - 2,717 2,717 - 2,182 2,182Due to a related party - - - 146 838 984Surplus from Insurance Operations 14,301 - 14,301 17,215 - 17,215Due to Shareholders' / Insurance operations - 19,432 19,432 - 33,478 33,478 1,641,068 83,447 1,724,515 1,915,370 92,854 2,008,224Less: Inter-operations eliminations - (19,432) (19,432) - (33,478) (33,478) TOTAL LIABILITIES 1,641,068 64,015 1,705,083 1,915,370 59,376 1,974,746 EQUITY Share capital - 550,000 550,000 - 550,000 550,000Share premium - 197,286 197,286 - 197,286 197,286Statutory reserve - 42,632 42,632 - 42,632 42,632Retained earnings - 47,177 47,177 - 22,812 22,812Re-measurement reserve of employee benefits – related to Insurance Operations 1,242 - 1,242 1,242 - 1,242 TOTAL EQUITY 1,242 837,095 838,337 1,242 812,730 813,972 TOTAL LIABILITIES AND EQUITY 1,642,310 901,110 2,543,420 1,916,612 872,106 2,788,718 19. SUPPLEMENTARY INFORMATION (continued)b) CONDENSED STATEMENT OF INCOME Three-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 REVENUE Gross written premium 130,711 - 130,711 74,086 - 74,086 Investible premium (31,034) - (31,034) (33,223) - (33,223)Reinsurance premium ceded: Local (5,059) - (5,059) (250) (250) - (250) Foreign (5,023) - (5,023) (8,484) - (8,484) Excess of loss expenses (430) - (430) (9,198) - (9,198) Net premium written 89,165 - 89,165 22,931 - 22,931 Change in unearned premium, net (49,301) - (49,301) 13,595 - 13,595 Net premium earned 39,864 - 39,864 36,526 - 36,526Reinsurance commission earned 1,178 - 1,178 573 - 573Other underwriting income 10,094 - 10,094 9,154 - 9,154 TOTAL REVENUES 51,136 - 51,136 46,253 - 46,253 UNDERWRITING COSTS AND EXPENSES Gross claims paid (31,018) - (31,018) (51,524) - (51,524)Reinsurers’ share of claims paid 13,920 - 13,920 15,026 - 15,026 Net claims paid (17,098) - (17,098) (36,498) - (36,498)Changes in outstanding claims, net (525) - (525) 9,014 - 9,014Changes in claims incurred but not reported, net (2,801) - (2,801) 126 - 126 Net claims incurred (20,424) - (20,424) (27,358) - (27,358)Changes in mathematical reserve (77) - (77) 21 - 21 Changes in Premium deficiency reserves (4,499) - (4,499) 2,446 - 2,446 Changes in other technical reserves (18) - (18) 91 - 91 Policy acquisition costs (2,552) - (2,552) (3,430) - (3,430)Other direct underwriting expenses (3,940) - (3,940) (2,225) - (2,225) TOTAL UNDERWRITING COSTS AND EXPENSES (31,510) - (31,510) (30,455) - (30,455) NET UNDERWRITING INCOME 19,626 - 19,626 15,798 - 15,798 OTHER OPERATING (EXPENSES) / INCOME Impairment reversal / (loss) on premium receivable 1,734 - 1,734 (912) - (912)General and administrative expenses (16,073) (1,404) (17,477) (14,403) (2,193) (16,596)Commission from held to maturity Investments - 3,863 3,863 1 3,119 3,120 Commission income on deposits 26 1 27 4 254 258 Unrealized gain on FVIS investments 662 218 880 244 444 688 Realized gain on FVIS investments - 78 78 11 61 72 Dividends from FVIS investments - 39 39 - 38 38 Other income 2,228 92 2,320 3,299 - 3,299 TOTAL OTHER OPERATING (EXPENSES)/ / INCOME (11,423) 2,887 (8,536) (11,756) 1,723 (10,033) 19. SUPPLEMENTARY INFORMATION (continued)b) CONDENSED STATEMENT OF INCOME (continued) Three-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 NET SURPLUS FROM OPERATIONS 8,203 2,887 11,090 4,042 1,723 5,765 Surplus transferred to Shareholders (7,382) 7,382 - (3,638) 3,638 - NET INCOME FOR THE PERIOD BEFORE ZAKAT AND INCOME TAX 821 10,269 11,090 404 5,361 5,765 Zakat - (263) (263) - (704) (704)Income tax - (148) (148) - (20) (20) NET INCOME FOR THE PERIOD 821 9,858 10,679 404 4,637 5,041 Weighted average number of ordinary shares outstanding (in thousands of shares) - 55,000 - - 47,066 - Earnings per share for the period (SAR / share) (Basic and diluted) - 0.18 - - 0.10 - c) CONDENSED STATEMENT OF COMPREHENSIVE INCOME Three-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 NET INCOME FOR THE PERIOD 821 9,858 10,679 404 4,637 5,041 Other comprehensive income - - - - - - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 821 9,858 10,679 404 4,637 5,041 19. SUPPLEMENTARY INFORMATION (continued)d) CONDENSED STATEMENT OF INCOME Nine-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000REVENUE Gross written premium 269,797 - 269,797 192,933 - 192,933 Investible premium (91,515) - (91,515) (96,134) - (96,134)Reinsurance premium ceded: Local (18,926) - (18,926) (349) - (349) Foreign (14,358) - (14,358) (23,152) - (23,152) Excess of loss expenses (622) - (622) (21,456) - (21,456) Net premium written 144,376 - 144,376 51,842 - 51,842 Change in unearned premium, net (43,209) - (43,209) 71,943 - 71,943 Net premium earned 101,167 - 101,167 123,785 - 123,785 Reinsurance commission earned 2,806 - 2,806 1,446 - 1,446 Other underwriting income 11,228 - 11,228 18,703 - 18,703 TOTAL REVENUES 115,201 - 115,201 143,934 - 143,934 UNDERWRITING COSTS AND EXPENSES Gross claims paid (77,868) - (77,868) (140,584) - (140,584)Reinsurers’ share of claims paid 31,131 - 31,131 36,609 - 36,609 Net claims paid (46,737) - (46,737) (103,975) - (103,975)Changes in outstanding claims, net 3,875 - 3,875 7,429 - 7,429Changes in claims incurred but not reported, net 2,729 - 2,729 (4,668) - (4,668) Net claims incurred (40,133) - (40,133) (101,214) - (101,214)Changes in mathematical reserve (157) - (157) 3,220 - 3,220 Changes in Premium deficiency reserves (1,784) - (1,784) 11,098 - 11,098 Changes in other technical reserves 50 - 50 16,830 - 16,830 Policy acquisition costs (6,845) - (6,845) (10,373) - (10,373)Supervision and inspection fees - - - (342) - (342)Other direct underwriting expenses (10,362) - (10,362) (8,884) - (8,884) TOTAL UNDERWRITING COSTS AND EXPENSES (59,231) - (59,231) (89,665) - (89,665) NET UNDERWRITING INCOME 55,970 - 55,970 54,269 - 54,269 OTHER OPERATING (EXPENSES)/ INCOME Impairment reversal / (loss) on premium receivable 1,663 - 1,663 (1,568) - (1,568)General and administrative expenses (46,916) (4,109) (51,025) (45,637) (4,981) (50,618)Commission from held to maturity Investments - 10,667 10,667 11 8,348 8,359 Commission income on deposits 27 1 28 10 625 635Unrealized gain on FVIS investments 1,355 1,419 2,774 812 1,824 2,636 Realized gain on FVIS investments 9 91 100 12 61 73 Dividends from FVIS investments - 197 197 - 99 99 Other income 7,666 93 7,759 8,866 48 8,914 TOTAL OTHER OPERATING (EXPENSES) / INCOME (36,196) 8,359 (27,837) (37,494) 6,024 (31,470) 19. SUPPLEMENTARY INFORMATION (continued)d) CONDENSED STATEMENT OF INCOME (continued) Nine-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 NET SURPLUS FROM OPERATIONS 19,774 8,359 28,133 16,775 6,024 22,799 Surplus transferred to Shareholders (17,796) 17,796 - (15,098) 15,098 - NET INCOME FOR THE PERIOD BEFORE ZAKAT AND INCOME TAX 1,978 26,155 28,133 1,677 21,122 22,799 Zakat - (945) (945) - (1,128) (1,128)Income Tax - (845) (845) - (61) (61) NET INCOME FOR THE PERIOD 1,978 24,365 26,343 1,677 19,933 21,610 Weighted average number of ordinary shares outstanding (in thousands of shares) - 55,000 - - 44,385 - Earnings per share for the period (SAR / share) (Basic and diluted) - 0.44 - - 0.45 - e) CONDENSED STATEMENT OF COMPREHENSIVE INCOME Nine-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 NET INCOME FOR THE PERIOD 1,978 24,365 26,343 1,677 19,933 21,610 Other comprehensive income - - - - - - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,978 24,365 26,343 1,677 19,933 21,610 Share of insurance operations surplus split in the ratio of 90/10 between shareholders’ and insurance operations and presented separately as an expense in condensed statement of income. 19. SUPPLEMENTARY INFORMATION (continued)f) CONDENSED STATEMENT OF CASH FLOWS Nine-month period ended 30 September (Unaudited) Insurance operations Shareholders’ operations 2022 Insurance operations Shareholders’ operations 2021 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000 SAR’000CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before Zakat and income tax 1,978 26,155 28,133 1,677 21,122 22,799 Adjustments for non-cash items: Impairment (reversal) / loss on premium receivable (1,663) - (1,663) 1,568 - 1,568 Loss on disposal of property and equipment - - - 239 - 239 Commission from held to maturity investments - (10,667) (10,667) (11) (8,348) (8,359)Unrealized gain on FVIS investments (1,355) (1,419) (2,774) (812) (1,824) (2,636)Realized gain on FVIS investments (9) (91) (100) (12) (61) (73)Dividends from FVIS investments - (197) (197) - (99) (99)Depreciation and amortization 3,438 - 3,438 3,616 - 3,616 Finance cost of lease liabilities 46 - 46 170 - 170 Employee benefits 1,160 - 1,160 985 - 985 3,595 13,781 17,376 7,420 10,790 18,210 Changes in operating assets and liabilities: Premium receivable (7,564) - (7,564) (1,609) - (1,609)Due from reinsurers (465) - (465) 5,276 - 5,276Reinsurers’ share of unearned premium 14,038 - 14,038 16,720 - 16,720 Unearned premium 29,171 - 29,171 (88,663) - (88,663)Unearned reinsurance commission 447 - 447 (466) - (466)Deferred policy acquisition costs (1,025) - (1,025) 5,155 - 5,155 Reinsurers’ share of outstanding claims 9,522 - 9,522 4,436 - 4,436 Reinsurers’ share of claims incurred but not reported 8,220 - 8,220 (2,077) - (2,077)Available for sale investments held to cover unit-linked liabilities 279,349 - 279,349 (223,387) - (223,387)Due from a related party - 57,062 57,062 - (4,031) (4,031)Due to a related party (146) (838) (984) - - -Prepayments and other assets 6,611 50,362 56,973 7,482 505 7,987 Accrued expenses and other liabilities (3,792) 4,942 1,150 (3,126) (2,105) (5,231)Payable to agents, policyholders and claimants 14,923 - 14,923 9 - 9 Reinsurers' balances payable (12,835) - (12,835) (10,269) - (10,269)Outstanding claims (13,397) - (13,397) (11,865) - (11,865)Claims incurred but not reported (10,949) - (10,949) 6,745 - 6,745Unit reserves (278,259) - (278,259) 220,582 - 220,582 Mathematical reserve 157 - 157 (3,220) - (3,220)Premium deficiency reserves 1,784 - 1,784 (11,098) - (11,098)Other technical reserves (50) - (50) (16,830) - (16,830)Due from Shareholders' / Insurance Operations 14,406 (14,406) - 82,758 (82,758) - Cash generated from / (used in) operations 53,741 110,903 164,644 (16,027) (77,599) (93,626)Release of short-term deposit acquired as a result of business combination - - - - 37,500 37,500 Increase in statutory deposit - (7,934) (7,934) - (12,066) (12,066)Zakat and income tax paid - (1,255) (1,255) - (3,027) (3,027)Employee benefits paid (1,395) - (1,395) (1,081) - (1,081)Distribution of surplus to policyholders (3,117) - (3,117) (261) - (261) Net cash generated from / (used in) operating activities 49,229 101,714 150,943 (17,369) (55,192) (72,561) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturity of held to maturity investments - 12,411 12,411 16,381 136,285 152,666 Proceeds from disposal of FVIS investments 19,550 65,270 84,820 24,999 148,485 173,484 Purchase of held to maturity investments - (60,914) (60,914) - (149,202) (149,202)Purchase of FVIS investments (35,000) (131,000) (166,000) (60,000) (175,000) (235,000)Commission received from held to maturity investments - 12,953 12,953 - 27,144 27,144 Dividends from FVIS investments - 197 197 - 99 99 Cash and cash equivalents acquired through business combination - - - 48,215 92,635 140,850 Purchase of property and equipment (1,291) - (1,291) (512) - (512) Net cash (used in) / generated from investing activities (16,741) (101,083) (117,824) 29,083 80,446 109,529 CASH FLOWS FROM FINANCING ACTIVITIES Repayment of lease liabilities (1,071) - (1,071) (2,549) - (2,549) Net cash used in financing activities (1,071) - (1,071) (2,549) - (2,549) Net increase in cash and cash equivalents 31,417 631 32,048 9,165 25,254 34,419 Cash and cash equivalents at the beginning of the period 77,628 5,395 83,023 72,500 33,532 106,032 Cash at cash equivalents at the end of the period 109,045 6,026 115,071 81,665 58,786 140,451 | |
