Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2019 | Apr. 27, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | International General Insurance Holdings Ltd. | |
Entity Central Index Key | 0001794338 | |
Amendment Flag | false | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth Company | true | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,447,306 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | D0 | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity Ex Transition Period | false | |
Entity File Number | 001-39255 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 192,459,867 | $ 184,732,364 |
Term deposits | 119,753,220 | 75,327,231 |
Insurance receivables | 112,974,844 | 108,247,631 |
Investments | 253,721,954 | 200,904,811 |
Investments in associates | 13,061,674 | 13,437,778 |
Reinsurance share of outstanding claims | 176,212,424 | 187,565,382 |
Reinsurance share of unearned premiums | 33,916,549 | 32,566,847 |
Deferred excess of loss premiums | 15,172,707 | 12,448,671 |
Deferred policy acquisition costs | 41,713,289 | 36,403,831 |
Deferred tax assets | 638,841 | |
Other assets | 7,754,225 | 5,061,050 |
Investment properties | 25,712,312 | 30,655,214 |
Property, premises and equipment | 12,734,842 | 12,216,997 |
Intangible assets | 3,885,894 | 2,935,750 |
TOTAL ASSETS | 1,009,073,801 | 903,142,398 |
LIABILITIES | ||
Gross outstanding claims | 413,052,855 | 384,379,841 |
Gross unearned premiums | 206,214,029 | 168,254,688 |
Insurance payables | 53,543,737 | 33,034,146 |
Other liabilities | 14,863,282 | 8,299,453 |
Deferred tax liabilities | 346,824 | |
Unearned commissions | 8,909,989 | 8,010,384 |
TOTAL LIABILITIES | 696,930,716 | 601,978,512 |
EQUITY | ||
Issued share capital | 143,375,678 | 143,375,678 |
Additional paid in capital | 2,773,000 | 2,773,000 |
Treasury shares | (20,102,500) | (15,050,000) |
Foreign currency translation reserve | (332,785) | (294,929) |
Fair value reserve | 4,273,914 | 953,704 |
Retained earnings | 182,155,778 | 169,406,433 |
TOTAL EQUITY | 312,143,085 | 301,163,886 |
TOTAL LIABILITIES AND EQUITY | $ 1,009,073,801 | $ 903,142,398 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Gross written premiums | $ 349,291,905 | $ 301,618,486 | $ 275,102,191 |
Reinsurers' share of insurance premiums | (97,139,370) | (98,188,088) | (114,334,750) |
Net written premiums | 252,152,535 | 203,430,398 | 160,767,441 |
Change in unearned premiums | (37,959,341) | (11,560,663) | (23,023,130) |
Reinsurers' share of change in unearned premiums | 1,349,702 | (8,560,116) | 8,988,473 |
Net change in unearned premiums | (36,609,639) | (20,120,779) | (14,034,657) |
Net premiums earned | 215,542,896 | 183,309,619 | 146,732,784 |
Claims and claim adjustment expenses | (159,824,136) | (211,044,400) | (252,154,218) |
Reinsurers' share of claims | 41,760,648 | 125,756,899 | 165,223,681 |
Net claims and claim adjustment expenses | (118,063,488) | (85,287,501) | (86,930,537) |
Commissions earned | 13,930,139 | 16,817,154 | 16,709,347 |
Policy acquisition costs | (59,365,577) | (58,780,676) | (52,941,057) |
Net policy acquisition expenses | (45,435,438) | (41,963,522) | (36,231,710) |
Net underwriting results | 52,043,970 | 56,058,596 | 23,570,537 |
General and administrative expenses | (39,265,945) | (35,351,679) | (30,902,604) |
Net investment income | 13,374,076 | 10,310,296 | 12,564,842 |
Share of loss from associates | (376,104) | (885,673) | 992,218 |
Impairment loss on insurance receivables | (628,887) | (472,124) | (1,214,456) |
Other revenues | 1,428,265 | 902,750 | 856,540 |
Other expenses | (2,194,666) | (1,586,281) | (1,466,042) |
Listing related expenses | (4,831,976) | ||
Gain (loss) on foreign exchange | 5,704,249 | (3,371,941) | 2,615,883 |
Profit before tax | 25,252,982 | 25,603,944 | 7,016,918 |
Income tax | (1,687,583) | (62,241) | 14,422 |
Profit for the year | $ 23,565,399 | $ 25,541,703 | $ 7,031,340 |
Earnings per share | |||
Basic and diluted earnings per share attributable to equity holders | $ 0.17 | $ 0.18 | $ 0.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Profit for the year | $ 23,565,399 | $ 25,541,703 | $ 7,031,340 |
Other comprehensive income to be reclassified to profit or loss in subsequent periods | |||
Net change in fair value reserve during the year for available for sale investments | 4,514,533 | ||
Net change in fair value reserve during the year for bonds at fair value through other comprehensive income | 4,208,620 | (2,706,303) | |
Currency translation differences | (37,856) | (25,723) | 93,529 |
Changes in allowance for expected credit losses transferred to income statement | (22,764) | 29,903 | |
Other comprehensive income which will not be reclassified to profit or loss in subsequent periods | |||
Net change in fair value reserve during the year for equities at fair value through other comprehensive income | (865,646) | (3,897,678) | |
Other comprehensive income (loss) for the year | 3,282,354 | (6,599,801) | 4,608,062 |
Total comprehensive income for the year | $ 26,847,753 | $ 18,941,902 | $ 11,639,402 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Profit before tax | $ 25,252,982 | $ 25,603,944 | $ 7,016,918 |
Adjustments for: | |||
Depreciation and amortization | 1,955,458 | 1,359,960 | 1,485,134 |
Gain on sale of available-for-sale investments | (3,133,556) | ||
Impairment loss on insurance receivables | 628,887 | 472,124 | 1,214,456 |
Impairment of investments available for sale | 71,863 | ||
Loss (gain) on disposal of property, premises and equipment | 25,999 | (18,967) | |
Realized gain on sale of financial assets at FVTPL | (946,952) | (2,048,908) | |
Fair value loss (gain) on investment properties | 304,482 | (93,934) | (18,148) |
Realized gain on sale of investment properties | (678,516) | ||
(Gain) loss on revaluation of financial assets at FVTPL | (1,590,964) | 948,802 | |
Loss on sale of bonds at fair value through OCI | 628,523 | 763,569 | |
Expected credit loss on financial assets | (35,591) | 29,903 | |
Gain on revaluation of held for trading investments | (95,582) | ||
Share of profit or loss from associates | 376,104 | 885,673 | (992,218) |
Net foreign exchange differences | (5,704,249) | 3,371,941 | (2,615,883) |
Cash from operations before working capital changes | 20,216,163 | 31,293,074 | 2,914,017 |
Working capital adjustments | |||
Term deposits | (44,425,989) | 30,845,015 | 7,647,915 |
Insurance receivables | (3,523,360) | 952,311 | (29,939,360) |
Purchase of financial assets at FVTPL | (14,905,996) | (1,380,207) | |
Purchase of bonds through OCI | (109,954,776) | (36,245,111) | |
Proceeds from maturity of financial assets at amortized cost | 500,000 | 500,000 | 3,000,000 |
Proceeds from sale/maturity of bonds at fair value through OCI | 67,192,825 | 56,417,470 | |
Proceeds from sale of financial assets at FVTPL | 9,615,999 | 7,853,250 | |
Purchase of available-for-sale investments | (49,829,438) | ||
Proceeds from sale of available-for-sale investments | 57,008,234 | ||
Proceeds from sale of trading securities | 81,984 | ||
Reinsurance share of outstanding claims | 11,352,958 | (973,363) | (43,526,311) |
Reinsurance share of unearned premiums | (1,349,702) | 8,560,116 | (8,988,473) |
Deferred excess of loss premiums | (2,724,036) | (836,017) | (2,733,686) |
Deferred policy acquisition costs | (5,309,458) | (3,487,866) | (4,629,717) |
Other assets | (2,693,175) | 248,679 | 626,741 |
Additions of investment property | (745,281) | (264,111) | |
Proceeds from sale of investment property | 6,062,217 | ||
Gross outstanding claims | 28,673,014 | 1,152,400 | 48,056,147 |
Gross unearned premiums | 37,959,341 | 11,560,663 | 23,023,130 |
Insurance payables | 20,509,591 | (928,745) | 6,793,290 |
Other liabilities | 4,052,336 | 958,817 | 1,664,479 |
Unearned commissions | 899,605 | (2,343,635) | 2,061,920 |
Net cash flows from operating activities before tax | 21,402,276 | 104,146,851 | 12,966,761 |
Income tax paid | (56,456) | (4,946) | |
Net cash flows from operating activities after tax | 21,402,276 | 104,090,395 | 12,961,815 |
INVESTING ACTIVITIES | |||
Purchases of property, premises and equipment | (443,305) | (414,716) | (448,954) |
Proceeds from sale of premises and equipment | 22,567 | 50,394 | |
Purchases of intangible assets | (612,901) | (731,717) | (1,175,761) |
Net cash flows used in investing activities | (1,033,639) | (1,146,433) | (1,574,321) |
FINANCING ACTIVITIES | |||
Dividends paid | (10,816,054) | (4,091,271) | (11,470,054) |
Treasury shares | (5,052,500) | (15,050,000) | |
Lease liability payments | (606,232) | ||
Net cash flows used in financing activities | (16,474,786) | (19,141,271) | (11,470,054) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 3,893,851 | 83,802,691 | (82,560) |
Net foreign exchange differences | 3,833,652 | (3,220,822) | 1,884,885 |
Cash and cash equivalents at the beginning of the year | 184,732,364 | 104,150,495 | 102,348,170 |
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ 192,459,867 | $ 184,732,364 | $ 104,150,495 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Issued share capital | Additional paid in capital | Treasury shares | Foreign currency translation reserve | Fair value reserve | Retained earnings | Total |
Balance at Dec. 31, 2016 | $ 143,375,678 | $ 2,773,000 | $ (362,735) | $ 9,693,936 | $ 145,750,726 | $ 301,230,605 | |
Profit for the year | 7,031,340 | 7,031,340 | |||||
Other comprehensive income | 93,529 | 4,514,533 | 4,608,062 | ||||
Total comprehensive income | 93,529 | 4,514,533 | 7,031,340 | 11,639,402 | |||
Dividends paid during the year (note 20) | (11,470,054) | (11,470,054) | |||||
Balance at Dec. 31, 2017 | 143,375,678 | 2,773,000 | (269,206) | 14,208,469 | 141,312,012 | 301,399,953 | |
Impact of adopting IFRS 9 | (6,680,687) | 6,643,989 | (36,698) | ||||
Balance at Jan. 1, 2018 | 143,375,678 | 2,773,000 | (269,206) | 7,527,782 | 147,956,001 | 301,363,255 | |
Profit for the year | 25,541,703 | 25,541,703 | |||||
Other comprehensive income | (25,723) | (6,574,078) | (6,599,801) | ||||
Total comprehensive income | (25,723) | (6,574,078) | 25,541,703 | 18,941,902 | |||
Purchase of treasury shares – (note 19) | (15,050,000) | (15,050,000) | |||||
Dividends paid during the year (note 20) | (4,091,271) | (4,091,271) | |||||
Balance at Dec. 31, 2018 | 143,375,678 | 2,773,000 | (15,050,000) | (294,929) | 953,704 | 169,406,433 | 301,163,886 |
Profit for the year | 23,565,399 | 23,565,399 | |||||
Other comprehensive income | (37,856) | 3,320,210 | 3,282,354 | ||||
Total comprehensive income | (37,856) | 3,320,210 | 23,565,399 | 26,847,753 | |||
Purchase of treasury shares – (note 19) | (5,052,500) | (5,052,500) | |||||
Dividends paid during the year (note 20) | (10,816,054) | (10,816,054) | |||||
Balance at Dec. 31, 2019 | $ 143,375,678 | $ 2,773,000 | $ (20,102,500) | $ (332,785) | $ 4,273,914 | $ 182,155,778 | $ 312,143,085 |
Corporate Information
Corporate Information | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information [Abstract] | |
CORPORATE INFORMATION | 1. CORPORATE INFORMATION International General Insurance Holdings Limited (“the Company”) is incorporated as a company limited by shares under DIFC Law No. 5 of 2019 on 7 May 2006 and is engaged in the business of insurance and re-insurance. The Company’s registered office is at unit 1, Gate Village 01, P. O. Box 506646, Dubai International Financial Centre. The Company and its subsidiaries (together “the Group”) operate in the United Arab Emirates, Bermuda, United Kingdom, Jordan, Morocco, Malaysia, and the Cayman Islands. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation [Abstract] | |
BASIS OF PREPARATION | 2. BASIS OF PREPARATION The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been presented in United States Dollars "USD" which is also the Group's functional currency. The consolidated financial statements are prepared on a going concern basis under the historical cost convention modified to include the measurement at fair value of financial assets and investment properties at fair value through profit or loss, and financial assets at fair value through other comprehensive income, financial assets measured at fair value through profit and loss include quoted funds, alternative investments and quoted equities. Financial assets at fair value through other comprehensive income include quoted and unquoted equities. On 30 January 2020, the World Health Organization declared the outbreak of coronavirus ("COVID-19") to be a public health emergency of international concern. This coronavirus outbreak has severely restricted the level of economic activity around the world. In response to this coronavirus outbreak, the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. The full extent to which the COVID-19 pandemic may impact Group's results, operations or liquidity is uncertain. Management continues to monitor the impact that the COVID-19 pandemic has on the Group, the insurance industry and the economies in which the Group operates. Management has performed a COVID -19 impact analysis as part of their going concern assessment using information available to the date of issue of these financial statements. The analysis has modelled a number of adverse scenarios to assess the potential impact that COVID-19 may have on Group's operations, liquidity, solvency and capital position as well as a reverse stress test to assess the stresses the balance sheet has to endure before there is a breach of the required solvency ratio. These stresses included increased counterparty defaults, falls in property and equity values, credit spread widening, currency movements and increases in the value of claims. This analysis indicates that the solvency position is and will likely remain within the Group's 'Capital Management Framework' targets, allowing the Group to exceed the regulatory capital requirements without the need for mitigating management actions. Management believe the preparation of the financial statements on a going concern basis remains appropriate and the Company will be able to meet its regulatory solvency requirements and liabilities with sufficient liquidity for a period of at least one year after the date of the consolidated financial statements for the year ended December 31, 2019. Basis of consolidation The financial statements of the subsidiaries are prepared for the same period and amended where required to be compliant with the Group's accounting policies. The consolidated financial statements comprise the financial statements of International General Insurance Holdings Ltd and its subsidiaries as at 31 December 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: ● Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) ● Exposure, or rights, to variable returns from its involvement with the investee, and ● The ability to use its power over the investee to affect its returns When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement with the other vote holders of the investee ● Rights arising from other contractual arrangements ● The Group's voting rights and potential voting rights The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: ● Derecognizes the assets (including goodwill) and liabilities of the subsidiary; ● Derecognizes the carrying amount of any non-controlling interest; ● Derecognizes the cumulative translation differences, recorded in equity, if any; ● Recognizes the fair value of the consideration received; ● Recognizes the fair value of any investment retained; ● Recognizes any surplus or deficit in profit or loss; and ● Reclassifies the parent's share of components previously recognized in other comprehensive income to the statement of income or retained earnings, as appropriate. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The Group has the following subsidiaries and branches: Country of Activity Ownership 2019 2018 Subsidiaries: International General Insurance Underwriting Jordan Underwriting agency 100 % 100 % North Star Underwriting Limited United Kingdom Underwriting agency 100 % 100 % International General Insurance Co. Ltd. Bermuda Reinsurance and insurance 100 % 100 % The following entities are wholly owned subsidiaries and branches by International General Insurance Co. Ltd. Bermuda: Subsidiaries: International General Insurance Company (UK) Limited United Kingdom Reinsurance and insurance 100 % 100 % International General Insurance Company Dubai Ltd. United Arab Emirates Insurance intermediation and insurance management 100 % 100 % Specialty Malls Investment Co. Jordan Real estate properties development and lease 100 % 100 % IGI Services Limited Cayman Islands Owning and chartering aircraft 100 % 100 % Branches: International General Insurance Company Ltd. Labuan - Branch Malaysia Reinsurance and insurance 100 % 100 % Changes in accounting policies The accounting policies used in the preparation of the consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2018 except for the adoption of new standards effective as at 1 January 2019 shown below: New standards, interpretations and amendments adopted by the Group IFRS 16 Leases IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives, and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases, and requires lessees to account for most leases under a single on-balance sheet model. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases where the Group is the lessor. The Group adopted IFRS 16 using the modified retrospective approach with the date of initial application of 1 January 2019. Accordingly, prior year consolidated financial statements were not restated. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. The Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option ('short-term leases'), and lease contracts for which the underlying asset is of low value ('low-value assets'). The effect of adoption IFRS 16 is as follows: Impact on the consolidated statement of financial position as at 1 January 2019: 2019 USD Property, premises and equipment Right of use assets 1,715,606 Other liabilities Lease liabilities 1,715,606 Total equity - The Group did not record any impact on the retained earnings as the balances of the prepaid rentals and accrued rentals were not material, accordingly the impact was calculated for the contracts starting from 1 January 2019. The Group has lease contracts for various items of plant and equipment. Before the adoption of IFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the Group; otherwise it was classified as an operating lease. The Group has no finance leases as at 1 January 2019. In an operating lease, the leased property was historically not capitalized, and the lease payments were recognized as rent expense in profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under prepaid expense in other assets and accounts payable in other liabilities, respectively. Upon adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which has been applied by the Group. ● Leases previously accounted for as operating leases The Group recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. The Group also applied the available practical expedients wherein it: ● Used a single discount rate to a portfolio of leases with reasonably similar characteristics ● Relied on its assessment of whether leases are onerous immediately before the date of initial application ● Applied the short-term leases exemptions to leases with a lease term that ends within 12 months at the date of initial application ● Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application ● Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease a) The lease liabilities as at 1 January 2019 can be reconciled to the operating lease commitments as of 31 December 2018 as follows: USD Operating lease commitments as at 31 December 2018 1,994,122 Weighted average incremental borrowing rate as at 1 January 2019 4.3 % Discounted operating lease commitments at 1 January 2019 1,715,606 b) Amounts recognized in the consolidated statement of financial position and income Set out below are the carrying amounts of the Group's right-of-use assets and lease liabilities and the movements during the year: Offices Lease USD USD At 1 January 2019 1,715,606 1,715,606 Additions 1,002,005 1,002,005 Disposal - Net (687,775 ) (656,416 ) Depreciation (516,175 ) - Interest expense - 108,426 Payments - (606,232 ) At 31 December 2019 1,513,661 1,563,389 Current 521,687 Non-current 1,041,702 c) Set out below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and are adjusted for any remeasurement of lease liabilities. The Group has included the right-of-use assets arising from the lease contracts within property, plant and premises in the consolidated statement of financial position (note 13). The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Group has included the lease obligations arising from the lease contracts within the other liabilities in the consolidated statement of financial position (note 16). Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to some of its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value (i.e., below USD 5,000). Lease payments on short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. The Group considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). The Group included the renewal period as part of the lease term for leases of plant and equipment due to the significance of these assets to its operations. These leases have a short non-cancellable period and there will be a significant negative effect on the Group's operations if a replacement is not readily available. Amendments to IFRS 9: Prepayment Features with Negative Compensation Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are 'solely payments of principal and interest on the principal amount outstanding' (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. These amendments do not have any impact on the Group's consolidated financial statements. Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture The amendments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors' interests in the associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. These amendments do not have any impact on the Group's financial statements. Amendments to IAS 28: Long-term interests in associates and joint ventures The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in IFRS 9 applies to such long-term interests. The amendments also clarified that, in applying IFRS 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint Ventures . These amendments do not have any impact on the Group's consolidated financial statements. Standards issued but not yet effective IFRS 17 Insurance Contracts IFRS 17 provides a comprehensive model for insurance contracts covering the recognition and measurement and presentation and disclosure of insurance contracts and replaces IFRS 4 -Insurance Contracts. The standard applies to all types of insurance contracts (i.e. life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The standard general model is supplemented by the variable fee approach and the premium allocation approach. IFRS 17 was to be effective for reporting periods beginning on or after 1 January 2021, with comparative figures required. In November 2018, the IASB recommended an amendment to IFRS 17 to defer the effective date to January 2022. In March 2020, the IASB decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1 January 2023. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. The Group is currently in process of evaluating the potential impact of adopting IFRS 17. Summary of significant accounting policies Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances, and short-term deposits with an original maturity of three months or less. Term deposits The term deposits are interest bearing bank deposits with original maturity over 3 months and less than one year. Insurance receivables Insurance receivables are recognized when due and are measured on initial recognition at the fair value of the consideration received or receivable. The Group uses a provision matrix to calculate ECLs for insurance receivables. The provision rates are based on days past due and not due for groupings of various policy holder's segments that have similar default loss - patterns. Financial assets a) Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss (FVTPL). The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. Financial instruments are initially recognized on the trade date measured at their fair value. Except for financial assets and financial liabilities recorded at FVTPL, transaction costs are added to this amount. The Group classifies all of its financial assets based on the business model for managing the assets and the asset's contractual terms. The categories include the following: ● Amortized cost ● FVOCI ● FVTPL i) Bonds and debt instruments measured at amortized cost Bonds and debt instruments are held at amortized cost if both of the following conditions are met: ● The instruments are held within a business model with the objective of holding the instrument to collect the contractual cash flows. ● The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. The details of these conditions are outlined below . Business model assessment The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Group holds financial assets to generate returns and provide a capital base to provide for settlement of claims as they arise. The Group considers the timing, amount and volatility of cash flow requirements to support insurance liability portfolios in determining the business model for the assets as well as the potential to maximize return for shareholders and future business development. The Group business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios that is based on observable factors such as: ● How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group's key management personnel. ● The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed. ● How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected). ● The expected frequency, value and timing of asset sales are also important aspects of the Group's assessment. The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case' scenarios into account. If cash flows after initial recognition are realized in a way that is different from the Group original expectations, the Group does not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward. The SPPI test As a second step of its classification process the Group assesses the contractual terms to identify whether they meet the SPPI test. 'Principal' for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are repayments of principal or amortization of the premium/discount). The most significant elements of interest within a debt arrangement are typically the consideration for the time value of money and credit risk. To make the SPPI assessment, the Group applies judgement and considers relevant factors such as the currency in which the financial asset is denominated, and the period for which the interest rate is set. Bonds and debt instruments measured at fair value through other comprehensive income The Group applies the new category under IFRS 9 for debt instruments measured at FVOCI when both of the following conditions are met: ● The instrument is held within a business model, the objective of which is both collecting contractual cash flows and selling financial assets. ● The contractual terms of the financial asset meet the SPPI test. These instruments largely comprise debt instruments that had previously been classified as available-for-sale under IAS 39. Bonds and debt instruments in this category are those that are intended to be held to collect contractual cash flows and which may be sold in response to needs for liquidity or in response to changes in market conditions. ii) Financial assets measured at fair value through profit or loss (Quoted funds, alternative investments and quoted equities) Financial assets in this category are those assets which have been either designated by management upon initial recognition or are mandatorily required to be measured at fair value under IFRS 9. Management designates an instrument as FVTPL that otherwise meet the requirements to be measured at amortized cost or at FVOCI only if it eliminates, or significantly reduces, an accounting mismatch that would otherwise arise. Financial assets with contractual cash flows not representing solely payment of principal and interest are mandatorily required to be measured at FVTPL. Financial assets at FVTPL are subsequently measured at fair value. Changes in fair value are recognized in the consolidated statement of income. Interest income is recognized using the effective interest method. Dividend income from equity investments measured at FVTPL is recognized in the consolidated statement of income when the right to the payment has been established. iii) Financial assets measured at fair value through other comprehensive income (Quoted and unquoted equities) Financial assets measured at fair value through other comprehensive income include equities investments. Equity investments classified as financial assets measured at fair value through other comprehensive income are those, which are not classified as financial assets measured at fair value through profit or loss. iv) Reclassification of financial assets and liabilities The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances in which the Group terminates a business line or changes its business model for managing financial assets. A change in Group business model will occur only when Group management determines change as a result of external or internal changes which are significant to the Group operations. Reclassifications shall all be recorded prospectively from the reclassification date b) Subsequent measurement For purposes of subsequent measurement, financial assets in the scope of IFRS 9 are classified in four categories: ● Financial assets at amortized cost (bonds, debt instruments) ● Financial assets at fair value through OCI with recycling of cumulative gains and losses (bonds and debt instruments) ● Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) ● Financial assets at fair value through profit or loss i) Financial assets at amortized cost (bonds, debt instruments) The Group measures financial assets at amortized cost if both of the following conditions are met: ● The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and ● 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. Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in the consolidated statement of income when the asset is derecognized, modified, or impaired. The Group's debt instruments at amortized cost includes investments in unquoted debt instruments. ii) Financial assets at fair value through OCI (debt instruments) The Group measures debt instruments at fair value through OCI if both of the following conditions are met: ● The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and, ● 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. For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of income and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to the consolidated statement of income. The Group's debt instruments at fair value through OCI includes investments in quoted debt instruments. iii) Financial assets designated at fair value through OCI (equity instruments ) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to the consolidated statement of income. Dividends are recognized as investment income in the statement of income when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to classify irrevocably its unquoted equity investments and some quoted equity investments under this category. iv) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are class |
Cash at Banks
Cash at Banks | 12 Months Ended |
Dec. 31, 2019 | |
Cash at Banks [Abstract] | |
CASH AT BANKS | 3. CASH AT BANKS (a) CASH AND CASH EQUIVALENTS 2019 2018 USD USD Cash and bank balances 167,767,393 159,478,364 Deposits with original maturities of three months or less 24,692,474 25,254,000 192,459,867 184,732,364 (b) TERM DEPOSITS 2019 2018 USD USD Total deposits 144,445,694 100,581,231 Less: Deposits with original maturities of three months or less - note 3 (a) (24,692,474 ) (25,254,000 ) 119,753,220 75,327,231 The deposits are denominated in US Dollars and dollar pegged currencies and are held for varying periods between one month to one year depending on the immediate cash requirements of the Group. |
Insurance Receivables
Insurance Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Insurance revenue, amounts relating to changes in liability for remaining coverage [abstract] | |
INSURANCE RECEIVABLES | 4. INSURANCE RECEIVABLES 2019 2018 USD USD Receivables from insurance companies and intermediaries 119,368,563 114,341,269 Less: Expected credit losses on insurance receivables (6,393,719 ) (6,093,638 ) 112,974,844 108,247,631 The movement in the expected credit losses is as follows: 2019 2018 USD USD Opening balance 6,093,638 5,621,514 Provision for the year 628,887 472,124 Write-offs (328,806 ) - Ending balance 6,393,719 6,093,638 Insurance receivables are non-interest bearing. The Group does not obtain collateral over insurance receivables. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
INVESTMENTS | 5. INVESTMENTS The details of the Group's financial investments for the years 2019 and 2018 are as follows: 31 December 2019 Amortized Fair value Fair value Total USD USD USD USD Unquoted bonds* 3,235,896 - - 3,235,896 Quoted bonds - 208,525,361 - 208,525,361 Quoted funds and alternative investments - - 8,261,033 8,261,033 Quoted equities - 14,628,558 13,544,542 28,173,100 Unquoted equities** - 5,794,187 - 5,794,187 Expected credit losses and impairment (267,623 ) - - (267,623 ) 2,968,273 228,948,106 21,805,575 253,721,954 31 December 2018 Amortized Fair value Fair value Total USD USD USD USD Unquoted bonds* 3,737,287 - - 3,737,287 Quoted bonds - 162,161,914 - 162,161,914 Quoted funds and alternative investments - - 8,383,593 8,383,593 Quoted equities - 15,320,310 5,594,070 20,914,380 Unquoted equities** - 5,988,087 - 5,988,087 Expected credit losses and impairment (280,450 ) - - (280,450 ) 3,456,837 183,470,311 13,977,663 200,904,811 The movement on the expected credit losses and impairment provision for the bonds at amortized cost is as follows: 2019 2018 USD USD Opening balance 280,450 286,698 Release of provision for investment in debt securities (12,827 ) (6,248 ) Ending balance 267,623 280,450 The reversal of allowance for bonds at FVTOCI for the year 2019 of USD 22,764 (note 22) does not change the carrying amount of these investments (which are measured at fair value but gives rise to an equal and opposite gain in OCI). * The Group has an investment in an unquoted bond denominated in JOD (USD pegged currency) issued by 'Specialized Investment Compound Co.' a local company based in Jordan with a maturity date of 22nd February 2016. Said company is currently under liquidation, due to which 85% of original bond holdings with nominal value amounted to USD 1,235,543 were not paid on that maturity date. These bonds are backed up by collateral in the form of real estate properties. However, the Group management has provided USD 250,000 to cover any potential impairment in the value of the collateral held against said investment. ** The Group has two unquoted equity investments under level 3 designated at fair value through OCI valued at USD 5,261,387 (2018: USD 5,263,777) and USD 532,800 (2018: USD 724,310). As at 31 December 2018, the fair value of the unquoted equities was recorded by adopting a market approach using the price of the most recent sale transaction as a basis to arrive at a value of these investments. As at 31 December 2019, there was no information available about recent sale transactions. Accordingly, the Group has used an alternative valuation technique called 'multiples-based valuation' whereby earnings-based multiples of comparable companies as at 31 December 2019 were considered for the valuation. There are no active markets for these investments and the Group intends to hold them for the long term. The table below shows the sensitivity of the fair value of Level 3 financial assets as at 31 December 2019 and 2018: % Positive impact Negative impact Valuation variables USD USD 2019 +/- 10 573,974 (573,974 ) Market multiples applied to a range of financial performance measures *** 2018 +/- 10 598,808 (598,808 ) Price of most recent sale transaction *** As at 31 December 2019, the fair value measurement of the unquoted equity investment valued at USD 5,261,387 was based on a combination of valuation multiples, with greater weight given to price to book value multiple. This has implied an equity value range of USD 5,110,200 to USD 5,561,100. |
Investments in Associates
Investments in Associates | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Associates [Abstract] | |
INVESTMENTS IN ASSOCIATES | 6. INVESTMENTS IN ASSOCIATES The Group holds 32.7% equity ownership interest in companies registered in Lebanon as shown below, the investments in associated companies are accounted for using the equity method: Country of Ownership 2019 2018 Star Rock SAL Lebanon Lebanon 32.7 % 32.7 % Sina SAL Lebanon Lebanon 32.7 % 32.7 % Silver Rock SAL Lebanon Lebanon 32.7 % 32.7 % Golden Rock SAL Lebanon Lebanon 32.7 % 32.7 % Movement on investments in associates is as follows: 2019 2018 USD USD Opening balance 13,437,778 14,323,451 Share of associated companies' financial results (6,393 ) 36,917 Investment properties fair value adjustment (495,736 ) (838,748 ) Reversal of (provision for) contingent liabilities 126,025 (83,842 ) Share of profit or loss from associates (376,104 ) (885,673 ) 13,061,674 13,437,778 The following tables include summarized information of the Group's investments in associates for each year presented: This information is presented on a 100% basis and reflects adjustments made by the Group to the associated companies own results in applying the equity method of accounting. Adjustments to the carrying amount are recognized for changes in the Group's proportionate interest in the associates arising from changes in the associate's equity that have not been recognized in the associate's profit or loss. Changes include those arising from the revaluation of investment properties of the associates and provisions related to the income tax and social security contingencies that may arise on the associates. 2019 Star Rock Sina SAL Silver Rock Golden Rock Total USD USD USD USD USD Current assets 62,359 49,224 61,267 779,871 952,721 Non-current assets 4,970,390 3,782,149 5,405,404 33,355,443 47,513,386 Current liabilities (1,790,847 ) (2,208,931 ) (380,714 ) (2,606,518 ) (6,987,010 ) Non-current liabilities (136,081 ) (162,034 ) (89,747 ) (1,147,277 ) (1,535,139 ) Net assets 3,105,821 1,460,408 4,996,210 30,381,519 39,943,958 The Group's share of net assets 1,015,603 477,553 1,633,761 9,934,757 13,061,674 2018 Star Rock SAL Sina SAL Silver Rock Golden Rock Total USD USD USD USD USD Current assets 44,491 46,225 116,287 587,531 794,534 Non-current assets 5,205,244 3,926,427 5,610,302 34,766,783 49,508,756 Current liabilities (1,801,066 ) (2,247,373 ) (488,925 ) (2,751,274 ) (7,288,638 ) Non-current liabilities (135,934 ) (149,515 ) (143,677 ) (1,491,409 ) (1,920,535 ) Net assets 3,312,735 1,575,764 5,093,987 31,111,631 41,094,117 The Group's share of net assets 1,083,265 515,275 1,665,735 10,173,503 13,437,778 The following table includes summarized information of the Group's share of (loss) profit from associates for years 2019, 2018 and 2017. 2019 Star Rock Sina SAL Silver Rock Golden Rock Total Associates' revenues and results: USD USD USD USD USD Revenues 72,371 61,420 111,728 1,038,366 1,283,885 Net (loss) (206,916 ) (115,357 ) (97,781 ) (730,110 ) (1,150,164 ) The Group's share of (loss) (67,662 ) (37,722 ) (31,974 ) (238,746 ) (376,104 ) 2018 Associates' revenues and results: USD USD USD USD USD Revenues 134,676 68,601 166,061 1,165,729 1,535,067 Net (loss) (245,495 ) (240,228 ) (236,524 ) (1,986,234 ) (2,708,481 ) The Group's share of (loss) (80,277 ) (78,555 ) (77,343 ) (649,498 ) (885,673 ) 2017 Associates' revenues and results: USD USD USD USD USD Revenues 90,006 52,803 147,976 1,195,217 1,486,002 Net profit 408,161 174,977 196,769 2,254,396 3,034,303 The Group's share of profit 133,469 57,217 64,344 737,188 992,218 The associates' main business is investing in investment properties. The investment properties of the associates are stated at fair value to bring the associated companies accounting policies in line with the Group's. The fair value of the investment properties has been determined by management and in doing so has considered valuation performed by third party specialist. The valuation model used was in accordance with that recommended by the International Valuation Standards Committee. The investment properties are valued using the sales comparison approach. Under the sales comparison approach, a property's fair value is estimated based on comparable transactions. The sales comparison approach is based upon the principle of substitution under which a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property. The unit of comparison applied by the Group is the price per square meter (sqm) which represents the significant unobservable input used in the valuation process. All the investment properties generated rental income during the current year and the prior years. |
Outstanding Claims
Outstanding Claims | 12 Months Ended |
Dec. 31, 2019 | |
Outstanding Claims [Abstract] | |
OUTSTANDING CLAIMS | 7. OUTSTANDING CLAIMS Movement in outstanding claims 2019 2018 2017 Gross Reinsurers’ share Net Gross Reinsurers’ share Net Gross Reinsurers’ share Net USD USD USD USD USD USD USD USD USD At the beginning of the year Reported claims 285,770,257 (170,124,934 ) 115,645,323 303,254,937 (178,617,218 ) 124,637,719 244,216,392 (122,735,801 ) 121,480,591 Claims incurred but not reported 98,609,584 (17,440,448 ) 81,169,136 79,972,504 (7,974,801 ) 71,997,703 90,954,902 (20,329,907 ) 70,624,995 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 335,171,294 (143,065,708 ) 192,105,586 Claims paid (131,151,122 ) 53,113,606 (78,037,516 ) (209,892,000 ) 124,783,536 (85,108,464 ) (204,098,071 ) 121,697,370 (82,400,701 ) Provided during the year related to current accident year 150,799,594 (26,443,648 ) 124,355,946 196,708,805 (102,442,564 ) 94,266,241 278,298,318 (167,956,984 ) 110,341,334 Provided during the year related to previous accident years 9,024,542 (15,317,000 ) (6,292,458 ) 14,335,595 (23,314,335 ) (8,978,740 ) (26,144,100 ) 2,733,303 (23,410,797 ) At the end of the year 413,052,855 (176,212,424 ) 236,840,431 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 At the end of the year Reported claims 292,722,079 (163,190,980 ) 129,531,099 285,770,257 (170,124,934 ) 115,645,323 303,254,937 (178,617,218 ) 124,637,719 Claims incurred but not reported 120,330,776 (13,021,444 ) 107,309,332 98,609,584 (17,440,448 ) 81,169,136 79,972,504 (7,974,801 ) 71,997,703 413,052,855 (176,212,424 ) 236,840,431 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 Claims development The following tables show the estimate of cumulative incurred claims, including both reported claims and claims incurred but not reported for each successive accident year at each statement of financial position date, together with cumulative payments to date. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD At end of accident year 25,362,416 25,254,263 37,939,544 114,560,922 94,375,639 122,323,418 128,498,162 133,595,104 159,549,092 152,384,186 174,601,048 175,094,042 278,298,318 196,708,806 150,799,594 One year later 44,520,499 35,110,485 54,041,148 125,149,178 75,295,485 108,522,816 106,566,918 119,424,721 155,958,329 114,972,073 160,100,166 173,369,296 309,257,783 219,593,452 - Two years later 47,504,859 40,894,923 53,379,611 119,412,667 67,118,529 105,943,110 100,764,212 108,556,804 148,160,641 101,352,163 149,533,104 167,694,979 317,052,504 - - Three years later 47,354,940 39,641,082 53,971,648 121,676,478 68,496,704 100,572,066 110,286,014 110,046,062 142,309,348 92,846,420 145,920,851 158,572,219 - - - Four years later 46,829,976 37,331,379 53,468,989 119,839,220 68,217,208 99,513,334 114,464,267 103,996,492 133,916,518 88,210,215 142,926,388 - - - - Five years later 46,391,258 37,665,596 53,393,860 113,090,591 67,908,658 101,599,381 110,266,231 104,540,662 132,991,755 85,621,385 - - - - - Six years later 47,224,929 36,800,576 50,534,739 112,125,348 67,807,370 100,198,544 111,774,284 103,167,021 130,843,807 - - - - - - Seven years later 46,211,206 35,600,935 49,718,456 110,400,053 67,613,678 100,302,961 110,644,445 97,917,558 - - - - - - - Eight years later 46,232,192 35,318,464 49,552,802 110,588,511 68,114,668 100,073,144 111,028,275 - - - - - - - - Nine years later 46,224,784 34,796,272 49,374,891 111,162,234 68,950,049 100,119,899 - - - - - - - - - Ten years later 45,737,657 34,609,372 49,361,720 111,371,580 68,881,829 - - - - - - - - - Eleven years later 45,608,779 34,553,537 49,312,510 111,500,390 - - - - - - - - - - - Twelve years later 45,609,384 34,422,917 49,303,976 - - - - - - - - - - - - Thirteen years later 45,602,039 34,377,940 - - - - - - - - - - - - - Fourteen years later 45,613,014 - - - - - - - - - - - - - - Current estimate of cumulative claims incurred 45,613,014 34,377,940 49,303,976 111,500,390 68,881,829 100,119,899 111,028,275 97,917,558 130,843,807 85,621,385 142,926,388 158,572,219 317,052,504 219,593,452 150,799,594 1,824,152,230 Cumulative payments to date 45,612,133 33,701,658 49,301,701 110,725,084 67,854,039 99,582,296 102,709,727 94,781,375 128,732,202 82,445,136 135,516,537 149,115,128 224,833,333 68,579,482 17,609,544 1,411,099,375 Total liability included in the consolidated statement of financial position 413,052,855 |
Unearned Premiums
Unearned Premiums | 12 Months Ended |
Dec. 31, 2019 | |
Unearned Premiums [Abstract] | |
UNEARNED PREMIUMS | 8. UNEARNED PREMIUMS 2019 2018 2017 Gross Reinsurers’ share Net Gross Reinsurers’ share Net Gross Reinsurers’ share Net USD USD USD USD USD USD USD USD USD Opening balance 168,254,688 (32,566,847 ) 135,687,841 156,694,025 (41,126,963 ) 115,567,062 133,670,895 (32,138,490 ) 101,532,405 Premiums written 349,291,905 (97,139,370 ) 252,152,535 301,618,486 (98,188,088 ) 203,430,398 275,102,191 (114,334,750 ) 160,767,441 Premiums earned (311,332,564 ) 95,789,668 (215,542,896 ) (290,057,823 ) 106,748,204 (183,309,619 ) (252,079,061 ) 105,346,277 (146,732,784 ) 206,214,029 (33,916,549 ) 172,297,480 168,254,688 (32,566,847 ) 135,687,841 156,694,025 (41,126,963 ) 115,567,062 |
Defferred Excess of Loss Premiu
Defferred Excess of Loss Premiums | 12 Months Ended |
Dec. 31, 2019 | |
Defferred Excess of Loss Premiums [Abstract] | |
DEFFERRED EXCESS OF LOSS PREMIUMS | 9. DEFFERRED EXCESS OF LOSS PREMIUMS The movement in deferred excess of loss premiums in the consolidated statement of financial position is as follows: 2019 2018 2017 USD USD USD Opening balance 12,448,671 11,612,654 8,878,968 Additions 37,491,753 24,945,436 28,664,368 Charged to consolidated income statement under reinsures’ share of insurance premiums (34,767,717 ) (24,109,419 ) (25,930,682 ) Ending balance 15,172,707 12,448,671 11,612,654 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs [Abstract] | |
DEFERRED POLICY ACQUISITION COSTS | 10. DEFERRED POLICY ACQUISITION COSTS 2019 2018 2017 USD USD USD Opening balance 36,403,831 32,915,965 28,286,248 Acquisition costs during the year 64,675,035 62,268,542 57,570,774 Charged to consolidated statement of income (59,365,577 ) (58,780,676 ) (52,941,057 ) Ending balance 41,713,289 36,403,831 32,915,965 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
OTHER ASSETS | 11. OTHER ASSETS 2019 2018 USD USD Accrued interest income 2,580,091 1,830,722 Due from related party (note 26) 1,855,461 - Prepaid expenses 1,303,352 1,284,738 Refundable deposits 119,020 221,779 Employees receivables 60,199 445,374 Funds held in trust accounts 1,518,041 1,006,735 Income tax receivables 132,722 187,604 Trade receivables 6,707 9,366 Others 178,632 74,732 7,754,225 5,061,050 The carrying values of the other assets above as at years ending 31 December 2019 and 2018 approximate fair value. |
Investment Properties
Investment Properties | 12 Months Ended |
Dec. 31, 2019 | |
Investment Properties [Abstract] | |
INVESTMENT PROPERTIES | 12. INVESTMENT PROPERTIES The following table includes summarized information of the Group’s investment properties: 2019 Commercial Land* Total USD USD USD Opening balance 20,312,477 10,342,737 30,655,214 Additions - 745,281 745,281 Sale of investment properties - (5,383,701 ) (5,383,701 ) Fair value adjustment (note 22) (249,173 ) (55,309 ) (304,482 ) Ending balance 20,063,304 5,649,008 25,712,312 2018 Commercial Land* Total USD USD USD Opening balance 20,218,543 10,342,737 30,561,280 Fair value adjustment (note 22) 93,934 - 93,934 Ending balance 20,312,477 10,342,737 30,655,214 * Land amounting to USD 5,649,008 as at 31 December 2019 (2018: USD 10,342,737) is registered in the name of one of the Directors of the Group. The Group has obtained a proxy over this investment property (note 26). The fair value of investment properties has been determined by management and in doing so has considered a valuation performed by a third parties who are specialists in valuing these types of investment properties. The valuation model used was in accordance with that recommended by the International Valuation Standards Committee. The investment properties are valued using the sales comparison approach. Under the sales comparison approach, a property’s fair value is estimated based on comparable transactions. The sales comparison approach is based upon the principle of substitution under which a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property. The management believes that this valuation technique falls under level 3 of the fair value hierarchy since investment properties market is not very active. The sensitivity of the Group financial statements to the change in the price used for the valuation of the investment properties was as the following: % Price per square meter Impact on statement Impact on statement of USD USD USD Commercial building 2019 +/- 10 1,122 2,006,330 (2,006,330 ) 2018 +/- 10 1,139 2,031,248 (2,031,248 ) % Price per square meter Impact on statement Impact on statement of USD USD USD Land 2019 +/- 10 203 564,901 (564,901 ) 2018 +/- 10 151 1,034,274 (1,034,274 ) |
Property, Premises and Equipmen
Property, Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Premises and Equipment [Abstract] | |
PROPERTY, PREMISES AND EQUIPMENT | 13. PROPERTY, PREMISES AND EQUIPMENT Office buildings Aircraft Office furniture Computers Equipment Leasehold improvements Vehicles Work in progress Right of use assets Total USD USD USD USD USD USD USD USD USD USD Cost At 1 January 2019 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - - 19,718,203 Impact of the IFRS 16 adoption (note 2) - - - - - - - - 1,715,606 1,715,606 Adjusted balance 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - 1,715,606 21,433,809 Additions 3,614 - 19,152 122,981 9,698 163,318 115,570 8,972 1,002,005 1,445,310 Disposals - - - (31,261 ) (254 ) (71,636 ) (69,322 ) - (792,544 ) (965,017 ) At 31 December 2019 2,678,135 11,290,405 1,652,466 1,645,509 290,814 1,411,955 1,010,779 8,972 1,925,067 21,914,102 Depreciation At 1 January 2019 757,200 1,806,464 1,325,569 1,297,939 278,263 1,220,100 815,671 - - 7,501,206 Deprecation for the year 136,449 903,232 56,749 169,390 3,941 53,354 67,440 - 516,175 1,906,730 Disposals - - - (31,261 ) (95 ) (23,231 ) (69,320 ) - (104,769 ) (228,676 ) At 31 December 2019 893,649 2,709,696 1,382,318 1,436,068 282,109 1,250,223 813,791 - 411,406 9,179,260 Net carrying amount At 31 December 2019 1,784,486 8,580,709 270,148 209,441 8,705 161,732 196,988 8,972 1,513,661 12,734,842 Cost At 1 January 2018 2,669,763 11,290,405 1,513,831 1,413,182 274,433 1,177,342 964,531 - - 19,303,487 Additions 4,758 - 119,483 140,607 6,937 142,931 - - - 414,716 At 31 December 2018 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - - 19,718,203 Depreciation At 1 January 2018 704,219 903,232 1,273,047 1,184,117 272,606 1,177,341 698,388 - - 6,212,950 Deprecation for the year 52,981 903,232 52,522 113,822 5,657 42,759 117,283 - - 1,288,256 At 31 December 2018 757,200 1,806,464 1,325,569 1,297,939 278,263 1,220,100 815,671 - - 7,501,206 Net carrying amount At 31 December 2018 1,917,321 9,483,941 307,745 255,850 3,107 100,173 148,860 - - 12,216,997 The depreciation of the aircraft for the year ended 31 December 2019 amounted to USD 903,232 (2018: USD 903,232) (2017: USD 903,232) was allocated proportionally between the other expenses and general and administrative expenses based on the flight hours of chartered trips and business-related trips. The depreciation and amortization (note 14) charges for the year 2019, 2018 and 2017 were allocated as follows: 2019 2018 2017 USD USD USD Property premises and equipment depreciation charge for the year 1,906,730 1,288,256 1,406,831 Intangible assets amortization charge for the year (note 14) 48,728 71,704 78,303 Aircraft depreciation allocated to listing transaction deferred cost (note 11) (72,555 ) - - Aircraft depreciation allocated to other expenses (note 23) (594,496 ) (490,820 ) (462,184 ) Total depreciation and amortization allocated to G&A 1,288,407 869,140 1,022,950 Fully depreciated property, premises and equipment still in use amounted to USD 5,206,087 as at 31 December 2019 (2018: USD 4,337,158). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 14. INTANGIBLE ASSETS 2019 2018 Computer software / licenses Work in progress* Total Computer software / licenses Work in progress* Total USD USD USD USD USD USD Cost Beginning balance 1,183,341 2,840,235 4,023,576 1,171,134 1,874,003 3,045,137 Additions 6,670 992,202 998,872 12,207 966,232 978,439 Ending balance 1,190,011 3,832,437 5,022,448 1,183,341 2,840,235 4,023,576 Amortization Beginning balance 1,087,826 - 1,087,826 1,016,122 - 1,016,122 Additions 48,728 - 48,728 71,704 - 71,704 Ending balance 1,136,554 - 1,136,554 1,087,826 - 1,087,826 Net carrying amount 53,457 3,832,437 3,885,894 95,515 2,840,235 2,935,750 * Work in progress balance represents the payments towards the purchase of new insurance software. The management expects that the software will be installed during the first half of 2020, and the expected cost to complete the project is USD 225,375. |
Insurance Payables
Insurance Payables | 12 Months Ended |
Dec. 31, 2019 | |
Dividends Paid [Abstract] | |
INSURANCE PAYABLES | 15. INSURANCE PAYABLES 2019 2018 USD USD Payables due to insurance companies and intermediaries 2,610,528 233,316 Reinsurers – amounts due in respect of ceded premium 50,933,209 32,800,830 53,543,737 33,034,146 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | 16. OTHER LIABILITIES 2019 2018 USD USD Accounts payable 1,716,667 2,441,208 Accrued expenses and other accruals 7,221,706 5,858,245 Listing related cost payables (note 24) 3,661,148 - Lease liability 1,563,389 - Income tax payable (note 27) 700,372 - 14,863,282 8,299,453 |
Unearned Commissions
Unearned Commissions | 12 Months Ended |
Dec. 31, 2019 | |
Unearned Commissions [Abstract] | |
UNEARNED COMMISSIONS | 17. UNEARNED COMMISSIONS The movement in unearned commissions in the consolidated statement of financial position is as follows: 2019 2018 2017 USD USD USD As at 1 January 8,010,384 10,354,019 8,292,099 Commissions received 14,829,744 14,473,519 18,771,267 Commissions earned (13,930,139 ) (16,817,154 ) (16,709,347 ) As at 31 December 8,909,989 8,010,384 10,354,019 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | 18. EQUITY Share capital 2019 2018 USD USD Authorized shares (par value of USD 1 each) 175,000,000 175,000,000 Issued shares 143,375,678 143,375,678 Fair value reserve The movement of this item is as follows: 2019 2018 2017 USD USD USD Balance at the beginning of the year 953,704 14,208,469 9,693,936 Impact of adopting IFRS 9 - (6,680,687 ) - Net change in fair value reserve during the year 4,208,620 (2,706,303 ) - Net change in fair value reserve during the year for (865,646 ) (3,897,678 ) - Net change in fair value reserve during the year - - 4,514,533 ECL (release) charge transferred to income statement (22,764 ) 29,903 - Balance at the end of the year 4,273,914 953,704 14,208,469 Foreign currency translation reserve The foreign currency translation reserve is used to record the exchange difference arising from the translation of the financial statements of foreign subsidiaries to the Group's functional currency. |
Treasury Shares
Treasury Shares | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Shares [Abstract] | |
TREASURY SHARES | 19. TREASURY SHARES The general shareholders meeting approved in its extraordinary meeting dated 24 November 2013 the purchase of the Group’s own shares up to 15% of the issued shares and to be treated as treasury shares in accordance with the applicable DIFC laws and regulations. Pursuant to the above authorization, 2,350,000 treasury shares were purchased during the year which were recorded at an amount of USD 5,052,500 (2018: USD 15,050,000). Total treasury shares amount as at 31 December 2019 was USD 20,102,500 (2018: USD 15,050,000) - (note 26). Reconciliation of the outstanding number of shares is as follows 2019 2018 At 1 January 136,375,678 143,375,678 Treasury shares purchased during the year (2,350,000 ) (7,000,000 ) At 31 December 134,025,678 136,375,678 |
Dividends Paid
Dividends Paid | 12 Months Ended |
Dec. 31, 2019 | |
Dividends Paid [Abstract] | |
DIVIDENDS PAID | 20. DIVIDENDS PAID The Board of Directors resolved to pay the following dividends for the years 2019, 2018 and 2017: - On 21 March 2019: USD 5,455,027 (Dividend per share excluding treasury shares: USD 0.040) - On 22 August 2019: USD 5,361,027 (Dividend per share excluding treasury shares: USD 0.040) - On 16 August 2018: USD 4,091,271 (Dividend per share excluding treasury shares: USD 0.030) - On 9 March 2017: USD 5,735,027 (Dividend per share: USD 0.040) - On 16 August 2017: USD 5,735,027 (Dividend per share: USD 0.040) |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2019 | |
General and Administrative Expenses [Abstract] | |
GENERAL AND ADMINISTRATIVE EXPENSES | 21. GENERAL AND ADMINISTRATIVE EXPENSES 2019 2018 2017 USD USD USD Human resources expenses 26,700,229 23,448,838 21,350,467 Business promotion, travel and entertainment 3,339,568 3,492,472 3,002,921 Statutory, advisory and rating 3,463,139 3,040,841 1,811,372 Information technology and software 1,871,641 1,838,585 1,542,740 Office operation 1,459,670 1,783,868 1,491,240 Depreciation and amortization (note 13) 1,288,407 869,140 1,022,950 Interest expense arising from lease liabilities (note 2) 108,426 - - Bank charges 136,569 153,055 129,750 Board of directors’ expenses 898,296 724,880 551,164 39,265,945 35,351,679 30,902,604 |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
NET INVESTMENT INCOME | 22. NET INVESTMENT INCOME 2019 2018 2017 USD USD USD Interest income 10,866,051 9,698,069 8,632,460 Dividends from equities at FVTOCI 721,240 342,800 - Dividends from equities at FVTPL 391,222 701,076 - Dividends - - 1,490,607 Realized gains and losses on investments Net gain on sale of available-for-sale investments - - 3,133,556 Realized loss on sale of bonds at FVTOCI (628,523 ) (763,569 ) - Realized gain on sale of FVTPL equities and mutual funds 946,952 2,048,908 - Unrealized gains and losses on investments Fair value changes of held for trading investments - - 95,582 Unrealized loss on revaluation of financial assets at FVTPL 1,590,964 (948,802 ) - Gains and losses from investments in properties Realized gain on sale of investment properties 678,516 - - Fair value (loss) gain on investment properties (note 12) (304,482 ) 93,934 18,148 Rental income 203,076 606,862 1,007,983 Impairment and expected credit losses on investments Impairment on available for sale investments - - (71,863 ) Expected credit loss on financial assets at FVOCI 22,764 (29,903 ) - Release of expected credit loss on financial assets at amortized cost 12,827 6,248 - Investments custodian fees and other investments expenses (1,126,531 ) (1,445,327 ) (1,741,631 ) 13,374,076 10,310,296 12,564,842 |
Other Revenues (Expenses)
Other Revenues (Expenses) | 12 Months Ended |
Dec. 31, 2019 | |
Other Revenues (Expenses) [Abstract] | |
OTHER REVENUES (EXPENSES) | 23. OTHER REVENUES (EXPENSES) 2019 2018 2017 USD USD USD Other revenues: Chartered flights revenue 1,428,265 902,750 837,712 Others - - 18,828 1,428,265 902,750 856,540 Other expenses: Aircraft operational cost (1,574,171 ) (1,095,461 ) (1,003,858 ) Aircraft depreciation expense (note 13) (594,496 ) (490,820 ) (462,184 ) Loss on disposal of property, premises and equipment (25,999 ) - - (2,194,666 ) (1,586,281 ) (1,466,042 ) |
Listing Transaction Costs
Listing Transaction Costs | 12 Months Ended |
Dec. 31, 2019 | |
Listing Transaction Costs [Abstract] | |
LISTING TRANSACTION COSTS | 24. LISTING TRANSACTION COSTS Transaction costs incurred by the Group during 2019 mainly consist of professional fees (legal, accounting, etc.) and other miscellaneous cost that are directly related to the listing transaction. Transaction costs amounting to USD 4,831,976 were charged to the consolidated statement of income for the year ended 31 December 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 25. COMMITMENTS AND CONTINGENCIES As of the date of the consolidated financial statements, the Group is contingently liable for the following: ▪ Letters of Credit amounting to USD 7,993,798 to the order of reinsurance companies for collateralizing insurance contract liabilities in accordance with the reinsurance arrangements (31 December 2018: USD 7,335,896). ▪ Letter of Guarantee amounting to USD 318,780 to the order of Friends Provident Life Assurance Limited for collateralizing rent payment obligation in one of the Group entity's office premises (31 December 2018: USD 307,936). ▪ The Group has entered into operating leases contracts for its offices in the United Kingdom and the United Arab of Emirates and Malaysia, with lease obligations between one and seven years. Future minimum rentals payable under non-cancellable operating leases as at 31 December 2018 are as follows: 2018 USD Within one year 636,600 More than one year to three years 1,077,509 More than three years to five years 280,013 More than five years - 1,994,122 The Group has adopted IFRS 16 effective 1 January 2019, as a result the lease obligations arising from the lease contracts are currently recorded within the other liabilities in the consolidated statement of financial position (note 16). Litigations The Group is currently engaged in an arbitration proceeding with certain reinsurers represented by an underwriting agent ("agent") with respect to certain matters related to the Group's outward reinsurance program for the years 2012 to 2017. The Group commenced the arbitration proceeding with the agent for these reinsurers after they failed to make payment of approximately USD 5.7 million which the Group believes is due from them (based on figures as at 30 June 2019). As at 31 December 2019, the Group is seeking to recover approximately USD 6.9 million from the reinsurers, plus interest and legal costs. In response, the agent alleges that certain matters were not adequately disclosed and is seeking to avoid the policies. The Group believes that the allegations are without merit and will vigorously defend itself in this matter. Accordingly, no provision for any liability has been made in these financial statements. Were the policies in question to be avoided, approximately USD 33.2 million of premiums paid by the Group to the reinsurers would be returned to the Group, and the Group would similarly return approximately USD 29.6 million of claims previously paid by the reinsurers and would not collect a further USD 6.9 million which the Group believes is due from the reinsurers as at 31 December 2019. In addition, the Group would be unable to make further recoveries under the policies in respect of claims it is yet to pay and would not be required to pay any further premiums to the reinsurers. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Parties [Abstract] | |
RELATED PARTIES | 26. RELATED PARTIES Related parties represent major shareholders, associates, directors and key management personnel of the Group and entities controlled, jointly controlled or significantly influenced by such parties, pricing policies and terms of these transactions are approved by the Group’s management. ▪ Compensation of key management personnel of the Group, consisting of salaries and benefits was USD 10,164,201 (2018: USD 10,072,656) (2017: USD 8,379,883). Out of the total amount of key management personnel compensation, an amount of USD 565,960 (2018: USD 423,547) (2017: USD 318,076) represents long-term benefits. These long-term benefits represent a phantom share option plan linked to the value of an ordinary share of the Group as approved by the Board of directors during 2011. The scheme is applicable to senior executives responsible for the management, growth and protection of business of the Group. The amount of bonus is determined by reference to the increase in the book value of shares covered by the option. No shares are issued or transferred to the option holder on the exercise of the option. The options vest equally over a span of five years starting on the first anniversary of Continued employment following the date on which it is granted. The bonus due amounts to the excess of book value of shares on vesting date over grant date as determined in the latest audited financial statements as of 31 of December of the year prior to vesting and grant date respectively plus an additional 20% on the value of the excess. ▪ The Group rented a boat for business promotion from a company owned by major shareholder, the total expense charged to the general and administrative expenses was USD 381,909 (2018: USD 211,058) (2017: USD 211,739). In addition to this the Group has paid aircraft management fees of USD 84,000 (2018: USD 84,000) (2017: USD 168,221) to which is owned by a major shareholder. As at 31 December 2019, there was an amount of USD 196,214 payable to Arab Wings Co. against a receivable of USD 111,227 as at 31 December 2018. ▪ During 2019, the Group entered into a share buyback agreement with a director and major shareholder whereby 2,350,000 treasury shares were purchased with total amount of USD 5,052,500 (note 19). The above transaction arose as a result of an advance of USD 5,000,000 for investment in a company where the director and major shareholder has a controlling interest. The investment was not completed and in exchange for the advanced funds, the Group purchased the above treasury shares. ▪ The Group entities entered into a service level agreement whereby International General Insurance Underwriting Jordan (IGIU) provides underwriting, claims and financial services to International General Insurance Co. Ltd. – Bermuda, International General Insurance Co. Ltd. – Labuan and International General Insurance Company United Kingdom. Based on the service level agreement, an agency fee expense is charged by IGIU and attributable cost against these services is charged back as general and administrative expenses to IGIU from these Group entities. The transactions between the Group entities within the income statement represented by agency fees and costs recharged are as follows: 2019 2018 2017 USD USD USD Agency fees due to International General Insurance Underwriting 20,315,915 17,394,592 15,692,409 Costs recharged back to International General Insurance Underwriting 21,329,250 18,856,943 16,678,582 The above transactions and related amounts recorded in the Group entities’ balance sheets are eliminated in full in the consolidated financial statements of the Group. ▪ Included within the investment properties (note 12) is land in the amount of USD 5,649,008 (2018: USD 10,342,737) registered in the name of one of the Directors of the Group. The Group has obtained an irrevocable proxy over this investment property. ▪ Balances due from key management personnel of the Group as at 31 December 2019 was USD 92,772 (2018: USD 465,550). ▪ As at 31 December 2019, listing transaction costs amounting to USD 1,855,461 (note 11) were incurred by the Group on behalf of International General Insurance Holdings Ltd, Bermuda. This amount is directly related to the issuance of the new shares on NASDAQ Capital Markets and accordingly will be allocated to the shareholders equity upon completion of the listing transaction. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Taxation [Abstract] | |
TAXATION | 27. TAXATION The components of income tax expense are as follows: 2019 2018 2017 USD USD USD Current income tax: Current income tax charge 704,258 9,275 4,946 Adjustments in respect of current income tax of prior years - 47,182 (60,906 ) Deferred tax: Origination and reversal of temporary differences 1,246,525 8,181 (154,715 ) Effect of tax rate change (131,459 ) (861 ) 116,864 Adjustment in respect of prior years (131,741 ) (1,536 ) 79,389 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) The income tax expense appearing in the consolidated statement of income relate to the following subsidiaries: 2019 2018 2017 USD USD USD Income tax expense for IGI Labuan – current year - 5,063 4,946 Corporate tax for IGI Casablanca (Representative Office) – current year 3,885 4,212 - Corporate tax for IGI Casablanca (Representative Office) – prior years - 4,212 - Income tax expense for IGI UK – current year 700,373 - (60,906 ) Income tax expense for IGI Underwriting – prior years - 42,970 - Addition (amortization) of deferred tax assets for IGI UK 983,325 5,784 41,538 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) ▪ Effective 1 January 2019, the Labuan Business Activity Tax Law has been revised and accordingly, Labuan registered entities can no longer elect to pay the RM20,000 flat tax rate and instead are subject to 3% tax on the audited net profits. In 2019, IGI Labuan has recorded a net loss, and as a result no income tax has been accrued for the year. In 2018 and 2017, IGI Labuan elected to pay a fixed income tax of RM20,000 equivalent to USD 5,063 (2017: USD 4,946) based on the old prevailing tax law applicable to that financial year. ▪ IGI Casablanca - Representative Office has no income sources. According to Casablanca Finance City Tax Code, regional offices are taxed at a rate of 10%. The taxable base is 5% of the operating cost. ▪ IGI UK and North Star Under Underwriting Limited are subject to corporate taxation in accordance with the UK Tax Law. ▪ IGI Underwriting is a tax-exempt company in Jordan as its main business activity is to act as an underwriting agent in respect of insurance and reinsurance business written outside Jordan. The income accrued in prior year for IGI Underwriting was in respect of interest income earned on the deposits placed with local banks in 2014 and 2015. ▪ International General Insurance Co. Ltd is a tax-exempt company according to the tax law in Bermuda. ▪ IGI Holdings and IGI Dubai are not subject to income tax according to the tax law in UAE. Reconciliation of tax expense and the accounting profit multiplied by the applicable tax rate is as follows: 2019 2018 2017 USD USD USD The Group profit before tax 25,252,982 25,603,944 7,016,918 Less: Profit related to non-taxable subsidiaries (15,379,870 ) (26,486,855 ) (8,124,461 ) Profit (Loss) before tax for IGI UK and North Star Underwriting Limited – entities subject to corporate taxation 9,873,112 (882,911 ) (1,107,543 ) Profit (Loss) multiplied by the standard rate of tax in the UK of 19% (2018:19%) 1,875,891 (167,753 ) (213,202 ) Net disallowed expenditure 50,177 180,847 42,350 Fixed asset temporary differences not recognized for deferred tax 17,782 (10,827 ) (5,796 ) Other temporary differences not recognized for deferred tax 2,902 5,914 21,933 Adjustment in respect of prior years (131,527 ) 45,646 18,483 IGI Labuan and IGI Casablanca current year tax charges 3,817 9,275 4,946 Effect of rate change to 17% (131,459 ) (861 ) 116,864 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) 2019 2018 USD USD Balance at start of the year 638,841 644,625 Deferred tax prior year adjustment 131,741 1,536 Arising in year (1,246,525 ) (8,181 ) Effect of rate change to 17% 131,459 861 Others (2,340 ) - Ending balance (346,824 ) 638,841 The deferred tax liabilities amounted to USD 346,824 (2018: USD 638,841 deferred tax asset) are in respect to an adjustment processed to the income of one of the Group’s subsidiaries using prevailing tax rates. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
RISK MANAGEMENT | 28. RISK MANAGEMENT The risks faced by the Group and the way these risks are mitigated by management are summarized below. Insurance risk Insurance risk includes the risks of inappropriate underwriting, ineffective management of underwriting, inadequate controls over exposure management in relation to catastrophic events and insufficient reserves for losses including claims incurred but not reported. To manage this risk, the Group's underwriting function is conducted in accordance with a number of technical analytical protocols which include defined underwriting authorities, guidelines by class of business, rate monitoring and underwriting peer reviews. The Group purchases reinsurance as part of its risk mitigation programme. Reinsurance ceded is placed on both a proportional and non–proportional basis. The proportional reinsurance is quota–share reinsurance which is taken out to reduce the overall exposure of the Group to certain classes of business. Non–proportional reinsurance is primarily excess–of–loss reinsurance designed to mitigate the Group's net exposure to catastrophe losses and large claims. Retention limits for the excess–of–loss reinsurance vary by class of business. Also, a significant portion of the reinsurance is affected under the facultative reinsurance contracts to cover a single risk exposure. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision and are in accordance with the reinsurance contracts. Although the Group has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders and thus a credit exposure exists with respect to ceded insurance, to the extent that any reinsurer is unable to meet its obligations assumed under such reinsurance agreements. The Group's placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of the Group substantially dependent upon any single reinsurance contract. The Group has in place effective exposure management systems. Aggregate exposure is modelled and tested against different stress scenarios to ensure adherence to the Group's overall risk appetite and alignment with reinsurance programs and underwriting strategies. Loss reserve estimates are inherently uncertain. Reserves for unpaid losses are the largest single component of the liabilities of the Group. Actual losses that differ from the provisions, or revisions in the estimates, can have a material impact on future earnings and the statement of financial position. The Group has an in house experienced actuarial function reviewing and monitoring the reserving policy and its implementation at quarterly intervals. They work closely with the underwriting and claims team to ensure an understanding of the Group's exposure and loss experience. In addition, the Group receives external independent analysis of its reserve requirements on an annual basis. In order to minimize financial exposure arising from large claims, the Group, in the normal course of business, enters into contracts with other parties for reinsurance purposes. Such reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. A significant portion of the reinsurance is affected under treaty, facultative and excess-of-loss reinsurance contracts. Geographical concentration of risks The Group's insurance risk based on geographical concentration of risk is illustrated in the table below: 2019 2018 2017 Gross written premiums Concentration Gross written premiums Concentration Gross written premiums Concentration USD % USD % USD % Africa 16,492,171 5 13,601,315 5 14,797,102 5 Asia 32,809,456 9 27,841,670 9 33,939,858 12 Australasia 15,185,489 4 12,636,310 4 8,410,387 3 Caribbean Islands 8,334,322 2 15,098,606 5 10,514,780 4 Central America 37,731,495 11 26,696,686 9 35,560,075 13 Europe 37,327,933 11 34,470,850 11 32,179,912 12 Middle East 36,883,039 11 32,381,500 11 36,116,774 13 North America 4,281,472 1 859,731 0 1,038,139 1 South America 11,050,657 3 26,356,474 9 33,380,259 12 UK 115,863,288 33 76,717,981 25 42,887,109 15 Worldwide 33,332,583 10 34,957,363 12 26,277,796 10 349,291,905 301,618,486 275,102,191 Line of business concentration of risk The Group's insurance risk based on line of business concentration is illustrated in the table below: Gross written premiums 2019 Concentration Percentage Gross written premiums 2018 Concentration Percentage Gross written premiums 2017 Concentration Percentage USD % USD % USD % Energy 72,109,574 21 81,377,114 27 87,937,007 34 Property 46,137,090 13 43,785,498 15 53,738,771 18 Ports & Terminals 22,360,519 6 19,079,843 6 17,263,245 8 Casualty 115,890,373 33 73,665,448 24 43,119,887 9 Political Violence 8,296,949 2 11,406,211 4 9,730,839 7 Financial 23,181,037 7 16,147,579 5 14,271,496 5 Reinsurance 17,985,942 5 17,819,553 6 17,652,460 5 Engineering 20,703,708 6 18,194,161 6 10,375,952 6 Aviation 19,182,776 6 17,996,462 6 18,998,073 7 Marine Liability 3,443,937 1 2,146,617 1 2,014,461 1 349,291,905 301,618,486 275,102,191 Sensitivities The analysis below shows the estimated impact on gross and net insurance contracts claims liabilities and on profit before tax, of potential reserve deviations on ultimate claims development at gross and net level from that reported in the statement of financial position as at 31 December 2019 and 2018. In selecting the volatility factors, the Group has illustrated the sensitivity of the net claims to a standard variation in the gross outstanding claims. The choices of variation (7.5% and 5%) are illustrative but are consistent with what the Group would consider representative of a reasonable potential for variation. The illustrated variations do not represent limits of the potential variation and actual variation could significantly vary from the illustrated values. Gross Loss Sensitivity Factor Impact of increase on gross outstanding claims Impact of decrease on gross outstanding claims Impact of increase on net outstanding claims Impact of decrease on net outstanding claims Impact of increase on profit before tax Impact of decrease on profit before tax % USD USD USD USD USD USD 2019 7.5 30,978,898 (30,978,898 ) 18.541,702 (18,539,427 ) (18.541,702 ) 18,539,427 2019 5 20,652,599 (20,652,599 ) 12,361,514 (12,359,238 ) (12,361,514 ) 12,359,238 2018 7.5 28,828,488 (28,828,488 ) 15,297,751 (15,295,476 ) (15,297,751 ) 15,295,476 2018 5 19,218,992 (19,218,992 ) 10,198,880 (10,196,605 ) (10,198,880 ) 10,196,605 Financial risk The Group's principal financial instruments are financial assets at fair value through OCI, financial assets at fair value through profit or loss, financial assets at amortized cost, receivables arising from insurance, investments in associates, investment properties and reinsurance contracts, and cash and cash equivalents. The Group does not enter into derivative transactions. The main risks arising from the Group's financial instruments are interest rate risk, foreign currency risk, credit risk, market price risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarized below. Interest rate risk Interest rate risk arises from the possibility that changes in interest rates will affect future profitability or the fair values of financial instruments. The Group is exposed to interest rate risk on certain of its investments and cash and cash equivalents. The Group limits interest rate risk by monitoring changes in interest rates in the currencies in which its cash and interest-bearing investments and borrowings are denominated. Details of maturities of the major classes of financial assets are as follows: Less than 1 year 1 to 5 years More than 5 years Non-interest- Total Effective Interest Rate on interest bearing assets USD USD USD USD USD (%) 2019- Financial assets at FVTPL - - - 21,805,575 21,805,575 - Financial assets at FVOCI 55,678,030 148,657,894 4,189,437 20,422,745 228,948,106 2.86 Financial assets at amortized cost 2,968,273 - - - 2,968,273 5.83 Cash, bank balances and term deposits 312,213,087 - - - 312,213,087 1.89 370,859,390 148,657,894 4,189,437 42,228,320 565,935,041 2018- Financial assets at FVTPL - - - 13,977,663 13,977,663 - Financial assets at FVOCI 50,095,407 108,481,889 3,584,618 21,308,397 183,470,311 2.92 Financial assets at amortized cost 3,456,837 - - - 3,456,837 5.72 Cash, bank balances and term deposits 260,059,595 - - - 260,059,595 1.88 313,611,839 108,481,889 3,584,618 35,286,060 460,964,406 The following table demonstrates the sensitivity of statement of income to reasonably possible changes in interest rates, with all other variables held constant. The sensitivity of the income statement is the effect of the assumed changes in interest rates on the Group's profit for the year, based on the floating rate financial assets and financial liabilities held at 31 December. Decrease in basis points Effect on profit for the year USD 2019 -25 (889,848 ) -50 (1,779,697 ) 2018 -25 (665,500 ) -50 (1,331,000 ) The effect of increases in interest rates are expected to be equal and opposite to the effects of the decreases shown above. Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign currency exchange rates. The Group is exposed to currency risk mainly on insurance written premiums and incurred claims that are denominated in a currency other than the Group functional currency. The currencies in which these transactions are primarily denominated are Sterling (GBP) and Euro (EUR). As a significant portion of the Group's transactions are denominated in USD, this reduces currency risk. Intra Group transactions are primarily denominated in USD. Part of the Group's monetary assets and liabilities are denominated in a currency other than the functional currency of the Group and are subject to risks associated with currency exchange fluctuation. The Group reduces some of this currency exposure by maintaining some of its bank balances in foreign currencies in which some of its insurance payables are denominated. The following table demonstrates the sensitivity to a reasonably possible change in the USD exchange rate, with all other variables held constant, of the Group's profit before tax (due to changes in the fair value of monetary assets and liabilities). Changes in Effect on currency rate profit to USD before tax % USD 2019 EUR +5 387,893 GBP +5 4,294,764 2018 EUR +5 65,440 GBP +5 1,857,406 The effect of decreases in exchange rates are expected to be equal and opposite to the effects of the increases shown above. 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 Group is exposed to credit risk primarily from unpaid insurance receivables and fixed income instruments. The Group has in place credit appraisal policies and procedures for inward business and receivables from insurance transactions are monitored on an ongoing basis to restrict the Group's exposure to doubtful debts. The Group has in place security standards applicable to all reinsurance purchases and monitors the financial status of all reinsurance debtors at regular intervals. The Group's portfolio of fixed income investments is managed by the Investments Committee in accordance with the investment policy established by the board of directors which has various credit standards for investments in fixed income securities. Reinsurance and fixed income investments are monitored for the occurrence of a downgrade or other changes that might cause them to fall below the Group's security standards. If this occurs, management takes appropriate action to mitigate any loss to the Group. The Group's bank balances are maintained with a range of international and local banks in accordance with limits set by the board of directors. There are no significant concentrations of credit risk within the Group. The table below provides information regarding the credit risk exposure of the Group by classifying assets according to the Group's credit rating of counterparties: Investment Non-investment In course Total USD USD USD USD 2019 FVOCI - debts securities 206,996,681 1,528,680 - 208,525,361 Financial Assets at amortized cost - 1,982,377 985,896 2,968,273 Insurance receivables - 65,835,667 47,139,177 112,974,844 Reinsurance share of outstanding claims 175,446,814 765,610 - 176,212,424 Deferred excess of loss premiums - 15,172,707 - 15,172,707 Cash, bank balances and term deposits 248,057,682 64,155,405 - 312,213,087 630,501,177 149,440,446 48,125,073 828,066,696 Investment Non-investment In course of Total USD USD USD USD 2018 FVOCI - debts securities 158,945,525 3,216,389 - 162,161,914 Financial Assets at amortized cost - 2,469,549 987,288 3,456,837 Insurance receivables - 60,880,815 47,366,816 108,247,631 Reinsurance share of outstanding claims 186,061,539 1,503,843 - 187,565,382 Deferred excess of loss premiums - 12,448,671 - 12,448,671 Cash, bank balances and term deposits 184,747,414 75,312,181 - 260,059,595 529,754,478 155,831,448 48,354,104 733,940,030 For assets to be classified as 'past due and impaired' contractual payments are in arrears for more than 30 days for the debt instruments and 360 days for insurance receivables an impairment adjustment is recorded in the consolidated statement of income for this or when collectability of the amount is otherwise assessed as being doubtful. When the credit exposure is adequately secured, arrears more than 360 days might still be classified as 'past due but not impaired', with no impairment adjustment recorded. The schedule below shows the distribution of bonds and debt securities with fixed interest rate according to the international agencies classification: Rating grade Bonds Unquoted bonds Total USD USD USD 2019 AAA 44,953,920 - 44,953,920 AA+ 4,610,576 - 4,610,576 AA 2,926,031 - 2,926,031 Aa2 7,530,619 - 7,530,619 AA- 9,408,620 - 9,408,620 Aa3 2,394,194 - 2,394,194 A+ 18,340,787 - 18,340,787 A1 1,514,025 - 1,514,025 A 28,935,441 - 28,935,441 A2 5,435,133 - 5,435,133 A- 32,466,296 - 32,466,296 A3 8,975,157 - 8,975,157 BBB+ 16,038,586 - 16,038,586 BBB 14,521,672 - 14,521,672 Baa2 1,396,365 - 1,396,365 BBB- 7,333,329 - 7,333,329 BB- 215,930 - 215,930 Not rated 1,528,680 2,968,273 4,496,953 Total 208,525,361 2,968,273 211,493,634 Rating grade Bonds Unquoted bonds Total USD USD USD 2018 AAA 2,353,731 - 2,353,731 AA+ 4,771,755 - 4,771,755 Aa1 755,556 - 755,556 AA 7,124,087 - 7,124,087 Aa2 7,876,959 - 7,876,959 AA- 17,408,093 - 17,408,093 Aa3 5,527,355 - 5,527,355 A+ 15,840,316 - 15,840,316 A1 12,009,630 - 12,009,630 A 19,653,276 - 19,653,276 A2 9,512,157 - 9,512,157 A- 11,914,322 - 11,914,322 A3 10,679,082 - 10,679,082 BBB+ 13,216,017 - 13,216,017 Baa1 1,744,245 - 1,744,245 BBB 14,273,503 - 14,273,503 Baa2 1,385,487 - 1,385,487 BBB- 2,899,954 - 2,899,954 BB- 203,749 - 203,749 Not rated 3,012,640 3,456,837 6,469,477 Total 162,161,914 3,456,837 165,618,751 The schedule below shows the geographical distribution of bonds and debt securities with fixed interest rate: Country Total 2019 USD Australia 1,053,150 Bahrain 215,930 Bermuda 765,533 Canada 9,163,712 Cayman Island 639,879 China 8,539,950 Europe 3,181,652 Finland 1,034,800 France 1,241,762 Germany 14,714,236 Global 990,623 Hong Kong 1,219,991 Japan 7,865,806 Jordan 2,968,273 KSA 2,349,245 Kuwait 1,019,590 Mexico 1,098,251 Netherlands 1,869,264 Norway 750,045 Pacific basin 3,002,430 Qatar 8,098,357 South Korea 5,127,002 Spain 544,876 Switzerland 332,394 UAE 5,691,518 UK 13,490,596 USA 114,524,769 Total 211,493,634 Country Total 2018 USD Australia 3,207,541 Bahrain 203,750 Canada 9,769,854 China 5,477,734 Europe 1,407,141 Finland 1,016,430 France 1,947,095 Germany 15,825,716 Global 910,686 Hong Kong 1,183,742 Italy 1,602,864 Japan 11,252,935 Jordan 3,456,838 KSA 2,262,838 Kuwait 978,170 Mexico 1,015,749 Netherlands 1,844,370 Norway 2,239,722 Pacific basin 3,466,916 Qatar 5,048,451 South Korea 5,497,709 UAE 12,683,997 UK 8,195,522 USA 65,122,981 Total 165,618,751 Market price risk Market price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual security, or its issuer, or factors affecting all securities traded in the market. The Group's equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices. The following table demonstrates the sensitivity of the profit for the period and the cumulative changes in fair value to reasonably possible changes in equity prices, with all other variables held constant. The effect of decreases in equity prices is expected to be equal and opposite to the effect of the increases shown. Change in equity price Effect on Effect on equity 2019 USD USD USD Amman Stock Exchange +5 % 58,438 58,438 Saudi Stock Exchange +5 % - 616,969 Qatar Stock Exchange +5 % 23,830 23,830 Abu Dhabi Security Exchange +5 % 61,470 61,470 New York Stock Exchange +5 % 123,518 161,258 Kuwait Stock Exchange +5 % - 2,978 London Stock Exchange +5 % 342,797 342,797 Other quoted +5 % 480,226 553,966 Change in equity price Effect on Effect on Equity 2018 USD USD USD Amman Stock Exchange +5 % 60,718 60,718 Saudi Stock Exchange +5 % - 665,120 Qatar Stock Exchange +5 % 25,369 25,369 Abu Dhabi Security Exchange +5 % 57,175 57,175 New York Stock Exchange +5 % 109,111 147,031 Kuwait Stock Exchange +5 % - 2,012 Other quoted +5 % 446,510 507,473 The Group also has unquoted investments carried at fair value determined based on valuation techniques as per level 3 of fair value hierarchy. The Group limits market risk by maintaining a diversified portfolio and by monitoring of developments in equity markets. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its commitments associated with insurance contracts and financial liabilities as they fall due. The Group continually monitors its cash and investments to ensure that the Group meets its liquidity requirements. The Group's asset allocation is designed to enable insurance liabilities to be met with current assets. All liabilities are non-interest bearing liabilities. The table below summarizes the maturity profile of the Group's financial liabilities at 31 December based on contractual undiscounted payments: Less than one More than one Total 2019 USD USD USD Gross outstanding claims 172,243,041 240,809,814 413,052,855 Gross unearned premiums 159,660,497 46,553,532 206,214,029 Insurance payables 53,543,737 - 53,543,737 Other liabilities 13,821,580 1,041,702 14,863,282 Deferred tax liabilities 346,824 - 346,824 Unearned commissions 7,531,178 1,378,811 8,909,989 Total liabilities 407,146,857 289,783,859 696,930,716 2018 Gross outstanding claims 166,052,091 218,327,750 384,379,841 Gross unearned premiums 135,380,101 32,874,587 168,254,688 Insurance payables 33,034,146 - 33,034,146 Other liabilities 8,299,453 - 8,299,453 Unearned commissions 7,030,172 980,212 8,010,384 Total liabilities 349,795,963 252,182,549 601,978,512 Maturity analysis of assets and liabilities The table below shows analysis of assets and liabilities analyzed according to when they are expected to be recovered or settled: 31 December 2019 Less than More than one year No term Total USD USD USD USD ASSETS Cash, bank balances and term deposits 312,213,087 - - 312,213,087 Insurance receivables 110,218,900 2,755,944 - 112,974,844 Investments 58,452,403 152,847,331 42,422,220 253,721,954 Investments in associates - - 13,061,674 13,061,674 Reinsurance share of outstanding claims 81,410,140 94,802,284 - 176,212,424 Reinsurance share of unearned premiums 30,226,280 3,690,269 - 33,916,549 Deferred excess of loss premiums 15,172,707 - - 15,172,707 Deferred policy acquisition costs 28,369,829 13,343,460 - 41,713,289 Other assets 7,754,225 - - 7,754,225 Investment properties - - 25,712,312 25,712,312 Property, premises and equipment - 12,734,842 - 12,734,842 Intangible assets - 3,885,894 - 3,885,894 TOTAL ASSETS 643,817,571 284,060,024 81,196,206 1,009,073,801 LIABILITIES AND EQUITY Liabilities Gross outstanding claims 172,243,041 240,809,814 - 413,052,855 Gross unearned premiums 159,660,497 46,553,532 - 206,214,029 Insurance payables 53,543,737 - - 53,543,737 Other liabilities 13,821,580 1,041,702 - 14,863,282 Deferred tax liabilities 346,824 - - 346,824 Unearned commissions 7,531,178 1,378,811 - 8,909,989 Total liabilities 407,146,857 289,783,859 - 696,930,716 Equity Share capital - - 143,375,678 143,375,678 Contributed capital - - 2,773,000 2,773,000 Treasury shares - - (20,102,500 ) (20,102,500 ) Foreign currency translation reserve - - (332,785 ) (332,785 ) Fair value reserve - - 4,273,914 4,273,914 Retained earnings - - 182,155,778 182,155,778 Total equity - - 312,143,085 312,143,085 TOTAL LIABILITIES AND EQUITY 407,146,857 289,783,859 312,143,085 1,009,073,801 31 December 2018 Less than More than No term Total USD USD USD USD ASSETS Cash, bank balances and term deposits 260,059,595 - - 260,059,595 Insurance receivables 105,760,142 2,487,489 - 108,247,631 Investments 53,552,244 112,066,507 35,286,060 200,904,811 Investments in associates - - 13,437,778 13,437,778 Reinsurance share of outstanding claims 92,844,864 94,720,518 - 187,565,382 Reinsurance share of unearned premiums 29,777,293 2,789,554 - 32,566,847 Deferred excess of loss premiums 12,448,671 - - 12,448,671 Deferred policy acquisition costs 27,945,967 8,457,864 - 36,403,831 Deferred tax assets - 638,841 - 638,841 Other assets 5,061,050 - - 5,061,050 Investment properties - - 30,655,214 30,655,214 Property, premises and equipment - 12,216,997 - 12,216,997 Intangible assets - 2,935,750 - 2,935,750 TOTAL ASSETS 587,449,826 236,313,520 79,379,052 903,142,398 LIABILITIES AND EQUITY Liabilities Gross outstanding claims 166,052,091 218,327,750 - 384,379,841 Gross unearned premiums 135,380,101 32,874,587 - 168,254,688 Insurance payables 33,034,146 - - 33,034,146 Other liabilities 8,299,453 - - 8,299,453 Unearned commissions 7,030,172 980,212 - 8,010,384 Total liabilities 349,795,963 252,182,549 - 601,978,512 Equity Share capital - - 143,375,678 143,375,678 Contributed capital - - 2,773,000 2,773,000 Treasury shares - - (15,050,000 ) (15,050,000 ) Foreign currency translation reserve - - (294,929 ) (294,929 ) Fair value reserve - - 953,704 953,704 Retained earnings - - 169,406,433 169,406,433 Total equity - - 301,163,886 301,163,886 TOTAL LIABILITIES AND EQUITY 349,795,963 252,182,549 301,163,886 903,142,398 Capital management The Group manages its capital by 'Enterprise Risk Management' techniques, using a dynamic financial analysis model. The Asset Liability match is reviewed and monitored on a regular basis to maintain a strong credit rating and healthy capital adequacy ratios to support its business objectives and maximize shareholders' value. Adjustments to capital levels are made in light of changes in market conditions and risk characteristics of the Group's activities. Capital comprises issued share capital, additional paid in capital, treasury shares, foreign currency translation reserve, fair value reserve, and retained earnings and is measured at USD 312,143,085 as at 31 December 2019 (2018: USD 301,163,886). The capital requirements imposed on the Groups regulated entities are as follows: International General Insurance Co. Ltd (Bermuda) The Bermuda Insurance Act 1978 and Related Regulations (the Act) requires the Company to meet a minimum solvency margin. The Company has met the minimum solvency margin requirement at 31 December 2019 and 2018. In addition, a minimum liquidity ratio must be maintained whereby relevant assets, as defined by the Act, must exceed 75% of relevant liabilities. This ratio was met at 31 December 2019 and 2018. Under the Insurance Act, the Company is subject to capital requirements calculated using the Bermuda Solvency and Capital Requirement model ("BSCR model"), which is a standardized statutory risk-based capital model used to measure the risk associated with the Company's assets, liabilities and premiums. Under the BSCR model, the Company's required statutory capital and surplus is referred to as the enhanced capital requirement ("ECR"). The Company is required to calculate and submit the ECR to the Bermuda Monetary Authority annually. Following receipt of the submission of the Company's ECR, the Bermuda Monetary Authority has the authority to impose additional capital requirements or capital add-ons, if it deems necessary. If an insurer fails to maintain or meet its ECR, the Bermuda Monetary Authority may take various degrees of regulatory action. As at 31 December 2019 and 2018, the Company met its ECR. International General Insurance Company (UK) Limited The Company is regulated by the Prudential Regulation Authority and is subject to insurance solvency regulations which specify the minimum amount and type of capital that must be held in addition to the insurance liabilities. Since 1 January 2017 the Company has been subject to the Solvency II regime and is required to meet a Solvency Coverage Ratio (SCR) which is calibrated to seek to ensure a 99.5% confidence of the ability to meet its obligations over a 12-month time horizon. The Company calculates its SCR in accordance with the standard formula prescribed in the Solvency II regulations as the assumptions underlying the standard formula are considered to be a good fit for the Company's risk profile. The Company has met all requirements for the years 2019 and 2018. International General Insurance Company Ltd. Labuan Branch The Branch is subjected to minimum capital requirements under the Labuan Financial Services and Securities Act 2010. The Branch monitors and ensures its capital is within the minimum solvency margins requirements under the Labuan Financial Services and Securities Act 2010 at all times. If there are any, large event which will affect the Branch's ability to maintain solvency margins requirements, the Branch will notify the head office to cash call in advance. As at 31 December 2019 and 2018, the Branch met the minimum solvency margin requirements. Fair value The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques: Level 1 Level 2 Level 3 31 December 2019 Level 1 Level 2 Level 3 Total USD USD USD USD FVTPL 21,805,575 - - 21,805,575 Quoted equities at FVOCI 14,628,558 - - 14,628,558 Quoted bonds at FVOCI 208,525,361 - - 208,525,361 Unquoted equities at FVOCI * - - 5,794,187 5,794,187 Investment properties - - 25,712,312 25,712,312 244,959,494 - 31,506,499 276,465,993 31 December 2018 Level 1 Level 2 Level 3 Total USD USD USD USD FVTPL 13,977,663 - - 13,977,663 Quoted equities at FVOCI 15,320,310 - - 15,320,310 Quoted bonds at FVOCI 162,161,914 - - 162,161,914 Unquoted equities at FVOCI * - - 5,988,087 5,988,087 Investment properties - - 30,655,214 30,655,214 191,459,887 - 36,643,301 228,103,188 * Reconciliation of fair value of the unquoted equities under level 3 fair value hierarchy is as follows: 2019 2018 USD USD Balance at the beginning of the year 5,988,087 4,436,160 Total gains and (losses) recognized in OCI (193,900 ) 1,551,927 Balance at the end of the year 5,794,187 5,988,087 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Basic and diluted earnings per share [abstract] | |
EARNINGS PER SHARE | 29. earnings per share Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following table reflects the income and share data used in the basic and diluted EPS calculations: 2019 2018 2017 Profit for the year attributable to the equity holders of parent (USD) 23,565,399 25,541,703 7,031,340 Weighted average number of shares during the year – basic and diluted 135,161,942 138,320,733 143,375,678 Basic and diluted earnings per share 0.17 0.18 0.05 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 30. SEGMENT INFORMATION The Group’s chief operating decision maker (“CODM”) is the Executive Committee, which periodically reviews financial information at the business line level. Thus, each of the business lines in which the Group operates are considered operating segments. The Group has aggregated operating segments into the following reporting segments for the purposes of its consolidated financial statements: 1. Specialty Long tail (comprising business lines with underwriting risks assumed in form of liability insurance and of a long-term nature with respect to related claims). 2. Specialty Short tail (comprising business lines with underwriting risks assumed in the form of property and specialty line insurance and of short-term nature with respect to related claims). 3. Reinsurance which covers the inward reinsurance treaty and is a single operating segment The Group is of the view that the quantitative and qualitative aspects of the aggregated operating segments are similar in nature for all periods presented. In evaluating the appropriateness of aggregating operating segments, the key indicators considered included but were not limited to: (i) nature of products, (ii) similarities of customer base, products, underwriting processes and outward reinsurance processes, (iii) regulatory environments and (iv) distribution methods. Segment performance is evaluated based on net underwriting results and is measured consistently with the overall net underwriting results in the consolidated financial statements. The Group also has general and administrative expenses, net investment income, gain/loss on foreign exchange, other expenses/revenues and tax expense. These financial items are presented under “Corporate and Other” in the tables below as the Group does not allocate them to individual reporting segments. a) Segment disclosure for the Group’s consolidated operations is as follows: 2019 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 142,515,347 188,790,616 17,985,942 349,291,905 - 349,291,905 Reinsurer’s share of insurance premiums (22,541,384 ) (74,597,986 ) - (97,139,370 ) - (97,139,370 ) Net written premiums 119,973,963 114,192,630 17,985,942 252,152,535 - 252,152,535 Net change in unearned premiums (23,523,415 ) (12,839,449 ) (246,775 ) (36,609,639 ) - (36,609,639 ) Net premiums earned 96,450,548 101,353,181 17,739,167 215,542,896 - 215,542,896 Underwriting deductions Net policy acquisition expenses (21,280,118 ) (21,159,319 ) (2,996,001 ) (45,435,438 ) - (45,435,438 ) Net claims and claim adjustment expenses (58,799,478 ) (44,725,627 ) (14,538,383 ) (118,063,488 ) - (118,063,488 ) Net underwriting results 16,370,952 35,468,235 204,783 52,043,970 - 52,043,970 General and administrative expenses - - - - (39,265,945 ) (39,265,945 ) Net investment income - - - - 13,374,076 13,374,076 Share of loss from associates - - - - (376,104 ) (376,104 ) Impairment loss on insurance receivables - - - - (628,887 ) (628,887 ) Other revenues - - - - 1,428,265 1,428,265 Other expenses - - - - (2,194,666 ) (2,194,666 ) Listing related expenses - - - - (4,831,976 ) (4,831,976 ) Gain on foreign exchange - - - - 5,704,249 5,704,249 Profit (loss) before tax 16,370,952 35,468,235 204,783 52,043,970 (26,790,988 ) 25,252,982 Income tax - - - - (1,687,583 ) (1,687,583 ) Profit for the year 16,370,952 35,468,235 204,783 52,043,970 (28,478,571 ) 23,565,399 2018 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 91,959,644 191,839,289 17,819,553 301,618,486 - 301,618,486 Reinsurer’s share of insurance premiums 47,803 (98,235,891 ) - (98,188,088 ) - (98,188,088 ) Net written premiums 92,007,447 93,603,398 17,819,553 203,430,398 - 203,430,398 Net change in unearned premiums (22,096,205 ) 2,001,935 (26,509 ) (20,120,779 ) - (20,120,779 ) Net premiums earned 69,911,242 95,605,333 17,793,044 183,309,619 - 183,309,619 Underwriting deductions Net policy acquisition expenses (16,150,853 ) (22,762,489 ) (3,050,180 ) (41,963,522 ) - (41,963,522 ) Net claims and claim adjustment expenses (37,305,026 ) (36,564,914 ) (11,417,561 ) (85,287,501 ) - (85,287,501 ) Net underwriting results 16,455,363 36,277,930 3,325,303 56,058,596 - 56,058,596 General and administrative expenses - - - - (35,351,679 ) (35,351,679 ) Net investment income - - - - 10,310,296 10,310,296 Share of loss from associates - - - - (885,673 ) (885,673 ) Impairment loss on insurance receivables - - - - (472,124 ) (472,124 ) Other revenues - - - - 902,750 902,750 Other expenses - - - - (1,586,281 ) (1,586,281 ) Loss on foreign exchange - - - - (3,371,941 ) (3,371,941 ) Profit (loss) before tax 16,455,363 36,277,930 3,325,303 56,058,596 (30,454,652 ) 25,603,944 Income tax - - - - (62,241 ) (62,241 ) Profit for the year 16,455,363 36,277,930 3,325,303 56,058,596 (30,516,893 ) 25,541,703 2017 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 59,405,845 198,043,886 17,652,460 275,102,191 - 275,102,191 Reinsurer’s share of insurance premiums (9,930,020 ) (104,404,730 ) - (114,334,750 ) - (114,334,750 ) Net written premiums 49,475,825 93,639,156 17,652,460 160,767,441 - 160,767,441 Net change in unearned premiums (11,126,468 ) (2,329,012 ) (579,177 ) (14,034,657 ) - (14,034,657 ) Net premiums earned 38,349,357 91,310,144 17,073,283 146,732,784 - 146,732,784 Underwriting deductions Net policy acquisition expenses (10,692,254 ) (22,923,009 ) (2,616,447 ) (36,231,710 ) - (36,231,710 ) Net claims and claim adjustment expense (14,344,990 ) (60,486,788 ) (12,098,759 ) (86,930,537 ) - (86,930,537 ) Net underwriting results 13,312,113 7,900,347 2,358,077 23,570,537 - 23,570,537 General and administrative expenses - - - - (30,902,604 ) (30,902,604 ) Net investment income - - - - 12,564,842 12,564,842 Share of profit from associates - - - - 992,218 992,218 Impairment loss on insurance receivables - - - - (1,214,456 ) (1,214,456 ) Other revenues - - - - 856,540 856,540 Other expenses - - - - (1,466,042 ) (1,466,042 ) Gain on foreign exchange - - - - 2,615,883 2,615,883 Profit (loss) before tax 13,312,113 7,900,347 2,358,077 23,570,537 (16,553,619 ) 7,016,918 Income tax - - - - 14,422 14,422 Profit for the year 13,312,113 7,900,347 2,358,077 23,570,537 (16,539,197 ) 7,031,340 b) Non – current operating assets information by geography for years ended 31 December 2019 and 2018 are as follows: 2019 2018 USD USD Middle East 40,581,053 45,333,446 North Africa 25,093 65,715 UK 1,622,236 406,262 Asia 104,666 2,538 42,333,048 45,807,961 Non-current assets for this purpose consist of property, plant and equipment, investment properties and intangible assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 31. subsequent events On 30 January 2020, the World Health Organization declared the outbreak of coronavirus ("COVID-19") to be a public health emergency of international concern. COVID-19 is considered to be a non-adjusting post balance sheet event and as such no adjustments have been made to the valuation of assets and liabilities as at 31 December 2019. As at 31 March 2020, the Group had experienced falls in equity values and credit spread widening on its bond portfolio, the impact of which has reduced the Group's solvency, but which remains well within the Group's capital management policy. For further discussion concerning the management's assessment of COVID-19 impact on the Group refer to note 2. On 17 March 2020, the definitive business agreement between the Group and Tiberius Acquisition Corp. (NASDAQ: TIBR) ("Tiberius"), a publicly traded special purpose acquisition company, and certain related parties, was effective. As a result of the completion of the Business Combination, International General Insurance Holdings Ltd., Bermuda ("IGI Holdings") became a new public company listed on the Nasdaq Capital Market under the symbol "IGIC" and owned by the former stockholders of Tiberius and the former shareholders of the Group and each of the Group and Tiberius became subsidiaries of IGI Holdings. There have been no other material events between 31 December 2019 and the date of this report which are required to be disclosed. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation [Abstract] | |
Basis of consolidation | Basis of consolidation The financial statements of the subsidiaries are prepared for the same period and amended where required to be compliant with the Group’s accounting policies. The consolidated financial statements comprise the financial statements of International General Insurance Holdings Ltd and its subsidiaries as at 31 December 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: ● Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) ● Exposure, or rights, to variable returns from its involvement with the investee, and ● The ability to use its power over the investee to affect its returns When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement with the other vote holders of the investee ● Rights arising from other contractual arrangements ● The Group’s voting rights and potential voting rights The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: ● Derecognizes the assets (including goodwill) and liabilities of the subsidiary; ● Derecognizes the carrying amount of any non-controlling interest; ● Derecognizes the cumulative translation differences, recorded in equity, if any; ● Recognizes the fair value of the consideration received; ● Recognizes the fair value of any investment retained; ● Recognizes any surplus or deficit in profit or loss; and ● Reclassifies the parent’s share of components previously recognized in other comprehensive income to the statement of income or retained earnings, as appropriate. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The Group has the following subsidiaries and branches: Country of Activity Ownership 2019 2018 Subsidiaries: International General Insurance Underwriting Jordan Underwriting agency 100 % 100 % North Star Underwriting Limited United Kingdom Underwriting agency 100 % 100 % International General Insurance Co. Ltd. Bermuda Reinsurance and insurance 100 % 100 % The following entities are wholly owned subsidiaries and branches by International General Insurance Co. Ltd. Bermuda: Subsidiaries: International General Insurance Company (UK) Limited United Kingdom Reinsurance and insurance 100 % 100 % International General Insurance Company Dubai Ltd. United Arab Emirates Insurance intermediation and insurance management 100 % 100 % Specialty Malls Investment Co. Jordan Real estate properties development and lease 100 % 100 % IGI Services Limited Cayman Islands Owning and chartering aircraft 100 % 100 % Branches: International General Insurance Company Ltd. Labuan - Branch Malaysia Reinsurance and insurance 100 % 100 % |
Changes in accounting policies | Changes in accounting policies The accounting policies used in the preparation of the consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements for the year ended 31 December 2018 except for the adoption of new standards effective as at 1 January 2019 shown below: New standards, interpretations and amendments adopted by the Group IFRS 16 Leases IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives, and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases, and requires lessees to account for most leases under a single on-balance sheet model. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases where the Group is the lessor. The Group adopted IFRS 16 using the modified retrospective approach with the date of initial application of 1 January 2019. Accordingly, prior year consolidated financial statements were not restated. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. The Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option ('short-term leases'), and lease contracts for which the underlying asset is of low value ('low-value assets'). The effect of adoption IFRS 16 is as follows: Impact on the consolidated statement of financial position as at 1 January 2019: 2019 USD Property, premises and equipment Right of use assets 1,715,606 Other liabilities Lease liabilities 1,715,606 Total equity - The Group did not record any impact on the retained earnings as the balances of the prepaid rentals and accrued rentals were not material, accordingly the impact was calculated for the contracts starting from 1 January 2019. The Group has lease contracts for various items of plant and equipment. Before the adoption of IFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the Group; otherwise it was classified as an operating lease. The Group has no finance leases as at 1 January 2019. In an operating lease, the leased property was historically not capitalized, and the lease payments were recognized as rent expense in profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under prepaid expense in other assets and accounts payable in other liabilities, respectively. Upon adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which has been applied by the Group. ● Leases previously accounted for as operating leases The Group recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. The Group also applied the available practical expedients wherein it: ● Used a single discount rate to a portfolio of leases with reasonably similar characteristics ● Relied on its assessment of whether leases are onerous immediately before the date of initial application ● Applied the short-term leases exemptions to leases with a lease term that ends within 12 months at the date of initial application ● Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application ● Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease a) The lease liabilities as at 1 January 2019 can be reconciled to the operating lease commitments as of 31 December 2018 as follows: USD Operating lease commitments as at 31 December 2018 1,994,122 Weighted average incremental borrowing rate as at 1 January 2019 4.3 % Discounted operating lease commitments at 1 January 2019 1,715,606 b) Amounts recognized in the consolidated statement of financial position and income Set out below are the carrying amounts of the Group's right-of-use assets and lease liabilities and the movements during the year: Offices Lease USD USD At 1 January 2019 1,715,606 1,715,606 Additions 1,002,005 1,002,005 Disposal - Net (687,775 ) (656,416 ) Depreciation (516,175 ) - Interest expense - 108,426 Payments - (606,232 ) At 31 December 2019 1,513,661 1,563,389 Current 521,687 Non-current 1,041,702 c) Set out below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and are adjusted for any remeasurement of lease liabilities. The Group has included the right-of-use assets arising from the lease contracts within property, plant and premises in the consolidated statement of financial position (note 13). The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Group has included the lease obligations arising from the lease contracts within the other liabilities in the consolidated statement of financial position (note 16). Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to some of its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value (i.e., below USD 5,000). Lease payments on short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. The Group considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). The Group included the renewal period as part of the lease term for leases of plant and equipment due to the significance of these assets to its operations. These leases have a short non-cancellable period and there will be a significant negative effect on the Group's operations if a replacement is not readily available. Amendments to IFRS 9: Prepayment Features with Negative Compensation Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are 'solely payments of principal and interest on the principal amount outstanding' (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. These amendments do not have any impact on the Group's consolidated financial statements. Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture The amendments address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors' interests in the associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. These amendments do not have any impact on the Group's financial statements. Amendments to IAS 28: Long-term interests in associates and joint ventures The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in IFRS 9 applies to such long-term interests. The amendments also clarified that, in applying IFRS 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint Ventures . These amendments do not have any impact on the Group's consolidated financial statements. Standards issued but not yet effective IFRS 17 Insurance Contracts IFRS 17 provides a comprehensive model for insurance contracts covering the recognition and measurement and presentation and disclosure of insurance contracts and replaces IFRS 4 -Insurance Contracts. The standard applies to all types of insurance contracts (i.e. life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The standard general model is supplemented by the variable fee approach and the premium allocation approach. IFRS 17 was to be effective for reporting periods beginning on or after 1 January 2021, with comparative figures required. In November 2018, the IASB recommended an amendment to IFRS 17 to defer the effective date to January 2022. In March 2020, the IASB decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1 January 2023. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. The Group is currently in process of evaluating the potential impact of adopting IFRS 17. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances, and short-term deposits with an original maturity of three months or less. |
Term deposits | Term deposits The term deposits are interest bearing bank deposits with original maturity over 3 months and less than one year. |
Insurance receivables | Insurance receivables Insurance receivables are recognized when due and are measured on initial recognition at the fair value of the consideration received or receivable. The Group uses a provision matrix to calculate ECLs for insurance receivables. The provision rates are based on days past due and not due for groupings of various policy holder’s segments that have similar default loss - patterns. |
Financial assets | Financial assets a) Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss (FVTPL). The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. Financial instruments are initially recognized on the trade date measured at their fair value. Except for financial assets and financial liabilities recorded at FVTPL, transaction costs are added to this amount. The Group classifies all of its financial assets based on the business model for managing the assets and the asset's contractual terms. The categories include the following: ● Amortized cost ● FVOCI ● FVTPL i) Bonds and debt instruments measured at amortized cost Bonds and debt instruments are held at amortized cost if both of the following conditions are met: ● The instruments are held within a business model with the objective of holding the instrument to collect the contractual cash flows. ● The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. The details of these conditions are outlined below . Business model assessment The Group determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Group holds financial assets to generate returns and provide a capital base to provide for settlement of claims as they arise. The Group considers the timing, amount and volatility of cash flow requirements to support insurance liability portfolios in determining the business model for the assets as well as the potential to maximize return for shareholders and future business development. The Group business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios that is based on observable factors such as: ● How the performance of the business model and the financial assets held within that business model are evaluated and reported to the Group's key management personnel. ● The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed. ● How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected). ● The expected frequency, value and timing of asset sales are also important aspects of the Group's assessment. The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case' scenarios into account. If cash flows after initial recognition are realized in a way that is different from the Group original expectations, the Group does not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward. The SPPI test As a second step of its classification process the Group assesses the contractual terms to identify whether they meet the SPPI test. 'Principal' for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset (for example, if there are repayments of principal or amortization of the premium/discount). The most significant elements of interest within a debt arrangement are typically the consideration for the time value of money and credit risk. To make the SPPI assessment, the Group applies judgement and considers relevant factors such as the currency in which the financial asset is denominated, and the period for which the interest rate is set. Bonds and debt instruments measured at fair value through other comprehensive income The Group applies the new category under IFRS 9 for debt instruments measured at FVOCI when both of the following conditions are met: ● The instrument is held within a business model, the objective of which is both collecting contractual cash flows and selling financial assets. ● The contractual terms of the financial asset meet the SPPI test. These instruments largely comprise debt instruments that had previously been classified as available-for-sale under IAS 39. Bonds and debt instruments in this category are those that are intended to be held to collect contractual cash flows and which may be sold in response to needs for liquidity or in response to changes in market conditions. ii) Financial assets measured at fair value through profit or loss (Quoted funds, alternative investments and quoted equities) Financial assets in this category are those assets which have been either designated by management upon initial recognition or are mandatorily required to be measured at fair value under IFRS 9. Management designates an instrument as FVTPL that otherwise meet the requirements to be measured at amortized cost or at FVOCI only if it eliminates, or significantly reduces, an accounting mismatch that would otherwise arise. Financial assets with contractual cash flows not representing solely payment of principal and interest are mandatorily required to be measured at FVTPL. Financial assets at FVTPL are subsequently measured at fair value. Changes in fair value are recognized in the consolidated statement of income. Interest income is recognized using the effective interest method. Dividend income from equity investments measured at FVTPL is recognized in the consolidated statement of income when the right to the payment has been established. iii) Financial assets measured at fair value through other comprehensive income (Quoted and unquoted equities) Financial assets measured at fair value through other comprehensive income include equities investments. Equity investments classified as financial assets measured at fair value through other comprehensive income are those, which are not classified as financial assets measured at fair value through profit or loss. iv) Reclassification of financial assets and liabilities The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances in which the Group terminates a business line or changes its business model for managing financial assets. A change in Group business model will occur only when Group management determines change as a result of external or internal changes which are significant to the Group operations. Reclassifications shall all be recorded prospectively from the reclassification date b) Subsequent measurement For purposes of subsequent measurement, financial assets in the scope of IFRS 9 are classified in four categories: ● Financial assets at amortized cost (bonds, debt instruments) ● Financial assets at fair value through OCI with recycling of cumulative gains and losses (bonds and debt instruments) ● Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) ● Financial assets at fair value through profit or loss i) Financial assets at amortized cost (bonds, debt instruments) The Group measures financial assets at amortized cost if both of the following conditions are met: ● The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and ● 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. Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in the consolidated statement of income when the asset is derecognized, modified, or impaired. The Group's debt instruments at amortized cost includes investments in unquoted debt instruments. ii) Financial assets at fair value through OCI (debt instruments) The Group measures debt instruments at fair value through OCI if both of the following conditions are met: ● The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and, ● 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. For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of income and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to the consolidated statement of income. The Group's debt instruments at fair value through OCI includes investments in quoted debt instruments. iii) Financial assets designated at fair value through OCI (equity instruments ) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to the consolidated statement of income. Dividends are recognized as investment income in the statement of income when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to classify irrevocably its unquoted equity investments and some quoted equity investments under this category. iv) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the consolidated statement of financial position at fair value with net changes in fair value recognized in the statement of income. This category includes quoted funds, alternative investments and quoted equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on quoted equity investments are also recognized as investment income in the statement of income when the right of payment has been established. c) Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group's consolidated statement of financial position) when: ● The rights to receive cash flows from the asset have expired, or ● The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. d) Impairment of financial assets in scope of IFRS 9 The Group recognizes an allowance for expected credit losses (ECLs) for debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms, if any. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. The Group's debt instruments at fair value through OCI comprise solely of quoted bonds that are graded in the top investment category by accredited rating agencies and, therefore, are considered to be low credit risk investments. It is the Group's policy to measure ECLs on such instruments on a 12-month basis. However, when there has been a significant increase in credit risk since origination, the allowance will be based on the lifetime ECL. The Group uses the ratings from accredited rating agencies to monitor the changes in the credit ratings, determine whether the debt instrument has significantly increased in credit risk and to estimate ECLs. The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial assets in the statement of financial position, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortized cost is recognized in OCI with a corresponding charge to the statement of income. The accumulated gain recognized in OCI is recycled to the statement of income upon derecognition of the assets. The Group considers a financial asset in default when contractual payments are 30 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Financial assets are written off either partially or in their entirety only when the Group has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to credit loss expense. There were no write-offs over the periods reported in these consolidated financial statements. For cash flow purposes the Group classifies the cash flow for the acquisition and disposal of financial assets as operating cash flows, as the purchases of these investments is funded from the net cash flows associated with the origination of insurance and investment contracts and payment of benefits and claims incurred for such insurance contracts, which are respectively treated under operating activities. |
Investments in associates | Investments in associates The Group’s investment in its associates is accounted for using the equity method of accounting. An associate is an entity in which the Group has significant influence, and which is neither a subsidiary nor a joint venture. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Group’s investment in its associates is accounted for using the equity method. Under the equity method, the investment in the associate is carried in the consolidated statement of financial position at cost plus post-acquisition changes in the Group’s share of net assets of the associate. Goodwill relating to an associate is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The consolidated statement of income reflects the share of the results of operations of the associate. Where there has been a change recognized directly in the equity of the associate, the Group recognizes its share of any changes and discloses this, when applicable, in the consolidated statement of changes in equity. Profits or losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. The share of profit of the associate is shown on the face of the consolidated statement of income. This is profit attributable to equity holders of the associate and, therefore, is profit after tax and non-controlling interests in the subsidiaries of the associates. The financial statements of the associate are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring its accounting policies in line with the Group’s. After application of the equity method, the Group determines whether it is necessary to recognize an additional impairment loss on the Group’s investments in associates. The Group determines at each reporting date, whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ’share of profit of an associate’ in the consolidated statement of income. Upon loss of significant influence over the associate, the Group measures and recognizes any remaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the remaining investment and proceeds from disposal is recognized in consolidated statement of income. |
Investment properties | Investment properties Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the costs of day to day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in the consolidated statement of income in the period in which they arise. The fair value of the investment properties is determined by management and in doing so management considers the valuation performed by third parties who are specialists in valuing these types of investment properties. Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the consolidated statement of income in the period of derecognition. The amount of consideration to be included in the gain or loss arising from the derecognition of investment property is determined in accordance with the requirements for determining the transaction price in IFRS 15. Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner occupied property becomes an investment property, the Group accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use. |
Property, premises and equipment | Property, premises and equipment Property, premises and equipment are stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful lives using the following estimated useful lives: Years Office buildings 20 Aircraft 12.5 Office furniture 5 Computers 3 Equipment 4 Leasehold improvements 5 Vehicles 5 Right-of-use assets 2-7 An item of property, plant and equipment and any significant part initially recognized, is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of income when the asset is derecognized. The assets’ residual values, useful lives and method of depreciation are reviewed and adjusted if appropriate at each financial year-end. Impairment reviews take place when events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment losses are recognized in the consolidated statement of income as an expense . |
Intangible assets | Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income in the expense category that is consistent with the function of the intangible assets. An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of income. Intangible assets include computer software and software licenses. These intangible assets are amortized on a straight-line basis over their estimated economic useful lives of 5 years. |
Working progress assets | Work in progress assets Work in progress assets are stated at cost and include other direct costs and it is not depreciated until it is available for intended use. |
Provisions | Provisions Provisions are recognized when the Group has an obligation (legal or constructive) as a result of a past event, and the costs to settle the obligation are both probable and able to be reliably measured. |
Treasury shares | Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in the statement of income on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in share premium. |
Gross written premiums | Gross written premiums Gross written premiums comprise the total premiums receivable for the whole period of cover provided by contracts entered into during the accounting period. They are recognized on the date on which the policy commences. Premiums include any adjustments arising in the accounting period for premiums receivable in respect of business written in prior accounting periods. Rebates that form part of the premium rate, such as no-claim rebates, are deducted from the gross premium; others are recognized as an expense. Premiums also include estimates for pipeline premiums, representing amounts due on business written but not yet notified. The Group generally estimates the pipeline premium based on management’s judgment and prior experience. Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. Unearned premiums are calculated on a pro rata basis. The proportion attributable to subsequent periods is deferred as a provision for unearned premiums. |
Reinsurance premiums | Reinsurance premiums Reinsurance premiums comprise the total premiums payable for the reinsurance cover provided by retrocession contracts entered into during the year and are recognized on the date on which the policy incepts. Premiums include any adjustments arising in the accounting period in respect of reinsurance contracts incepting in prior accounting periods. Unearned reinsurance premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. Unearned reinsurance premiums are deferred over the term of the underlying direct insurance policies for risks-attaching contracts and over the term of the reinsurance contract for losses occurring contracts. |
Claims | Claims Claims, comprising amounts payable to contract holders and third parties and related loss adjustment expenses, net of salvage and other recoveries, are charged to income as incurred. Claims comprise the estimated amounts payable, in respect of claims reported to the Group and those not reported at the consolidated statement of financial position date. The Group generally estimates its claims based on appointed loss adjusters or leading underwriters’ recommendations. In addition, a provision based on management’s judgement and the Group’s prior experience is maintained for the cost of settling claims incurred but not reported at the consolidated statement of financial position date. |
Policy acquisition costs and commissions earned | Policy acquisition costs and commissions earned Policy acquisition costs and commission earned represent commissions paid and received in relation to the acquisition and renewal of insurance and retrocession contracts which are deferred and expensed over the same period over which the corresponding premiums are recognised in accordance with the earning pattern of the underlying contract. |
Liability adequacy test | Liability adequacy test At each statement of financial position date, the Group assesses whether its recognized insurance liabilities are adequate using current estimates of future cash flows under its insurance contracts. If that assessment shows that the carrying amount of its unearned premiums (less related deferred policy acquisition costs) is inadequate in light of estimated future cash flows, the entire deficiency is immediately recognized in income and an unexpired risk provision created. The Group does not discount its liability for unpaid claims as the Group measures its insurance contract liabilities on an undiscounted basis. |
Reinsurance | Reinsurance The Group cedes insurance risk in the normal course of business for all of its businesses. Reinsurance assets represent balances due from reinsurance companies. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the reinsurer’s policies and are in accordance with the related reinsurance contract. Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of impairment arises during the reporting year. Impairment occurs when there is objective evidence as a result of an event that occurred after initial recognition of the reinsurance asset that the Group may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the Group will receive from the reinsurer. The impairment loss is recorded in the consolidated statement of income. Gains or losses on buying reinsurance are recognized in the consolidated statement of income immediately at the date of purchase and are not amortized. Ceded reinsurance arrangements do not relieve the Group from its obligations to policyholders. The Group also assumes reinsurance risk in the normal course of business for non-life insurance contracts where applicable. Premiums and claims on assumed reinsurance are recognized as revenue or expenses in the same manner as they would be if the reinsurance were considered direct business, taking into account the product classification of the reinsured business. Reinsurance liabilities represent balances due to reinsurance companies. Amounts payable are estimated in a manner consistent with the related reinsurance contract. Premiums and claims are presented on a gross basis for both ceded and assumed reinsurance. Reinsurance assets or liabilities are derecognized when the contractual rights are extinguished or expire or when the contract is transferred to another party. Reinsurance contracts that do not transfer significant insurance risk are accounted for directly through the statement of financial position. These are deposit assets or financial liabilities that are recognized based on the consideration paid or received less any explicit identified premiums or fees to be retained by the reinsured. |
Excess of loss (XOL) reinsurance | Excess of loss (XOL) reinsurance The Group purchases reinsurance as part of its risk mitigation programme. The Group has a non–proportional excess–of–loss reinsurance contracts designed to mitigate the Group’s net exposure of losses that exceed a specified limit including catastrophe losses. These contracts often specify a limit in losses for which the reinsurer will be responsible. This limit is agreed to in the reinsurance contract and protects the Group from dealing with an unlimited liability. Retention limits for the excess–of–loss reinsurance vary by line of business. The XOL costs are determined at the inception of the reinsurance contract and are payable upfront in the form of ‘Minimum and Deposit Premium’ (MDP) subject to premium adjustment at the end of the contract period. Deferred excess of loss premiums are those proportions of premiums paid during the year that relate to periods of risk after the reporting date. Deferred premiums are calculated on a pro rata basis. Excess of loss reinsurance also includes reinstatement premium and related cash flows within the boundary of the initial reinsurance contract arising from usage of primary reinsurance coverage limit. Reinstatement occurs at predetermined rates without giving reinsurer any right to exit or reprice the contract. This implies expected cash flows related to the reinstatement premium shall be within the boundary of the initial reinsurance contract and are not related to future contracts. |
Cash settled - Sharebased payment plan | Cash settled - Share based payment plan A phantom share option plan linked to the value of an ordinary share of the Group as approved by the Board of Directors has been declared during 2011. Value of an ordinary share represents book value of an ordinary share of Group determined in the latest audited financial accounts as on 31st December of each year prior to exercise date. The scheme is applicable to senior executives with more than 12 months service. The amount of bonus is determined by reference to the increase in the book value of shares covered by the option. No shares are issued or transferred to the option holder on the exercise of the option. The options vest equally over a span of 5 years from the grant date. The bonus due amounts to the excess of book value on vesting date over grant date plus an additional 20% on the value of the excess. |
Offsetting | Offsetting Financial assets and financial liabilities are offset, and the net amount reported in the consolidated statement of financial position only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liability simultaneously. Income and expense are not offset in the consolidated statement of income unless required or permitted by any accounting standard or interpretation. |
Foreign currencies | Foreign currencies The Group’s consolidated financial statements are presented in United States Dollars, which is also the functional currency of the Group. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Transactions and balances Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange ruling at the reporting date. All differences are taken to the consolidated statement of income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Group companies The assets and liabilities of foreign operations are translated into United States Dollars at the rate of exchange prevailing at the reporting date and their statements of income are translated at exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation are recognized in the consolidated statement of comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in the consolidated statement of income. |
Taxation | Taxation The charge or credit for taxation is based upon the profit or loss for the year and takes into account taxation deferred because of temporary differences between the treatment of certain items for taxation and accounting purposes. Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries were the Group operates and generates taxable income. Deferred tax Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credit and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. |
Interest Income | Interest income Interest income included in investment income is recognized as the interest accrues using the effective interest method, under which the rate used exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. |
Dividend Income | Dividend income Dividend revenue included in investment income is recognized when the right to receive the payment is established. |
Other revenues and expenses | Other revenues and expenses Other revenues consist of chartered flights revenues which are recognized when the transportation is provided. Related expenses are recognized in the same period as the revenues to which they relate. |
Leasing | Leasing (Prior to IFRS 16 adoption) The Group has no finance lease arrangements. The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement at the inception date and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Group as a lessee Leases that do not transfer to the Group substantially all the risks and benefits incidental to ownership of the leased items are operating leases. Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term. Contingent rentals are recognized as an expense in the period in which they are incurred. Group as a lessor Leases in which the Group does not transfer substantially all of the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Rental income from operating leases is recognized on a straight-line basis over the term of lease. |
Fair values | Fair values Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible to the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Group’s management determines the policies and procedures for both recurring fair value measurement, such as unquoted available for sale financial assets. At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Group’s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. |
Segment reporting | Segment reporting Reporting segments and segment measures are explained and disclosed in note 30 Segment information. |
Listing related costs | Listing related costs Listing transaction related costs are charged to the consolidated statement of income as incurred. |
Significant accounting judgements, estimates and assumptions | Significant accounting judgements, estimates and assumptions The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. |
Judgements | Judgements In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect in the amounts recognized in the consolidated financial statements: |
Classification of investments | Classification of investments Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. Financial instruments are initially recognized on the trade date measured at their fair value. Except for financial assets and financial liabilities recorded at FVTPL, transaction costs are added to this amount. The Group classifies all its financial assets based on the business model for managing the assets and the asset's contractual terms. The categories include the following: ● Amortized cost ● FVOCI ● FVTPL |
Estimates and assumptions | Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. |
Valuation of insurance contractttt liability | Valuation of insurance contract liabilities Considerable judgement by management is required in the estimation of amounts due to contract holders arising from claims made under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying, and possibly significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. In particular, estimates have to be made both for the expected ultimate cost of claims reported at the consolidated statement of financial position date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the consolidated statement of financial position date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past claim settlement trends to predict future claims settlement trends. Claims requiring court or arbitration decisions are estimated individually. Independent loss adjustors normally estimate property claims. Management reviews its provisions for claims incurred, and claims incurred but not reported, on a quarterly basis. Similar judgements, estimates and assumptions are employed in the assessment of adequacy of provisions for unearned premiums. Judgement is also required in determining whether the pattern of insurance service provided by a contract requires amortization of unearned premiums on a basis other than time apportionment. Total carrying amount of insurance contract liabilities as at year ended 31 December 2019 was USD 413,052,855 (2018: USD 384,379,841). As at 31 December 2019, gross incurred but not reported claims (IBNR) amounted to USD 120,330,776 (2018: USD 98,609,584) out of the total insurance contract liabilities. |
Investment properties | Investment properties Investment properties amounted to USD 25,712,312 as at 31 December 2019 (2018: USD 30,655,214) are stated at fair value. Management has determined the fair value and in doing so has considered valuation performed by a third-party specialist. The valuation model used was in accordance with that recommended by the International Valuation Standards Committee. The investment properties are valued using the sales comparison approach. Under the sales comparison approach, a property’s fair value is estimated based on comparable transactions. The sales comparison approach is based upon the principle of substitution under which a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property. The unit of comparison applied by the Group is the price per square meter (sqm). |
Expected credit loss for insurance receivable | Expected credit loss for insurance receivables The Group uses a provision matrix to calculate ECLs for insurance receivables. The provision rates are based on days past due for groupings of various policy holder's segments that have similar default patterns. The provision matrix is initially based on the Group's historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults in the sector, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group's historical credit loss experience and forecast of economic conditions may also not be representative of policy holder's actual default in the future. In its ECL models, the Group relies on a range of forward-looking information as economic inputs, such as: ● Real GDP growth by region ● Projected GDP growth by region In determining impairment of financial assets, judgement is required in the estimation of the amount and timing of future cash flows as well as an assessment of whether the credit risk on the financial asset has increased significantly since initial recognition and incorporation of forward-looking information in the measurement of ECL. The Group considers insurance receivables in default when contractual payments are 360 days past due, and in doing so management considers but does not depend only on the age of the relevant accounts receivable. The adequacy of the Group's past estimates as well as the high turnover ratio of receivables are also considered as main factors in evaluating the collectability of insurance receivables, especially in regions where the Group has experienced historical trends of slow collection such as the Middle East and Africa. Even in such regions, however, the Group has typically ultimately recovered the due premiums in full. The Group has in place credit appraisal policies for written business. The Group monitors and follows up on receivables for insurance transactions on an ongoing basis. Wherever, as a result of this formal chasing process, management determines that the settlement of a receivable is not probable, a notice of cancellation (NOC) will be issued within 30 – 60 days from the premium past due date. If the premium due is not paid within the NOC period, the insurance policy will be cancelled ab initio. The Group does not pay claims on policies where the policyholder is past due on premium payments, except for cases where the policyholder's broker confirms that the due premium is in the process of being collected. Total expected credit losses on insurance receivables as at year ended 31 December 2019 was USD 6,393,719 (2018: USD 6,093,638). |
Ultimate premium | Ultimate premiums In addition to reported premium income, the Group also includes an estimate for pipeline premiums representing amount due on business written but not yet reported. This is based on management’s judgement of market conditions and historical data using premium development patterns evident from active underwriting years to predict ultimate premiums trends at the close of the fiscal period. Estimated pipeline premiums as at year ended 31 December 2019 USD 5,307,350 (2018: USD 5,242,979). |
Basis of Preparation (Tables)
Basis of Preparation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation [Abstract] | |
Schedule of subsidiaries | Country of Activity Ownership 2019 2018 Subsidiaries: International General Insurance Underwriting Jordan Underwriting agency 100 % 100 % North Star Underwriting Limited United Kingdom Underwriting agency 100 % 100 % International General Insurance Co. Ltd. Bermuda Reinsurance and insurance 100 % 100 % The following entities are wholly owned subsidiaries and branches by International General Insurance Co. Ltd. Bermuda: Subsidiaries: International General Insurance Company (UK) Limited United Kingdom Reinsurance and insurance 100 % 100 % International General Insurance Company Dubai Ltd. United Arab Emirates Insurance intermediation and insurance management 100 % 100 % Specialty Malls Investment Co. Jordan Real estate properties development and lease 100 % 100 % IGI Services Limited Cayman Islands Owning and chartering aircraft 100 % 100 % Branches: International General Insurance Company Ltd. Labuan - Branch Malaysia Reinsurance and insurance 100 % 100 % |
Schedule of impact on consolidated statement of financial position | 2019 USD Property, premises and equipment Right of use assets 1,715,606 Other liabilities Lease liabilities 1,715,606 Total equity - |
Schedule of operating lease commitments | USD Operating lease commitments as at 31 December 2018 1,994,122 Weighted average incremental borrowing rate as at 1 January 2019 4.3 % Discounted operating lease commitments at 1 January 2019 1,715,606 |
Schedule of right-of-use assets and lease liabilities | Offices Lease USD USD At 1 January 2019 1,715,606 1,715,606 Additions 1,002,005 1,002,005 Disposal - Net (687,775 ) (656,416 ) Depreciation (516,175 ) - Interest expense - 108,426 Payments - (606,232 ) At 31 December 2019 1,513,661 1,563,389 Current 521,687 Non-current 1,041,702 |
Schedule of estimated useful lives of the right of use assets | Years Office buildings 20 Aircraft 12.5 Office furniture 5 Computers 3 Equipment 4 Leasehold improvements 5 Vehicles 5 Right-of-use assets 2-7 |
Cash at Banks (Tables)
Cash at Banks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash at Banks [Abstract] | |
Schedule of cash and cash equivalents | 2019 2018 USD USD Cash and bank balances 167,767,393 159,478,364 Deposits with original maturities of three months or less 24,692,474 25,254,000 192,459,867 184,732,364 |
Schedule of term deposits | 2019 2018 USD USD Total deposits 144,445,694 100,581,231 Less: Deposits with original maturities of three months or less - note 3 (a) (24,692,474 ) (25,254,000 ) 119,753,220 75,327,231 |
Insurance Receivables (Tables)
Insurance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance revenue, amounts relating to changes in liability for remaining coverage [abstract] | |
Schedule of insurance receivables | 2019 2018 USD USD Receivables from insurance companies and intermediaries 119,368,563 114,341,269 Less: Expected credit losses on insurance receivables (6,393,719 ) (6,093,638 ) 112,974,844 108,247,631 |
Schedule of expected credit losses | 2019 2018 USD USD Opening balance 6,093,638 5,621,514 Provision for the year 628,887 472,124 Write-offs (328,806 ) - Ending balance 6,393,719 6,093,638 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Schedule of group financial investments | 31 December 2019 Amortized Fair value Fair value Total USD USD USD USD Unquoted bonds* 3,235,896 - - 3,235,896 Quoted bonds - 208,525,361 - 208,525,361 Quoted funds and alternative investments - - 8,261,033 8,261,033 Quoted equities - 14,628,558 13,544,542 28,173,100 Unquoted equities** - 5,794,187 - 5,794,187 Expected credit losses and impairment (267,623 ) - - (267,623 ) 2,968,273 228,948,106 21,805,575 253,721,954 31 December 2018 Amortized Fair value Fair value Total USD USD USD USD Unquoted bonds* 3,737,287 - - 3,737,287 Quoted bonds - 162,161,914 - 162,161,914 Quoted funds and alternative investments - - 8,383,593 8,383,593 Quoted equities - 15,320,310 5,594,070 20,914,380 Unquoted equities** - 5,988,087 - 5,988,087 Expected credit losses and impairment (280,450 ) - - (280,450 ) 3,456,837 183,470,311 13,977,663 200,904,811 * The Group has an investment in an unquoted bond denominated in JOD (USD pegged currency) issued by ’Specialized Investment Compound Co.’ a local company based in Jordan with a maturity date of 22nd February 2016. Said company is currently under liquidation, due to which 85% of original bond holdings with nominal value amounted to USD 1,235,543 were not paid on that maturity date. These bonds are backed up by collateral in the form of real estate properties. However, the Group management has provided USD 250,000 to cover any potential impairment in the value of the collateral held against said investment. ** The Group has two unquoted equity investments under level 3 designated at fair value through OCI valued at USD 5,261,387 (2018: USD 5,263,777) and USD 532,800 (2018: USD 724,310). As at 31 December 2018, the fair value of the unquoted equities was recorded by adopting a market approach using the price of the most recent sale transaction as a basis to arrive at a value of these investments. As at 31 December 2019, there was no information available about recent sale transactions. Accordingly, the Group has used an alternative valuation technique called ‘multiples-based valuation’ whereby earnings-based multiples of comparable companies as at 31 December 2019 were considered for the valuation. There are no active markets for these investments and the Group intends to hold them for the long term. |
Schedule of expected credit losses and impairment provision for the bonds | 2019 2018 USD USD Opening balance 280,450 286,698 Release of provision for investment in debt securities (12,827 ) (6,248 ) Ending balance 267,623 280,450 |
Schedule of fair value of level 3 financial assets | % Positive impact Negative impact Valuation variables USD USD 2019 +/- 10 573,974 (573,974 ) Market multiples applied to a range of financial performance measures *** 2018 +/- 10 598,808 (598,808 ) Price of most recent sale transaction *** As at 31 December 2019, the fair value measurement of the unquoted equity investment valued at USD 5,261,387 was based on a combination of valuation multiples, with greater weight given to price to book value multiple. This has implied an equity value range of USD 5,110,200 to USD 5,561,100. |
Investments in Associates (Tabl
Investments in Associates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Associates [Abstract] | |
Schedule of investments in associated companies equity method | Country of Ownership 2019 2018 Star Rock SAL Lebanon Lebanon 32.7 % 32.7 % Sina SAL Lebanon Lebanon 32.7 % 32.7 % Silver Rock SAL Lebanon Lebanon 32.7 % 32.7 % Golden Rock SAL Lebanon Lebanon 32.7 % 32.7 % |
Schedule of movement on investments in associates | 2019 2018 USD USD Opening balance 13,437,778 14,323,451 Share of associated companies' financial results (6,393 ) 36,917 Investment properties fair value adjustment (495,736 ) (838,748 ) Reversal of (provision for) contingent liabilities 126,025 (83,842 ) Share of profit or loss from associates (376,104 ) (885,673 ) 13,061,674 13,437,778 |
Schedule of summarized information of the Group's investments in associates for each year presented | 2019 Star Rock Sina SAL Silver Rock Golden Rock Total USD USD USD USD USD Current assets 62,359 49,224 61,267 779,871 952,721 Non-current assets 4,970,390 3,782,149 5,405,404 33,355,443 47,513,386 Current liabilities (1,790,847 ) (2,208,931 ) (380,714 ) (2,606,518 ) (6,987,010 ) Non-current liabilities (136,081 ) (162,034 ) (89,747 ) (1,147,277 ) (1,535,139 ) Net assets 3,105,821 1,460,408 4,996,210 30,381,519 39,943,958 The Group's share of net assets 1,015,603 477,553 1,633,761 9,934,757 13,061,674 2018 Star Rock SAL Sina SAL Silver Rock Golden Rock Total USD USD USD USD USD Current assets 44,491 46,225 116,287 587,531 794,534 Non-current assets 5,205,244 3,926,427 5,610,302 34,766,783 49,508,756 Current liabilities (1,801,066 ) (2,247,373 ) (488,925 ) (2,751,274 ) (7,288,638 ) Non-current liabilities (135,934 ) (149,515 ) (143,677 ) (1,491,409 ) (1,920,535 ) Net assets 3,312,735 1,575,764 5,093,987 31,111,631 41,094,117 The Group's share of net assets 1,083,265 515,275 1,665,735 10,173,503 13,437,778 |
Schedule of group's share of (loss) profit from associate | 2019 Star Rock Sina SAL Silver Rock Golden Rock Total Associates’ revenues and results: USD USD USD USD USD Revenues 72,371 61,420 111,728 1,038,366 1,283,885 Net (loss) (206,916 ) (115,357 ) (97,781 ) (730,110 ) (1,150,164 ) The Group’s share of (loss) (67,662 ) (37,722 ) (31,974 ) (238,746 ) (376,104 ) 2018 Associates’ revenues and results: USD USD USD USD USD Revenues 134,676 68,601 166,061 1,165,729 1,535,067 Net (loss) (245,495 ) (240,228 ) (236,524 ) (1,986,234 ) (2,708,481 ) The Group’s share of (loss) (80,277 ) (78,555 ) (77,343 ) (649,498 ) (885,673 ) 2017 Associates’ revenues and results: USD USD USD USD USD Revenues 90,006 52,803 147,976 1,195,217 1,486,002 Net profit 408,161 174,977 196,769 2,254,396 3,034,303 The Group’s share of profit 133,469 57,217 64,344 737,188 992,218 |
Outstanding Claims (Tables)
Outstanding Claims (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Outstanding Claims [Abstract] | |
Schedule of movement in outstanding claims | 2019 2018 2017 Gross Reinsurers’ share Net Gross Reinsurers’ share Net Gross Reinsurers’ share Net USD USD USD USD USD USD USD USD USD At the beginning of the year Reported claims 285,770,257 (170,124,934 ) 115,645,323 303,254,937 (178,617,218 ) 124,637,719 244,216,392 (122,735,801 ) 121,480,591 Claims incurred but not reported 98,609,584 (17,440,448 ) 81,169,136 79,972,504 (7,974,801 ) 71,997,703 90,954,902 (20,329,907 ) 70,624,995 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 335,171,294 (143,065,708 ) 192,105,586 Claims paid (131,151,122 ) 53,113,606 (78,037,516 ) (209,892,000 ) 124,783,536 (85,108,464 ) (204,098,071 ) 121,697,370 (82,400,701 ) Provided during the year related to current accident year 150,799,594 (26,443,648 ) 124,355,946 196,708,805 (102,442,564 ) 94,266,241 278,298,318 (167,956,984 ) 110,341,334 Provided during the year related to previous accident years 9,024,542 (15,317,000 ) (6,292,458 ) 14,335,595 (23,314,335 ) (8,978,740 ) (26,144,100 ) 2,733,303 (23,410,797 ) At the end of the year 413,052,855 (176,212,424 ) 236,840,431 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 At the end of the year Reported claims 292,722,079 (163,190,980 ) 129,531,099 285,770,257 (170,124,934 ) 115,645,323 303,254,937 (178,617,218 ) 124,637,719 Claims incurred but not reported 120,330,776 (13,021,444 ) 107,309,332 98,609,584 (17,440,448 ) 81,169,136 79,972,504 (7,974,801 ) 71,997,703 413,052,855 (176,212,424 ) 236,840,431 384,379,841 (187,565,382 ) 196,814,459 383,227,441 (186,592,019 ) 196,635,422 |
Schedule of statement of financial position date, together with cumulative payments to date | 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD At end of accident year 25,362,416 25,254,263 37,939,544 114,560,922 94,375,639 122,323,418 128,498,162 133,595,104 159,549,092 152,384,186 174,601,048 175,094,042 278,298,318 196,708,806 150,799,594 One year later 44,520,499 35,110,485 54,041,148 125,149,178 75,295,485 108,522,816 106,566,918 119,424,721 155,958,329 114,972,073 160,100,166 173,369,296 309,257,783 219,593,452 - Two years later 47,504,859 40,894,923 53,379,611 119,412,667 67,118,529 105,943,110 100,764,212 108,556,804 148,160,641 101,352,163 149,533,104 167,694,979 317,052,504 - - Three years later 47,354,940 39,641,082 53,971,648 121,676,478 68,496,704 100,572,066 110,286,014 110,046,062 142,309,348 92,846,420 145,920,851 158,572,219 - - - Four years later 46,829,976 37,331,379 53,468,989 119,839,220 68,217,208 99,513,334 114,464,267 103,996,492 133,916,518 88,210,215 142,926,388 - - - - Five years later 46,391,258 37,665,596 53,393,860 113,090,591 67,908,658 101,599,381 110,266,231 104,540,662 132,991,755 85,621,385 - - - - - Six years later 47,224,929 36,800,576 50,534,739 112,125,348 67,807,370 100,198,544 111,774,284 103,167,021 130,843,807 - - - - - - Seven years later 46,211,206 35,600,935 49,718,456 110,400,053 67,613,678 100,302,961 110,644,445 97,917,558 - - - - - - - Eight years later 46,232,192 35,318,464 49,552,802 110,588,511 68,114,668 100,073,144 111,028,275 - - - - - - - - Nine years later 46,224,784 34,796,272 49,374,891 111,162,234 68,950,049 100,119,899 - - - - - - - - - Ten years later 45,737,657 34,609,372 49,361,720 111,371,580 68,881,829 - - - - - - - - - Eleven years later 45,608,779 34,553,537 49,312,510 111,500,390 - - - - - - - - - - - Twelve years later 45,609,384 34,422,917 49,303,976 - - - - - - - - - - - - Thirteen years later 45,602,039 34,377,940 - - - - - - - - - - - - - Fourteen years later 45,613,014 - - - - - - - - - - - - - - Current estimate of cumulative claims incurred 45,613,014 34,377,940 49,303,976 111,500,390 68,881,829 100,119,899 111,028,275 97,917,558 130,843,807 85,621,385 142,926,388 158,572,219 317,052,504 219,593,452 150,799,594 1,824,152,230 Cumulative payments to date 45,612,133 33,701,658 49,301,701 110,725,084 67,854,039 99,582,296 102,709,727 94,781,375 128,732,202 82,445,136 135,516,537 149,115,128 224,833,333 68,579,482 17,609,544 1,411,099,375 Total liability included in the consolidated statement of financial position 413,052,855 |
Unearned Premiums (Tables)
Unearned Premiums (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unearned Premiums [Abstract] | |
Schedule of unearned premiums | 2019 2018 2017 Gross Reinsurers’ share Net Gross Reinsurers’ share Net Gross Reinsurers’ share Net USD USD USD USD USD USD USD USD USD Opening balance 168,254,688 (32,566,847 ) 135,687,841 156,694,025 (41,126,963 ) 115,567,062 133,670,895 (32,138,490 ) 101,532,405 Premiums written 349,291,905 (97,139,370 ) 252,152,535 301,618,486 (98,188,088 ) 203,430,398 275,102,191 (114,334,750 ) 160,767,441 Premiums earned (311,332,564 ) 95,789,668 (215,542,896 ) (290,057,823 ) 106,748,204 (183,309,619 ) (252,079,061 ) 105,346,277 (146,732,784 ) 206,214,029 (33,916,549 ) 172,297,480 168,254,688 (32,566,847 ) 135,687,841 156,694,025 (41,126,963 ) 115,567,062 |
Defferred Excess of Loss Prem_2
Defferred Excess of Loss Premiums (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defferred Excess of Loss Premiums [Abstract] | |
Schedule of defferred excess of loss premiums | 2019 2018 2017 USD USD USD Opening balance 12,448,671 11,612,654 8,878,968 Additions 37,491,753 24,945,436 28,664,368 Charged to consolidated income statement under reinsures’ share of insurance premiums (34,767,717 ) (24,109,419 ) (25,930,682 ) Ending balance 15,172,707 12,448,671 11,612,654 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs [Abstract] | |
Schedule of deferred policy acquisition costs | 2019 2018 2017 USD USD USD Opening balance 36,403,831 32,915,965 28,286,248 Acquisition costs during the year 64,675,035 62,268,542 57,570,774 Charged to consolidated statement of income (59,365,577 ) (58,780,676 ) (52,941,057 ) Ending balance 41,713,289 36,403,831 32,915,965 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of other assets | 2019 2018 USD USD Accrued interest income 2,580,091 1,830,722 Due from related party (note 26) 1,855,461 - Prepaid expenses 1,303,352 1,284,738 Refundable deposits 119,020 221,779 Employees receivables 60,199 445,374 Funds held in trust accounts 1,518,041 1,006,735 Income tax receivables 132,722 187,604 Trade receivables 6,707 9,366 Others 178,632 74,732 7,754,225 5,061,050 |
Investment Properties (Tables)
Investment Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Properties [Abstract] | |
Schedule of investment properties | 2019 Commercial Land* Total USD USD USD Opening balance 20,312,477 10,342,737 30,655,214 Additions - 745,281 745,281 Sale of investment properties - (5,383,701 ) (5,383,701 ) Fair value adjustment (note 22) (249,173 ) (55,309 ) (304,482 ) Ending balance 20,063,304 5,649,008 25,712,312 2018 Commercial Land* Total USD USD USD Opening balance 20,218,543 10,342,737 30,561,280 Fair value adjustment (note 22) 93,934 - 93,934 Ending balance 20,312,477 10,342,737 30,655,214 * Land amounting to USD 5,649,008 as at 31 December 2019 (2018: USD 10,342,737) is registered in the name of one of the Directors of the Group. The Group has obtained a proxy over this investment property (note 26). |
Schedule of change in the price used for the valuation of the investment properties | % Price per square meter Impact on statement Impact on statement of USD USD USD Commercial building 2019 +/- 10 1,122 2,006,330 (2,006,330 ) 2018 +/- 10 1,139 2,031,248 (2,031,248 ) % Price per square meter Impact on statement Impact on statement of USD USD USD Land 2019 +/- 10 203 564,901 (564,901 ) 2018 +/- 10 151 1,034,274 (1,034,274 ) |
Property, Premises and Equipm_2
Property, Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Premises and Equipment [Abstract] | |
Schedule of property, premises and equipment | Office buildings Aircraft Office furniture Computers Equipment Leasehold improvements Vehicles Work in progress Right of use assets Total USD USD USD USD USD USD USD USD USD USD Cost At 1 January 2019 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - - 19,718,203 Impact of the IFRS 16 adoption (note 2) - - - - - - - - 1,715,606 1,715,606 Adjusted balance 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - 1,715,606 21,433,809 Additions 3,614 - 19,152 122,981 9,698 163,318 115,570 8,972 1,002,005 1,445,310 Disposals - - - (31,261 ) (254 ) (71,636 ) (69,322 ) - (792,544 ) (965,017 ) At 31 December 2019 2,678,135 11,290,405 1,652,466 1,645,509 290,814 1,411,955 1,010,779 8,972 1,925,067 21,914,102 Depreciation At 1 January 2019 757,200 1,806,464 1,325,569 1,297,939 278,263 1,220,100 815,671 - - 7,501,206 Deprecation for the year 136,449 903,232 56,749 169,390 3,941 53,354 67,440 - 516,175 1,906,730 Disposals - - - (31,261 ) (95 ) (23,231 ) (69,320 ) - (104,769 ) (228,676 ) At 31 December 2019 893,649 2,709,696 1,382,318 1,436,068 282,109 1,250,223 813,791 - 411,406 9,179,260 Net carrying amount At 31 December 2019 1,784,486 8,580,709 270,148 209,441 8,705 161,732 196,988 8,972 1,513,661 12,734,842 Cost At 1 January 2018 2,669,763 11,290,405 1,513,831 1,413,182 274,433 1,177,342 964,531 - - 19,303,487 Additions 4,758 - 119,483 140,607 6,937 142,931 - - - 414,716 At 31 December 2018 2,674,521 11,290,405 1,633,314 1,553,789 281,370 1,320,273 964,531 - - 19,718,203 Depreciation At 1 January 2018 704,219 903,232 1,273,047 1,184,117 272,606 1,177,341 698,388 - - 6,212,950 Deprecation for the year 52,981 903,232 52,522 113,822 5,657 42,759 117,283 - - 1,288,256 At 31 December 2018 757,200 1,806,464 1,325,569 1,297,939 278,263 1,220,100 815,671 - - 7,501,206 Net carrying amount At 31 December 2018 1,917,321 9,483,941 307,745 255,850 3,107 100,173 148,860 - - 12,216,997 |
Schedule of depreciation and amortization | 2019 2018 2017 USD USD USD Property premises and equipment depreciation charge for the year 1,906,730 1,288,256 1,406,831 Intangible assets amortization charge for the year (note 14) 48,728 71,704 78,303 Aircraft depreciation allocated to listing transaction deferred cost (note 11) (72,555 ) - - Aircraft depreciation allocated to other expenses (note 23) (594,496 ) (490,820 ) (462,184 ) Total depreciation and amortization allocated to G&A 1,288,407 869,140 1,022,950 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets accumulated cost and amortization | 2019 2018 Computer software / licenses Work in progress* Total Computer software / licenses Work in progress* Total USD USD USD USD USD USD Cost Beginning balance 1,183,341 2,840,235 4,023,576 1,171,134 1,874,003 3,045,137 Additions 6,670 992,202 998,872 12,207 966,232 978,439 Ending balance 1,190,011 3,832,437 5,022,448 1,183,341 2,840,235 4,023,576 Amortization Beginning balance 1,087,826 - 1,087,826 1,016,122 - 1,016,122 Additions 48,728 - 48,728 71,704 - 71,704 Ending balance 1,136,554 - 1,136,554 1,087,826 - 1,087,826 Net carrying amount 53,457 3,832,437 3,885,894 95,515 2,840,235 2,935,750 * Work in progress balance represents the payments towards the purchase of new insurance software. The management expects that the software will be installed during the first half of 2020, and the expected cost to complete the project is USD 225,375. |
Insurance Payables (Tables)
Insurance Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Dividends Paid [Abstract] | |
Schedule of insurance payables | 2019 2018 USD USD Payables due to insurance companies and intermediaries 2,610,528 233,316 Reinsurers – amounts due in respect of ceded premium 50,933,209 32,800,830 53,543,737 33,034,146 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | 2019 2018 USD USD Accounts payable 1,716,667 2,441,208 Accrued expenses and other accruals 7,221,706 5,858,245 Listing related cost payables (note 24) 3,661,148 - Lease liability 1,563,389 - Income tax payable (note 27) 700,372 - 14,863,282 8,299,453 |
Unearned Commissions (Tables)
Unearned Commissions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unearned Commissions [Abstract] | |
Schedule of movement in unearned commissions | 2019 2018 2017 USD USD USD As at 1 January 8,010,384 10,354,019 8,292,099 Commissions received 14,829,744 14,473,519 18,771,267 Commissions earned (13,930,139 ) (16,817,154 ) (16,709,347 ) As at 31 December 8,909,989 8,010,384 10,354,019 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of share capital | 2019 2018 USD USD Authorized shares (par value of USD 1 each) 175,000,000 175,000,000 Issued shares 143,375,678 143,375,678 |
Schedule of fair value reserve | 2019 2018 2017 USD USD USD Balance at the beginning of the year 953,704 14,208,469 9,693,936 Impact of adopting IFRS 9 - (6,680,687 ) - Net change in fair value reserve during the year 4,208,620 (2,706,303 ) - Net change in fair value reserve during the year for (865,646 ) (3,897,678 ) - Net change in fair value reserve during the year - - 4,514,533 ECL (release) charge transferred to income statement (22,764 ) 29,903 - Balance at the end of the year 4,273,914 953,704 14,208,469 |
Treasury Shares (Tables)
Treasury Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Shares [Abstract] | |
Schedule of reconciliation of the outstanding number of shares | 2019 2018 At 1 January 136,375,678 143,375,678 Treasury shares purchased during the year (2,350,000 ) (7,000,000 ) At 31 December 134,025,678 136,375,678 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
General and Administrative Expenses [Abstract] | |
Schedule of general and administrative expenses | 2019 2018 2017 USD USD USD Human resources expenses 26,700,229 23,448,838 21,350,467 Business promotion, travel and entertainment 3,339,568 3,492,472 3,002,921 Statutory, advisory and rating 3,463,139 3,040,841 1,811,372 Information technology and software 1,871,641 1,838,585 1,542,740 Office operation 1,459,670 1,783,868 1,491,240 Depreciation and amortization (note 13) 1,288,407 869,140 1,022,950 Interest expense arising from lease liabilities (note 2) 108,426 - - Bank charges 136,569 153,055 129,750 Board of directors’ expenses 898,296 724,880 551,164 39,265,945 35,351,679 30,902,604 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Schedule of net investment income | 2019 2018 2017 USD USD USD Interest income 10,866,051 9,698,069 8,632,460 Dividends from equities at FVTOCI 721,240 342,800 - Dividends from equities at FVTPL 391,222 701,076 - Dividends - - 1,490,607 Realized gains and losses on investments Net gain on sale of available-for-sale investments - - 3,133,556 Realized loss on sale of bonds at FVTOCI (628,523 ) (763,569 ) - Realized gain on sale of FVTPL equities and mutual funds 946,952 2,048,908 - Unrealized gains and losses on investments Fair value changes of held for trading investments - - 95,582 Unrealized loss on revaluation of financial assets at FVTPL 1,590,964 (948,802 ) - Gains and losses from investments in properties Realized gain on sale of investment properties 678,516 - - Fair value (loss) gain on investment properties (note 12) (304,482 ) 93,934 18,148 Rental income 203,076 606,862 1,007,983 Impairment and expected credit losses on investments Impairment on available for sale investments - - (71,863 ) Expected credit loss on financial assets at FVOCI 22,764 (29,903 ) - Release of expected credit loss on financial assets at amortized cost 12,827 6,248 - Investments custodian fees and other investments expenses (1,126,531 ) (1,445,327 ) (1,741,631 ) 13,374,076 10,310,296 12,564,842 |
Other Revenues (Expenses) (Tabl
Other Revenues (Expenses) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Revenues (Expenses) [Abstract] | |
Schedule of other revenues expenses | 2019 2018 2017 USD USD USD Other revenues: Chartered flights revenue 1,428,265 902,750 837,712 Others - - 18,828 1,428,265 902,750 856,540 Other expenses: Aircraft operational cost (1,574,171 ) (1,095,461 ) (1,003,858 ) Aircraft depreciation expense (note 13) (594,496 ) (490,820 ) (462,184 ) Loss on disposal of property, premises and equipment (25,999 ) - - (2,194,666 ) (1,586,281 ) (1,466,042 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum rentals payable under non-cancellable operating leases | 2018 USD Within one year 636,600 More than one year to three years 1,077,509 More than three years to five years 280,013 More than five years - 1,994,122 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Parties [Abstract] | |
Schedule of income statement represented by agency fees and costs recharged | 2019 2018 2017 USD USD USD Agency fees due to International General Insurance Underwriting 20,315,915 17,394,592 15,692,409 Costs recharged back to International General Insurance Underwriting 21,329,250 18,856,943 16,678,582 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxation [Abstract] | |
Schedule of components of income tax expense | 2019 2018 2017 USD USD USD Current income tax: Current income tax charge 704,258 9,275 4,946 Adjustments in respect of current income tax of prior years - 47,182 (60,906 ) Deferred tax: Origination and reversal of temporary differences 1,246,525 8,181 (154,715 ) Effect of tax rate change (131,459 ) (861 ) 116,864 Adjustment in respect of prior years (131,741 ) (1,536 ) 79,389 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) |
Schedule of income tax expense appearing in the consolidated statement of income relate | 2019 2018 2017 USD USD USD Income tax expense for IGI Labuan – current year - 5,063 4,946 Corporate tax for IGI Casablanca (Representative Office) – current year 3,885 4,212 - Corporate tax for IGI Casablanca (Representative Office) – prior years - 4,212 - Income tax expense for IGI UK – current year 700,373 - (60,906 ) Income tax expense for IGI Underwriting – prior years - 42,970 - Addition (amortization) of deferred tax assets for IGI UK 983,325 5,784 41,538 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) |
Schedule of reconciliation of tax expense and the accounting profit multiplied by the applicable tax rate | 2019 2018 2017 USD USD USD The Group profit before tax 25,252,982 25,603,944 7,016,918 Less: Profit related to non-taxable subsidiaries (15,379,870 ) (26,486,855 ) (8,124,461 ) Profit (Loss) before tax for IGI UK and North Star Underwriting Limited – entities subject to corporate taxation 9,873,112 (882,911 ) (1,107,543 ) Profit (Loss) multiplied by the standard rate of tax in the UK of 19% (2018:19%) 1,875,891 (167,753 ) (213,202 ) Net disallowed expenditure 50,177 180,847 42,350 Fixed asset temporary differences not recognized for deferred tax 17,782 (10,827 ) (5,796 ) Other temporary differences not recognized for deferred tax 2,902 5,914 21,933 Adjustment in respect of prior years (131,527 ) 45,646 18,483 IGI Labuan and IGI Casablanca current year tax charges 3,817 9,275 4,946 Effect of rate change to 17% (131,459 ) (861 ) 116,864 Income tax charge/(credit) for the year 1,687,583 62,241 (14,422 ) |
Schedule of the movement on the deferred tax assets | 2019 2018 USD USD Balance at start of the year 638,841 644,625 Deferred tax prior year adjustment 131,741 1,536 Arising in year (1,246,525 ) (8,181 ) Effect of rate change to 17% 131,459 861 Others (2,340 ) - Ending balance (346,824 ) 638,841 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Schedule of geographical concentration of risks | 2019 2018 2017 Gross written premiums Concentration Gross written premiums Concentration Gross written premiums Concentration USD % USD % USD % Africa 16,492,171 5 13,601,315 5 14,797,102 5 Asia 32,809,456 9 27,841,670 9 33,939,858 12 Australasia 15,185,489 4 12,636,310 4 8,410,387 3 Caribbean Islands 8,334,322 2 15,098,606 5 10,514,780 4 Central America 37,731,495 11 26,696,686 9 35,560,075 13 Europe 37,327,933 11 34,470,850 11 32,179,912 12 Middle East 36,883,039 11 32,381,500 11 36,116,774 13 North America 4,281,472 1 859,731 0 1,038,139 1 South America 11,050,657 3 26,356,474 9 33,380,259 12 UK 115,863,288 33 76,717,981 25 42,887,109 15 Worldwide 33,332,583 10 34,957,363 12 26,277,796 10 349,291,905 301,618,486 275,102,191 |
Schedule of line of business concentration of risk | Gross written premiums 2019 Concentration Percentage Gross written premiums 2018 Concentration Percentage Gross written premiums 2017 Concentration Percentage USD % USD % USD % Energy 72,109,574 21 81,377,114 27 87,937,007 34 Property 46,137,090 13 43,785,498 15 53,738,771 18 Ports & Terminals 22,360,519 6 19,079,843 6 17,263,245 8 Casualty 115,890,373 33 73,665,448 24 43,119,887 9 Political Violence 8,296,949 2 11,406,211 4 9,730,839 7 Financial 23,181,037 7 16,147,579 5 14,271,496 5 Reinsurance 17,985,942 5 17,819,553 6 17,652,460 5 Engineering 20,703,708 6 18,194,161 6 10,375,952 6 Aviation 19,182,776 6 17,996,462 6 18,998,073 7 Marine Liability 3,443,937 1 2,146,617 1 2,014,461 1 349,291,905 301,618,486 275,102,191 |
Schedule of sensitivities | Gross Loss Sensitivity Factor Impact of increase on gross outstanding claims Impact of decrease on gross outstanding claims Impact of increase on net outstanding claims Impact of decrease on net outstanding claims Impact of increase on profit before tax Impact of decrease on profit before tax % USD USD USD USD USD USD 2019 7.5 30,978,898 (30,978,898 ) 18.541,702 (18,539,427 ) (18.541,702 ) 18,539,427 2019 5 20,652,599 (20,652,599 ) 12,361,514 (12,359,238 ) (12,361,514 ) 12,359,238 2018 7.5 28,828,488 (28,828,488 ) 15,297,751 (15,295,476 ) (15,297,751 ) 15,295,476 2018 5 19,218,992 (19,218,992 ) 10,198,880 (10,196,605 ) (10,198,880 ) 10,196,605 |
Schedule of maturities of the major classes of financial assets | Less than 1 year 1 to 5 years More than 5 years Non-interest- Total Effective Interest Rate on interest bearing assets USD USD USD USD USD (%) 2019- Financial assets at FVTPL - - - 21,805,575 21,805,575 - Financial assets at FVOCI 55,678,030 148,657,894 4,189,437 20,422,745 228,948,106 2.86 Financial assets at amortized cost 2,968,273 - - - 2,968,273 5.83 Cash, bank balances and term deposits 312,213,087 - - - 312,213,087 1.89 370,859,390 148,657,894 4,189,437 42,228,320 565,935,041 2018- Financial assets at FVTPL - - - 13,977,663 13,977,663 - Financial assets at FVOCI 50,095,407 108,481,889 3,584,618 21,308,397 183,470,311 2.92 Financial assets at amortized cost 3,456,837 - - - 3,456,837 5.72 Cash, bank balances and term deposits 260,059,595 - - - 260,059,595 1.88 313,611,839 108,481,889 3,584,618 35,286,060 460,964,406 |
Schedule of sensitivity of the income statement is the effect of the assumed changes in interest rates on the Group's profit for the year | Decrease in basis points Effect on profit for the year USD 2019 -25 (889,848 ) -50 (1,779,697 ) 2018 -25 (665,500 ) -50 (1,331,000 ) |
Schedule of foreign currency risk due to changes in the fair value of monetary assets and liabilities | Changes in Effect on currency rate profit to USD before tax % USD 2019 EUR +5 387,893 GBP +5 4,294,764 2018 EUR +5 65,440 GBP +5 1,857,406 |
Schedule of credit risk exposure of the Group by classifying assets according to the Group's credit rating of counterparties | Investment Non-investment In course Total USD USD USD USD 2019 FVOCI - debts securities 206,996,681 1,528,680 - 208,525,361 Financial Assets at amortized cost - 1,982,377 985,896 2,968,273 Insurance receivables - 65,835,667 47,139,177 112,974,844 Reinsurance share of outstanding claims 175,446,814 765,610 - 176,212,424 Deferred excess of loss premiums - 15,172,707 - 15,172,707 Cash, bank balances and term deposits 248,057,682 64,155,405 - 312,213,087 630,501,177 149,440,446 48,125,073 828,066,696 Investment Non-investment In course of Total USD USD USD USD 2018 FVOCI - debts securities 158,945,525 3,216,389 - 162,161,914 Financial Assets at amortized cost - 2,469,549 987,288 3,456,837 Insurance receivables - 60,880,815 47,366,816 108,247,631 Reinsurance share of outstanding claims 186,061,539 1,503,843 - 187,565,382 Deferred excess of loss premiums - 12,448,671 - 12,448,671 Cash, bank balances and term deposits 184,747,414 75,312,181 - 260,059,595 529,754,478 155,831,448 48,354,104 733,940,030 |
Schedule of distribution of bonds and debt securities with fixed interest rate | Rating grade Bonds Unquoted bonds Total USD USD USD 2019 AAA 44,953,920 - 44,953,920 AA+ 4,610,576 - 4,610,576 AA 2,926,031 - 2,926,031 Aa2 7,530,619 - 7,530,619 AA- 9,408,620 - 9,408,620 Aa3 2,394,194 - 2,394,194 A+ 18,340,787 - 18,340,787 A1 1,514,025 - 1,514,025 A 28,935,441 - 28,935,441 A2 5,435,133 - 5,435,133 A- 32,466,296 - 32,466,296 A3 8,975,157 - 8,975,157 BBB+ 16,038,586 - 16,038,586 BBB 14,521,672 - 14,521,672 Baa2 1,396,365 - 1,396,365 BBB- 7,333,329 - 7,333,329 BB- 215,930 - 215,930 Not rated 1,528,680 2,968,273 4,496,953 Total 208,525,361 2,968,273 211,493,634 Rating grade Bonds Unquoted bonds Total USD USD USD 2018 AAA 2,353,731 - 2,353,731 AA+ 4,771,755 - 4,771,755 Aa1 755,556 - 755,556 AA 7,124,087 - 7,124,087 Aa2 7,876,959 - 7,876,959 AA- 17,408,093 - 17,408,093 Aa3 5,527,355 - 5,527,355 A+ 15,840,316 - 15,840,316 A1 12,009,630 - 12,009,630 A 19,653,276 - 19,653,276 A2 9,512,157 - 9,512,157 A- 11,914,322 - 11,914,322 A3 10,679,082 - 10,679,082 BBB+ 13,216,017 - 13,216,017 Baa1 1,744,245 - 1,744,245 BBB 14,273,503 - 14,273,503 Baa2 1,385,487 - 1,385,487 BBB- 2,899,954 - 2,899,954 BB- 203,749 - 203,749 Not rated 3,012,640 3,456,837 6,469,477 Total 162,161,914 3,456,837 165,618,751 |
Schedule of geographical distribution of bonds and debt securities with fixed interest rate | Country Total 2019 USD Australia 1,053,150 Bahrain 215,930 Bermuda 765,533 Canada 9,163,712 Cayman Island 639,879 China 8,539,950 Europe 3,181,652 Finland 1,034,800 France 1,241,762 Germany 14,714,236 Global 990,623 Hong Kong 1,219,991 Japan 7,865,806 Jordan 2,968,273 KSA 2,349,245 Kuwait 1,019,590 Mexico 1,098,251 Netherlands 1,869,264 Norway 750,045 Pacific basin 3,002,430 Qatar 8,098,357 South Korea 5,127,002 Spain 544,876 Switzerland 332,394 UAE 5,691,518 UK 13,490,596 USA 114,524,769 Total 211,493,634 Country Total 2018 USD Australia 3,207,541 Bahrain 203,750 Canada 9,769,854 China 5,477,734 Europe 1,407,141 Finland 1,016,430 France 1,947,095 Germany 15,825,716 Global 910,686 Hong Kong 1,183,742 Italy 1,602,864 Japan 11,252,935 Jordan 3,456,838 KSA 2,262,838 Kuwait 978,170 Mexico 1,015,749 Netherlands 1,844,370 Norway 2,239,722 Pacific basin 3,466,916 Qatar 5,048,451 South Korea 5,497,709 UAE 12,683,997 UK 8,195,522 USA 65,122,981 Total 165,618,751 |
Schedule of demonstrates the sensitivity of the profit for the period and the cumulative changes in fair value to reasonably possible changes in equity prices | Change in equity price Effect on Effect on equity 2019 USD USD USD Amman Stock Exchange +5 % 58,438 58,438 Saudi Stock Exchange +5 % - 616,969 Qatar Stock Exchange +5 % 23,830 23,830 Abu Dhabi Security Exchange +5 % 61,470 61,470 New York Stock Exchange +5 % 123,518 161,258 Kuwait Stock Exchange +5 % - 2,978 London Stock Exchange +5 % 342,797 342,797 Other quoted +5 % 480,226 553,966 Change in equity price Effect on Effect on Equity 2018 USD USD USD Amman Stock Exchange +5 % 60,718 60,718 Saudi Stock Exchange +5 % - 665,120 Qatar Stock Exchange +5 % 25,369 25,369 Abu Dhabi Security Exchange +5 % 57,175 57,175 New York Stock Exchange +5 % 109,111 147,031 Kuwait Stock Exchange +5 % - 2,012 Other quoted +5 % 446,510 507,473 |
Schedule of maturity profile of the Group's financial liabilities | Less than one More than one Total 2019 USD USD USD Gross outstanding claims 172,243,041 240,809,814 413,052,855 Gross unearned premiums 159,660,497 46,553,532 206,214,029 Insurance payables 53,543,737 - 53,543,737 Other liabilities 13,821,580 1,041,702 14,863,282 Deferred tax liabilities 346,824 - 346,824 Unearned commissions 7,531,178 1,378,811 8,909,989 Total liabilities 407,146,857 289,783,859 696,930,716 2018 Gross outstanding claims 166,052,091 218,327,750 384,379,841 Gross unearned premiums 135,380,101 32,874,587 168,254,688 Insurance payables 33,034,146 - 33,034,146 Other liabilities 8,299,453 - 8,299,453 Unearned commissions 7,030,172 980,212 8,010,384 Total liabilities 349,795,963 252,182,549 601,978,512 |
Schedule of maturity analysis of assets and liabilities | 31 December 2019 Less than More than one year No term Total USD USD USD USD ASSETS Cash, bank balances and term deposits 312,213,087 - - 312,213,087 Insurance receivables 110,218,900 2,755,944 - 112,974,844 Investments 58,452,403 152,847,331 42,422,220 253,721,954 Investments in associates - - 13,061,674 13,061,674 Reinsurance share of outstanding claims 81,410,140 94,802,284 - 176,212,424 Reinsurance share of unearned premiums 30,226,280 3,690,269 - 33,916,549 Deferred excess of loss premiums 15,172,707 - - 15,172,707 Deferred policy acquisition costs 28,369,829 13,343,460 - 41,713,289 Other assets 7,754,225 - - 7,754,225 Investment properties - - 25,712,312 25,712,312 Property, premises and equipment - 12,734,842 - 12,734,842 Intangible assets - 3,885,894 - 3,885,894 TOTAL ASSETS 643,817,571 284,060,024 81,196,206 1,009,073,801 LIABILITIES AND EQUITY Liabilities Gross outstanding claims 172,243,041 240,809,814 - 413,052,855 Gross unearned premiums 159,660,497 46,553,532 - 206,214,029 Insurance payables 53,543,737 - - 53,543,737 Other liabilities 13,821,580 1,041,702 - 14,863,282 Deferred tax liabilities 346,824 - - 346,824 Unearned commissions 7,531,178 1,378,811 - 8,909,989 Total liabilities 407,146,857 289,783,859 - 696,930,716 Equity Share capital - - 143,375,678 143,375,678 Contributed capital - - 2,773,000 2,773,000 Treasury shares - - (20,102,500 ) (20,102,500 ) Foreign currency translation reserve - - (332,785 ) (332,785 ) Fair value reserve - - 4,273,914 4,273,914 Retained earnings - - 182,155,778 182,155,778 Total equity - - 312,143,085 312,143,085 TOTAL LIABILITIES AND EQUITY 407,146,857 289,783,859 312,143,085 1,009,073,801 31 December 2018 Less than More than No term Total USD USD USD USD ASSETS Cash, bank balances and term deposits 260,059,595 - - 260,059,595 Insurance receivables 105,760,142 2,487,489 - 108,247,631 Investments 53,552,244 112,066,507 35,286,060 200,904,811 Investments in associates - - 13,437,778 13,437,778 Reinsurance share of outstanding claims 92,844,864 94,720,518 - 187,565,382 Reinsurance share of unearned premiums 29,777,293 2,789,554 - 32,566,847 Deferred excess of loss premiums 12,448,671 - - 12,448,671 Deferred policy acquisition costs 27,945,967 8,457,864 - 36,403,831 Deferred tax assets - 638,841 - 638,841 Other assets 5,061,050 - - 5,061,050 Investment properties - - 30,655,214 30,655,214 Property, premises and equipment - 12,216,997 - 12,216,997 Intangible assets - 2,935,750 - 2,935,750 TOTAL ASSETS 587,449,826 236,313,520 79,379,052 903,142,398 LIABILITIES AND EQUITY Liabilities Gross outstanding claims 166,052,091 218,327,750 - 384,379,841 Gross unearned premiums 135,380,101 32,874,587 - 168,254,688 Insurance payables 33,034,146 - - 33,034,146 Other liabilities 8,299,453 - - 8,299,453 Unearned commissions 7,030,172 980,212 - 8,010,384 Total liabilities 349,795,963 252,182,549 - 601,978,512 Equity Share capital - - 143,375,678 143,375,678 Contributed capital - - 2,773,000 2,773,000 Treasury shares - - (15,050,000 ) (15,050,000 ) Foreign currency translation reserve - - (294,929 ) (294,929 ) Fair value reserve - - 953,704 953,704 Retained earnings - - 169,406,433 169,406,433 Total equity - - 301,163,886 301,163,886 TOTAL LIABILITIES AND EQUITY 349,795,963 252,182,549 301,163,886 903,142,398 |
Schedule of hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques | 31 December 2019 Level 1 Level 2 Level 3 Total USD USD USD USD FVTPL 21,805,575 - - 21,805,575 Quoted equities at FVOCI 14,628,558 - - 14,628,558 Quoted bonds at FVOCI 208,525,361 - - 208,525,361 Unquoted equities at FVOCI * - - 5,794,187 5,794,187 Investment properties - - 25,712,312 25,712,312 244,959,494 - 31,506,499 276,465,993 31 December 2018 Level 1 Level 2 Level 3 Total USD USD USD USD FVTPL 13,977,663 - - 13,977,663 Quoted equities at FVOCI 15,320,310 - - 15,320,310 Quoted bonds at FVOCI 162,161,914 - - 162,161,914 Unquoted equities at FVOCI * - - 5,988,087 5,988,087 Investment properties - - 30,655,214 30,655,214 191,459,887 - 36,643,301 228,103,188 * Reconciliation of fair value of the unquoted equities under level 3 fair value hierarchy is as follows: 2019 2018 USD USD Balance at the beginning of the year 5,988,087 4,436,160 Total gains and (losses) recognized in OCI (193,900 ) 1,551,927 Balance at the end of the year 5,794,187 5,988,087 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Basic and diluted earnings per share [abstract] | |
Schedule of basic and diluted EPS | 2019 2018 2017 Profit for the year attributable to the equity holders of parent (USD) 23,565,399 25,541,703 7,031,340 Weighted average number of shares during the year – basic and diluted 135,161,942 138,320,733 143,375,678 Basic and diluted earnings per share 0.17 0.18 0.05 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Schedule of consolidated operations | 2019 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 142,515,347 188,790,616 17,985,942 349,291,905 - 349,291,905 Reinsurer’s share of insurance premiums (22,541,384 ) (74,597,986 ) - (97,139,370 ) - (97,139,370 ) Net written premiums 119,973,963 114,192,630 17,985,942 252,152,535 - 252,152,535 Net change in unearned premiums (23,523,415 ) (12,839,449 ) (246,775 ) (36,609,639 ) - (36,609,639 ) Net premiums earned 96,450,548 101,353,181 17,739,167 215,542,896 - 215,542,896 Underwriting deductions Net policy acquisition expenses (21,280,118 ) (21,159,319 ) (2,996,001 ) (45,435,438 ) - (45,435,438 ) Net claims and claim adjustment expenses (58,799,478 ) (44,725,627 ) (14,538,383 ) (118,063,488 ) - (118,063,488 ) Net underwriting results 16,370,952 35,468,235 204,783 52,043,970 - 52,043,970 General and administrative expenses - - - - (39,265,945 ) (39,265,945 ) Net investment income - - - - 13,374,076 13,374,076 Share of loss from associates - - - - (376,104 ) (376,104 ) Impairment loss on insurance receivables - - - - (628,887 ) (628,887 ) Other revenues - - - - 1,428,265 1,428,265 Other expenses - - - - (2,194,666 ) (2,194,666 ) Listing related expenses - - - - (4,831,976 ) (4,831,976 ) Gain on foreign exchange - - - - 5,704,249 5,704,249 Profit (loss) before tax 16,370,952 35,468,235 204,783 52,043,970 (26,790,988 ) 25,252,982 Income tax - - - - (1,687,583 ) (1,687,583 ) Profit for the year 16,370,952 35,468,235 204,783 52,043,970 (28,478,571 ) 23,565,399 2018 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 91,959,644 191,839,289 17,819,553 301,618,486 - 301,618,486 Reinsurer’s share of insurance premiums 47,803 (98,235,891 ) - (98,188,088 ) - (98,188,088 ) Net written premiums 92,007,447 93,603,398 17,819,553 203,430,398 - 203,430,398 Net change in unearned premiums (22,096,205 ) 2,001,935 (26,509 ) (20,120,779 ) - (20,120,779 ) Net premiums earned 69,911,242 95,605,333 17,793,044 183,309,619 - 183,309,619 Underwriting deductions Net policy acquisition expenses (16,150,853 ) (22,762,489 ) (3,050,180 ) (41,963,522 ) - (41,963,522 ) Net claims and claim adjustment expenses (37,305,026 ) (36,564,914 ) (11,417,561 ) (85,287,501 ) - (85,287,501 ) Net underwriting results 16,455,363 36,277,930 3,325,303 56,058,596 - 56,058,596 General and administrative expenses - - - - (35,351,679 ) (35,351,679 ) Net investment income - - - - 10,310,296 10,310,296 Share of loss from associates - - - - (885,673 ) (885,673 ) Impairment loss on insurance receivables - - - - (472,124 ) (472,124 ) Other revenues - - - - 902,750 902,750 Other expenses - - - - (1,586,281 ) (1,586,281 ) Loss on foreign exchange - - - - (3,371,941 ) (3,371,941 ) Profit (loss) before tax 16,455,363 36,277,930 3,325,303 56,058,596 (30,454,652 ) 25,603,944 Income tax - - - - (62,241 ) (62,241 ) Profit for the year 16,455,363 36,277,930 3,325,303 56,058,596 (30,516,893 ) 25,541,703 2017 Specialty Specialty Reinsurance Sub Total Corporate Total USD USD USD USD USD USD Underwriting revenues Gross written premiums 59,405,845 198,043,886 17,652,460 275,102,191 - 275,102,191 Reinsurer’s share of insurance premiums (9,930,020 ) (104,404,730 ) - (114,334,750 ) - (114,334,750 ) Net written premiums 49,475,825 93,639,156 17,652,460 160,767,441 - 160,767,441 Net change in unearned premiums (11,126,468 ) (2,329,012 ) (579,177 ) (14,034,657 ) - (14,034,657 ) Net premiums earned 38,349,357 91,310,144 17,073,283 146,732,784 - 146,732,784 Underwriting deductions Net policy acquisition expenses (10,692,254 ) (22,923,009 ) (2,616,447 ) (36,231,710 ) - (36,231,710 ) Net claims and claim adjustment expense (14,344,990 ) (60,486,788 ) (12,098,759 ) (86,930,537 ) - (86,930,537 ) Net underwriting results 13,312,113 7,900,347 2,358,077 23,570,537 - 23,570,537 General and administrative expenses - - - - (30,902,604 ) (30,902,604 ) Net investment income - - - - 12,564,842 12,564,842 Share of profit from associates - - - - 992,218 992,218 Impairment loss on insurance receivables - - - - (1,214,456 ) (1,214,456 ) Other revenues - - - - 856,540 856,540 Other expenses - - - - (1,466,042 ) (1,466,042 ) Gain on foreign exchange - - - - 2,615,883 2,615,883 Profit (loss) before tax 13,312,113 7,900,347 2,358,077 23,570,537 (16,553,619 ) 7,016,918 Income tax - - - - 14,422 14,422 Profit for the year 13,312,113 7,900,347 2,358,077 23,570,537 (16,539,197 ) 7,031,340 |
Schedule of non-current operating assets information by geography | 2019 2018 USD USD Middle East 40,581,053 45,333,446 North Africa 25,093 65,715 UK 1,622,236 406,262 Asia 104,666 2,538 42,333,048 45,807,961 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
International General Insurance Underwriting [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Jordan | Jordan |
Activity | Underwriting agency | Underwriting agency |
Ownership percentage | 100.00% | 100.00% |
North Star Underwriting Limited [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | United Kingdom | United Kingdom |
Activity | Underwriting agency | Underwriting agency |
Ownership percentage | 100.00% | 100.00% |
International General Insurance Co. Ltd [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Bermuda | Bermuda |
Activity | Reinsurance and insurance | Reinsurance and insurance |
Ownership percentage | 100.00% | 100.00% |
International General Insurance Company (UK) Limited [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | United Kingdom | United Kingdom |
Activity | Reinsurance and insurance | Reinsurance and insurance |
Ownership percentage | 100.00% | 100.00% |
International General Insurance Company Dubai Ltd. [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | United Arab Emirates | United Arab Emirates |
Activity | Insurance intermediation and insurance management | Insurance intermediation and insurance management |
Ownership percentage | 100.00% | 100.00% |
Specialty Malls Investment Co. [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Jordan | Jordan |
Activity | Real estate properties development and lease | Real estate properties development and lease |
Ownership percentage | 100.00% | 100.00% |
IGI Services Limited [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Cayman Islands | Cayman Islands |
Activity | Owning and chartering aircraft | Owning and chartering aircraft |
Ownership percentage | 100.00% | 100.00% |
International General Insurance Company Ltd Labuan Branch [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Malaysia | Malaysia |
Activity | Reinsurance and insurance | Reinsurance and insurance |
Ownership percentage | 100.00% | 100.00% |
Basis of Preparation (Details 1
Basis of Preparation (Details 1) - USD ($) | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 |
Property, premises and equipment | |||
Right of use assets | $ 1,513,661 | $ 1,715,606 | $ 1,715,606 |
Other liabilities | |||
Lease liabilities | $ 1,563,389 | 1,715,606 | $ 1,715,606 |
Total equity |
Basis of Preparation (Details 2
Basis of Preparation (Details 2) - USD ($) | Jan. 02, 2019 | Dec. 31, 2018 |
Basis Of Preparation [Abstract] | ||
Operating lease commitments as at 31 December 2018 | $ 1,994,122 | |
Weighted average incremental borrowing rate as at 1 January 2019 | 4.30% | |
Discounted operating lease commitments at 1 January 2019 | $ 1,715,606 |
Basis of Preparation (Details 3
Basis of Preparation (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basis Of Preparation [Abstract] | |||
Beginning, offices | $ 1,715,606 | ||
Additions, offices | 1,002,005 | ||
Disposal - Net, offices | (687,775) | ||
Depreciation, offices | (516,175) | ||
Interest expense, offices | |||
Payments, offices | |||
Ending, offices | 1,513,661 | $ 1,715,606 | |
Beginning, lease liabilities | 1,715,606 | ||
Additions, lease liabilities | 1,002,005 | ||
Disposal - Net, lease liabilities | (656,416) | ||
Depreciation, lease liabilities | |||
Interest expense, lease liabilities | 108,426 | ||
Payments, lease liabilities | (606,232) | ||
Ending, lease liabilities | 1,563,389 | $ 1,715,606 | |
Current, lease liabilities | 521,687 | ||
Non-current, lease liabilities | $ 1,041,702 |
Basis of Preparation (Details 4
Basis of Preparation (Details 4) | 12 Months Ended |
Dec. 31, 2019 | |
Statement Line Items [Line Items] | |
Office buildings | 20 years |
Aircraft | 12 years 6 months |
Office furniture | 5 years |
Computers | 3 years |
Equipment | 4 years |
Leasehold improvemets | 5 years |
Vehicles | 5 years |
Bottom of range [member] | |
Statement Line Items [Line Items] | |
Right-of-use assets | 2 years |
Top of range [member] | |
Statement Line Items [Line Items] | |
Right-of-use assets | 7 years |
Basis of Preparation (Details T
Basis of Preparation (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Basis of preparation (Textual) | ||
Low-value lease assets | $ 5,000 | |
Computer software | 5 years | |
Software licenses | 5 years | |
Stock option granted vesting period | 5 years | |
Stock option vesting percentage | 20.00% | |
Total carrying amount of insurance contract liabilities | $ 413,052,855 | $ 384,379,841 |
Gross incurred but not reported claims | 120,330,776 | 98,609,584 |
Amount of investment properties | 25,712,312 | 30,655,214 |
Total expected credit losses on insurance receivables | 6,393,719 | 6,093,638 |
Estimated pipeline premiums | $ 5,307,350 | $ 5,242,979 |
Cash at Banks (Details)
Cash at Banks (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Line Items [Line Items] | ||||
Total cash and cash equivalents | $ 192,459,867 | $ 184,732,364 | $ 104,150,495 | $ 102,348,170 |
Cash and Cash Equivalents [member] | ||||
Statement Line Items [Line Items] | ||||
Cash and bank balances | 167,767,393 | 159,478,364 | ||
Deposits with original maturities of three months or less | 24,692,474 | 25,254,000 | ||
Total cash and cash equivalents | $ 192,459,867 | $ 184,732,364 |
Cash at Banks (Details 1)
Cash at Banks (Details 1) - Term Deposits [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
Total deposits | $ 144,445,694 | $ 100,581,231 |
Less: Deposits with original maturities of three months or less - note 3 (a) | (24,692,474) | (25,254,000) |
Total term deposits | $ 119,753,220 | $ 75,327,231 |
Insurance Receivables (Details)
Insurance Receivables (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Insurance revenue, amounts relating to changes in liability for remaining coverage [abstract] | ||
Receivables from insurance companies and intermediaries | $ 2,610,528 | $ 233,316 |
Less: Expected credit loss on insurance receivables | (6,393,719) | (6,093,638) |
Insurance receivables | $ 112,974,844 | $ 108,247,631 |
Insurance Receivables (Details
Insurance Receivables (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance revenue, amounts relating to changes in liability for remaining coverage [abstract] | ||
Opening balance | $ 6,093,638 | $ 5,621,514 |
Provision for the year | 628,887 | 472,124 |
Write-offs | (328,806) | |
Ending balance | $ 6,393,719 | $ 6,093,638 |
Investments (Details)
Investments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Unquoted bonds | [1] | $ 3,235,896 | $ 3,737,287 |
Quoted bonds | 208,525,361 | 162,161,914 | |
Quoted funds and alternative investments | 8,261,033 | 8,383,593 | |
Quoted equities | 28,173,100 | 20,914,380 | |
Unquoted equities | [2] | 5,794,187 | 5,988,087 |
Expected credit losses and impairment | (267,623) | (280,450) | |
Total | 253,721,954 | 200,904,811 | |
Amortized cost [Member] | |||
Statement Line Items [Line Items] | |||
Unquoted bonds | [1] | 3,235,896 | 3,737,287 |
Quoted bonds | |||
Quoted funds and alternative investments | |||
Quoted equities | |||
Unquoted equities | [2] | ||
Expected credit losses and impairment | (267,623) | (280,450) | |
Total | 2,968,273 | 3,456,837 | |
Fair value through other comprehensive [Member] | |||
Statement Line Items [Line Items] | |||
Unquoted bonds | [1] | ||
Quoted bonds | 208,525,361 | 162,161,914 | |
Quoted funds and alternative investments | |||
Quoted equities | 14,628,558 | 15,320,310 | |
Unquoted equities | [2] | 5,794,187 | 5,988,087 |
Expected credit losses and impairment | |||
Total | 228,948,106 | 183,470,311 | |
Fair value through statement of income [Member] | |||
Statement Line Items [Line Items] | |||
Unquoted bonds | [1] | ||
Quoted bonds | |||
Quoted funds and alternative investments | 8,261,033 | 8,383,593 | |
Quoted equities | 13,544,542 | 5,594,070 | |
Unquoted equities | [2] | ||
Expected credit losses and impairment | |||
Total | $ 21,805,575 | $ 13,977,663 | |
[1] | The Group has an investment in an unquoted bond denominated in JOD (USD pegged currency) issued by 'Specialized Investment Compound Co.' a local company based in Jordan with a maturity date of 22nd February 2016. Said company is currently under liquidation, due to which 85% of original bond holdings with nominal value amounted to USD 1,235,543 were not paid on that maturity date. These bonds are backed up by collateral in the form of real estate properties. However, the Group management has provided USD 250,000 to cover any potential impairment in the value of the collateral held against said investment. | ||
[2] | The Group has two unquoted equity investments under level 3 designated at fair value through OCI valued at USD 5,261,387 (2018: USD 5,263,777) and USD 532,800 (2018:USD 724,310). As at 31 December 2018, the fair value of the unquoted equities was recorded by adopting a market approach using the price of the most recent sale transaction as a basis to arrive at a value of these investments. As at 31 December 2019, there was no information available about recent sale transactions. Accordingly, the Group has used an alternative valuation technique called 'multiples-based valuation' whereby earnings-based multiples of comparable companies as at 31 December 2019 were considered for the valuation. There are no active markets for these investments and the Group intends to hold them for the long term. |
Investments (Details 1)
Investments (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Details 1Abstract | ||
Opening balance | $ 280,450 | $ 286,698 |
Release of provision for investment in debt securities | (12,827) | (6,248) |
Ending balance | $ 267,623 | $ 280,450 |
Investments (Details 2)
Investments (Details 2) - Fair value of Level 3 financial assets [member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement Line Items [Line Items] | |||
Sensitivity of fair value of financial assets % | 10.00% | 10.00% | |
Positive impact | $ 573,974 | $ 598,808 | |
Negative impact | $ (573,974) | $ (598,808) | |
Valuation variables | Market multiples applied to a range of financial performance measures | [1] | Price of most recent sale transaction |
[1] | As at 31 December 2019, the fair value measurement of the unquoted equity investment valued at USD 5,261,387 was based on a combination of valuation multiples, with greater weight given to price to book value multiple. This has implied an equity value range of USD 5,110,200 to USD 5,561,100. |
Investments (Details Textual)
Investments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Allowance for bonds at FVTOCI | $ (22,764) | |
Investments maturity | Maturity date of 22nd February 2016. | |
Investment liquidation, percent | 85.00% | |
Nominal value | $ 1,235,543 | |
Fair value measurement of the unquoted equity investment | 5,261,387 | |
Potential impairment | 250,000 | |
Bottom of range [member] | ||
Statement Line Items [Line Items] | ||
Implied an equity value range | 5,110,200 | |
Top of range [member] | ||
Statement Line Items [Line Items] | ||
Implied an equity value range | 5,561,100 | |
Unquoted equity investments 1 [member] | ||
Statement Line Items [Line Items] | ||
Designated at fair value through OCI | 5,261,387 | $ 5,263,777 |
Unquoted equity investments 2 [member] | ||
Statement Line Items [Line Items] | ||
Designated at fair value through OCI | $ 532,800 | $ 724,310 |
Investments in Associates (Deta
Investments in Associates (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
Ownership | 32.70% | |
Star Rock SAL Lebanon [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
Ownership | 32.70% | 32.70% |
Sina SAL Lebanon [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
Ownership | 32.70% | 32.70% |
Silver Rock SAL Lebanon [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
Ownership | 32.70% | 32.70% |
Golden Rock SAL Lebanon [Member] | ||
Statement Line Items [Line Items] | ||
Country of incorporation | Lebanon | |
Ownership | 32.70% | 32.70% |
Investments in Associates (De_2
Investments in Associates (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in Associates [Abstract] | ||
Opening balance | $ 13,437,778 | $ 14,323,451 |
Share of associated companies' financial results | (6,393) | 36,917 |
Investment properties fair value adjustment | (495,736) | (838,748) |
Reversal of (provision for) contingent liabilities | 126,025 | (83,842) |
Share of profit or loss from associates | (376,104) | (885,673) |
Ending balance | $ 13,061,674 | $ 13,437,778 |
Investments in Associates (De_3
Investments in Associates (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Current assets | $ 952,721 | $ 794,534 | |
Non-current assets | 47,513,386 | 49,508,756 | |
Current liabilities | (6,987,010) | (7,288,638) | |
Non-current liabilities | (1,535,139) | (1,920,535) | |
Net assets | 39,943,958 | 41,094,117 | |
The Group's share of net assets | 13,061,674 | 13,437,778 | |
Revenues | 1,283,885 | 1,535,067 | $ 1,486,002 |
Net (loss} | 23,565,399 | 25,541,703 | 7,031,340 |
The Group's share of profit (loss) | (376,104) | (885,673) | 992,218 |
Star Rock SAL Lebanon [Member] | |||
Statement Line Items [Line Items] | |||
Current assets | 62,359 | 44,491 | |
Non-current assets | 4,970,390 | 5,205,244 | |
Current liabilities | (1,790,847) | (1,801,066) | |
Non-current liabilities | (136,081) | (135,934) | |
Net assets | 3,105,821 | 3,312,735 | |
The Group's share of net assets | 1,015,603 | 1,083,265 | |
Revenues | 72,371 | 134,676 | 90,006 |
Net (loss} | (206,916) | (245,495) | 408,161 |
The Group's share of profit (loss) | (67,662) | (80,277) | 133,469 |
Sina SAL Lebanon [Member] | |||
Statement Line Items [Line Items] | |||
Current assets | 49,224 | 46,225 | |
Non-current assets | 3,782,149 | 3,926,427 | |
Current liabilities | (2,208,931) | (2,247,373) | |
Non-current liabilities | (162,034) | (149,515) | |
Net assets | 1,460,408 | 1,575,764 | |
The Group's share of net assets | 477,553 | 515,275 | |
Revenues | 61,420 | 68,601 | 52,803 |
Net (loss} | (115,357) | (240,228) | 174,977 |
The Group's share of profit (loss) | (37,722) | (78,555) | 57,217 |
Silver Rock SAL Lebanon [Member] | |||
Statement Line Items [Line Items] | |||
Current assets | 61,267 | 116,287 | |
Non-current assets | 5,405,404 | 5,610,302 | |
Current liabilities | (380,714) | (488,925) | |
Non-current liabilities | (89,747) | (143,677) | |
Net assets | 4,996,210 | 5,093,987 | |
The Group's share of net assets | 1,633,761 | 1,665,735 | |
Revenues | 111,728 | 166,061 | 147,976 |
Net (loss} | (97,781) | (236,524) | 196,769 |
The Group's share of profit (loss) | (31,974) | (77,343) | 64,344 |
Golden Rock SAL Lebanon [Member] | |||
Statement Line Items [Line Items] | |||
Current assets | 779,871 | 587,531 | |
Non-current assets | 33,355,443 | 34,766,783 | |
Current liabilities | (2,606,518) | (2,751,274) | |
Non-current liabilities | (1,147,277) | (1,491,409) | |
Net assets | 30,381,519 | 31,111,631 | |
The Group's share of net assets | 9,934,757 | 10,173,503 | |
Revenues | 1,038,366 | 1,165,729 | 1,195,217 |
Net (loss} | (730,110) | (1,986,234) | 2,254,396 |
The Group's share of profit (loss) | $ (238,746) | $ (649,498) | $ 737,188 |
Investments in Associates (De_4
Investments in Associates (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Associates (Textual) | |
Equity ownership interest percentage | 32.70% |
Country of incorporation | Lebanon |
Percentage of basis and reflects adjustments made by the Group | 100.00% |
Outstanding Claims (Details)
Outstanding Claims (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Gross [Member] | |||
Statement Line Items [Line Items] | |||
At the beginning of the year Reported claims | $ 285,770,257 | $ 303,254,937 | $ 244,216,392 |
Claims incurred but not reported | 98,609,584 | 79,972,504 | 90,954,902 |
Reported claims, net | 384,379,841 | 383,227,441 | 335,171,294 |
Claims paid | (131,151,122) | (209,892,000) | (204,098,071) |
Provided during the year related to current accident year | 150,799,594 | 196,708,805 | 278,298,318 |
Provided during the year related to previous accident years | 9,024,542 | 14,335,595 | (26,144,100) |
At the end of the year | 413,052,855 | 384,379,841 | 383,227,441 |
At the end of the year Reported claims | 292,722,079 | 285,770,257 | 303,254,937 |
Claims incurred but not reported | 120,330,776 | 98,609,584 | 79,972,504 |
Total movement in outstanding claims | 413,052,855 | 384,379,841 | 383,227,441 |
Reinsurers' share [Member] | |||
Statement Line Items [Line Items] | |||
At the beginning of the year Reported claims | (170,124,934) | (178,617,218) | (122,735,801) |
Claims incurred but not reported | (17,440,448) | (7,974,801) | (20,329,907) |
Reported claims, net | (187,565,382) | (186,592,019) | (143,065,708) |
Claims paid | 53,113,606 | 124,783,536 | 121,697,370 |
Provided during the year related to current accident year | (26,443,648) | (102,442,564) | (167,956,984) |
Provided during the year related to previous accident years | (15,317,000) | (23,314,335) | 2,733,303 |
At the end of the year | (176,212,424) | (187,565,382) | (186,592,019) |
At the end of the year Reported claims | (163,190,980) | (170,124,934) | (178,617,218) |
Claims incurred but not reported | (13,021,444) | (17,440,448) | (7,974,801) |
Total movement in outstanding claims | (176,212,424) | (187,565,382) | (186,592,019) |
Net [Member] | |||
Statement Line Items [Line Items] | |||
At the beginning of the year Reported claims | 115,645,323 | 124,637,719 | 121,480,591 |
Claims incurred but not reported | 81,169,136 | 71,997,703 | 70,624,995 |
Reported claims, net | 196,814,459 | 196,635,422 | 192,105,586 |
Claims paid | (78,037,516) | (85,108,464) | (82,400,701) |
Provided during the year related to current accident year | 124,355,946 | 94,266,241 | 110,341,334 |
Provided during the year related to previous accident years | (6,292,458) | (8,978,740) | (23,410,797) |
At the end of the year | 236,840,431 | 196,814,459 | 196,635,422 |
At the end of the year Reported claims | 129,531,099 | 115,645,323 | 124,637,719 |
Claims incurred but not reported | 107,309,332 | 81,169,136 | 71,997,703 |
Total movement in outstanding claims | $ 236,840,431 | $ 196,814,459 | $ 196,635,422 |
Outstanding Claims (Details 1)
Outstanding Claims (Details 1) | Dec. 31, 2019USD ($) |
Statement Line Items [Line Items] | |
Current estimate of cumulative claims incurred | $ 1,824,152,230 |
Cumulative payments to date | 1,411,099,375 |
Total liability included in the consolidated statement of financial position | 413,052,855 |
2005 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 25,362,416 |
One year later | 44,520,499 |
Two years later | 47,504,859 |
Three years later | 47,354,940 |
Four years later | 46,829,976 |
Five years later | 46,391,258 |
Six years later | 47,224,929 |
Seven years later | 46,211,206 |
Eight years later | 46,232,192 |
Nine years later | 46,224,784 |
Ten years later | 45,737,657 |
Eleven years later | 45,608,779 |
Twelve years later | 45,609,384 |
Thirteen years later | 45,602,039 |
Fourteen years later | 45,613,014 |
Current estimate of cumulative claims incurred | 45,613,014 |
Cumulative payments to date | 45,612,133 |
2006 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 25,254,263 |
One year later | 35,110,485 |
Two years later | 40,894,923 |
Three years later | 39,641,082 |
Four years later | 37,331,379 |
Five years later | 37,665,596 |
Six years later | 36,800,576 |
Seven years later | 35,600,935 |
Eight years later | 35,318,464 |
Nine years later | 34,796,272 |
Ten years later | 34,609,372 |
Eleven years later | 34,553,537 |
Twelve years later | 34,422,917 |
Thirteen years later | 34,377,940 |
Fourteen years later | |
Current estimate of cumulative claims incurred | 34,377,940 |
Cumulative payments to date | 33,701,658 |
2007 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 37,939,544 |
One year later | 54,041,148 |
Two years later | 53,379,611 |
Three years later | 53,971,648 |
Four years later | 53,468,989 |
Five years later | 53,393,860 |
Six years later | 50,534,739 |
Seven years later | 49,718,456 |
Eight years later | 49,552,802 |
Nine years later | 49,374,891 |
Ten years later | 49,361,720 |
Eleven years later | 49,312,510 |
Twelve years later | 49,303,976 |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 49,303,976 |
Cumulative payments to date | 49,301,701 |
2008 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 114,560,922 |
One year later | 125,149,178 |
Two years later | 119,412,667 |
Three years later | 121,676,478 |
Four years later | 119,839,220 |
Five years later | 113,090,591 |
Six years later | 112,125,348 |
Seven years later | 110,400,053 |
Eight years later | 110,588,511 |
Nine years later | 111,162,234 |
Ten years later | 111,371,580 |
Eleven years later | 111,500,390 |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 111,500,390 |
Cumulative payments to date | 110,725,084 |
2009 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 94,375,639 |
One year later | 75,295,485 |
Two years later | 67,118,529 |
Three years later | 68,496,704 |
Four years later | 68,217,208 |
Five years later | 67,908,658 |
Six years later | 67,807,370 |
Seven years later | 67,613,678 |
Eight years later | 68,114,668 |
Nine years later | 68,950,049 |
Ten years later | 68,881,829 |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 68,881,829 |
Cumulative payments to date | 67,854,039 |
2010 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 122,323,418 |
One year later | 108,522,816 |
Two years later | 105,943,110 |
Three years later | 100,572,066 |
Four years later | 99,513,334 |
Five years later | 101,599,381 |
Six years later | 100,198,544 |
Seven years later | 100,302,961 |
Eight years later | 100,073,144 |
Nine years later | 100,119,899 |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 100,119,899 |
Cumulative payments to date | 99,582,296 |
2011 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 128,498,162 |
One year later | 106,566,918 |
Two years later | 100,764,212 |
Three years later | 110,286,014 |
Four years later | 114,464,267 |
Five years later | 110,266,231 |
Six years later | 111,774,284 |
Seven years later | 110,644,445 |
Eight years later | 111,028,275 |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 111,028,275 |
Cumulative payments to date | 102,709,727 |
2012 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 133,595,104 |
One year later | 119,424,721 |
Two years later | 108,556,804 |
Three years later | 110,046,062 |
Four years later | 103,996,492 |
Five years later | 104,540,662 |
Six years later | 103,167,021 |
Seven years later | 97,917,558 |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 97,917,558 |
Cumulative payments to date | 94,781,375 |
2013 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 159,549,092 |
One year later | 155,958,329 |
Two years later | 148,160,641 |
Three years later | 142,309,348 |
Four years later | 133,916,518 |
Five years later | 132,991,755 |
Six years later | 130,843,807 |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 130,843,807 |
Cumulative payments to date | 128,732,202 |
2014 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 152,384,186 |
One year later | 114,972,073 |
Two years later | 101,352,163 |
Three years later | 92,846,420 |
Four years later | 88,210,215 |
Five years later | 85,621,385 |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 85,621,385 |
Cumulative payments to date | 82,445,136 |
2015 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 174,601,048 |
One year later | 160,100,166 |
Two years later | 149,533,104 |
Three years later | 145,920,851 |
Four years later | 142,926,388 |
Five years later | |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 142,926,388 |
Cumulative payments to date | 135,516,537 |
2016 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 175,094,042 |
One year later | 173,369,296 |
Two years later | 167,694,979 |
Three years later | 158,572,219 |
Four years later | |
Five years later | |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 158,572,219 |
Cumulative payments to date | 149,115,128 |
2017 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 278,298,318 |
One year later | 309,257,783 |
Two years later | 317,052,504 |
Three years later | |
Four years later | |
Five years later | |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 317,052,504 |
Cumulative payments to date | 224,833,333 |
2018 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 196,708,806 |
One year later | 219,593,452 |
Two years later | |
Three years later | |
Four years later | |
Five years later | |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 219,593,452 |
Cumulative payments to date | 68,579,482 |
2019 [Member] | |
Statement Line Items [Line Items] | |
At end of accident year | 150,799,594 |
One year later | |
Two years later | |
Three years later | |
Four years later | |
Five years later | |
Six years later | |
Seven years later | |
Eight years later | |
Nine years later | |
Ten years later | |
Eleven years later | |
Twelve years later | |
Thirteen years later | |
Fourteen years later | |
Current estimate of cumulative claims incurred | 150,799,594 |
Cumulative payments to date | $ 17,609,544 |
Unearned Premiums (Details)
Unearned Premiums (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unearned Premiums [Abstract] | |||
Opening balance, Gross | $ 168,254,688 | $ 156,694,025 | $ 133,670,895 |
Opening balance, Reinsurers' share | (32,566,847) | (41,126,963) | (32,138,490) |
Opening balance, Net | 135,687,841 | 115,567,062 | 101,532,405 |
Premiums written, Gross | 349,291,905 | 301,618,486 | 275,102,191 |
Premiums written, Reinsurers' share | (97,139,370) | (98,188,088) | (114,334,750) |
Premiums written, Net | 252,152,535 | 203,430,398 | 160,767,441 |
Premiums earned, Gross | (311,332,564) | (290,057,823) | (252,079,061) |
Premiums earned, Reinsurers' share | 95,789,668 | 106,748,204 | 105,346,277 |
Premiums earned, Net | 215,542,896 | 183,309,619 | 146,732,784 |
Ending balance, Gross | 206,214,029 | 168,254,688 | 156,694,025 |
Ending balance, Reinsurers' share | (33,916,549) | (32,566,847) | (41,126,963) |
Ending balance, Net | $ 172,297,480 | $ 135,687,841 | $ 115,567,062 |
Defferred Excess of Loss Prem_3
Defferred Excess of Loss Premiums (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defferred Excess of Loss Premiums [Abstract] | |||
Opening balance | $ 12,448,671 | $ 11,612,654 | $ 8,878,968 |
Additions | 37,491,753 | 24,945,436 | 28,664,368 |
Charged to consolidated income statement under reinsures' share of insurance premiums | (34,767,717) | (24,109,419) | (25,930,682) |
Ending balance | $ 15,172,707 | $ 12,448,671 | $ 11,612,654 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Policy Acquisition Costs [Abstract] | |||
Opening balance | $ 36,403,831 | $ 32,915,965 | $ 28,286,248 |
Acquisition costs during the year | 64,675,035 | 62,268,542 | 57,570,774 |
Charged to consolidated statement of income | (59,365,577) | (58,780,676) | (52,941,057) |
Ending balance | $ 41,713,289 | $ 36,403,831 | $ 32,915,965 |
Other Assets (Details)
Other Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
Total other assets | $ 952,721 | $ 794,534 |
Other assets [member] | ||
Statement Line Items [Line Items] | ||
Accrued interest income | 2,580,091 | 1,830,722 |
Due from related party (note 26) | 1,855,461 | |
Prepaid expenses | 1,303,352 | 1,284,738 |
Refundable deposits | 119,020 | 221,779 |
Employees receivables | 60,199 | 445,374 |
Funds held in trust accounts | 1,518,041 | 1,006,735 |
Income tax receivables | 132,722 | 187,604 |
Trade receivables | 6,707 | 9,366 |
Others | 178,632 | 74,732 |
Total other assets | $ 7,754,225 | $ 5,061,050 |
Investment Properties (Details)
Investment Properties (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement Line Items [Line Items] | ||||
Opening balance | $ 30,655,214 | $ 30,561,280 | ||
Additions | 745,281 | |||
Sale of investment properties | (5,383,701) | |||
Fair value adjustment (note 22) | (304,482) | 93,934 | $ 18,148 | |
Ending balance | 25,712,312 | 30,655,214 | ||
Commercial building [Member] | ||||
Statement Line Items [Line Items] | ||||
Opening balance | 20,312,477 | 20,218,543 | ||
Additions | ||||
Sale of investment properties | ||||
Fair value adjustment (note 22) | (249,173) | 93,934 | ||
Ending balance | 20,063,304 | 20,312,477 | ||
Land [Member] | ||||
Statement Line Items [Line Items] | ||||
Opening balance | [1] | 10,342,737 | 10,342,737 | |
Additions | [1] | 745,281 | ||
Sale of investment properties | [1] | (5,383,701) | ||
Fair value adjustment (note 22) | [1] | (55,309) | ||
Ending balance | [1] | $ 5,649,008 | $ 10,342,737 | |
[1] | Land amounting to USD 5,649,008 as at 31 December 2019 (2018: USD 10,342,737) is registered in the name of one of the Directors of the Group. The Group has obtained a proxy over this investment property (note 26). |
Investment Properties (Details
Investment Properties (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commercial building [Member] | ||
Statement Line Items [Line Items] | ||
Percentage of increase decrease in commercial building | 10.00% | 10.00% |
Price per square meter | $ 1,122 | $ 1,139 |
Impact on statement of income for the increase in price per square meter | 2,006,330 | 2,031,248 |
Impact on statement of income for the decrease in price per square meter | $ (2,006,330) | $ (2,031,248) |
Land [Member] | ||
Statement Line Items [Line Items] | ||
Percentage of increase decrease in commercial building | 10.00% | 10.00% |
Price per square meter | $ 203 | $ 151 |
Impact on statement of income for the increase in price per square meter | 564,901 | 1,034,274 |
Impact on statement of income for the decrease in price per square meter | $ (564,901) | $ (1,034,274) |
Investment Properties (Detail_2
Investment Properties (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Properties (Textual) | ||
Land amount | $ 5,649,008 | $ 10,342,737 |
Property, Premises and Equipm_3
Property, Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost | |||
Beginning balance | $ 12,216,997 | $ 19,303,487 | |
Impact of the IFRS 16 adoption (note 2) | 1,715,606 | ||
Adjusted balance | 21,433,809 | ||
Additions | 1,445,310 | 414,716 | |
Disposals | (965,017) | ||
Ending balance | 12,734,842 | 12,216,997 | $ 19,303,487 |
Depreciation | |||
Beginning balance | 7,501,206 | 6,212,950 | |
Deprecation for the year | 1,906,730 | 1,288,256 | |
Disposals | (228,676) | ||
Ending balance | 9,179,260 | 7,501,206 | 6,212,950 |
Net carrying amount, ending balance | 12,734,842 | 12,216,997 | |
Right-of-use assets [member] | |||
Cost | |||
Beginning balance | |||
Impact of the IFRS 16 adoption (note 2) | 1,715,606 | ||
Adjusted balance | 1,715,606 | ||
Additions | 1,002,005 | ||
Disposals | (792,544) | ||
Ending balance | 1,925,067 | ||
Depreciation | |||
Beginning balance | |||
Deprecation for the year | 516,175 | ||
Disposals | (104,769) | ||
Ending balance | 411,406 | ||
Net carrying amount, ending balance | 1,513,661 | ||
Office buildings [member] | |||
Cost | |||
Beginning balance | 2,674,521 | 2,669,763 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 2,674,521 | ||
Additions | 3,614 | 4,758 | |
Disposals | |||
Ending balance | 2,678,135 | 2,674,521 | 2,669,763 |
Depreciation | |||
Beginning balance | 757,200 | 704,219 | |
Deprecation for the year | 136,449 | 52,981 | |
Disposals | |||
Ending balance | 893,649 | 757,200 | 704,219 |
Net carrying amount, ending balance | 1,784,486 | 1,917,321 | |
Aircraft [member] | |||
Cost | |||
Beginning balance | 11,290,405 | 11,290,405 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 11,290,405 | ||
Additions | |||
Disposals | |||
Ending balance | 11,290,405 | 11,290,405 | 11,290,405 |
Depreciation | |||
Beginning balance | 1,806,464 | 903,232 | |
Deprecation for the year | 903,232 | 903,232 | 903,232 |
Disposals | |||
Ending balance | 2,709,696 | 1,806,464 | 903,232 |
Net carrying amount, ending balance | 8,580,709 | 9,483,941 | |
Office furniture [member] | |||
Cost | |||
Beginning balance | 1,633,314 | 1,513,831 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 1,633,314 | ||
Additions | 19,152 | 119,483 | |
Disposals | |||
Ending balance | 1,652,466 | 1,633,314 | 1,513,831 |
Depreciation | |||
Beginning balance | 1,325,569 | 1,273,047 | |
Deprecation for the year | 56,749 | 52,522 | |
Disposals | |||
Ending balance | 1,382,318 | 1,325,569 | 1,273,047 |
Net carrying amount, ending balance | 270,148 | 307,745 | |
Computers [member] | |||
Cost | |||
Beginning balance | 1,553,789 | 1,413,182 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 1,553,789 | ||
Additions | 122,981 | 140,607 | |
Disposals | (31,261) | ||
Ending balance | 1,645,509 | 1,553,789 | 1,413,182 |
Depreciation | |||
Beginning balance | 1,297,939 | 1,184,117 | |
Deprecation for the year | 169,390 | 113,822 | |
Disposals | (31,261) | ||
Ending balance | 1,436,068 | 1,297,939 | 1,184,117 |
Net carrying amount, ending balance | 209,441 | 255,850 | |
Equipment [member] | |||
Cost | |||
Beginning balance | 281,370 | 274,433 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 281,370 | ||
Additions | 9,698 | 6,937 | |
Disposals | (254) | ||
Ending balance | 290,814 | 281,370 | 274,433 |
Depreciation | |||
Beginning balance | 278,263 | 272,606 | |
Deprecation for the year | 3,941 | 5,657 | |
Disposals | (95) | ||
Ending balance | 282,109 | 278,263 | 272,606 |
Net carrying amount, ending balance | 8,705 | 3,107 | |
Leasehold improvements [member] | |||
Cost | |||
Beginning balance | 1,320,273 | 1,177,342 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 1,320,273 | ||
Additions | 163,318 | 142,931 | |
Disposals | (71,636) | ||
Ending balance | 1,411,955 | 1,320,273 | 1,177,342 |
Depreciation | |||
Beginning balance | 1,220,100 | 1,177,341 | |
Deprecation for the year | 53,354 | 42,759 | |
Disposals | (23,231) | ||
Ending balance | 1,250,223 | 1,220,100 | 1,177,341 |
Net carrying amount, ending balance | 161,732 | 100,173 | |
Vehicles [member] | |||
Cost | |||
Beginning balance | 964,531 | 964,531 | |
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | 964,531 | ||
Additions | 115,570 | ||
Disposals | (69,322) | ||
Ending balance | 1,010,779 | 964,531 | 964,531 |
Depreciation | |||
Beginning balance | 815,671 | 698,388 | |
Deprecation for the year | 67,440 | 117,283 | |
Disposals | (69,320) | ||
Ending balance | 813,791 | 815,671 | 698,388 |
Net carrying amount, ending balance | 196,988 | 148,860 | |
Work in progress [member] | |||
Cost | |||
Beginning balance | |||
Impact of the IFRS 16 adoption (note 2) | |||
Adjusted balance | |||
Additions | 8,972 | ||
Disposals | |||
Ending balance | 8,972 | ||
Depreciation | |||
Beginning balance | |||
Deprecation for the year | |||
Disposals | |||
Ending balance | |||
Net carrying amount, ending balance | $ 8,972 |
Property, Premises and Equipm_4
Property, Premises and Equipment (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Premises and Equipment [Abstract] | |||
Property premises and equipment depreciation charge for the year | $ 1,906,730 | $ 1,288,256 | $ 1,406,831 |
Intangible assets amortization charge for the year (note 14) | 48,728 | 71,704 | 78,303 |
Aircraft depreciation allocated to listing transaction deferred cost (note 11) | (72,555) | ||
Aircraft depreciation allocated to other expenses (note 23) | (594,496) | (490,820) | (462,184) |
Total depreciation and amortization allocated to G&A | $ 1,288,407 | $ 869,140 | $ 1,022,950 |
Property, Premises and Equipm_5
Property, Premises and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Premises and Equipment (Textual) | |||
Deprecation for the year | $ 1,906,730 | $ 1,288,256 | |
Depreciated property, premises and equipment | 5,206,087 | 4,337,158 | |
Aircraft [member] | |||
Property, Premises and Equipment (Textual) | |||
Deprecation for the year | $ 903,232 | $ 903,232 | $ 903,232 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement Line Items [Line Items] | |||
Beginning balance | $ 2,935,750 | ||
Additions | |||
Ending balance | 3,885,894 | 2,935,750 | |
Net carrying amount | 3,885,894 | 2,935,750 | |
Computer software/licenses [member] | |||
Statement Line Items [Line Items] | |||
Net carrying amount | 53,457 | 95,515 | |
Work in progress [member] | |||
Statement Line Items [Line Items] | |||
Net carrying amount | [1] | 3,832,437 | 2,840,235 |
Cost [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | 4,023,576 | 3,045,137 | |
Additions | 998,872 | 978,439 | |
Ending balance | 5,022,448 | 4,023,576 | |
Cost [member] | Computer software/licenses [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | 1,183,341 | 1,171,134 | |
Additions | 6,670 | 12,207 | |
Ending balance | 1,190,011 | 1,183,341 | |
Cost [member] | Work in progress [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | [1] | 2,840,235 | 1,874,003 |
Additions | [1] | 992,202 | 966,232 |
Ending balance | [1] | 3,832,437 | 2,840,235 |
Amortization [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | 1,087,826 | 1,016,122 | |
Additions | 48,728 | 71,704 | |
Ending balance | 1,136,554 | 1,087,826 | |
Amortization [member] | Computer software/licenses [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | 1,087,826 | 1,016,122 | |
Additions | 48,728 | 71,704 | |
Ending balance | 1,136,554 | 1,087,826 | |
Amortization [member] | Work in progress [member] | |||
Statement Line Items [Line Items] | |||
Beginning balance | [1] | ||
Additions | [1] | ||
Ending balance | [1] | ||
[1] | Work in progress balance represents the payments towards the purchase of new insurance software. The management expects that the software will be installed during the first half of 2020, and the expected cost to complete the project is USD 225,375. |
Intangible Assets (Details Text
Intangible Assets (Details Textual) | Dec. 31, 2019USD ($) |
Intangible Assets (Textual) | |
Future purchase of new insurance software | $ 225,375 |
Insurance Payables (Details)
Insurance Payables (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Dividends Paid [Abstract] | ||
Payables due to insurance companies and intermediaries | $ 2,610,528 | $ 233,316 |
Reinsurers - amounts due in respect of ceded premium (restated) | 50,933,209 | 32,800,830 |
Insurance payables | $ 53,543,737 | $ 33,034,146 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liability Abstract | ||
Accounts payable | $ 1,716,667 | $ 2,441,208 |
Accrued expenses and other accruals | 7,221,706 | 5,858,245 |
Listing related cost payables (note 24) | 3,661,148 | |
Lease liability | 1,563,389 | |
Income tax payable (note 27) | 700,372 | |
Other liabilities | $ 14,863,282 | $ 8,299,453 |
Unearned Commissions (Details)
Unearned Commissions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unearned Commissions [Abstract] | |||
As at 1 January | $ 8,010,384 | $ 10,354,019 | $ 8,292,099 |
Commissions received | 14,829,744 | 14,473,519 | 18,771,267 |
Commissions earned | (13,930,139) | (16,817,154) | (16,709,347) |
As at 31 December | $ 8,909,989 | $ 8,010,384 | $ 10,354,019 |
Equity (Details)
Equity (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Authorized shares (par value of USD 1 each) | $ 175,000,000 | $ 175,000,000 |
Issued shares | $ 143,375,678 | $ 143,375,678 |
Equity (Details 1)
Equity (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Balance at the beginning of the year | $ 953,704 | $ 14,208,469 | $ 9,693,936 |
Impact of adopting IFRS 9 | (6,680,687) | ||
Net change in fair value reserve during the year for bonds at fair value through OCI | 4,208,620 | (2,706,303) | |
Net change in fair value reserve during the year for equities at fair value through OCI | (865,646) | (3,897,678) | |
Net change in fair value reserve during the year for available for sale investments | 4,514,533 | ||
ECL transferred to income statement | (22,764) | 29,903 | |
Balance at the end of the year | $ 4,273,914 | $ 953,704 | $ 14,208,469 |
Treasury Shares (Details)
Treasury Shares (Details) - Treasury Shares - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
At 1 January | 136,375,678 | 143,375,678 |
Treasury shares purchased during the year | (2,350,000) | (7,000,000) |
At 31 December | 134,025,678 | 136,375,678 |
Treasury Shares (Details Textua
Treasury Shares (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 24, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | |
Treasury Shares (Textual) | |||
Treasury shares, authorised | 2,350,000 | ||
Purchase of treasury shares | $ 5,052,500 | $ 15,050,000 | |
Fair value of treasury shares | $ 20,102,500 | $ 15,050,000 | |
Percentage of treasury shares | 15.00% |
Dividends Paid (Details)
Dividends Paid (Details) - USD ($) | Mar. 09, 2017 | Aug. 22, 2019 | Mar. 21, 2019 | Aug. 16, 2018 | Aug. 16, 2017 |
Dividends Paid (Textual) | |||||
Dividend paid | $ 5,735,027 | $ 5,361,027 | $ 5,455,027 | $ 4,091,271 | $ 5,735,027 |
Dividend per share excluding treasury shares | $ 0.040 | $ 0.040 | $ 0.030 | ||
Dividend per share | $ 0.040 | $ 0.040 |
General and Administrative Ex_3
General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
General and Administrative Expenses [Abstract] | |||
Human resources expenses | $ 26,700,229 | $ 23,448,838 | $ 21,350,467 |
Business promotion, travel and entertainment | 3,339,568 | 3,492,472 | 3,002,921 |
Statutory, advisory and rating | 3,463,139 | 3,040,841 | 1,811,372 |
Information technology and software | 1,871,641 | 1,838,585 | 1,542,740 |
Office operation | 1,459,670 | 1,783,868 | 1,491,240 |
Depreciation and amortization (note 13) | 1,288,407 | 869,140 | 1,022,950 |
Interest expense arising from lease liabilities (note 2) | 108,426 | ||
Bank charges | 136,569 | 153,055 | 129,750 |
Board of directors' expenses | 898,296 | 724,880 | 551,164 |
General and administrative expenses | $ 39,265,945 | $ 35,351,679 | $ 30,902,604 |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Abstract] | |||
Interest income | $ 10,866,051 | $ 9,698,069 | $ 8,632,460 |
Dividends from equities at FVTOCI | 721,240 | 342,800 | |
Dividends from equities at FVTPL | 391,222 | 701,076 | |
Dividends | 1,490,607 | ||
Realized gains and losses on investments | |||
Net gain on sale of available-for-sale investments | 3,133,556 | ||
Realized loss on sale of bonds at FVTOCI | (628,523) | (763,569) | |
Realized gain on sale of FVTPL equities and mutual funds | 946,952 | 2,048,908 | |
Unrealized gains and losses on investments | |||
Fair value changes of held for trading investments | 95,582 | ||
Unrealized loss on revaluation of financial assets at FVTPL | 1,590,964 | (948,802) | |
Gains and losses from investments in properties | |||
Realized gain on sale of investment properties | 678,516 | ||
Fair value gain on investment property | (304,482) | 93,934 | 18,148 |
Rental income | 203,076 | 606,862 | 1,007,983 |
Impairment and expected credit losses on investments | |||
Impairment on available for sale investments | (71,863) | ||
Expected credit loss on financial assets at FVOCI | 22,764 | (29,903) | |
Release of expected credit loss on financial assets at amortized cost | 12,827 | 6,248 | |
Investments custodian fees and other investments expenses | (1,126,531) | (1,445,327) | (1,741,631) |
Net Investment income | $ 13,374,076 | $ 10,310,296 | $ 12,564,842 |
Other Revenues (Expenses) (Deta
Other Revenues (Expenses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other revenues: | |||
Chartered flights revenue | $ 1,428,265 | $ 902,750 | $ 837,712 |
Others | 18,828 | ||
Other revenues | 1,428,265 | 902,750 | 856,540 |
Other expenses: | |||
Aircraft operational cost | (1,574,171) | (1,095,461) | (1,003,858) |
Aircraft depreciation expense | (594,496) | (490,820) | (462,184) |
Loss on disposal of property, premises and equipment | (25,999) | ||
Other expenses | $ (2,194,666) | $ (1,586,281) | $ (1,466,042) |
Listing Transaction Costs (Deta
Listing Transaction Costs (Details Textual) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Listing Transaction Costs [Abstract] | |
Listing transaction costs | $ 4,831,976 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Line Items [Line Items] | |
Operating lease committments | $ 1,994,122 |
Within one year [Member] | |
Statement Line Items [Line Items] | |
Operating lease committments | 636,600 |
More than one year to three years [Member] | |
Statement Line Items [Line Items] | |
Operating lease committments | 1,077,509 |
More than three years to five years [Member] | |
Statement Line Items [Line Items] | |
Operating lease committments | 280,013 |
More than five years [Member] | |
Statement Line Items [Line Items] | |
Operating lease committments |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies (Textual) | |||
Letters of credit | $ 7,993,798 | $ 7,335,896 | |
Insurance contract liabilities | 9,039,158 | ||
Letter of guarantee | $ 318,780 | 307,936 | |
Decription of operating lease contracts | The Group has entered into operating leases contracts for its offices in the United Kingdom and the United Arab of Emirates and Malaysia, with lease obligations between one and seven years. | ||
Payment of litigation | $ 5,700,000 | ||
Litigation amount recover from reinsurers | 6,900,000 | ||
Premiums paid to reinsurers | 33,200,000 | ||
Claims paid by reinsurers | 11,352,958 | $ (973,363) | $ (43,526,311) |
Claims due from reinsurers | $ 6,900,000 |
Related Parties (Details)
Related Parties (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Parties [Abstract] | ||
Agency fees due to International General Insurance Underwriting | $ 20,315,915 | $ 17,394,592 |
Costs recharged back to International General Insurance Underwriting | $ 21,329,250 | $ 18,856,943 |
Related Parties (Details Textua
Related Parties (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Parties (Textual) | |||
Salaries and benefits | $ 10,164,201 | $ 10,072,656 | $ 8,379,883 |
Personnel compensation amount | 565,960 | 423,547 | 318,076 |
General and administrative expenses | 381,909 | 211,058 | 211,739 |
Aircraft management fees | $ 84,000 | 84,000 | 168,221 |
Treasury shares | 2,350,000 | ||
Treasury shares, purchase amount | $ 20,102,500 | 15,050,000 | |
Investment properties amount | 5,649,008 | 10,342,737 | |
Balances due | 92,772 | 465,550 | |
Amount payable | 5,000,000 | ||
listing transaction costs | 4,831,976 | ||
Arab Wings Co [Member] | |||
Related Parties (Textual) | |||
Amount payable | $ 196,214 | ||
Amount receivable | $ 111,227 |
Taxation (Details)
Taxation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax: | |||
Current income tax charge | $ 704,258 | $ 9,275 | $ 4,946 |
Adjustments in respect of current income tax of prior years | 47,182 | (60,906) | |
Deferred tax: | |||
Origination and reversal of temporary differences | 1,246,525 | 8,181 | (154,715) |
Effect of tax rate change | (131,459) | (861) | 116,864 |
Adjustment in respect of prior years | (131,741) | (1,536) | 79,389 |
Income tax (charge)/credit for the year | $ 1,687,583 | $ 62,241 | $ (14,422) |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation [Abstract] | |||
Income tax expense for IGI Labuan - current year | $ 5,063 | $ 4,946 | |
Corporate tax for IGI Casablanca (Representative Office) - current year | 3,885 | 4,212 | |
Corporate tax for IGI Casablanca (Representative Office) - prior years | 4,212 | ||
Income tax expense for IGI UK - prior years | 700,373 | (60,906) | |
Income tax expense for IGI Underwriting - prior years | 42,970 | ||
Addition (amortization) of deferred tax assets for IGI UK | 983,325 | 5,784 | 41,538 |
Income tax (charge)/credit for the year | $ 1,687,583 | $ 62,241 | $ (14,422) |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation [Abstract] | |||
The Group profit before tax | $ 25,252,982 | $ 25,603,944 | $ 7,016,918 |
Less: Profit related to non-taxable subsidiaries | (15,379,870) | (26,486,855) | (8,124,461) |
Profit (Loss) before tax for IGI UK and North Star Underwriting Limited - entities subject to corporate taxation | 9,873,112 | (882,911) | (1,107,543) |
Profit (Loss) multiplied by the standard rate of tax in the UK of 19% (2018:19%) | 1,875,891 | (167,753) | (213,202) |
Net disallowed expenditure | 50,177 | 180,847 | 42,350 |
Fixed asset temporary differences not recognized for deferred tax | 17,782 | (10,827) | (5,796) |
Other temporary differences not recognized for deferred tax | 2,902 | 5,914 | 21,933 |
Adjustment in respect of prior years | (131,527) | 45,646 | 18,483 |
IGI Labuan and IGI Casablanca current year tax charges | 3,817 | 9,275 | 4,946 |
Effect of rate change to 17% -2016: 20%) | (131,459) | (861) | 116,864 |
Income tax -charge)/credit for the year | $ 1,687,583 | $ 62,241 | $ (14,422) |
Taxation (Details 3)
Taxation (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Taxation [Abstract] | ||
Balance at start of the year | $ 638,841 | $ 644,625 |
Deferred tax prior year adjustment | 131,741 | 1,536 |
Arising in year | (1,246,525) | (8,181) |
Effect of rate change 17% -2016: 19%) | 131,459 | 861 |
Others | (2,340) | |
Ending balance | $ (346,824) | $ 638,841 |
Taxation (Details Textual)
Taxation (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Taxation [Abstract] | ||
Taxation, description | Labuan Business Activity Tax Law has been revised and accordingly, Labuan registered entities can no longer elect to pay the RM20,000 flat tax rate and instead are subject to 3% tax on the audited net profits. In 2019, IGI Labuan has recorded a net loss, and as a result no income tax has been accrued for the year. In 2018 and 2017, IGI Labuan elected to pay a fixed income tax of RM20,000 equivalent to USD 5,063 (2017: USD 4,946) based on the old prevailing tax law applicable to that financial year. | |
Tax rate percentage | 10.00% | |
Operating cost percentage | 5.00% | |
Loss multiplied by the standard rate of tax | 19.00% | 19.00% |
Effect of rate change | 17.00% | |
Deferred tax assets amount | $ 346,824 | $ 638,841 |
Trading loss tax rate percentage | 17.00% |
Risk Management (Details)
Risk Management (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Gross written premiums | $ 349,291,905 | $ 301,618,486 | $ 275,102,191 |
Africa [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 16,492,171 | $ 13,601,315 | $ 14,797,102 |
Concentration of percentage | 5.00% | 5.00% | 5.00% |
Asia [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 32,809,456 | $ 27,841,670 | $ 33,939,858 |
Concentration of percentage | 9.00% | 9.00% | 12.00% |
Australasia [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 15,185,489 | $ 12,636,310 | $ 8,410,387 |
Concentration of percentage | 4.00% | 4.00% | 3.00% |
Caribbean Islands [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 8,334,322 | $ 15,098,606 | $ 10,514,780 |
Concentration of percentage | 2.00% | 5.00% | 4.00% |
Central America [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 37,731,495 | $ 26,696,686 | $ 35,560,075 |
Concentration of percentage | 11.00% | 9.00% | 13.00% |
Europe [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 37,327,933 | $ 34,470,850 | $ 32,179,912 |
Concentration of percentage | 11.00% | 11.00% | 12.00% |
Middle East [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 36,883,039 | $ 32,381,500 | $ 36,116,774 |
Concentration of percentage | 11.00% | 11.00% | 13.00% |
North America [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 4,281,472 | $ 859,731 | $ 1,038,139 |
Concentration of percentage | 1.00% | 0.00% | 1.00% |
South America [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 11,050,657 | $ 26,356,474 | $ 33,380,259 |
Concentration of percentage | 3.00% | 9.00% | 12.00% |
UK [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 115,863,288 | $ 76,717,981 | $ 42,887,109 |
Concentration of percentage | 33.00% | 25.00% | 15.00% |
Worldwide [Member] | |||
Statement Line Items [Line Items] | |||
Gross written premiums | $ 33,332,583 | $ 34,957,363 | $ 26,277,796 |
Concentration of percentage | 10.00% | 12.00% | 10.00% |
Risk Management (Details 1)
Risk Management (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 349,291,905 | $ 301,618,486 | $ 275,102,191 |
Energy [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 72,109,574 | $ 81,377,114 | $ 87,937,007 |
Concentration Percentage | 21.00% | 27.00% | 34.00% |
Property [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 46,137,090 | $ 43,785,498 | $ 53,738,771 |
Concentration Percentage | 13.00% | 15.00% | 18.00% |
Ports & Terminals [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 22,360,519 | $ 19,079,843 | $ 17,263,245 |
Concentration Percentage | 6.00% | 6.00% | 8.00% |
Casualty [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 115,890,373 | $ 73,665,448 | $ 43,119,887 |
Concentration Percentage | 33.00% | 24.00% | 9.00% |
Political Violance [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 8,296,949 | $ 11,406,211 | $ 9,730,839 |
Concentration Percentage | 2.00% | 4.00% | 7.00% |
Financial [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 23,181,037 | $ 16,147,579 | $ 14,271,496 |
Concentration Percentage | 7.00% | 5.00% | 5.00% |
Reinsurance [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 17,985,942 | $ 17,819,553 | $ 17,652,460 |
Concentration Percentage | 5.00% | 6.00% | 5.00% |
Engineering [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 20,703,708 | $ 18,194,161 | $ 10,375,952 |
Concentration Percentage | 6.00% | 6.00% | 6.00% |
Aviation [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 19,182,776 | $ 17,996,462 | $ 18,998,073 |
Concentration Percentage | 6.00% | 6.00% | 7.00% |
Marine Liability [Member] | |||
Statement Line Items [Line Items] | |||
Gross witten premiums | $ 3,443,937 | $ 2,146,617 | $ 2,014,461 |
Concentration Percentage | 1.00% | 1.00% | 1.00% |
Risk Management (Details 2)
Risk Management (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
7.5% [Member] | ||
Statement Line Items [Line Items] | ||
Gross Loss Sensitivity Factor | 7.50% | 7.50% |
Impact of increase on gross outstanding claims | $ 30,978,898 | $ 28,828,488 |
Impact of decrease on gross outstanding claims | (30,978,898) | (28,828,488) |
Impact of increase on net outstanding claims | 18,541,702 | 15,297,751 |
Impact of decrease on net outstanding claims | (18,539,427) | (15,295,476) |
Impact of increase on profit before tax | (18,541,702) | (15,297,751) |
Impact of decrease on profit before tax | $ 18,539,427 | $ 15,295,476 |
5.0% [Member] | ||
Statement Line Items [Line Items] | ||
Gross Loss Sensitivity Factor | 5.00% | 5.00% |
Impact of increase on gross outstanding claims | $ 20,652,599 | $ 19,218,992 |
Impact of decrease on gross outstanding claims | (20,652,599) | (19,218,992) |
Impact of increase on net outstanding claims | 12,361,514 | 10,198,880 |
Impact of decrease on net outstanding claims | (12,359,238) | (10,196,605) |
Impact of increase on profit before tax | (12,361,514) | (10,198,880) |
Impact of decrease on profit before tax | $ 12,359,238 | $ 10,196,605 |
Risk Management (Details 3)
Risk Management (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
Financial assets at FVTPL | $ 21,805,575 | $ 13,977,663 |
Financial assets at FVOCI | 228,948,106 | 183,470,311 |
Finacial assets at amortized cost | 2,968,273 | 3,456,837 |
Cash, bank balances and term deposits | 312,213,087 | 260,059,595 |
Total financial assets | $ 565,935,041 | $ 460,964,406 |
Effective Interest Rate on interest bearing assets, financial assets at FVTPL | ||
Effective Interest Rate on interest bearing assets, financial assets at FVOCI | 2.86% | 2.92% |
Effective Interest Rate on interest bearing assets, finacial assets at amortized cost | 5.83% | 5.72% |
Effective Interest Rate on interest bearing assets, cash, bank balances and term deposits | 1.89% | 1.88% |
Less than 1 year [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets at FVTPL | ||
Financial assets at FVOCI | 55,678,030 | 50,095,407 |
Finacial assets at amortized cost | 2,968,273 | 3,456,837 |
Cash, bank balances and term deposits | 312,213,087 | 260,059,595 |
Total financial assets | 370,859,390 | 313,611,839 |
1 to 5 years [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets at FVTPL | ||
Financial assets at FVOCI | 148,657,894 | 108,481,889 |
Finacial assets at amortized cost | ||
Cash, bank balances and term deposits | ||
Total financial assets | 148,657,894 | 108,481,889 |
More than 5 years [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets at FVTPL | ||
Financial assets at FVOCI | 4,189,437 | 3,584,618 |
Finacial assets at amortized cost | ||
Cash, bank balances and term deposits | ||
Total financial assets | 4,189,437 | 3,584,618 |
Non-interest-bearing items [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets at FVTPL | 21,805,575 | 13,977,663 |
Financial assets at FVOCI | 20,422,745 | 21,308,397 |
Finacial assets at amortized cost | ||
Cash, bank balances and term deposits | ||
Total financial assets | $ 42,228,320 | $ 35,286,060 |
Risk Management (Details 4)
Risk Management (Details 4) | 12 Months Ended | |
Dec. 31, 2019USD ($)BasisPoints | Dec. 31, 2018USD ($)BasisPoints | |
Finaicial liabilities [Member] | ||
Statement Line Items [Line Items] | ||
Decrease in basis points | BasisPoints | (50) | (50) |
Effective on profit for ther year | $ | $ (1,779,697) | $ (1,331,000) |
Finaicial assets [Member] | ||
Statement Line Items [Line Items] | ||
Decrease in basis points | BasisPoints | (25) | (25) |
Effective on profit for ther year | $ | $ (889,848) | $ (665,500) |
Risk Management (Details 5)
Risk Management (Details 5) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EUR [Member] | ||
Statement Line Items [Line Items] | ||
Changes in currency rate to USD | +5 | +5 |
Effective on profit before tax | $ 387,893 | $ 65,440 |
GBP [Member] | ||
Statement Line Items [Line Items] | ||
Changes in currency rate to USD | +5 | +5 |
Effective on profit before tax | $ 4,294,764 | $ 1,857,406 |
Risk Management (Details 6)
Risk Management (Details 6) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | ||
FVOCI - debts securities | $ 208,525,361 | $ 162,161,914 |
Financial Assets at amortized cost | 2,968,273 | 3,456,837 |
Insurance receivables | 112,974,844 | 108,247,631 |
Reinsurance share of outstanding claims | 176,212,424 | 187,565,382 |
Defferred excess of loss premiums | 15,172,707 | 12,448,671 |
Cash, bank balances and term deposits | 312,213,087 | 260,059,595 |
Total | 828,066,696 | 733,940,030 |
Investment grade [Member] | ||
Statement Line Items [Line Items] | ||
FVOCI - debts securities | 206,996,681 | 158,945,525 |
Financial Assets at amortized cost | ||
Insurance receivables | ||
Reinsurance share of outstanding claims | 175,446,814 | 186,061,539 |
Defferred excess of loss premiums | ||
Cash, bank balances and term deposits | 248,057,682 | 184,747,414 |
Total | 630,501,177 | 529,754,478 |
Non-investment grade (satisfactory) [Member] | ||
Statement Line Items [Line Items] | ||
FVOCI - debts securities | 1,528,680 | 3,216,389 |
Financial Assets at amortized cost | 1,982,377 | 2,469,549 |
Insurance receivables | 65,835,667 | 60,880,815 |
Reinsurance share of outstanding claims | 765,610 | 1,503,843 |
Defferred excess of loss premiums | 15,172,707 | 12,448,671 |
Cash, bank balances and term deposits | 64,155,405 | 75,312,181 |
Total | 149,440,446 | 155,831,448 |
In course of collection [Member] | ||
Statement Line Items [Line Items] | ||
FVOCI - debts securities | ||
Financial Assets at amortized cost | 985,896 | 987,288 |
Insurance receivables | 47,139,177 | 47,366,816 |
Reinsurance share of outstanding claims | ||
Defferred excess of loss premiums | ||
Cash, bank balances and term deposits | ||
Total | $ 48,125,073 | $ 48,354,104 |
Risk Management (Details 7)
Risk Management (Details 7) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | |||
Unquoted bonds | [1] | $ 3,235,896 | $ 3,737,287 |
AAA Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 44,953,920 | 2,353,731 | |
Unquoted bonds | |||
Total | 44,953,920 | 2,353,731 | |
AA+ Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 4,610,576 | 4,771,755 | |
Unquoted bonds | |||
Total | 4,610,576 | 4,771,755 | |
AA Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 2,926,031 | 7,124,087 | |
Unquoted bonds | |||
Total | 2,926,031 | 7,124,087 | |
Aa2 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 7,530,619 | 7,876,959 | |
Unquoted bonds | |||
Total | 7,530,619 | 7,876,959 | |
AA- Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 9,408,620 | 17,408,093 | |
Unquoted bonds | |||
Total | 9,408,620 | 17,408,093 | |
Aa3 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 2,394,194 | 5,527,355 | |
Unquoted bonds | |||
Total | 2,394,194 | 5,527,355 | |
A+ Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 18,340,787 | 15,840,316 | |
Unquoted bonds | |||
Total | 18,340,787 | 15,840,316 | |
A1 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 1,514,025 | 12,009,630 | |
Unquoted bonds | |||
Total | 1,514,025 | 12,009,630 | |
A Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 28,935,441 | 19,653,276 | |
Unquoted bonds | |||
Total | 28,935,441 | 19,653,276 | |
A2 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 5,435,133 | 9,512,157 | |
Unquoted bonds | |||
Total | 5,435,133 | 9,512,157 | |
A- Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 32,466,296 | 11,914,322 | |
Unquoted bonds | |||
Total | 32,466,296 | 11,914,322 | |
A3 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 8,975,157 | 10,679,082 | |
Unquoted bonds | |||
Total | 8,975,157 | 10,679,082 | |
BBB+ Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 16,038,586 | 13,216,017 | |
Unquoted bonds | |||
Total | 16,038,586 | 13,216,017 | |
BBB Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 14,521,672 | 14,273,503 | |
Unquoted bonds | |||
Total | 14,521,672 | 14,273,503 | |
Baa2 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 1,396,365 | 1,385,487 | |
Unquoted bonds | |||
Total | 1,396,365 | 1,385,487 | |
BBB- Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 7,333,329 | 2,899,954 | |
Unquoted bonds | |||
Total | 7,333,329 | 2,899,954 | |
BB- Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 215,930 | 203,749 | |
Unquoted bonds | |||
Total | 215,930 | 203,749 | |
Not Rated Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 1,528,680 | 3,012,640 | |
Unquoted bonds | 2,968,273 | 3,456,837 | |
Total | 4,496,953 | 6,469,477 | |
Total Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 208,525,361 | 162,161,914 | |
Unquoted bonds | 2,968,273 | 3,456,837 | |
Total | $ 211,493,634 | 165,618,751 | |
Aa1 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 755,556 | ||
Unquoted bonds | |||
Total | 755,556 | ||
Baa1 Rating Grade [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Bonds | 1,744,245 | ||
Unquoted bonds | |||
Total | $ 1,744,245 | ||
[1] | The Group has an investment in an unquoted bond denominated in JOD (USD pegged currency) issued by 'Specialized Investment Compound Co.' a local company based in Jordan with a maturity date of 22nd February 2016. Said company is currently under liquidation, due to which 85% of original bond holdings with nominal value amounted to USD 1,235,543 were not paid on that maturity date. These bonds are backed up by collateral in the form of real estate properties. However, the Group management has provided USD 250,000 to cover any potential impairment in the value of the collateral held against said investment. |
Risk Management (Details 8)
Risk Management (Details 8) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Australia [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | $ 1,053,150 | $ 3,207,541 |
Bahrain [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 215,930 | 203,750 |
Bermuda [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 765,533 | |
Canada [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 9,163,712 | 9,769,854 |
Cayman Island [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 639,879 | |
China [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 8,539,950 | 5,477,734 |
Europe [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 3,181,652 | 1,407,141 |
Finland [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,034,800 | 1,016,430 |
France [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,241,762 | 1,947,095 |
Germany [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 14,714,236 | 15,825,716 |
Global [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 990,623 | 910,686 |
Hong Kong [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,219,991 | 1,183,742 |
Japan [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 7,865,806 | 11,252,935 |
Jordan [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 2,968,273 | 3,456,838 |
KSA [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 2,349,245 | 2,262,838 |
Kuwait [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,019,590 | 978,170 |
Mexico [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,098,251 | 1,015,749 |
Netherlands [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 1,869,264 | 1,844,370 |
Norway [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 750,045 | 2,239,722 |
Pacific basin [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 3,002,430 | 3,466,916 |
Qatar [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 8,098,357 | 5,048,451 |
South Korea [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 5,127,002 | 5,497,709 |
Spain [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 544,876 | |
Switzerland [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 332,394 | |
UAE [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 5,691,518 | 12,683,997 |
UK [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 13,490,596 | 8,195,522 |
US [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | 114,524,769 | 65,122,981 |
Total Geographical [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | $ 211,493,634 | 165,618,751 |
Italy [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total bonds and debt | $ 1,602,864 |
Risk Management (Details 9)
Risk Management (Details 9) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of credit risk exposure [line items] | ||||
Effect on profit for the year | $ 23,565,399 | $ 25,541,703 | $ 7,031,340 | |
Effect on equity | $ 312,143,085 | $ 301,163,886 | $ 301,399,953 | $ 301,230,605 |
Amman Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | $ 58,438 | $ 60,718 | ||
Effect on equity | $ 58,438 | $ 60,718 | ||
Saudi Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | ||||
Effect on equity | $ 616,969 | $ 665,120 | ||
Qatar Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | $ 23,830 | $ 25,369 | ||
Effect on equity | $ 23,830 | $ 25,369 | ||
Abu Dhabi Security Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | $ 61,470 | $ 57,175 | ||
Effect on equity | $ 61,470 | $ 57,175 | ||
New York Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | $ 123,518 | $ 109,111 | ||
Effect on equity | $ 161,258 | $ 147,031 | ||
Kuwait Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | ||||
Effect on equity | $ 2,978 | $ 2,012 | ||
London Stock Exchange [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | |||
Effect on profit for the year | $ 342,797 | |||
Effect on equity | $ 342,797 | |||
Other quoted [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Change in equity price | +5 % | +5 % | ||
Effect on profit for the year | $ 480,226 | $ 446,510 | ||
Effect on equity | $ 553,966 | $ 507,473 |
Risk Management (Details 10)
Risk Management (Details 10) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of credit risk exposure [line items] | ||||
Gross outstanding claims | $ 413,052,855 | $ 384,379,841 | ||
Gross unearned premiums | 206,214,029 | 168,254,688 | ||
Insurance payables | 53,543,737 | 33,034,146 | ||
Other liabilities | 14,863,282 | 8,299,453 | ||
Deferred tax liabilities | 346,824 | |||
Unearned commissions | 8,909,989 | 8,010,384 | $ 10,354,019 | $ 8,292,099 |
Total liabilities | 696,930,716 | 601,978,512 | ||
Less than 1 year [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Gross outstanding claims | 172,243,041 | 166,052,091 | ||
Gross unearned premiums | 159,660,497 | 135,380,101 | ||
Insurance payables | 53,543,737 | 33,034,146 | ||
Other liabilities | 13,821,580 | 8,299,453 | ||
Deferred tax liabilities | 346,824 | |||
Unearned commissions | 7,531,178 | 7,030,172 | ||
Total liabilities | 407,146,857 | 349,795,963 | ||
More than one year [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Gross outstanding claims | 240,809,814 | 218,327,750 | ||
Gross unearned premiums | 46,553,532 | 32,874,587 | ||
Insurance payables | ||||
Other liabilities | 1,041,702 | |||
Deferred tax liabilities | ||||
Unearned commissions | 1,378,811 | 980,212 | ||
Total liabilities | $ 289,783,859 | $ 252,182,549 |
Risk Management (Details 11)
Risk Management (Details 11) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash, bank balances and term deposits | $ 312,213,087 | $ 260,059,595 | ||
Insurance receivables | 112,974,844 | 108,247,631 | ||
Investments | 253,721,954 | 200,904,811 | ||
Investments in associates | 13,061,674 | 13,437,778 | ||
Reinsurance share of outstanding claims | 176,212,424 | 187,565,382 | ||
Reinsurance share of unearned premiums | 33,916,549 | 32,566,847 | ||
Deferred excess of loss premiums | 15,172,707 | 12,448,671 | ||
Deferred policy acquisition costs | 41,713,289 | 36,403,831 | ||
Deferred tax assets | 638,841 | |||
Other assets | 7,754,225 | 5,061,050 | ||
Investment properties | 25,712,312 | 30,655,214 | ||
Property, premises and equipment | 12,734,842 | 12,216,997 | $ 19,303,487 | |
Intangible assets | 3,885,894 | 2,935,750 | ||
TOTAL ASSETS | 1,009,073,801 | 903,142,398 | ||
Liabilities | ||||
Gross outstanding claims | 413,052,855 | 384,379,841 | ||
Gross unearned premiums | 206,214,029 | 168,254,688 | ||
Insurance payables | 53,543,737 | 33,034,146 | ||
Other liabilities | 14,863,282 | 8,299,453 | ||
Deferred tax liabilities | 346,824 | |||
Unearned commissions | 8,909,989 | 8,010,384 | 10,354,019 | $ 8,292,099 |
Total liabilities | 696,930,716 | 601,978,512 | ||
Equity | ||||
Share capital | 143,375,678 | 143,375,678 | ||
Contributed capital | 2,773,000 | 2,773,000 | ||
Treasury shares | (20,102,500) | (15,050,000) | ||
Foreign currency translation reserve | (332,785) | (294,929) | ||
Fair value reserve | 4,273,914 | 953,704 | 14,208,469 | 9,693,936 |
Retained earnings | 182,155,778 | 169,406,433 | ||
Total equity | 312,143,085 | 301,163,886 | $ 301,399,953 | $ 301,230,605 |
TOTAL LIABILITIES AND EQUITY | 1,009,073,801 | 903,142,398 | ||
Less than 1 year [Member] | ||||
ASSETS | ||||
Cash, bank balances and term deposits | 312,213,087 | 260,059,595 | ||
Insurance receivables | 110,218,900 | 105,760,142 | ||
Investments | 58,452,403 | 53,552,244 | ||
Investments in associates | ||||
Reinsurance share of outstanding claims | 81,410,140 | 92,844,864 | ||
Reinsurance share of unearned premiums | 30,226,280 | 29,777,293 | ||
Deferred excess of loss premiums | 15,172,707 | 12,448,671 | ||
Deferred policy acquisition costs | 28,369,829 | 27,945,967 | ||
Deferred tax assets | ||||
Other assets | 7,754,225 | 5,061,050 | ||
Investment properties | ||||
Property, premises and equipment | ||||
Intangible assets | ||||
TOTAL ASSETS | 643,817,571 | 587,449,826 | ||
Liabilities | ||||
Gross outstanding claims | 172,243,041 | 166,052,091 | ||
Gross unearned premiums | 159,660,497 | 135,380,101 | ||
Insurance payables | 53,543,737 | 33,034,146 | ||
Other liabilities | 13,821,580 | 8,299,453 | ||
Deferred tax liabilities | 346,824 | |||
Unearned commissions | 7,531,178 | 7,030,172 | ||
Total liabilities | 407,146,857 | 349,795,963 | ||
Equity | ||||
Share capital | ||||
Contributed capital | ||||
Treasury shares | ||||
Foreign currency translation reserve | ||||
Fair value reserve | ||||
Retained earnings | ||||
Total equity | ||||
TOTAL LIABILITIES AND EQUITY | 407,146,857 | 349,795,963 | ||
More than one year [Member] | ||||
ASSETS | ||||
Cash, bank balances and term deposits | ||||
Insurance receivables | 2,755,944 | 2,487,489 | ||
Investments | 152,847,331 | 112,066,507 | ||
Investments in associates | ||||
Reinsurance share of outstanding claims | 94,802,284 | 94,720,518 | ||
Reinsurance share of unearned premiums | 3,690,269 | 2,789,554 | ||
Deferred excess of loss premiums | ||||
Deferred policy acquisition costs | 13,343,460 | 8,457,864 | ||
Deferred tax assets | 638,841 | |||
Other assets | ||||
Investment properties | ||||
Property, premises and equipment | 12,734,842 | 12,216,997 | ||
Intangible assets | 3,885,894 | 2,935,750 | ||
TOTAL ASSETS | 284,060,024 | 236,313,520 | ||
Liabilities | ||||
Gross outstanding claims | 240,809,814 | 218,327,750 | ||
Gross unearned premiums | 46,553,532 | 32,874,587 | ||
Insurance payables | ||||
Other liabilities | 1,041,702 | |||
Deferred tax liabilities | ||||
Unearned commissions | 1,378,811 | 980,212 | ||
Total liabilities | 289,783,859 | 252,182,549 | ||
Equity | ||||
Share capital | ||||
Contributed capital | ||||
Treasury shares | ||||
Foreign currency translation reserve | ||||
Fair value reserve | ||||
Retained earnings | ||||
Total equity | ||||
TOTAL LIABILITIES AND EQUITY | 289,783,859 | 252,182,549 | ||
No Term [Member] | ||||
ASSETS | ||||
Cash, bank balances and term deposits | ||||
Insurance receivables | ||||
Investments | 42,422,220 | 35,286,060 | ||
Investments in associates | 13,061,674 | 13,437,778 | ||
Reinsurance share of outstanding claims | ||||
Reinsurance share of unearned premiums | ||||
Deferred excess of loss premiums | ||||
Deferred policy acquisition costs | ||||
Deferred tax assets | ||||
Other assets | ||||
Investment properties | 25,712,312 | 30,655,214 | ||
Property, premises and equipment | ||||
Intangible assets | ||||
TOTAL ASSETS | 81,196,206 | 79,379,052 | ||
Liabilities | ||||
Gross outstanding claims | ||||
Gross unearned premiums | ||||
Insurance payables | ||||
Other liabilities | ||||
Deferred tax liabilities | ||||
Unearned commissions | ||||
Total liabilities | ||||
Equity | ||||
Share capital | 143,375,678 | 143,375,678 | ||
Contributed capital | 2,773,000 | 2,773,000 | ||
Treasury shares | (20,102,500) | (15,050,000) | ||
Foreign currency translation reserve | (332,785) | (294,929) | ||
Fair value reserve | 4,273,914 | 953,704 | ||
Retained earnings | 182,155,778 | 169,406,433 | ||
Total equity | 312,143,085 | 301,163,886 | ||
TOTAL LIABILITIES AND EQUITY | $ 312,143,085 | $ 301,163,886 |
Risk Management (Details 12)
Risk Management (Details 12) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | |||
Fair value | $ 276,465,993 | $ 228,103,188 | |
FVTPL [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 21,805,575 | 13,977,663 | |
Quoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 14,628,558 | 15,320,310 | |
Quoted bonds at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 208,525,361 | 162,161,914 | |
Unquoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | [1] | 5,794,187 | 5,988,087 |
Investment properties [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 25,712,312 | 30,655,214 | |
Level 1 of fair value hierarchy [member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 244,959,494 | 191,459,887 | |
Level 1 of fair value hierarchy [member] | FVTPL [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 21,805,575 | 13,977,663 | |
Level 1 of fair value hierarchy [member] | Quoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 14,628,558 | 15,320,310 | |
Level 1 of fair value hierarchy [member] | Quoted bonds at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 208,525,361 | 162,161,914 | |
Level 1 of fair value hierarchy [member] | Unquoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | [1] | ||
Level 1 of fair value hierarchy [member] | Investment properties [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Level 2 of fair value hierarchy [member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Level 2 of fair value hierarchy [member] | FVTPL [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Level 2 of fair value hierarchy [member] | Quoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Level 2 of fair value hierarchy [member] | Quoted bonds at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Level 2 of fair value hierarchy [member] | Unquoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | [1] | ||
Level 2 of fair value hierarchy [member] | Investment properties [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Fair value of Level 3 financial assets [member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | 31,506,499 | 36,643,301 | |
Fair value of Level 3 financial assets [member] | FVTPL [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Fair value of Level 3 financial assets [member] | Quoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Fair value of Level 3 financial assets [member] | Quoted bonds at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | |||
Fair value of Level 3 financial assets [member] | Unquoted equities at FVOCI [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | [1] | 5,794,187 | 5,988,087 |
Fair value of Level 3 financial assets [member] | Investment properties [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Fair value | $ 25,712,312 | $ 30,655,214 | |
[1] | Reconciliation of fair value of the unquoted equities under level 3 fair value hierarchy see Risk Management (Details 13). |
Risk Management (Details 13)
Risk Management (Details 13) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | ||
Balance | $ 301,163,886 | $ 301,399,953 |
Balance | 312,143,085 | 301,163,886 |
Fair value of Level 3 financial assets [member] | ||
Disclosure of credit risk exposure [line items] | ||
Balance | 5,988,087 | 4,436,160 |
Total gains and (losses) recognized in OCI | (193,900) | 1,551,927 |
Balance | $ 5,794,187 | $ 5,988,087 |
Risk Management (Details Textua
Risk Management (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Risk Management (Textual) | ||
Choices of variation | 7.50% | 5.00% |
Retained earnings | $ 312,143,085 | $ 301,163,886 |
Relevant liabilities, percentage | 75.00% | 75.00% |
Calibrated seek to ensure, description | Since 1 January 2017 the Company has been subject to the Solvency II regime and is required to meet a Solvency Coverage Ratio (SCR) which is calibrated to seek to ensure a 99.5% confidence of the ability to meet its obligations over a 12-month time horizon. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic and diluted earnings per share [abstract] | |||
Profit for the year attributable to the equity holders of parent (USD) | $ 23,565,399 | $ 25,541,703 | $ 7,031,340 |
Weighted average number of shares during the year - basic and diluted | 135,161,942 | 138,320,733 | 143,375,678 |
Basic and diluted earnings per share | $ 0.17 | $ 0.18 | $ 0.05 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Underwriting revenues | |||
Gross written premiums | $ 349,291,905 | $ 301,618,486 | $ 275,102,191 |
Reinsurers' share of insurance premiums | (97,139,370) | (98,188,088) | (114,334,750) |
Net written premiums | 252,152,535 | 203,430,398 | 160,767,441 |
Net change in unearned premiums | (36,609,639) | (20,120,779) | (14,034,657) |
Net premiums earned | 215,542,896 | 183,309,619 | 146,732,784 |
Underwriting deductions | |||
Net policy acquisition expenses | (45,435,438) | (41,963,522) | (36,231,710) |
Net claims and claim adjustment expenses | (118,063,488) | (85,287,501) | (86,930,537) |
Net underwriting results | 52,043,970 | 56,058,596 | 23,570,537 |
General and administrative expenses | (39,265,945) | (35,351,679) | (30,902,604) |
Net investment income | 13,374,076 | 10,310,296 | 12,564,842 |
Share of loss from associates | (376,104) | (885,673) | 992,218 |
Impairment loss on insurance receivables | (628,887) | (472,124) | (1,214,456) |
Other revenues | 1,428,265 | 902,750 | 856,540 |
Other expenses | (2,194,666) | (1,586,281) | (1,466,042) |
Listing related expenses | (4,831,976) | ||
Gain/Loss on foreign exchange | 5,704,249 | (3,371,941) | 2,615,883 |
Profit (loss) before tax | 25,252,982 | 25,603,944 | 7,016,918 |
Income tax | (1,687,583) | (62,241) | 14,422 |
Profit for the year | 23,565,399 | 25,541,703 | 7,031,340 |
Specialty Long Tail [Member] | |||
Underwriting revenues | |||
Gross written premiums | 142,515,347 | 91,959,644 | 59,405,845 |
Reinsurers' share of insurance premiums | (22,541,384) | 47,803 | (9,930,020) |
Net written premiums | 119,973,963 | 92,007,447 | 49,475,825 |
Net change in unearned premiums | (23,523,415) | (22,096,205) | (11,126,468) |
Net premiums earned | 96,450,548 | 69,911,242 | 38,349,357 |
Underwriting deductions | |||
Net policy acquisition expenses | (21,280,118) | (16,150,853) | (10,692,254) |
Net claims and claim adjustment expenses | (58,799,478) | (37,305,026) | (14,344,990) |
Net underwriting results | 16,370,952 | 16,455,363 | 13,312,113 |
General and administrative expenses | |||
Net investment income | |||
Share of loss from associates | |||
Impairment loss on insurance receivables | |||
Other revenues | |||
Other expenses | |||
Listing related expenses | |||
Gain/Loss on foreign exchange | |||
Profit (loss) before tax | 16,370,952 | 16,455,363 | 13,312,113 |
Income tax | |||
Profit for the year | 16,370,952 | 16,455,363 | 13,312,113 |
Specialty Short tail [Member] | |||
Underwriting revenues | |||
Gross written premiums | 188,790,616 | 191,839,289 | 198,043,886 |
Reinsurers' share of insurance premiums | (74,597,986) | (98,235,891) | (104,404,730) |
Net written premiums | 114,192,630 | 93,603,398 | 93,639,156 |
Net change in unearned premiums | (12,839,449) | 2,001,935 | (2,329,012) |
Net premiums earned | 101,353,181 | 95,605,333 | 91,310,144 |
Underwriting deductions | |||
Net policy acquisition expenses | (21,159,319) | (22,762,489) | (22,923,009) |
Net claims and claim adjustment expenses | (44,725,627) | (36,564,914) | (60,486,788) |
Net underwriting results | 35,468,235 | 36,277,930 | 7,900,347 |
General and administrative expenses | |||
Net investment income | |||
Share of loss from associates | |||
Impairment loss on insurance receivables | |||
Other revenues | |||
Other expenses | |||
Listing related expenses | |||
Gain/Loss on foreign exchange | |||
Profit (loss) before tax | 35,468,235 | 36,277,930 | 7,900,347 |
Income tax | |||
Profit for the year | 35,468,235 | 36,277,930 | 7,900,347 |
Reinsurance [Member] | |||
Underwriting revenues | |||
Gross written premiums | 17,985,942 | 17,819,553 | 17,652,460 |
Reinsurers' share of insurance premiums | |||
Net written premiums | 17,985,942 | 17,819,553 | 17,652,460 |
Net change in unearned premiums | (246,775) | (26,509) | (579,177) |
Net premiums earned | 17,739,167 | 17,793,044 | 17,073,283 |
Underwriting deductions | |||
Net policy acquisition expenses | (2,996,001) | (3,050,180) | (2,616,447) |
Net claims and claim adjustment expenses | (14,538,383) | (11,417,561) | (12,098,759) |
Net underwriting results | 204,783 | 3,325,303 | 2,358,077 |
General and administrative expenses | |||
Net investment income | |||
Share of loss from associates | |||
Impairment loss on insurance receivables | |||
Other revenues | |||
Other expenses | |||
Listing related expenses | |||
Gain/Loss on foreign exchange | |||
Profit (loss) before tax | 204,783 | 3,325,303 | 2,358,077 |
Income tax | |||
Profit for the year | 204,783 | 3,325,303 | 2,358,077 |
Sub Total [Member] | |||
Underwriting revenues | |||
Gross written premiums | 349,291,905 | 301,618,486 | 275,102,191 |
Reinsurers' share of insurance premiums | (97,139,370) | (98,188,088) | (114,334,750) |
Net written premiums | 252,152,535 | 203,430,398 | 160,767,441 |
Net change in unearned premiums | (36,609,639) | (20,120,779) | (14,034,657) |
Net premiums earned | 215,542,896 | 183,309,619 | 146,732,784 |
Underwriting deductions | |||
Net policy acquisition expenses | (45,435,438) | (41,963,522) | (36,231,710) |
Net claims and claim adjustment expenses | (118,063,488) | (85,287,501) | (86,930,537) |
Net underwriting results | 52,043,970 | 56,058,596 | 23,570,537 |
General and administrative expenses | |||
Net investment income | |||
Share of loss from associates | |||
Impairment loss on insurance receivables | |||
Other revenues | |||
Other expenses | |||
Listing related expenses | |||
Gain/Loss on foreign exchange | |||
Profit (loss) before tax | 52,043,970 | 56,058,596 | 23,570,537 |
Income tax | |||
Profit for the year | 52,043,970 | 56,058,596 | 23,570,537 |
Corporate and Othe [Member] | |||
Underwriting revenues | |||
Gross written premiums | |||
Reinsurers' share of insurance premiums | |||
Net written premiums | |||
Net change in unearned premiums | |||
Net premiums earned | |||
Underwriting deductions | |||
Net policy acquisition expenses | |||
Net claims and claim adjustment expenses | |||
Net underwriting results | |||
General and administrative expenses | (39,265,945) | (35,351,679) | (30,902,604) |
Net investment income | 13,374,076 | 10,310,296 | 12,564,842 |
Share of loss from associates | (376,104) | (885,673) | 992,218 |
Impairment loss on insurance receivables | (628,887) | (472,124) | (1,214,456) |
Other revenues | 1,428,265 | 902,750 | 856,540 |
Other expenses | (2,194,666) | (1,586,281) | (1,466,042) |
Listing related expenses | (4,831,976) | ||
Gain/Loss on foreign exchange | 5,704,249 | (3,371,941) | 2,615,883 |
Profit (loss) before tax | (26,790,988) | (30,454,652) | (16,553,619) |
Income tax | (1,687,583) | (62,241) | 14,422 |
Profit for the year | $ (28,478,571) | $ (30,516,893) | $ (16,539,197) |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||
Non-current operating assets | $ 42,333,048 | $ 45,807,961 |
Middle East [Member] | ||
Statement Line Items [Line Items] | ||
Non-current operating assets | 40,581,053 | 45,333,446 |
North Africa [Member] | ||
Statement Line Items [Line Items] | ||
Non-current operating assets | 25,093 | 65,715 |
UK [Member] | ||
Statement Line Items [Line Items] | ||
Non-current operating assets | 1,622,236 | 406,262 |
Asia [Member] | ||
Statement Line Items [Line Items] | ||
Non-current operating assets | $ 104,666 | $ 2,538 |