‎“Bupa Arabia” profits increased to SR432.3 million during Q2, ‎by 57.4%‎

Bupa Arabia for Cooperative Insurance revealed that the net profit before zakat increased during the second quarter to 432.3 million riyals, compared to 274.5 million riyals in the same quarter of last year, at a rate of 57.4%. This came after today’s announcement of the preliminary consolidated financial results for the period ending in 2023-06-30 (six months).

The total written premiums (GWP) in the second quarter amounted to 3.8 billion riyals, compared to 3 billion riyals in the same quarter of the previous year, with a growth of 29.2%.

As for the net profit before zakat in the 6-month period, it amounted to 662.4 million riyals, compared to 378 million riyals in the same period last year, an increase of 75.2%.

The total shareholders’ equity “without minority rights” in the current period amounted to 4.2 billion riyals, compared to 3.8 billion riyals in the same period last year, an increase of 10.5%.

Earnings per share in the current period reached 3.75 riyals, compared to 2 riyals in the same period last year.

– The company applied International Financial Reporting Standard 17 (Insurance Contracts) and International Financial Reporting Standard 9 (Financial Instruments), according to the standards approved in the Kingdom of Saudi Arabia, as of January 1, 2023 and retroactively, which led to a fundamental change in the presentation Financial results for all periods starting from the first quarter of 2023 and re-measuring similar periods from previous years according to the new standards. As a result, the company announced the financial results according to the data available under IFRS 17 and IFRS 9. Data that is not in compliance with the new standards was indicated with a “-” sign.

The following detailed explanation covers the financial statements announced above and the summary financial statements attached to this announcement, which are consistent with the way financial results are presented in accordance with the new standards.

The reason for the increase in profit before zakat and income tax for the current quarter is 157,801 thousand Saudi riyals, an increase of 57.49% compared to the same quarter of the previous year, due to the following main reasons:

An improvement in the results of insurance services by 181,253 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 95.01%. This was driven by an increase in insurance revenues of SAR 743,314 thousand, an increase of 23.66%. This change was offset by a partial increase in insurance services expenses by 557,789 thousand riyals, an increase of 18.95%, and an increase in net expenses from retained reinsurance contracts by 4,272 thousand Saudi riyals, an increase of 60.12%.

An increase in net investment income by 15,546 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 14.46%.

An increase in net revenues and other costs by 13,724 thousand Saudi riyals compared to the same quarter of the previous year.

These positive changes have been partly mitigated as follows:

An increase in net other operating expenses by 52,722 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 221.47%.

Also, the total written premiums increased by 878,816 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 29.28%.

– The company also applied International Financial Reporting Standard 17 (Insurance Contracts) and International Financial Reporting Standard 9 (Financial Instruments), according to the standards approved in the Kingdom of Saudi Arabia, as of January 1, 2023 and retroactively, which led to a fundamental change in Presentation of financial results for all periods starting from the first quarter of 2023 and re-measurement of similar periods from previous years according to the new standards. As a result, the company announced the financial results according to the data available under IFRS 17 and IFRS 9. Data that is not in accordance with the new standards was indicated with a “-” sign.

The following detailed explanation covers the financial statements announced above and the summary financial statements attached to this announcement, which are consistent with the way financial results are presented in accordance with the new standards.

The reason for the increase in profit before zakat and income tax for the current quarter by 202,168 thousand Saudi riyals, an increase of 87.85% compared to the previous quarter, is due to the following main reasons:

An improvement in the results of insurance services by 203,540 thousand Saudi riyals compared to the previous quarter, an increase of 120.81%. This was driven by an increase in insurance revenues by SAR 134,601 thousand, an increase of 3.59%, and a decrease in insurance services expenses by SAR 76,786 thousand, a decrease of 2.15%. This change was offset by a partial increase in the net expenses of reinsurance contracts held by 7,847 thousand Saudi riyals, an increase of 222.23%.

An increase in net investment income by 20,647 thousand Saudi riyals compared to the previous quarter, an increase of 20.16%.

These positive changes have been partly mitigated as follows:

An increase in net other operating expenses by 19,374 thousand Saudi riyals compared to the previous quarter, an increase of 33.90%.

A decrease in net income and other costs by SAR 2,645 thousand compared to the previous quarter, a decrease of 16.16%.

Also, a decrease in total written premiums by 1,529,364 thousand Saudi riyals compared to the previous quarter, a decrease of 28.27%.

– The company applied International Financial Reporting Standard 17 (Insurance Contracts) and International Financial Reporting Standard 9 (Financial Instruments), according to the standards approved in the Kingdom of Saudi Arabia, as of January 1, 2023 and retroactively, which led to a fundamental change in the presentation Financial results for all periods starting from the first quarter of 2023 and re-measuring similar periods from previous years according to the new standards. As a result, the company announced the financial results according to the data available under IFRS 17 and IFRS 9. Data that is not in accordance with the new standards was indicated with a “-” sign.

The following detailed explanation covers the financial statements announced above and the summary financial statements attached to this announcement, which are consistent with the way financial results are presented in accordance with the new standards.

The reason for the increase in profit before zakat and income tax for the current period is 284,399 thousand Saudi riyals, an increase of 75.23% compared to the same period of the previous year, due to the following main reasons:

An improvement in the results of insurance services by 281,210 thousand Saudi riyals compared to the same period of the previous year, an increase of 108.45%. This was driven by an increase in insurance revenues by SAR 1,544,734 thousand, an increase of 25.36%, and a decrease in net expenses from reinsurance contracts held by SAR 8,053 thousand, a decrease of 35.07%. These changes were offset by a partial increase in insurance services expenses by 1,271,577 thousand Saudi riyals compared to the same period of the previous year, an increase of 21.89%.

An increase in net investment income by 35,514 thousand Saudi riyals compared to the same period of the previous year, an increase of 18.69%.

An increase in net revenues and other costs by 30,093 thousand Saudi riyals compared to the same period of the previous year.

These positive changes have been partly mitigated as follows:

An increase in other net operating expenses by 62,418 thousand Saudi riyals compared to the same period of the previous year, an increase of 87.59%.

Also, an increase in total written premiums by 2,065,857 thousand Saudi riyals compared to the same period of the previous year, an increase of 28.60%.