Bupa Arabia’s Q1 Profits Soar to 359 Million Riyals, Up 91%

Bupa Arabia Cooperative Insurance Company announced a remarkable surge in net profit after Zakat attributable to shareholders, reaching 359 million riyals during the first quarter of 2024. This impressive figure marks a substantial increase from 189 million riyals recorded in the same quarter of the previous year, reflecting a remarkable 91% rise. The announcement follows the release of the company’s financial results for the period ending on March 31, 2024.

In the first quarter of 2024, net profits from investment results amounted to 158 million riyals, representing a notable increase of 54% compared to 102 million riyals in the same quarter of the previous year. Earnings per share for the current period reached 2.4 riyals, up from 1.26 riyals in the corresponding period last year.

The surge in insurance revenue for the current quarter, amounting to SR 4,374,058K, compared to SR 3,750,413K during the same quarter of the previous year, reflects a significant increase of 16.63%. This growth was primarily driven by business expansion and an increase in insured lives.

Moreover, profit before zakat and income tax attributable to shareholders for the current quarter amounted to SR 416,123K, compared to SR 230,136K during the same quarter of the previous year, indicating a substantial increase of 80.82%.

The notable increase in profit after zakat and income tax attributable to shareholders for the current quarter, totaling SR 359,423K compared to SR 188,596K during the similar quarter of the previous year, can be attributed to several key factors:

The insurance service result for the current quarter amounted to SR 338,479K, reflecting a significant increase of 96.77% compared to SR 172,014K during the similar quarter of the previous year. This increase was primarily driven by claims seasonality, business growth, and an increase in insured lives.

The net insurance service result for the current quarter amounted to SR 321,601K, up from SR 168,483K during the similar quarter of the previous year, representing a notable increase of 90.88%. This increase was primarily driven by claims seasonality, business growth, and an increase in insured lives.

Net investment results for the current quarter amounted to SR 158,144K, compared to SR 102,437K during the similar quarter of the previous year, reflecting an increase of 54.38%.

However, these positive movements were partially offset by certain factors:

Other operating expenses for the current quarter amounted to SR 75,731K compared to SR 57,153K during the similar quarter of the previous year, reflecting an increase of 32.51%. This increase was attributed to increased expenditure to support business growth.

Net other revenue for the current quarter amounted to SR 12,109K, compared to SR 16,369K during the similar quarter of the previous year, reflecting a decrease of 26.02%.

Total comprehensive income for the current quarter amounted to SR 300,343K compared to SR 204,251K during the similar quarter of the previous year, indicating a notable increase of 47.05%.

Furthermore, gross written premiums (GWP) for the current quarter amounted to SR 7,249,442K compared to SR 5,409,460K during the similar quarter of the previous year, reflecting an increase of 34.01%.

In addition, insurance revenues for the current quarter amounted to SR 4,374,058K, compared to SR 4,159,711K during the previous quarter, reflecting an increase of 5.15%.

Profit before zakat and income tax attributable to shareholders for the current quarter amounted to SR 416,123K, compared to SR 126,145K during the previous quarter, indicating a significant increase of 229.88%.

Profit after zakat and income tax attributable to shareholders for the current quarter amounted to SR 359,423K, compared to SR 104,867K during the previous quarter, reflecting a substantial increase of 242.74%.

Total comprehensive income for the current quarter amounted to SR 300,343K compared to SR 228,591K during the previous quarter, indicating an increase of 31.39%.

Moreover, gross written premiums (GWP) for the current quarter amounted to SR 7,249,442K compared to SR 2,762,934K during the previous quarter, reflecting a significant increase of 162.38%.

The earnings per share (EPS) for the current quarter is SR 2.40 per share compared to SR 1.26 per share for the similar quarter of the previous year. This calculation is based on the net income attributed to shareholders after zakat and income tax of SR 359,423K, divided by the weighted average number of ordinary outstanding shares of 149,793K for the current quarter and SR 188,596K over 149,323K shares for the similar quarter of the previous year.

Total Shareholders’ Equity (no minority interest) as at the end of the current quarter is SR 4,997 million compared to SR 4,431 million as at the end of the same quarter of the previous year, indicating an increase of 12.77%.

Total Equity as at the end of the current quarter is SR 4,986 million compared to SR 4,415 million as at the end of the similar quarter of the previous year, reflecting an increase of 12.93%.