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Bupa Arabia for Cooperative Insurance Co. announces the interim financial results for the period ending on 30-06-2015 (Six Months)

8210
BUPA ARABIA
-0.91 %
1436/10/07     01/05/2016 08:32:15
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) before Zakat
113,203
37,843
199.14
36,771
207.86
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
124,528
33,309
273.86
33,024
277.08
Gross written premiums (GWP)
1,891,373
1,376,946
37.36
2,079,449
-9.04
Net written premiums (NWP)
1,885,400
1,375,478
37.07
2,073,269
-9.06
Net incurred claims
1,314,846
819,938
60.36
1,302,447
0.95
Net profit (loss) of policy holders investment
6,010
4,650
29.25
6,177
-2.7
Net profit (loss) of shareholders capital investment
-2,178
2,858
-
3,040
-
All figures are in (Thousands) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) before Zakat
149,974
17,055
779.36
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
157,552
6,143
2,464.74
Gross written premiums (GWP)
3,970,822
2,798,203
41.91
Net written premiums (NWP)
3,958,669
2,795,455
41.61
Net incurred claims
2,617,293
1,586,991
64.92
Net profit (loss) of policy holders investment
12,187
8,973
35.82
Net profit (loss) of shareholders capital investment
862
6,157
-86
Earning or loss per share, Riyals
3.75
0.43
-
All figures are in (Thousands) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for the quarter compared with same quarter last year The improvement in results for the three (3) month period ended 30th June 2015, versus the same period of 2014, was mainly due to strong business growth, in the current year first two quarters and the second half of 2014, resulting in a higher net earned premium, and combined with an improved, lower, net claims incurred to net earned premium ratio (2015 Q2 at 79.8% versus 2014 Q2 at 82.3%), resulting in a significantly higher net underwriting result. The net underwriting result gains were partially offset by increased growth related operational expenses, such as commissions and levies, as well as by the Cooperative Distribution expense of SR13,054K for 2015 Q2, versus 2014 Q2 at SR1,512K due to the lower 2014 Q2 surplus from insurance operations. Gross Written Premium (GWP) increased by SR514,427K, an increase of 37%, and the net underwriting result for the three month period ended 30th June 2015, versus the same period of 2014, improved by SR157,908K, representing an increase of 90%. The improvement in net earned premium by SR652,816K represented an increase of 66%, versus the same period of 2014. The surplus from Insurance Operations increased by SR92,579K, to a surplus of SR130,538K from Insurance Operations for the three month period ended 30th June 2015, versus a surplus from Insurance Operations of SR37,959K for the same period of 2014, representing an increase of 244%.
Reasons of increase (decrease) for the period compared with same period last year The improvement in results for the six (6) month period ended 30th June 2015, versus the same period of 2014, was mainly due to strong business growth, in the current year first two quarters and the second half of 2014, resulting in a higher net earned premium and, combined with an improved, lower, net claims incurred to net earned premium ratio (2015 year to date Q2 at 82.8% versus 2014 year to date Q2 at 84.6%) , resulting in a significantly higher net underwriting result. The net underwriting result gains were partially offset by increased growth related operational expenses, such as commissions and levies, as well as by the Cooperative Distribution expense of SR16,974K for year to date 2015 Q2, versus year to date 2014 Q2 at SR1,512K due to the significantly higher 2015 year to date Q2 surplus from insurance operations. Gross Written Premium (GWP) increased by SR1,172,619K, an increase of 42%, and the net underwriting result for the six month period ended 30th June 2015, versus the same period of 2014, improved by SR255,238K, representing an increase of 88%. The improvement in net earned premium by SR1,285,540K represented an increase of 68%, versus the same period of 2014. The surplus from Insurance Operations increased by SR154,623K, a surplus of SR169,739K from Insurance Operations for the period ended 30th June 2015, versus a surplus from Insurance Operations of SR15,116K for the same period of 2014, an increase of 1,023%.
Reasons of increase (decrease) for the quarter compared with the previous quarter The improvement in result in the second quarter of 2015, versus the first quarter of 2015, was mainly due to lower claims in the second quarter of 2015 (due to the seasonality of claims, as reflected by the net claims incurred to net earned premium ratio (2015 Q2 at 79.8% versus 2015 Q1 at 86.0%)) which resulted in an increase in net underwriting result of SR122,607K, a 58% increase. There was also a decrease in Selling and Marketing expenses driven by commissions and levies impacted by the seasonality of the Gross Written Premium (GWP), GWP higher in Q1. This was partially offset by an increase in General and Admin. expenses, required to support the growth. Gross Written Premiums (GWP) were lower by SR188,076K in the second quarter of 2015, a reduction of 9%, versus the first quarter of 2015, due to the seasonality of the GWP being higher in the first quarter, and Net earned premiums were higher by SR135,006K, an increase of 9%, due to the prior periods' significant growth.
External auditor's report containing reservation The joint auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34 and not in accordance with the Standard of interim financial reporting issued by SOCPA. However the company assures that there are no significant differences in the results contained within the financial statements due to using International Accounting Standards rather than the SOCPA accounting standards.
Reclassifications in quarterly financial results Certain comparative figures for the previous period have been reclassified to be consistent with the presentation of the current period.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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