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Bupa Arabia for Cooperative Insurance announces the interim financial results for the period ending on 31-12-2014 (Twelve Months)

8210
BUPA ARABIA
-1.59 %
1436/03/28     19/01/2015 15:58:13
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) before Zakat
123,871
91,530
35.33
160,349
-
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
129,998
90,179
44.16
172,284
-
Gross written premiums (GWP)
821,384
574,483
42.98
2,120,863
-
Net written premiums (NWP)
819,963
567,586
44.46
2,043,225
-
Net incurred claims
1,084,704
595,644
82.11
977,310
10.99
Net profit (loss) of policy holders investment
5,179
4,210
23.02
4,692
10.38
Net profit (loss) of shareholders capital investment
2,340
4,338
-
2,307
1.43
All figures are in (Thousands) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) before Zakat
301,275
147,334
104.48
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
308,425
129,701
137.8
Gross written premiums (GWP)
5,740,449
3,177,480
80.66
Net written premiums (NWP)
5,658,642
3,097,847
82.66
Net incurred claims
3,649,005
2,094,354
74.23
Net profit (loss) of policy holders investment
18,844
15,485
21.69
Net profit (loss) of shareholders capital investment
10,804
19,989
-
Earning or loss per share, Riyals
7.57
3.71
-
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 month period ended 31st December 2014 versus the same period of 2013, was due mainly to very strong business growth, resulting in higher net written and significantly higher net earned premium. The net underwriting result gains were partially offset by increased claims and growth related operational expenses, such as commissions, levies and staff/infrastructure related expenses to support the growth. Gross Written Premium (GWP) increased by SR246,901K, an increase of 43%, and the net earned premiums increased by SR626,614K, an increase of 81%. As a result the net underwriting result for the three month period ended 31 December 2014, versus the same period of 2013, improved by SR137,554K, an increase of 77%.
Reasons of increase (decrease) for the period compared with same period last year The improvement in results for the twelve months ended 31 December 2014, versus the same period of 2013, was due mainly to very strong business growth, including a major account win, resulting in a much higher net written and net earned premium, and combined with an improved, lower, net claims incurred ratio (2014 at 79.4% versus 2013 at 80.4%), resulted in a significantly higher net underwriting result. The net underwriting result improved by SR435,966K versus the same period of the previous year, representing an 85% increase. The Gross Written Premium (GWP) increased by SR2,562,969K, versus the same period of 2013, representing an increase of 81%. There was an increase in operating expenses driven by the growth, including commissions and levies (which increased by a combined SR97,111K ) and other expense increases were due to staff and infrastructure related costs required to support the growth.
Reasons of increase (decrease) for the quarter compared with the previous quarter The deterioration in result in the fourth quarter of 2014, versus the third quarter of 2014, was mainly due to the adverse seasonality of claims in the fourth quarter (third quarter lower claims due to the impact of summer) which resulted in an adverse, higher, net claims incurred ratio, in the fourth quarter, of 77.4% (versus the third quarter ratio which was at 74.2%). As a result the net underwriting result for the three month period ended 31 December 2014, versus the third quarter, deteriorated by SR22,153K, a reduction of 7%. In the fourth quarter there was a reduction in Gross Written Premiums (GWP), of SR1,299,478K, a reduction of 61%, due mainly to the third quarter GWP including a major account win. The net earned premium for the fourth quarter of 2014 increased, versus the third quarter of 2014, by SR85,241K, representing an increase of 6%.
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.
Other notes The outstanding claims provision has been calculated in accordance with SAMA's implementing regulations and the income per share has been calculated based on profit before zakat and income tax divided by the weighted average number of ordinary shares outstanding (39,796k shares)

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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Last Price 173.2
Net Change -2.8 (-1.59%)
Value Traded (Sar) 17,339,418.2
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