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Bupa Arabia for Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2020-06-30 ( Six Months )

8210
BUPA ARABIA
-2.53 %
1441/12/29     19/08/2020 08:01:12

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Gross Written Premiums (GWP) 2,243,2182,438,802-8.0193,469,978-35.353
Net Written Premiums (NWP) 2,232,6002,408,353-7.2973,452,414-35.332
Net Incurred Claims 1,800,1321,782,0151.0162,318,131-22.345
Net Profit (Loss) of Policy Holders Investment 28,99433,685-13.92634,249-15.343
Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) 434,381170,648154.54770,905512.623
Net Profit (loss) of Shareholders Capital Investment 21,29728,031-24.02326,556-19.803
Net Profit (Loss) before Zakat 443,058216,074105.049125,657252.593
Total Comprehensive Income 494,136198,334149.14345,874977.159
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Gross Written Premiums (GWP) 5,713,1965,344,2496.903
Net Written Premiums (NWP) 5,685,0145,293,1327.403
Net Incurred Claims 4,118,2633,693,03711.514
Net Profit (Loss) of Policy Holders Investment 63,24467,373-6.128
Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) 505,285210,356140.204
Net Profit (loss) of Shareholders Capital Investment 47,85251,170-6.484
Net Profit (Loss) before Zakat 568,714310,19783.339
Total Comprehensive Income 540,009304,14477.55
Total Share Holders Equity (after Deducting Minority Equity) 3,575,5382,887,13823.843
Profit (Loss) per Share 4.082.19
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The increase in profits before Zakat and Income Tax for the quarter of SR 226,984K compared with same quarter the previous year was due to the following main reasons:

• Increase in underwriting results of SR 220,023K compared with the same quarter previous year, an increase of 49%. Net earned premiums increased by SR 411,791K in the current quarter compared with the same quarter previous year, an increase of 18%, while net claims incurred increased by only SR 18,117K, an increase of 1%. This marginal change in incurred claims was driven by the significant decline in demand for healthcare services during the months of April and May of the current quarter, following the lockdown and curfew measures taken by local authorities to combat the spread of the COVID-19 pandemic. Management expects a significant portion of untreated conditions to rebound as health care patters are gradually restored.

• Decrease in the provision for doubtful receivables of SR 58,041K compared to the same quarter the previous year, a decrease of 69%, which is primarily driven by the change in the method of calculating bad debt provisions in the current period, as recently mandated by SAMA to be more aligned with IFRS.

These favorable movements were partially offset with an increase in deferred acquisition costs expensed in the current quarter reaching SR 227,127K compared with the same quarter the previous year, an increase of 325%, which was related to the Premium Deficiency Reserves (PDR) recognized during the current quarter. Operating expenses increased by SR 16,203K during the current quarter, an increase of 8.3%, while investment and other income earned amounted to SR 57,954K, a decrease of 13.4% compared to the same quarter of the previous year. Policyholders’ share of insurance operations’ surplus increased to reach SR 46,337K compared to SR 20,433K in the same quarter previous year, an increase of 126.7%.

Gross Written Premiums (GWP) decreased by SR 195,584K in the current quarter compared with the same quarter previous year, a decrease of 8%, due to the COVID-19 triggered economic slowdown witnessed during the current period as well as increased competition.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The increase in profits before Zakat and Income Tax for the quarter of SR 317,401K compared with previous quarter was due to the following main reasons:

• Increase in underwriting results of SR 377,974K compared with the previous quarter, an increase of 129.8%. Net earned premiums increased by SR 24,191K in the current quarter compared with the previous quarter, an increase of 0.91%, while net claims incurred decreased by SR 517,999K compared with the previous quarter, a decrease of 22.35%. This material decrease in incurred claims was driven by the significant decline in demand for healthcare services during the months of April and May of the current quarter, following the lockdown and curfew measures taken by local authorities to combat the spread of the COVID-19 pandemic. Management expects a significant portion of untreated conditions to rebound as health care patters are gradually restored.

• Decrease in operating expenses of SR 32,066K compared with the previous quarter, a decrease of 13.2%.

These favorable movements were partially offset with an increase in deferred acquisition costs expensed in the current quarter reaching SR 227,127K compared with the previous quarter, an increase of 261%, which was related to the Premium Deficiency Reserves (PDR) recognized during the current quarter. The Provision for doubtful receivables also reached SR 26,049K and increase of SR 47,620K compared with previous quarter, while investment and other income decreased by 13.7%, reaching SR 57,954K in the current quarter. Policyholders’ share of insurance operations’ surplus increased to reach SR 46,337K in the current quarter versus SR 10,515K in the previous quarter, an increase of 340.7%.

Increase (Decrease) in Net Profit for Current Period Compared to the Same Period of the Previous Year is Attributed to "The increase in profits before Zakat and Income Tax for the period of SR 258,517K compared with same period last year was due to the following main reasons:

• Increase in underwriting results of SR 282,915K compared with the same period last year, an increase of 41.8%. Net earned premiums increased by SR 886,822K in the current period compared with the same period last year, an increase of 19.8%, while net claims incurred increased by only SR 425,226K compared with the same period last year, an increase of 11.5%

• Decrease in the provision for doubtful receivables of SR 68,573K compared to the same period last year, a decrease of 93.9%, which is primarily driven by the change in the method of calculating bad debt provisions in the current period, as recently mandated by SAMA to be more aligned with IFRS.

These favorable movements were partially offset with an increase in deferred acquisition costs expensed in the current period reaching SR 290,038K compared with the same period last year, an increase of 160.4%, which was related to the Premium Deficiency Reserves (PDR) recognized during the current period. Operating expenses increased by 15% compared with the same period last year, reaching SR 455,662K, while investment and other income decreased by 3.4%, reaching SR 125,105K in the current period. Policyholders’ share of insurance operations’ surplus increased to reach SR 56,853K in the current period versus SR 27,773K in the same period last year, an increase of 104.7%.

Gross Written Premiums (GWP) increased by SR 368,947K in the current period compared with the same period last year, an increase of 6.9%.

"

Basis of the External Auditor's Opinion Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion The external auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia.and other standards and pronouncement issued by Saudi Organisation for Certified Public Accountants (“SOCPA”).
Reclassification of Comparison Items No reclassifications in this Interim financial statements.
Additional Information "• Refer to Note 21 of the interim consolidated financial statements for further information about the impact of COVID-19 on the company’s operations and financials, including the recognition of a PDR.

• Total Insurance Operations Comprehensive Income for the current quarter is SR 63,270K compared to SR 28,411K for the same quarter of the last year, an increase of 122.7%, and SR (4,928) K for the previous quarter. Total Shareholders Comprehensive Income for the current quarter is SR 477,203K compared to SR 190,356K for the same quarter of the last year, an increase of 150.7%, and SR 61,317K for the previous quarter, an increase of 678.3%. The earnings per share (EPS) for the current quarter is SR 3.25 per share versus SR 1.56 per share for the same quarter last year by dividing the net income attributed to shareholders after zakat and income tax amount of SR 387,907K over the weighted average number of ordinary outstanding shares of 119,446K for the current quarter and SR 186,026K over 119,596K for the same quarter of the last year. Total Shareholder Equity (no minority interest) as at end of current period is SR 3,576 Million versus SR 2,887 Million as at end of same quarter last year, an increase of 23.8%.

The profits after Zakat and Income Tax for the current quarter reached SR 387,907K compared to SR 186,026K for the same quarter of last year, an increase of 108.5%, and SR 99,735K for the previous quarter, an increase of 288.9%.

"

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 239.2
Net Change -6.2 (-2.53%)
Value Traded (Sar) 46,769,901
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