BUPA Arabia for Cooperative Insurance Company Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2016
Jul 21 16
BUPA Arabia for Cooperative Insurance Company reported earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported net profit before Zakat was SAR 104,226,000 compared to SAR 113,203,000 a year ago. Gross written premiums (GWP) were SAR 1,827,721,000 compared to SAR 1,891,373,000 a year ago. Net written premiums (NWP) were SAR 1,816,904,000 compared to SAR 1,885,400,000 a year ago. Net profit of policy holders investment was SAR 19,416,000 compared to SAR 6,010,000 a year ago. Net profit of shareholders capital investment was SAR 15,254,000 compared to net loss of shareholders capital investment of SAR 862,000 a year ago. The decline in result in the second quarter of 2016, versus the second quarter of 2015, was mainly due to higher bad debt provision expense and increase in operational expenses to support the year on year increase in business growth. There was also an increase in the new underwriting result by SAR 18,888,000 a 6% increase, which could not offset the increase in expenses. The net claims to net earned premium ratio has increase in the second quarter of 2016 compared to the same period of 2015 which was due to claims inflation which could not be covered yet by pricing. The losses were partially offset by Cooperative Distribution reduced by SAR 2,956,000 due to the reduced surplus from Insurance Operations, at SAR 100,973,000 for the current quarter versus the SAR 130,538,000 for the previous quarter, a reduction of 23% and investment income which increased by SAR 13,406,000, 223%. Gross Written Premium (GWP) were lower by SAR 63,652,000 in the second quarter of 2016, versus the second quarter of 2015, a decrease of 3%, and net earned premiums were higher by SAR 215,130,000, an increase of 13%.
For the period, the company reported net profit before Zakat was SAR 176,862,000 compared to SAR 149,974,000 a year ago. Gross written premiums (GWP) were SAR 4,273,750,000 compared to SAR 3,970,822,000 a year ago. Net written premiums (NWP) were SAR 4,251,244,000 compared to SAR 3,958,669,000 a year ago. Net profit of policy holders investment was SAR 31,170,000 compared to SAR 12,187,000 a year ago. Net profit of shareholders capital investment was SAR 15,323,000 compared to SAR 862,000 a year ago. Earning or loss per share was SAR 2.22 compared to SAR 1.87 a year ago. The improvement in results for the six month period ended 30 June 2016, versus the same period of 2015, was mainly due to strong business growth, in the current year first two quarters and the second half of 2015, resulting in higher net earned premium and higher net
underwriting result despite the higher net claims incurred to net earned premium ratio. The net underwriting result gains were partially offset by an increase in growth related operational expenses, such as commissions and levies, as well as by the Cooperative Distribution expense of SAR 18,527,000 for year to date 2016 second quarter, versus year to date 2015 second quarter at SAR 16,974,000 due to higher 2016 year to date second quarter surplus from Insurance operations. Gross Written Premium (GWP) increased by SAR 302,928,000, an increase of 8%, and the net underwriting result for the six month period ended 30th June 2016, versus the same period of 2015, improved by SAR 85,929,000, representing an increase of 16%. The improvement in net earned premium by SAR 583,810,000 represented an increase of 19%, versus the same period of 2015. Investment income improved by SAR 18,983,000 which represented an increase of 156% versus the same period of 2015. The surplus from Insurance Operations increased by SAR 15,527, a surplus of SAR 185,266,000 from Insurance Operations for the period ended 30th June 2016, versus a surplus from Insurance Operations of SAR 169,739,000 for the same period of 2015 an increase of 9%.