Bupa Arabia for Cooperative Insurance announces its financial results for the six month period ending 30/06/2010, as detailed below:

 1. Net loss for the second quarter in 2010 was SR1,663K compared to a net profit of SR2,041K for the second quarter in 2009, and compared to a net loss of SR12,906K for the first quarter in 2010, representing an 87% reduction in the first quarter net loss.

2. The deficit from insurance operations, before investment income, for the second quarter in 2010 was SR612K, compared to a surplus of SR1,521K for the second quarter in 2009.

3. Gross written premiums for the second quarter in 2010 were SR415,384K compared to SR362,479K for the second quarter in 2009, representing a 15% increase. Net written premiums for the second quarter in 2010 were SR414,371K compared to SR362,479K for the second quarter in 2009, representing a 14% increase.

4. The costs for claims incurred for the second quarter in 2010 were SR330,779K compared to SR242,272K for the second quarter in 2009, representing a 37% increase.

Net investment income from insurance operations for the second quarter in 2010 was SR171K compared to SR524K for the second quarter in 2009, representing a 67% reduction. Net investment income of shareholders for the second quarter in 2010 was SR179K compared to SR1,329K for the second quarter in 2009, representing an 87% reduction. 
 

Net loss for the six months to 30th June 2010 was SR14,569K compared to a net loss of SR3,538K for the same second period in 2009, representing a 312% increased loss. 
 

7. Loss per share for the six months to 30th June 2010 was SR0.36 compared to a loss of SR0.09 per share for the same period in 2009.

The deficit from insurance operations, before investment income, for the six months to 30th June 2010 was SR13,210K, compared to a SR6,544K deficit for the same period in 2009, representing a 102% increase in deficit. 
 

Gross written premiums for the six months to 30th June 2010 were SR1,052,358K compared to SR796,877K for the same period 2009, representing a 32% increase. Net written premiums for the six months to 30th June 2010 were SR1,050,845K compared to SR796,877K for the same period 2009, representing a 32% increase.
 

The costs for claims incurred for the six months to 30th June 2010 were SR658,320K compared to SR472,975K for the same period in 2009, representing a 39% increase.
 

Net investment income from insurance operations for the six months to 30th June 2010 was SR416K compared to SR1,838K for the same period in 2009, representing a 77% reduction. Net investment income of shareholders for the six months to 30th June 2010 was SR753K compared to SR3,837K for the same period in 2009, representing an 80% reduction.
 

The improvement in results in the second quarter of 2010, compared to the first quarter of 2010, is mainly due to the increase in earned premium and the decreased percentage of total claims incurred during the period. The loss for the six month period to 30th June 2010 increased compared to the same period of the previous year due to an increase in the percentage of claims costs and an increase selling and marketing costs. There is a loss for the three month period to 30th June 2010 compared to a profit for the same period of the previous year due to an increase in selling and marketing costs.
 

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.