Bupa Arabia for Cooperative Insurance announces its interim financial results for the twelve month period ended 31/12/2010, as detailed below:

1. Net profit for the fourth quarter in 2010 was SR26,364K compared to a net profit of SR23,980K for the fourth quarter in 2009, representing a 10% increase, and compared to a net profit of SR59,003K for the third quarter in 2010, representing a 55% reduction.

2. The surplus from insurance operations, before investment income, for the fourth quarter in 2010 was SR25,907K, compared to a surplus of SR21,428K for the fourth quarter in 2009, representing a 21% increase.

3. Gross written premiums for the fourth quarter in 2010 were SR308,849K compared to SR227,955K for the fourth quarter in 2009, representing a 35% increase. Net written premiums for the fourth quarter in 2010 were SR307,992K compared to SR227,866K for the fourth quarter in 2009, representing a 35% increase.

4. The costs for net claims incurred for the fourth quarter in 2010 were SR356,561K compared to SR272,110K for the fourth quarter in 2009, representing a 31% increase.

5. Net investment income from insurance operations for the fourth quarter in 2010 was SR3,062K compared to SR514K for the fourth quarter in 2009, representing a 496% increase. Net investment income of shareholders for the fourth quarter in 2010 was SR3,009K compared to SR689K for the fourth quarter in 2009, representing a 337% increase.

6. Net profit for the twelve months ended 31st December 2010 was SR70,798K compared to a net profit of SR57,732K for the same period in 2009, representing a 23% increase.

7. Earning per share for the twelve months ended 31st December 2010 was SR1.77 compared to an earning of SR1.44 per share for the same period in 2009.

8. The surplus from insurance operations, before investment income, for the twelve months ended 31st December 2010, was SR77,298K compared to a SR56,862K surplus for the same period in 2009, representing a 36% increase.

9. Gross written premiums for the twelve months ended 31st December 2010 were SR1,749,390K compared to SR1,347,337K for the same period in 2009, representing a 30% increase. Net written premiums for the twelve months ended 31st December 2010 were SR1,746,210K compared to SR1,347,248K for the same period in 2009, representing a 30% increase.

10. The costs for net claims incurred for the twelve months ended 31st December 2010 were SR1,308,103K compared to SR973,422K for the same period in 2009, representing a 34% increase.

11. Net investment income from insurance operations for the twelve months ended 31st December 2010 was SR3,820K compared to SR2,660K for the same period in 2009, representing a 44% increase. Net investment income of shareholders for the twelve months ended 31st December 2010 was SR4,067K compared to SR5,624K for the same period in 2009, representing a 28% reduction.

12. The deterioration in results in the fourth quarter of 2010, compared to the third quarter of 2010, is mainly due to increased net claims incurred after the summer period. The profit for the twelve month period ended 31st December 2010 increased compared to the previous year due mainly to an increase in net underwriting result of 30%. The profit for the three month period ended 31st December 2010 increased compared to the profit for the same period of the previous year due mainly to an increase in underwriting result of 17%.

13. 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.

Download the financial results for the period ended 31/12/2010 (twelve months)