Bupa Arabia for Cooperative Insurance announces its financial results for the nine month period ended 30/09/2011, as detailed below:

1.Net income for the third quarter in 2011 was SR66,350K compared to a net income of SR59,003K for the third quarter in 2010, representing a 12% increase, and compared to a net loss of SR19,807K for the second quarter in 2011.
 
2.The surplus from insurance operations, before policyholder’s investment income losses, for the third quarter in 2011 was SR73,175K, compared to a SR64,601K surplus for the third quarter in 2010, representing a 13% increase.

3.Gross written premiums for the third quarter in 2011 were SR413,916K compared to SR388,184K for the third quarter in 2010, representing a 7% increase. Net written premiums for the third quarter in 2011 were SR413,214K compared to SR387,373K for the third quarter in 2010, representing a 7% increase.

4.The costs for claims incurred for the third quarter in 2011 were SR356,657K compared to SR293,222K for the third quarter in 2010, representing a 22% increase.

5.Net investment income losses from insurance operations for the third quarter in 2011 was SR1,581K compared to a net investment income of SR342K for the third quarter in 2010. Net investment income losses of shareholders for the third quarter in 2011 was SR2,498K compared to a net investment income of SR305K for the second quarter in 2010.

6. Net income for the nine months ended 30th September 2011 was SR13,893K compared to a net income of SR44,434K for the same period in 2010, representing a 69% reduction.

7. Profit per share for the nine months ended 30th September 2011 was SR0.35 compared to a profit of SR1.11 per share for the same period in 2010.

8. The surplus from insurance operations, before policyholder’s investment income losses, for the nine months ended 30th September 2011, was SR 20,273K compared to a SR51,391K surplus for the same period in 2010, representing a 61% reduction.

9. Gross written premiums for the nine months ended 30th September 2011 were SR1,686,389K compared to SR1,440,542K for the same period in 2010, representing a 17% increase. Net written premiums for the nine months ended 30th September 2011 were SR1,684,390K compared to SR1,438,218K for the same period in 2010, representing a 17% increase.

10. The costs for net claims incurred for the nine months ended 30th September 2011 were SR1,127,180K compared to SR951,542K for the same period in 2010, representing an 18% increase.

11. Net investment income losses from insurance operations for the nine months ended 30th September 2011 was SR96K compared to net investment income of SR758K for the same period in 2010. Net investment income losses of shareholders for the nine months ended 30th September 2011 was SR2,311K compared to net investment income of SR1,058K for the same period in 2010.

12. The improved result in the third quarter of 2011 versus the second quarter of 2011 was mainly due to an increase of SR58,775K in the net underwriting result, representing a 69% increase in the net underwriting result, and a reduction in bad debt provision expense of SR27,151K versus the previous quarter.

13. The decline in result for the nine month period ended 30th September 2011, versus the same period of the previous year, was due to the company selling on credit and arose mainly due to a change in the bad debt provision calculation methodology, based on regulatory requirements, which resulted in the bad debt provision increasing by SR57,892K during this period. There was also an increase in general and administration expenses. The net underwriting result for the nine month period ended 30th September 2011, versus the same period of the previous year, was SR298,691K, compared to SR219,648k, representing a 36% increase in the net underwriting result.

14. The improved result for the three month period ended 30th September 2011, versus the same period of the previous year, was due to the improved net underwriting result offset by an increase in general and administration expenses and reduced investment income. The net underwriting result for the three month period ended 30th September 2011, versus the same period of the previous year, was SR143,934K, compared to SR121,995k, representing an 18% increase in the net underwriting result.

15. 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.

To download 3rd quarter financial statement report click here