Bupa Arabia is the biggest medical insurance company in gulf region.it has a lot of branches all over the gulf region such as Saudi Arabia,Kuwait,United Arab Emirates and Qatar.
The
company attributed that improvement in the fourth quarter results compared to
the same quarter of the previous year is due mainly to significant growth in
the business, and that led to a rise in written net premiums and earned net
premiums. Rise in net underwriting results is matched by a rise in claims and
operating expenses resulting from the growth commission expense and supervision
fees and expenses of the staff and infrastructure to support business growth.
Total premiums (GWP) for the last three months compared to the same quarter of
the previous year grew by 246,901 thousand riyals, which represents an increase
of 43%, and the improvement in net earned premiums are of $ 626,614 thousand
riyals, resulting from business growth, which represent an increase of 81%
compared to the similar quarter in the previous year, on the other hand ,net
underwriting results improved during the fourth quarter of 2014 in the amount
of 137.554 thousand riyals, which represents an increase of 77% from the same
quarter of the previous year.
The reason
for the improvement in the results of the twelve-month period compared to the
same period a year earlier is mainly due to the significant growth in the
business, which includes the acquisition of a major account, which led to a
rise in net written premiums and net earned premiums, in addition to the
improvement in the rate loss (where in 2014 was amounted to 79.4% versus 80.4%
in 2013), which resulted in a rise in net underwriting results. Net
underwriting results improved in the amount of 435,966 thousand riyals, which
represents an
increase of 85%.
Total
written premiums (GWP) for the twelve-month period compared to the
corresponding
period of the previous year grew by 2,562,969 thousand riyals,
which represents an increase of 81% and that is corresponded to the piece rise
in expenses resulting from the growth of commission expense and supervision fee
(which rose in general of 97.111 thousand riyals) and other expenses related to
the staff and infrastructure to support business growth.
The
reason for the decline in the results of the fourth quarter period compared to
the third quarter of 2014 was primarily due to the seasonality of the claims in
the fourth quarter (the decline in claims in the third quarter was due to the
summer period) and that led to a rise in the loss rate, which was 77.4% in the
fourth quarter versus 74.2% in the third quarter. And the net underwriting
results for the fourth quarter decreased compared to the third quarter of the
same year, in amount of 22,153 thousand riyals, which represents a decrease of
7%. Net written premiums for the fourth quarter decreased compared to the third
quarter of the same year in amount of 1,299,478 thousand riyals, which
represents a decrease of 61% due to the acquisition of a major expense in the third
quarter. Net earned premiums for the fourth quarter increased compared to the
third quarter of the same year, in amount of 85,241 thousand riyals, which
represents a 6% increase.
It's
mentioned in the auditors' report that the company has prepared financial
statements in accordance with International Financial Reporting Standards
(Standard No. 34) and it has not been prepared in accordance with accounting
standards generally accepted in Saudi Arabia, the company confirms that there
are no significant differences or financial impact on the financial statements
as a result of that.