Bupa Arabia for Cooperative Insurance announces its interim financial results for the three month period ended 31/03/2011, as detailed below:

1.Net loss for the first quarter in 2011 was SR32,650K compared to a net loss of SR12,906K for the first quarter in 2010, representing a 153% increased loss, and compared to a net profit of SR26,364K for the fourth quarter in 2010.

2.The deficit from insurance operations, before investment income, for the first quarter in 2011 was SR32,736K, compared to a SR12,598K deficit for the first quarter in 2010, representing a 160% increase in deficit.

3.Gross written premiums for the first quarter in 2011 were SR741,080K compared to SR636,974K for the first quarter in 2010, representing a 16% increase. Net written premiums for the first quarter in 2011 were SR740,457K compared to SR636,474K for the first quarter in 2010, representing a 16% increase.

4.The costs for claims incurred for the first quarter in 2011 were SR375,028K compared to SR327,541K for the first quarter in 2010, representing a 14% increase.

5.Net investment income from insurance operations for the first quarter in 2011 was SR755K compared to SR245K for the first quarter in 2010, representing a 208% increase. Net investment income of shareholders for the first quarter in 2011 was SR94K compared to SR574K commission income for the first quarter in 2010, representing an 84% reduction.

6.Loss per share for the first quarter in 2011 was SR0.82 compared to SR0.32 for the first quarter in 2010.

7.The decline in result in the first quarter of 2011 versus the first quarter of 2010 and the fourth quarter of 2010 was due to the company selling on credit and arose mainly due to a change in the bad debt provision calculation methodology based on the Saudi Arabian Monetary Agency (SAMA) instruction number 201007/5/ dated 7/8/1431H and which resulted in the bad debt provision increasing by SR27,965k during the first quarter of 2011. There was also an increase in general and administration expenses. The net underwriting result for the first quarter in 2011 was SR69,598k compared to SR40,774k for the first quarter in 2010 representing a 71% increase in the net underwriting result.

8.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 see the financial results click here