Bupa Arabia for Cooperative Insurance announces its interim financial results for the period ended 30/09/2010 (nine months)

Date: 10/19/2010

Bupa Arabia for Cooperative Insurance announces its interim financial results for the nine month period ended 30/09/2010, as detailed below:

1) Net profit for the third quarter in 2010 was SR59,003K compared to a net profit of SR37,290K for the third quarter in 2009, representing a 58% increase, and compared to a net loss of SR1,663K for the second quarter in 2010.

2) The surplus from insurance operations, before investment income, for the third quarter in 2010 was SR64,601K, compared to a surplus of SR41,978K for the third quarter in 2009, representing a 54% increase.

3) Gross written premiums for the third quarter in 2010 were SR388,184K compared to SR322,505K for the third quarter in 2009, representing a 20% increase. Net written premiums for the third quarter in 2010 were SR387,373K compared to SR322,505K for the third quarter in 2009, representing a 20% increase.

4) The costs for claims incurred for the third quarter in 2010 were SR293,222K compared to SR228,337K for the third quarter in 2009, representing a 28% increase.

5) Net investment income from insurance operations for the third quarter in 2010 was SR342K compared to SR308K for the third quarter in 2009, representing an 11% increase. Net investment income of shareholders for the third quarter in 2010 was SR305K compared to SR1,098K for the third quarter in 2009, representing a 72% reduction.

6) Net profit for the nine months ended 30th September 2010 was SR44,434K compared to a net profit of SR33,752K for the same period in 2009, representing a 32% increase.

7) Earning per share for the nine months ended 30th September 2010 was SR1.11 compared to an earning of SR0.84 per share for the same period in 2009.

8) The surplus from insurance operations, before investment income, for the nine months ended 30th September 2010 was SR51,391K compared to a SR35,434K surplus for the same period in 2009, representing a 45% increase.

9) Gross written premiums for the nine months ended 30th September 2010 were SR1,440,542K compared to SR1,119,382K for the same period in 2009, representing a 29% increase. Net written premiums for the nine months ended 30th September 2010 were SR1,438,218K compared to SR1,119,382K for the same period in 2009, representing a 28% increase.

10) The costs for claims incurred for the nine months ended 30th September 2010 were SR951,542K compared to SR701,312K for the same period in 2009, representing a 36% increase.

11) Net investment income from insurance operations for the nine months ended 30th September 2010 was SR758K compared to SR2,146K for the same period in 2009, representing a 65% reduction. Net investment income of shareholders for the nine months ended 30th September 2010 was SR1,058K compared to SR4,935K for the same period in 2009, representing a 79% reduction.

12) The improvement in results in the third quarter of 2010, compared to the second quarter of 2010, is mainly due to reduced claims incurred in the summer period. The profit for the nine month period ended 30th September 2010 increased compared to the same period of the previous year due to an increase in net underwriting result of 35%. The profit for the three month period ended 30th September 2010 increased compared to the profit for the same period of the previous year due mainly to an increase in net underwriting result of 41%.

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.