Bupa Arabia for Cooperative Insurance announces its interim financial results for the twelve month period ended 31/12/2011, as detailed below:

1.Net income, before Zakat and income taxes, for the fourth quarter in 2011 was SR28,351K compared to a net income, before Zakat and income taxes, of SR26,364K for the fourth quarter in 2010, representing an 8% increase, and compared to a net income, before Zakat and income taxes, of SR66,350K for the third quarter in 2011, representing a 57% reduction.

2.Net income, after Zakat and income taxes, for the fourth quarter in 2011 was SR24,244K compared to a net income, after Zakat and income taxes, of SR19,841K for the fourth quarter in 2010, representing a 22% increase, and compared to a net income, after Zakat and income taxes,  of SR63,517K for the third quarter in 2011, representing a 62% reduction.
 
3.The surplus from insurance operations, before policyholder’s investment income, for the fourth quarter in 2011 was SR32,290K, compared to a SR25,907K surplus for the fourth quarter in 2010, representing a 25% increase.

4.Gross written premiums for the fourth quarter in 2011 were SR306,862K compared to SR308,848K for the fourth quarter in 2010, representing a 1% reduction. Net written premiums for the fourth quarter in 2011 were SR306,159K compared to SR307,992K for the fourth quarter in 2010, representing a 1% reduction.

5.The costs for net claims incurred for the fourth quarter in 2011 were SR423,850K compared to SR356,561K for the fourth quarter in 2010, representing a 19% increase.

6.Net investment income from insurance operations for the fourth quarter in 2011 was SR2,437K compared to a net investment income of SR3,062K for the fourth quarter in 2010, representing a 20% reduction. Net investment income of shareholders for the fourth quarter in 2011 was SR2,057K compared to a net investment income of SR3,009K for the fourth quarter in 2010, representing a 32% reduction.

7. Net income, before Zakat and income taxes, for the twelve months ended 31st December 2011 was SR42,244K compared to a net income, before Zakat and income taxes, of SR70,798K for the same period in 2010, representing a 40% reduction.

8. Net income, after Zakat and income taxes, for the twelve months ended 31st December 2011 was SR29,642K compared to a net income, after Zakat and income taxes, of SR58,345K for the same period in 2010, representing a 49% reduction.

9. Net income per share, before Zakat and income taxes, for the twelve months ended 31st December 2011 was SR1.06 compared to a net income per share, before Zakat and income taxes, of SR1.77 per share for the same period in 2010.

10. The surplus from insurance operations, before policyholder’s investment income, for the twelve months ended 31st December 2011, was SR 52,563K compared to a SR77,298K surplus for the same period in 2010, representing a 32% reduction.

11. Gross written premiums for the twelve months ended 31st December 2011 were SR1,993,251K compared to SR1,749,390K for the same period in 2010, representing a 14% increase. Net written premiums for the twelve months ended 31st December 2011 were SR1,990,549K compared to SR1,746,210K for the same period in 2010, representing a 14% increase.

12. The costs for net claims incurred for the twelve months ended 31st December 2011 were SR1,551,030K compared to SR1,308,103K for the same period in 2010, representing a 19% increase.

13. Net investment income from insurance operations for the twelve months ended 31st December 2011 was SR2,341K compared to net investment income of SR3,820K for the same period in 2010, representing a 39% reduction. Net investment income losses of shareholders for the twelve months ended 31st December 2011 was SR254K compared to a net investment income of SR4,067K for the same period in 2010.

14. The reduction in result in the fourth quarter of 2011 versus the third quarter of 2011 was mainly due to a reduction in net underwriting result of SR66,026k, representing a 46% reduction in the net underwriting result, and a reduction in bad debt provision expense of SR25,268K versus the previous quarter.

15. The decline in result for the twelve month period ended 31st December 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 SR33,942K during this period. There was also an increase in general and administration expenses. The net underwriting result for the twelve month period ended 31st December 2011, versus the same period of the previous year, was SR376,599K, compared to SR300,805k, representing a 25% increase in the net underwriting result.

16. The improved result for the three month period ended 31st December 2011, versus the same period of the previous year, was due mainly to a reduced bad debt provision expense offset by an increase in general and administration expenses and a reduced net underwriting result. The net underwriting result for the three month period ended 31st December 2011, versus the same period of the previous year, was SR77,908K compared to SR81,157k, representing a 4% reduction in the net underwriting result.

17. 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.

Click here to download the financial results for the twelve month period ended 31/12/2011