Riyadh, Saudi Arabia — Bupa Arabia for Cooperative Insurance has renewed a contract with Saudi Basic Industries (SABIC) to provide health insurance services to the company’s staff and their families for one year as of July 4, 2023, Bupa said in a Tadawul statement.
The contract revenue is forecast to exceed 10 percent of Bupa Arabia’s annual gross written premiums (GWPs) for 2022, Argaam said. The relevant financial impact will likely appear on the insurer’s 2023 and 2024 financial results.
The contract included no related parties, the statement added.
Bupa Arabia for Cooperative Insurance Company is a health insurance company based in Saudi Arabia. It is a joint venture between Bupa (51 percent) and the Saudi Arabian Cooperative Insurance Society (49 percent). The company was founded in 2006 and currently has over 1.5 million customers.
It had posted a net profit of SAR 188.6 million ($50.28 million) for the first quarter of 2023, compared to SAR 60.3 million in the same period of 2022.
But compared to the last quarter of 2022, the net profit fell by 1.4 percent from SAR 191.32 million. Net investment income rose by 24.2 percent YoY and net other revenue doubled YoY.
The company’s insurance service results jumped 145.9 percent year-on-year (YoY), driven by a 27.2 percent YoY increase in insurance revenue and a 77.7 percent YoY decrease in net expenses from reinsurance contracts held. This was partially offset by an increase in insurance service expenses by 24.9 percent YoY.
Other operating expenses rose 20.4 percent YoY and gross written premiums increased 28.1 percent YoY.
Shareholders’ equity, no minority interest, rose to SAR 4.43 billion as of March 31, 2023, from SAR 4.19 billion a year earlier.
