Bupa Arabia for Cooperative Insurance Company (8210) Q3 2024 earnings summary

Executive summary

• Achieved robust profitability growth and significant value creation, with over 25 years of experience and a network of 1,450+ providers.

• 9m-24 EBT increased by ~31% year-over-year, driven by favorable business performance and investment income.

• Maintains leadership in both the overall insurance and health insurance markets in Saudi Arabia.

• Strategic focus on transforming into a healthcare company by 2030 through the 3B strategy.

• The group operates exclusively in medical insurance in Saudi Arabia, including two subsidiaries: a third-party administrator and a healthcare services company.

Financial highlights

• Insurance revenue for 9m-24 reached SR 13,488.7 million, up from SR 11,728.0 million year-over-year.

• Net income after zakat and income tax for the nine months reached SR 1,120.3 million, compared to SR 835.3 million in the prior year.

• Investment income rose 41% to SAR 515M for 9m-24.

• Basic and diluted EPS for the nine months were SR 7.48, up from SR 5.59 year-over-year.

• Total assets increased to SR 15,547.8 million as of 30 September 2024, from SR 14,438.4 million at year-end 2023.

Outlook and guidance

• High medical inflation expected in 2024, mainly driven by Article-11 claims and regulatory changes.

• Continued focus on expanding CareConnect and integrated care services, aiming to reach over 20 million cumulative touchpoints by 2028.

• Management notes seasonality in operations, with profits expected to fluctuate between periods.

• Interim results may not be indicative of full-year performance.