Bupa profits shoot up 45 per cent due to growth in health insurance
Bupa Finance’s total underlying profit for the first six months of H1 shot up by 45 per cent which was driven by the increase in revenues and returns across all its market units.
For the first six months to 30 June 2024, at constant exchange rates, Bupa’s revenue rose by 16 per cent to £8.3bn (HY 2023: £7.1bn), while its total underlying profit was £454m (HY 2023: £313m).
Its insurance customers rose by 23 per cent to 33.2m, its provision customers served 14.2m which was up 12 per cent; and its aged care occupancy was 93 per cent, up 2ppt.
In terms of its market unit performance, for Asia Pacific, its revenue increased by 16 per cent to £3,071m. which included the return of Covid-related claims savings to customers in Australia Health Insurance.
Its underlying profit increased in that region from £193m to £231m, primarily due to the reduction in the final return of covid claims savings to customers to £20m (HY 2023: £220m) partially offset by the claims savings arising from covid disruption in HY 2023 not arising in HY 2024.
For Europe and Latin America, revenue grew by 11 per cent to £2,678m and its underlying profit increased by 11 per cent to £156m, as a result of revenue growth and higher investment returns, partially offset by a loss in Chile as anticipated following cancellation of the Garantías Explícitas en Salud price increase.
For Bupa Global, India and the UK, revenue grew by 23 per cent to £2,524m, which includes Niva Bupa revenues.
Despite this, its underlying profit was reduced by 55 per cent to £64m as revenue growth was offset by a loss in Niva Bupa and the timing of the return of premium release in the prior year, which offset the tail end of covid deferred claims in UK Insurance, some of which arose in the first half of 2024.
The loss in Niva Bupa arose from acquisition cost strain and the absence of in-force profit earning through the period having recognised it at fair value on acquisition.
Additionally, Bupa has continued to expand its provision footprint globally. In the first half of 2024, it opened one new hospital, 27 clinics and 14 dental centres globally. It also now has over 6.8m customers using Blua, a digital health solution, with plans to significantly increase this going forward.
Commenting on the results, Iñaki Ereño, Bupa Group CEO, commented: “Our half year 2024 financial results demonstrate that we are continuing to grow our business due to a combination of strong organic customer growth in health insurance, increased activity in health provision and higher occupancy in aged care.”
“We are encouraged by the positive overall performance across the group as our businesses continue to transform against our strategic priorities.”
“We remain focused on delivering excellent customer service and high standards of care, building on the strong foundations we have created as we move into the next phase of our strategy,” he added.