Bupa Arabia For Cooperative Insurance Co. · TADAWUL:8210
Bupa Arabia For Cooperative Insurance — Bupa Arabia — Q2 2019 Earnings Presentation
24 slides from Bupa Arabia For Cooperative Insurance's earnings presentation, Sep 4, 2019
Slide 1: Bupa Arabia Q2 2019 Earnings Conference Call and Webcast
Bupa Arabia Q2 2019 Earnings Conference Call and Webcast September 4, 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Bupa Arabia (“The Company”). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member
Slide 3: Agenda
Agenda • Financial Performance • Market Outlook • Other Highlights • Abbreviations & Glossary Q2 2019 Webcast 3
Slide 4: KPIs
KPIs H1 2019 earnings grew by 65% YoY as a result of healthy GWP & combined ratio SR mn GWP Contribution +18.5% +20.9% 5,344 781 +15.4% 4,509 646 +20.7% 4,101 595 Combined Ratio 503 436 2,439 96.9% 97.1% 95.7% 2,020 92.4% 93.2% 12.6% 13.6% 13.1% 14.5% 15.2% Q2 2018 Q2 2019 H1 2017 H1 2018 H1 2019 Q2
Slide 5: EBT
EBT EBT on the rise through favorable contribution, investment income & collections SR mn Contribution 66.8m 20.8% -244.3 311.1 15.9 -4.4 216.1 178.9 -41.1 Q2 2018 Earned Premium Claims Incurred Expenses Investment & PH1surplus Payable Q2 2019 Other Income -23.4 -11.9 -5.3 -0.5 S&M G&A BDP Other Con
Slide 6: Investment Portfolio and Results
Investment Portfolio and Results Improved investment income through further portfolio diversification Investment Income Income Breakdown1 Asset Allocation 2% 19% 184 200 204 338 H1 7% 75% 2019 158 71% 51 Q/Q 35% (yoy) 41% 44% 130 42 +36% 2% 119 17% 44 7% H1 63 35 81% 2018 62 74% 45 40 64% 21 59% 56%
Slide 7: Market Share and Positioning
Market Share and Positioning Bupa Arabia is leading the Saudi health insurance market as of H1 2019 Total Insurance Market Share (GWP basis) 27% 24% 26% 30% 38% 36% 38% 43% Q2 Q2 H1 H1 2018 2019 2018 2019 21% 23% 7% 22% 8% 24% 7% 4% 4% 9% 4% 7% Health Insurance Market Share (GWP basis) 17% 16% 18% 1
Slide 8: Insurance Market Comparative Figures
Insurance Market Comparative Figures Bupa Arabia represented 70% of total health insurance market contribution SR mn Health Insurance Market Total Insurance Market Loss Ratio Investment income Net profit GWP Contribution +16.0% +6.2% +60bps -20.8% +20.0% 1,125 89.0% 589 629 11,889 82.4% 119 20.1% 1,
Slide 9: GWP Health Insurance Market Segmentation
GWP Health Insurance Market Segmentation Bupa Arabia is the preferred health insurer for corporates and SMEs SR mn 2 3 Corporates 1 Medium Enterprises Small Enterprises Micro Enterprises 4 Individuals/Retail +19.7% +14.1% +25.1% +32.3% +91.9% 8,405 1,869 899 549 167 30 5.5% 7 4.0% 1,638 14 7,024 0 7
Slide 10: Loss Ratio and Technical Reserves
Loss Ratio and Technical Reserves Bupa Arabia reports favorable loss ratios and consistent reserving profile Loss Ratio – Health Insurance Market 77.9% 78.0% 84.3% 83.5% 82.6% 100.6% 97.8% 91.7% 95.4% 99.1% 100.0% 139.2% 87.5% 85.8% 88.0% 88.3% 122.1% 77.9% 81.1% 80.4% Q2 Q2 H1 H1 H1 Q2 Q2 H1 H1 H1
Slide 11: Agenda
Agenda • Financial Performance • Market Outlook • Other Highlights • Abbreviations & Glossary Q2 2019 Webcast 11
Slide 12: Saudi Health Insurance Market Trends (1/2)
Saudi Health Insurance Market Trends (1/2) Insured lives increased by 4% YoY despite the departure of expats’ dependents +4% +20% -1% 10,943 11,371 3,298 8,195 8,073 2,748 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Total Insured Lives Saudi - Total Expat - Total +18% -11% +2% +5% 19% +2% 2,029
Slide 13: Saudi Health Insurance Market Trends (2/2)
Saudi Health Insurance Market Trends (2/2) Expats departure has stabilized in 2019 coupled with soft Saudi enforcement Expats -550K -1.3M 9,828 9,744 9,577 +166K 9,411 9,323 9,278 9,278 9,230 9,060 8,652 8,745 8,281 8,195 8,272 8,245 8,150 8,153 7,925 7,963 7,907 8,031 8,045 8,111 8,079 8,073 Jun-17
Slide 14: Saudi Health Insurance Market Forecast 2019
Saudi Health Insurance Market Forecast 2019 Saudi enforcement is a key contributor to expected GWP & insured lives growth Total Health GWP (SAR bn) 2019 Market Drivers/ +8% Key Assumptions (m) +15% -263 21,440 128 21.4 570 19.0 19.0 19.9 18.6 15.8 12.9 695 11.3 4.9 4.5 4.7 4.3 4.9 380 3.2 3.8 19,930
Slide 15: Future Growth Opportunities in Health Insurance by 2023
Future Growth Opportunities in Health Insurance by 2023 Potential addition of c.23m lives to the private healthcare sector 2018 Contributors to the Private Healthcare Sector Saudis Saudis Expats Expats Primary 1.18M + Dependent 1.92M + Primary 6.06M + Dependent 1.91M = 11.06M Expected contributors t
Slide 16: Agenda
Agenda • Financial Performance • Market Outlook • Other Highlights • Abbreviations & Glossary Q2 2019 Webcast 16
Slide 17: Other Highlights
Other Highlights STC STC has appointed Bupa Arabia to provide health insurance services to its employees, and Contract their families for one year effective October 5, 2019. Bupa Arabia has recently introduced “Bupa Munsha’at”, a new insurance product New Insurance targeting SMEs in the Kingdom of S
Slide 18: Agenda
Agenda • Financial Performance • Market Outlook • Other Highlights • Abbreviations & Glossary Q2 2019 Webcast 18
Slide 19: Abbreviations
Abbreviations BDP Bad Debt Provision CCHI Council Of Cooperative Health Insurance CGI Corporate Governance Index EBT Earnings Before Tax FY Full Year GBO Global Business Outlook G&A General And Administrative Expenses GOSI General Organization for Social Insurance GWP Gross Written Premium H Half IF
Slide 20: Glossary of terms
Glossary of terms Understanding our Financial Statements A customer buys a one-year medical insurance policy for SR 5,000 on July 1, 2017. The coverage ends on June 30, 2018. The annual reporting period for the business in this example is for the year ended December 31, 2017. A Gross written premium
Slide 21: Glossary of terms
Glossary of terms F Gross claims paid 1825 The actual amount of all paid claims on behalf of the customers. There are two types of claims; 1. Provider claims on direct billing and to be refunded to the customer 2. Reimbursement claims requested by the member A claim is a request for payment received
Slide 22: Glossary of terms
Glossary of terms J Net claims incurred 2000 H+I All payment requests received from hospitals or members to pay for a certain service or projected to be received for the duration of the earned portion of the contract (July 1, 2017 to Dec 31, 2017) K Underwriting result 475 E-J The surplus of net ear
Slide 23: Glossary of terms
Glossary of terms Understanding Bupa Arabia’s Balance Sheet Goodwill Goodwill represents the intangible asset which resulted from the Bupa Arabia purchase of the Saudi Health insurance portfolio from Bupa Middle East Limited E.C. in accordance with the assessment by SAMA and the prescribed SAMA guid
Slide 24: THANK YOU
THANK YOU Bupa Arabia Business Advisory & Investor Relations Tel: +966 920 000 456 Ext: 3583 ba.bair@bupa.com.sa www.bupa.com.sa