Bupa Arabia For Cooperative Insurance Co. · TADAWUL:8210
Bupa Arabia For Cooperative Insurance — Bupa Arabia — Q1 2022 Earnings Presentation
38 slides from Bupa Arabia For Cooperative Insurance's earnings presentation, Jun 13, 2022
Slide 1: Bupa Arabia Q1 2022 – Earnings Conference Call & Webcast
Bupa Arabia Q1 2022 – Earnings Conference Call & Webcast June 13th, 2022 INTERNAL Internal
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
1 Strategic Framework 2 Financial Performance Agenda 3 Market Outlook 4 Other Highlights INTERNAL Internal
Slide 4: Strategic Framework
Strategic Framework INTERNAL Internal
Slide 5: Strategic Framework
Strategic Framework We consistently strive to reflect what we stand for in everything we do Our Brave Caring Responsible values Make new possibilities happen Act with empathy and respect Own your decisions and actions 1Bupa Arabia strategy, launched across the organization in 2020, builds on our lon
Slide 6: Financial Performance
Financial Performance INTERNAL Internal
Slide 7: Bupa Arabia at a Glance
Bupa Arabia at a Glance Robust profitability growth & significant value creation for shareholders with serving within in 25+ Years of Experience 1,800+ Employees 3M+ Members 1,450+ Providers Saudi Arabia GWP (In SAR M) CAGR +25% 11,382 10,411 10,447 7,939 7,733 8,567 7,328 5,740 2,198 3,177 871 1,20
Slide 8: Financial Highlights
Financial Highlights Q1 2022 EBT decreased by 21.4% due to LR deterioration and impact of one-off favorable OPEX movements in Q1 2021 (In SAR M) GWP Contribution Operating Income +2.9% -51.5% +29.8% 354 356 367 116 4,222 3,470 3,253 65 56 Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 20
Slide 9: EBT
EBT EBT Q1 2022 dropped by 21% due to the increase in policy acquisition costs and other operating expenses (In SAR M) EBT Change between Q1 2021 & Q1 2022 Change in Contribution: SAR 10.4M -21.4% 447.3 -437.0 175.4 -81.2 26.4 7.0 138.0 Q1 2021 Earned Premium Claims Incurred Expenses Investment & Ot
Slide 10: Investment Portfolio and Results
Investment Portfolio and Results Resilient investment income through increased duration, enhanced rates, further diversification and capital gains (In SAR M) Investment Income Asset Allocation SAR 7.2B SAR 9.3B SAR 10.1B 261 73% 66% 73% 46 213 5% 10% 7% 20% 20% 16% 45 2% 4% 4% 81 Q1 2020 Q1 2021 Q1
Slide 11: Market Share & Positioning
Market Share & Positioning Bupa Arabia maintains market leadership as of Q1 2022 Total Insurance Market Share on GWP Basis 27% 25% 28% 37% 38% 36% Q1 Q1 Q1 2020 2021 2022 20% 23% 5% 6% 23% 6% 10% 8% 8% Health Insurance Market Share on GWP Basis 14% 14% 14% 1% 1% 1% 12% 10% 42% 10% Q1 45% Q1 Q1 45% 2
Slide 12: Total Insurance Market
Total Insurance Market Lower operating income due to increase in operating expenses despite increase in investment returns and contribution remaining relatively flat (In SAR M) (1) GWP Loss Ratio Contribution Operating Expenses Operating Income Investment Income Net Profit +17.7% +2.4pps -0.2% +20.6
Slide 13: Non-health Insurance Market
Non-health Insurance Market Significant increase in Motor LR, while other segments show favorable performance (In SAR M) Motor Segment Other Segments(1) Market Share 6% 9% 10% 6% 14% 7% 4% 4% 14% 5% Q1 2021 22% Q1 2022 Q1 2021 Q1 2022 11% 65% 71% 71% 81% GWP Loss Ratio Contribution GWP Loss Ratio Co
Slide 14: Health Insurance Market
Health Insurance Market Contribution increased by 9.3% due to increase in earned premiums with marginal deterioration in LR (In SAR M) GWP Earned Premiums Loss Ratio Contribution +23.6% +16.8% +0.7pps +9.3% 9,461 6,325 89.0% 696 88.2% 637 85.7% 87.5% 5,414 7,655 4,222 2,945 367 90.7% 91.5% 2,498 356
Slide 15: Health Insurance Market – GWP Segmentation
Health Insurance Market – GWP Segmentation Bupa Arabia continues to be the preferred health insurer for corporates and SMEs (In SAR M) Corporates(1) Medium Enterprises(2) Small Enterprises(3) Micro Enterprises(4) Individuals/Retail +16.4% +52.0% +21.6% +68.5% +71.9% 5.5% 5.8% 6,901 1,381 528 487 164
Slide 16: Loss Ratio & Technical Reserves
Loss Ratio & Technical Reserves Bupa Arabia continues to report healthy LR while reserves increased due to delayed hospital claim submission with NPHIES go-live Loss ratio Bupa Arabia Tawuniya Medgulf AlRajhi Takaful 156% 106% 96% 91% 92% 91% 87% 87% 86% 88% 83% 89% 83% 87% 81% 78% Q1 2019 Q1 2020 Q
Slide 17: Market Outlook
Market Outlook INTERNAL Internal
Slide 18: Saudi Health Insurance Market Trends (1/2)
Saudi Health Insurance Market Trends (1/2) Insured lives increased by 14% in May-22 showing signs of market recovery Total Insured Lives (In ‘000) Total Lives – Split by Saudis & Expats (In ‘000) +14% 10,842 +11% -3% +13% 7,106 9,780 6,399 9,534 3,736 3,318 May-21 May-22 Saudi Lives - Total Expat Li
Slide 19: Saudi Health Insurance Market Trends (2/2)
Saudi Health Insurance Market Trends (2/2) Saudi and Expats insured lives increase is driven by better enforcement and economic recovery Saudis (In ‘000) +351k +327K -133K +71K +445K 3,731 3,731 3,736 3,646 3,518 3,385 3,400 3,426 3,460 3,380 3,430 3,457 3,484 3,456 3,386 3,318 3,310 3,325 3,191 2,7
Slide 20: Gap & Enforcement Explained
Gap & Enforcement Explained Gaps remain in the private sector with (c.667K) primary Saudis and (c.1.5M) primary Expats without PMI Saudis (In ‘000) 2,354 2,248 2,135 2,066 -28% 1,842 1,779 1,763 1,734 1,760 1,750 1,671 1,687 1,719 1,704 1,700 1,671 1,671 1,701 1,717 1,678 -27% -21% 1,687 -27% -43% 1
Slide 21: Future Growth Opportunities in Health Insurance
Future Growth Opportunities in Health Insurance Potential PMI growth of ~SAR 20B by 2025 Total Organic PMI GWP Potential (In SAR M) SAR 43.9B Umrah (1) Covid Travel Insurance Domestic Help (2) 50,743 Tourism Vision 2030 (3) Enforcement (4) 1,441 Inbound Travel Population Growth Baseline (5) 405 19 #
Slide 22: Other Highlights
Other Highlights INTERNAL Internal
Slide 23: PMI Market Challenges
PMI Market Challenges Previous PMI market challenges witnessed a major revamp, as many have been resolved lately PMI Regulatory Landscape Changes A B NPHIES, a unified electronic C D E Adjusted mandate related to Article 11 requests insurance Ministry of Health has bearing Covid-19 expenses, service
Slide 24: Business & Regulatory Highlights
Business & Regulatory Highlights Many reforms are being undertaken by the Kingdom that support the insurance sector and is in line with it’s 2030 vision The Board of Directors of Bupa Arabia for Cooperative Insurance Company (Bupa Arabia) has recommended to the Extraordinary Ge neral Shareholders As
Slide 25: Achievements & Awards
Achievements & Awards Bupa Arabia has been recognized with multiple awards in 2021, including the LinkedIn Talent Awards for MENA region Forbes Top 100 Middle East Companies 2022 InsureTek Middle East 2021 Bupa Arabia ranked 79 amongst best 100 Medical Insurance Company of the Year Middle East compa
Slide 26: Q&A Speakers
Q&A Speakers: Nader Ashoor Ali Sheneamer Ahmed Bajunaid Mohsen Jawhar Chief Financial Officer Chief Business Development Officer Director Head Asset Management & Business Advisory Business Advisory & Investor Relations INTERNAL Internal
Slide 27: Thank you
Thank you gs Bupa With you for better health
Slide 28: Appendix
Bupa Appendix INTERN) Viternal-
Slide 29: Board of Directors & Chief Executive Team
Board of Directors & Chief Executive Team INTERNAL Internal
Slide 30: Board of Directors
Board of Directors Engr. Loay Hisham Nazer David Martin Fletcher Martin Houston Dr. Abdulla Elyas Huda M. Bin Ghoson Chairman Vice-Chairman Board Member Board Member - Independent Board Member - Independent Ziad Algwaiz Nigel Sullivan Tal Hisham Nazer Nader Ashoor Board Member - Independent Board Me
Slide 31: Chief Executive Team
Chief Executive Team Nader Ashoor Ali Sheneamer Amro Shawli Chief Financial Officer Chief Business Development Officer Chief Risk Officer Tal Hisham Nazer Chief Executive Officer Tariq Alamoudi Mohamed El Missaoui Atef Mufti Chief Human Resources Officer Chief Operations Officer Chief Sales Officer
Slide 32: Abbreviations & Glossary
Abbreviations & Glossary INTERNAL Internal
Slide 33: Abbreviations
Abbreviations BDP Bad Debt Provision C Circa CHI Council Of Cooperative Health Insurance CIPD Chartered Institute of Personnel Development CMA Capital Market Authority CMT Crisis Management Team CR Commercial Registration EBT Earnings Before Tax F Forecast FY Full Year G&A General And Administrative
Slide 34: 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, 2020. The coverage ends on June 30, 2021. The annual reporting period for the business in this example is for the year ended Decemb er 31, 2020. A Gross written premiu
Slide 35: 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 36: 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, 2020, to Dec 31, 2020) K Underwriting result 475 E-J The surplus of net ea
Slide 37: 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 38: INTERNAL Internal
gs Bupa bith you for better health INTERN) Interna’