Gross Written Premium (GWP) increased by 19% YoY
The company reported a 19% YoY growth in its GWP to SAR2.49bn. The growth is likely due to the strong demand for health insurance.
Net underwriting result grew 92% YoY
Bupa Arabia reported 92% YoY growth in net underwriting profit to SAR 255.1mn, which is better than our expectations of SAR 159.3mn. This is likely due to an increase in net insurance premium revenue which was slightly offset by higher claims and a rise in policy acquisition costs and other costs.
Net investment income increased 243% YoY
The company reported better-than-expected investment income and other income of SAR 181.9mn, registering a growth of 243% YoY. We expected the company to report SAR 75.7 mn during 4Q22. The company’s strength in managing its investment portfolio effectively has resulted in higher profit after tax. The company’s profit after tax came in at SAR 191.3mn.
Placing Bupa Arabia Insurance Under Review
We are putting Bupa Arabia Insurance Under Review as there is a significant variation between the numbers disclosed by the company and our estimates.