Strong revenue growth but insurance service result declined
Insurance revenue grew 11% YoY in 3Q25 to SAR 5,044mn, driven by business expansion and an increase in insured lives. However, this top-line growth did not flow through to the insurance service result, which declined 18% YoY, implying pressure from higher claims during the quarter.
Moderate net profit growth
Net profit increased by 2% YoY to SAR 364mn in 3Q25. This modest growth was achieved despite a 10% drop in the net insurance result. The decline in core operations was fully offset by an 8% YoY gain in investment results and a one-off zakat provision reversal from prior year settlements.
U-Capital view
Bupa Arabia continues to face headwinds from intensifying competition, muted premium inflation, and the loss of key corporate accounts. The company is now focusing on closing the CHI enforcement gap, targeting private-sector employees, particularly expatriates who remain without mandatory health insurance coverage. We maintain a Hold rating on the stock with a target price of SAR 171.6/share.