Bupa Arabia profits lifted by favorable pricing, higher insured people: CFO

Hatim Jamal, Chief Financial Officer of Bupa Arabia for Cooperative Insurance

Hatim Jamal, CFO of Bupa Arabia for Cooperative Insurance, pointed to many drivers for the growth of the company’s profits in the first quarter of 2024, including favorable pricing and an increase in the number of insured people, which currently stands at an all-time high.

In a statement to Argaam, Jamal added that the seasonality of Q1 2024 also plays a key role in profit growth, as the holy month of Ramadan and holiday season shifted from occurring during the second quarter in previous years to Q1 this year. He indicated that the positive impact of this seasonality is reflected in the local health insurance industry.

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He pointed out that Bupa Arabia showed positive revenue results in Q1 2024, noting that the company can benefit from this strong start to lay a strong foundation over the year, enabling focus on implementing effective pricing strategies, improving claims management, and enhancing collection procedures. This shall in turn boost profitability and allow attaining its 2024 financial goals.

Jamal further stated that the noticeable growth in the insurer’s revenues and insurance services was driven by the ongoing efforts for improving the experience of insured clients and the services provided to the customer base.

This is evident in the recently-announced public disclosures about Bupa Arabia’s winning of several high-ticket contracts in the Saudi market. These improvements not only boosted Bupa Arabia’s growth, but also raised the scope and depth of services provided to its members, the CFO explained.

According to Jamal, Bupa Arabia has implemented a strategic plan to attract more customers from various industries to mitigate the impact of unfavorable economic conditions that may affect its customer segments in different ways. He stressed that the recent contract with Saudi Arabian Airlines Co. (Saudia) proves the insurer’s commitment to this strategy.

When asked about Bupa Arabia's market share by the end of Q1 2024, he stated that the company cannot currently determine it as the detailed results of the sector's companies for the quarter have not yet been published.

The CFO pointed out that the local insurance sector has recently witnessed remarkable developments, all of which suggest a promising, positive path for the sector's future going forward.

Accordingly, the sector generated its top performance across all categories in 2023, with all industry players leveraging the investment returns resulting from the high interest rates, Jamal further stated.

In addition, the Insurance Authority, which recently came into force as a unified organizational body for the Saudi insurance sector, has been established to work on increasing the insurance contribution in GDP from 1.9% to 4.0% by 2030, in line with the Saudi Vision 2030’s goals for developing the financial sector, he continued.

According to the available data on Argaam, Bupa Arabia’s profit increased 91% to SAR 359.4 million by the end of Q1 2024, compared to SAR 188.6 million during the same period in 2023.