Bupa’s global profits fell by 4 per cent during 2020, largely due to “challenging conditions” created by Covid-19, and declining profits from its aged care business.
However the company said that the full year results reflect its financial resilience and the benefits of a diversified businesse.
For its health insurance — the largest business line — profits primarily increased due to the reduced level of claims as lockdown measures restricted access to private healthcare and postponed elective procedures.
Bupa says during the year it has undertaken a range of actions to support customers. It says it anticipates claims will rebound in 2021, however the timing of cost of this will vary by regional markets.
The company saw the biggest decline in profit in Australia and New Zealand, with a 28 per cent reduction in underlying profits as Austrlian Health insurance declined. The company said it also made losses on Australian Aged Care and saw declining profits in New Zealand Aged Care.
In Europe and Latin America, Bupa saw both revenues and profits grow. These results were mainly driven by its insurance businesses, altohugh profits were partially offset by the performing in its provision and aged care businesses.
In Bupa’s global and UK business revenue was down by 6 per cent with underlying profits falling by 5 per cent. Again the company said this fall was driven by performance in its health provision and aged care businesses, with a pledge to pass back and exceptional financial benefits ultimately arising from the pandemic to UK PMI customers.
Iñaki Ereño, group CEO says: ““The pandemic is having a terrible impact across the world at a very human level. In the context of that huge challenge, I am very proud of how everyone at Bupa has been responding, focusing on our customers and supporting each other and society. Our financial results reflect our financial resilience and the benefits of our diversified business. Despite volatile market and trading conditions we maintained revenue flat with underlying profit marginally down.
“Looking forward, it is an important time for Bupa and for the healthcare industry. Covid-19 has changed many aspects of society and this will continue. I am proud to lead Bupa in this new period as we deliver for customers and play our part in national health efforts.”
