Bupa has added more than 433,000 customers across its UK operations in the first six months of 2024 with growth also reported in its international private medical insurance (IPMI) business.
Overall, the insurer reported a 16% rise in revenues across the whole group with profit before tax up by 64% to £509m from £310m in the same period last year.
In its interim results for the first half of 2024 Bupa said its UK Insurance business, that covers medical insurance, health trusts, dental insurance and cash plans, “delivered strong growth in revenue” and added more than 433,000 net customers across the products.
However underlying profit for the business fell 55% to £64m compared to the same period last year as it saw an uptick in claims in early 2024.
The period also coincided with the £59m originally earmarked for Covid claims rebate being included in results for the first half of 2023.
The firm added that IPMI customer numbers had reached around 360,000 during the period – although this was down slightly from the 364,000 declared at the same point last year.
“Revenue and underlying profit increased driven by growth in customer numbers and higher investment returns,” it said.
Bupa’s UK Health Services operation acquired 26 new clinics “as part of our long-term strategy to provide more services directly to customers” during the period taking its total to 55 alongside the Cromwell Hospital.
However the arm continued to run a deficit although this was reduced through strong growth in revenue driven by higher customer numbers, the insurer said.
Bupa said its UK dental care business returned to profitability as it saw the early benefits of the turnaround strategy and improved performance in practices.
And its UK Care Services aged care business also grew revenues with underlying profit increasing.
Global operations
In January 2024 Bupa increased its shareholding in Indian health insurance provider Niva Bupa by 22% to 63% to become the controlling shareholder.
It said the existing stake in the business had increased £321m from £96m to £417m, while Niva Bupa contributed £220m in revenues and a £45m underlying loss, resulting from acquisition cost strain on short term new business and renewals.
“Profit associated with the value of in-force business of £48m was recognised at fair value on acquisition, of which £43m would normally have earned through HY 2024,” Bupa said.
Asia Pacific underlying profit increased by £193m to £231m, primarily due to only £20m in Covid-19 claims savings being returned to customers in Australia instead of the originally anticipated £220m.
In Europe and Latin America revenue grew by 11% to £2.7bn and underlying profit also rose by 11% to £156m, as a result of the revenue growth and higher investment returns.
Meanwhile the businesses in Saudi Arabia delivered underlying profit of £56m, up 36% on the prior year driven by revenue growth and higher investment returns.
Bupa Group CEO Iñaki Ereño said: “Our half year 2024 financial results demonstrate that we are continuing to grow our business due to a combination of strong organic customer growth in health insurance, increased activity in health provision and higher occupancy in aged care.
“We are encouraged by the positive overall performance across the group as our businesses continue to transform against our strategic priorities.
“We remain focused on delivering excellent customer service and high standards of care, building on the strong foundations we have created as we move into the next phase of our strategy.”
