Bupa profits fall as customers decrease

Bupa, the UK’s leading private medical insurance provider, has published its annual report and financial statements for the year to 31 December 2012, showing revenues up by just 2% compared with Axa PPP’s rising 4%. Bupa still has the much larger market share in terms of premium take, with gross premiums (minus outward reinsurance premiums) of £2,262.5m (2011: £2,243.7m). Taking out change in gross provision for unearned premiums of £13.3m (2011: £38.8m) and reinsurers’ share of change in the gross provision for unearned premiums of £28,000 (2011: £805,000), net premiums earned were £2,249.1m (2011: £2,204.8m). After other technical income, net of reinsurance, total technical income was £2,252.1m (2010: £2,208.1m). Claims incurred totalled £1,631.4m (2011: £1,613.5m). An underwriting contribution of £620.7m (2011: £594.7m) minus net operating expenses of £500.6m (£460.1m) meant the balance on the technical account was £120.1m (2011: £134.5m). Investment income and unrealised gains on investments (minus expenses and losses) were up to £36.0m (2011: £25.9m) meaning the profit before tax was £156.1m (2011: £160.3m).