RCS - Brit Utd ProvAscBUPA - Bupa's 2024 Preliminary Results
06/03/2025 08:15
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RNS Number : 5556Z British Utd Provident Assoc (BUPA) 06 March 2025
The British United Provident Association Limited (Bupa):
FULL YEAR STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024
Financial headlines 1 (, 2 )
• Total customers of 60.5m (2023: 50.0m) as we continue to deliver
strong growth.
• Revenue 3 of £16.9bn, up 16% (2023: £14.6bn) at Constant
Exchange Rates (CER). Excluding Niva Bupa, which has been consolidated from
this year, and the return of COVID-19 claims savings to customers in Australia
Health Insurance, Group revenues increased by 10%.
• Underlying profit 4 before taxation of £914m, up 59% at CER
(2023: £576m) driven by strong revenue growth, supported by higher investment
returns.
• Statutory profit before taxation of £972m, up 72% at Actual
Exchange Rates (AER) (2023: £564m).
• Solvency II capital coverage ratio remains strong at 176% 5
(2023: 175%).
• Leverage (excluding IFRS 16 lease liabilities) of 16.0% (2023:
20.1%).
• In January 2024 we increased our investment to become the
controlling shareholder in Niva Bupa, a leading Indian health insurance
company. Subsequently, in November, Niva Bupa successfully listed a minority
shareholding via IPO and raised additional capital, marking an exciting next
step in the growth of the business.
Iñaki Ereño, Group CEO, commented:
"We have made strong progress over the past year, growing our business to
support more customers across health insurance, health provision and aged
care. We have continued to focus on improving our customers' experience and
have expanded our digital health solution, Blua, which is now available in all
our major markets.
"Our 3x6 Strategy, which ran from 2021-24, has enabled us to accomplish a lot
this year in support of Bupa's purpose: helping people live longer, healthier,
happier lives and making a better world. While we have made significant
progress, we know there is still more we can achieve. We are excited about our
new strategy for 2025-27 which will help us to further deliver against our
purpose."
Market performance (all at CER)
• Bupa Asia Pacific: Revenue increased by 13% to £6,277m. Excluding
the return of COVID-19 related claims savings to customers in Australia Health
Insurance (2024: £20m and 2023: £302m), revenue increased by 8%. Underlying
profit increased by £297m to £446m due to increased demand in our provision
businesses and actions taken to return our Hong Kong 6 insurance business to
profitability, whilst the headline profit increase saw significant fluctuation
driven by the reduction in the final return of COVID-19 claims savings to
customers in Australia Health Insurance partially offset by the claims savings
arising from COVID-19 disruption in 2023 not arising in 2024.
• Europe and Latin America: Revenue grew by 13% to £5,427m while
underlying profit increased by 30% to £442m in the year. The strong
performance was driven by customer growth across the Market Unit and higher
investment returns.
Following adverse governmental, regulatory and judicial measures in Chile,
referenced as a contingent liability in full year 2023, Isapre Cruz Blanca now
has an approved payment plan. Accordingly, we have now recognised a financial
liability of £187m (see market unit performance section for further detail).
• Bupa Global, India and UK: Revenue grew by 22% to £5,151m.
Excluding Niva Bupa revenue of £461m, which has been consolidated from this
year, revenue increased by 11%. Despite growth in revenues and investment
returns underlying profit reduced by (15%) to £228m. Niva Bupa reported a
£51m underlying loss due to acquisition cost strain and the absence of £55m
of in-force profit earning through in the period having recognised it at fair
value on acquisition of a controlling shareholding.
In the year, we were pleased to increase our investment in Niva Bupa to 56% 7
becoming the controlling shareholder, whilst the listing of a minority
interest and raising of additional capital via IPO, marked an exciting next
step for the growth of the business. On acquisition of a controlling
shareholding we remeasured the business to fair value and revalued the
existing carrying value of the business, recognising a gain of £309m in
non-underlying items, highlighting the significant growth in value against our
initial investment.
• Other businesses 8 : Our associate businesses in Saudi Arabia have
delivered significant growth, with underlying profit increasing by 17% to
£97m as a result of higher volumes and investment returns.
Group profitability
• Total underlying profit was £914m, up 59% at CER (2023: £576m)
driven by the increase in Market Unit profits, partially offset by an increase
in central costs as we support business growth and increase investments into
global capabilities, including environmental, social and governance (ESG)
activities.
• Statutory profit before tax was £972m, up 72% at AER (2023:
£564m) driven by the £315m AER increase in underlying profit and £93m
improvement in non-underlying items. The positive non-underlying result was
mainly driven by the £309m gain on remeasuring the value of our existing
minority stake in Niva Bupa to fair value, partially offset by the payment
plan financial liability of £187m in Chile (see market unit performance
section for further detail).
Financial position
• Solvency II capital coverage ratio remained strong at 176% (2023:
175%).
• Leverage ratio is 23.1% (2023: 27.2%) when including IFRS 16 lease
liabilities. Excluding these liabilities, the leverage ratio is 16.0% (2023:
20.1%).
• Net cash generated from operating activities remained strong at
£1,268m (2023: £1,182m).
Other highlights
• We expanded our provision footprint, opening 59 clinics, 34 dental
centres, 16 on-site service centres 9 , 2 care homes and 1 new hospital
globally.
• We've continued to expand Blua, our digital health solution, which
is now available in all our major markets. We now have almost 7.5 million
customers using Blua 10 .
• In 2024, 92% of our Business Units improved their Net Promoter
Score (NPS).
• In our global People Pulse survey in November, we achieved our
highest ever global engagement result of 84 (up from 82 in November 2023),
exceeding the high performing (top decile) external benchmark by four points.
• We invested £14.3m in our communities, with over £5.4m of this
through the Bupa Foundations.
• During 2024, we maintained our commitment to securing renewable
electricity, moving from 91% in 2023 to 94% at the end of 2024, and remaining
at 100% in our Bupa Asia Pacific market unit. In 2024, Spain, Türkiye and
Mexico continued to secure 100% renewable energy.
• In 2024, we became partners with three new Paralympic
associations, having signed agreements with New Zealand, Hong Kong and Ecuador
ahead of the 2024 Summer Paralympics in Paris, bringing our support of
Paralympic associations to nine in total. These partnerships provide a
valuable opportunity to create a positive social impact and strengthen our
reputation.
• In June, we became the official global healthcare partner of the
All Blacks, Teams in Black, and the international healthcare partner of the
Black Ferns. This four-year partnership will focus on exploring and promoting
the connections between health and high performance across all teams.
Enquiries
Media - Duncan West (Corporate Affairs): duncan.west@bupa.com
Investors - Gareth Evans (Treasury): ir@bupa.com
(Bupa 1025Z LN)
This statement is also available at www.bupa.com/financials/results-centre
About Bupa
Established in 1947, Bupa's purpose is helping people live longer, healthier,
happier lives and making a better world. We are an international healthcare
company serving over 60 million customers worldwide. With no shareholders, we
reinvest profits into providing more and better healthcare for the benefit of
current and future customers. Bupa has businesses around the world,
principally in Australia, the UK, Spain, Poland, Chile, Hong Kong SAR, India,
Türkiye, Brazil, Mexico and New Zealand. We also have associate
businesses 11 in Saudi Arabia.
For more information, visit www.bupa.com.
Disclaimer: Cautionary statement concerning forward-looking statements
This document may contain certain 'forward-looking statements'.
Forward-looking statements often use words such as 'intend', 'aim', 'project',
'anticipate', 'estimate', 'plan', 'believe', 'expect', 'forecasts', 'may',
'could', 'should', 'will', 'continue' or other words of similar meaning.
Statements that are not historical facts, including statements about the
beliefs and expectations of The British United Provident Association Limited
(Bupa) and Bupa's directors or management, are forward-looking statements. In
particular, but not exclusively, these may relate to Bupa's plans, current
goals and expectations relating to future financial condition, performance and
results.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend upon future circumstances that may or
may not occur, many of which are beyond Bupa's control and all of which are
solely based on Bupa's current beliefs and expectations about future events.
These circumstances include, among others, global economic and business
conditions, market-related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of governmental and regulatory
authorities, risks arising out of health crises and pandemics, the impact of
competition, the timing, impact and other uncertainties of future mergers or
combinations within relevant industries. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual future condition, results, performance or achievements of
Bupa or its industry to be materially different to those expressed or implied
by such forward-looking statements. Recipients should not place reliance on,
and are cautioned against relying on, any forward-looking statements. Except
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obligations or undertakings to release publicly any updates or revisions to
any forward-looking statements to reflect any change in the expectations of
Bupa with regard thereto or any change in events, conditions or circumstances
on which any such statement is based.
Forward-looking statements in this document are current only as of the date on
which such statements are made. No statement in this document is intended to
be a profit forecast. Neither the content of Bupa's website nor the content of
any other website accessible from hyperlinks on Bupa's website is incorporated
into, or forms part of, this document.
Group CEO's Review
We have accomplished a lot this year in support of Bupa's purpose: helping
people live longer, healthier, happier lives and making a better world.
Everyone at Bupa should be proud of the progress we've made, both in 2024, and
over the past four years since we launched our 3x6 Strategy. I'm incredibly
proud of the dedication and hard work our Bupa colleagues have shown in caring
for our customers and improving our performance. Their commitment to
delivering outstanding care has made a real difference.
Our strategy is centred on digital transformation, enhancing the customer
experience and making Bupa an even better place to work - all while growing
our business to support more customers and doing what we can to make the world
a better place. We now serve over 60 million customers and almost 7.5 million
people are using Blua, our digital health solution.
In 2024, we made positive progress in three priority areas - our financial
performance, our customer experience and our colleague engagement.
• We've driven strong financial performance with revenue and
underlying profit continuing to increase which is enabling us to reinvest in
line with our purpose.
• Listening to our customers and implementing improvements based on
their feedback has enabled us to keep improving our customers' experience. As
a result, the majority (92%) of our business units (BUs) have improved their
NPS this year with four BUs exceeding our world-class ambition of 80 NPS
across the Group.
• In our second colleague engagement survey of the year, our score
was 84 (up 2 from last year), a result that is regarded as world-class. More
colleagues than ever took part, with over 70,000 employees completing the
survey.
Strategic progress
Since 2021, we have been focused on delivering our 3x6 Strategy - centred
around three bold ambitions, supported by six strategic and enabling pillars.
We are proud of the significant progress we have made, having delivered
demonstrable results against each of our three ambitions. Performance in 2024,
the final year of the 3x6 Strategy, was especially strong as we were able to
build on the positive momentum generated over previous years.
• 40% customer care touchpoints owned by Bupa 12 : At the end of
2024, we owned 26% of our customer care touchpoints, having significantly
expanded our digital health offerings (via Blua) and our physical provision
network.
• 60% active digital customers 13 : We ended the year with 46% of
our funding customers actively engaging with us through digital channels,
having successfully increased customer awareness and adoption of Blua.
• 80 NPS 14 : By the end of the year, we achieved an average NPS
score of 67, having focused on implementing customer experience improvements
for the benefit our customers.
Looking forward, there is more we can do to deliver on our three ambitions,
and we are committed to accelerating our progress across these key priorities
in 2025 and beyond.
In the final year of the strategy, we also made significant progress against
our six strategic and enabling pillars, including:
• Customer: Our ambition is to be the world's most customer-centric
healthcare company, which means we are committed to listening to our customers
and acting on their feedback. This year, we implemented over 10,500
improvements to enhance the experience of our customers, patients and
residents. These improvements have led to tangible benefits for our customers,
as shown by the growth in NPS across the majority (92%) of our BUs.
• Growth: We continue to grow our business through strong organic
customer growth(2). We have around 38m health insurance customers, reflecting
a 27% increase from last year, and 23m provision customers, representing a 12%
growth compared to 2023. In Australia, we've achieved nine consecutive
quarters of maintaining or growing market share 15 .
• Transformation: A key driver of our customer growth is Blua, our
digital health solution, which is helping us attract and retain customers who
prefer to access healthcare digitally. Currently, almost 7.5 million customers
are using Blua globally (+36% vs 2023), benefiting from a network of more than
16,700 clinicians. In 2024, we delivered more than 6.5m digital
consultations 16 .
• Sustainability: In 2024, our Healthy Cities programme took place
across all Market Units. This initiative aims to improve the physical and
mental health of 1 million people by 2025, while also contributing to the
restoration and regeneration of local environments. Last year, there were
63,000 active participants in Healthy Cities, collectively taking 16 billion
steps (a 68% increase in steps from 2023) and unlocking £3.5 million in
nature-related investments (a 75% increase from 2023).
• Agile culture: Building an agile culture is central to our
strategy, and customer feedback plays a key role in that. Through Bupa's
Customer System, we've listened to more than 81,000 customer feedback calls
and videos (+33% vs 2023), generated 39,000 improvement ideas (+66% vs 2023)
via our internal Customer Listening Programme and made over 10,500
improvements (+31% vs 2023) to the customer experience.
• Data: Data is transforming how we support our customers, enabling
smarter, faster and more personalised care. Over 16,000 Bupa employees are now
using data from our platforms to inform decision-making (a 33% increase from
2023). In 2024, we also ran our B-Disruptive Hackathon, an internal initiative
designed to upskill employees in technology and unlock their innovative ideas
to provide a better experience for our customers. Over 750 employees from 16
countries took part, generating ideas for integrating Artificial Intelligence
(AI) into Blua.
Outlook
While we have made significant progress, we know there is still more we can
achieve. That's why we have launched a new '3x100 Strategy' for 2025-27 which
is designed to be an evolution and acceleration of the current 3x6 Strategy.
We must stay focused on the work we've been doing over the past four years,
while maintaining our relentless dedication to providing a world-class
customer experience and continuing to build our data and digital capabilities.
And we want to do more: more to support healthcare systems by making high
quality healthcare available to more people and using our global influence for
good; more to support our people by creating even more ways for them to enjoy
working at Bupa; and more to deliver healthcare sustainably, protecting our
planet and supporting the communities we serve.
One example of how we are focused on the future is our industry-leading genome
sequencing programme, My Genomic Health. This pilot programme offers more than
14,000 customers across the UK and Spain access to their genetic risk profiles
for identifying preventable conditions, including certain types of cancer.
This initiative is a key milestone in our journey to becoming a preventative
healthcare partner for our customers.
The macro-economic, political and regulatory outlook continues to be
uncertain, but we remain confident for the future. We are well-placed to
navigate challenges and take opportunities because of our underlying financial
strength, resilience and diversified business model. Our purpose, ambition and
values continue to guide everything we do and every decision we make. Our
vision for the future is to do even more to help people live longer,
healthier, happier lives and make a better world.
FINANCIAL REVIEW
Summary
FY 2024 FY 2023 (AER) % growth FY 2023 (CER) % growth
Revenue £16.9bn £15.1bn 12% £14.6bn 16%
Underlying profit £914m £599m 53% £576m 59%
Cash generated from operating activities £1,268m £1,182m 7% n/a n/a
Statutory profit before taxation £972m £564m 72% n/a n/a
Leverage (excl. IFRS 16) 16.0% 20.1% 4.1ppts n/a n/a
Leverage (incl. IFRS 16) 23.1% 27.2% 4.1ppts n/a n/a
Solvency 176% 175% 1.0ppts n/a n/a
Revenue (CER)
Group revenue increased 16% to £16.9bn (2023: £14.6bn). Excluding Niva Bupa
revenues (2024: £461m) consolidated from this year and the return of COVID-19
claims savings to customers in Australia Health Insurance (2024: £20m and
2023: £302m), revenues increased by 10%. The increase was driven by strong
customer growth across insurance and provision whilst occupancy rates
continued to increase in aged care. Pricing changes also drove higher revenues
as we balanced the impacts of inflation, remaining competitive for customers
and maintaining discipline in our underwriting of insurance risk.
Revenue in health insurance grew by 18%. Excluding Niva Bupa and the return of
COVID-19 claims savings in Australia Health Insurance, insurance revenues grew
11% supported by customer growth of 7% 17 period-on-period.
Our health provision businesses saw revenue growth of 10% driven by higher
levels of activity across all Market Units as customers increased by 12% 18 .
In aged care, revenue was up 10% as occupancy increased by 2ppt to 94% 19 ,
combined with a revised government funding model in Australia designed to
improve levels of care for residents and address shortfalls within the sector.
Underlying profit (CER)
Group underlying profit increased 59% to £914m (2023: £576m) driven by the
strong increase in revenue and higher investment returns across all Market
Units.
Health insurance underlying profit increased with growth in revenues and
investment returns across all Market Units. In our Bupa Asia Pacific Market
Unit, profits increased due to actions taken to return our Hong Kong Insurance
business to profitability, whilst the headline profit increase saw significant
fluctuation driven by the reduction in the final return of COVID-19 claims
savings to customers in Australia Health Insurance (2024: £20m and 2023:
£302m) partially offset by the claims savings arising from COVID-19
disruption in 2023 not arising in 2024. In our Europe and Latin America Market
Unit, profits increased due to volume growth and higher investment returns,
partially offset by losses in Chile, following cancellation of the GES 20
price increase and other adverse governmental, regulatory and judicial
measures in Chile. Despite higher revenues and investment returns, underlying
profit in our Bupa Global, India and UK Market Unit reduced as Niva Bupa
reported an increased loss due to acquisition cost strain and the absence of
in-force profit earning through in the period having recognised it at fair
value on acquisition.
Profits grew in health provision supported by strong revenue growth while aged
care profits increased in the period driven by higher occupancy rates and
margin improvement.
Investment into initiatives that improve our capability globally, including
ESG, and higher staff
costs resulted in central costs increasing to £299m (2023: £264m).
Statutory profit
Statutory profit before taxation was £972m, up 72% AER (2023: £564m), as the
higher underlying result was further increased by a positive variance in
non-underlying items which totalled a £58m gain in 2024, compared with a
£(35)m cost in 2023.
The key drivers of the movement in non-underlying items were the £309m gain
on remeasuring the value of our existing stake in Niva Bupa to fair value,
partially offset by a financial liability of £187m for the payment plan in
Chile (see market unit performance section for further detail).
Losses on disposals of businesses and transaction costs on business
combinations totalled £26m (2023: £1m) mainly relating to consolidation of
dental and aged care portfolios in the UK and Australia.
Short-term fluctuations on investment returns resulted in a loss of £9m
(2023: £31m gain). Overall, our return-seeking asset portfolio delivered a
positive return in 2024, driven by higher interest income on bonds and
floating rate securities, supported by a tightening in credit spreads.
However, a higher movement in long-term yields led to negative short-term
fluctuations compared to our expected return. This compares to 2023 where we
saw actual returns higher than expected, driven by higher interest income on
floating rate assets and tighter credit spreads, but with relatively stable
longer-term yields. We also reported a gain on realised and unrealised foreign
exchange in the period of £10m (2023: £2m gain).
Also included was a £(13)m (2023: £(32)m) amortisation charge on intangible
assets in Bupa Villages and Aged Care Australia following the government
announcement to deregulate bed licences from 1 July 2025. Other non-underlying
items totalling a loss of £(33)m (2023: £(13)m) related to restructuring
costs and fair value movements on the share purchase liability recognised as
part of the transaction to increase our shareholding in Niva Bupa, which has
since been derecognised following the successful IPO in November.
2024 2023
£m £m
Bupa Asia Pacific at CER 446 148
Europe and Latin America at CER 442 340
Bupa Global, India and UK at CER 228 269
Other businesses at CER 97 83
Central costs (299) (264)
Consolidated underlying profit before taxation at CER 914 576
Foreign exchange re-translation on 2023 results (CER/AER) - 23
Consolidated underlying profit before taxation at AER 914 599
Impairment of intangible assets and goodwill arising on business combinations (2) (1)
Niva Bupa fair value gain on pre-existing shareholding 309 -
Chile payment plan payable (187) -
Short-term fluctuation on investment returns (9) 31
Net loss on disposal of businesses and transaction costs on business (26) (1)
combinations
Net property revaluation gains/(losses) 9 (21)
Realised and unrealised foreign exchange gains 10 2
Amortisation of bed licences (13) (32)
Other non-underlying items (33) (13)
Total non-underlying items 58 (35)
Statutory profit before taxation at AER 972 564
Insurance service result
Under IFRS 17, we are required to report an insurance service result which
comprises: insurance revenue, less insurance service expenses. This result
excludes financial income and expenses. For 2024 the Group insurance service
result was £622m (2023: £445m) driving a combined operating ratio (COR) 21
of 95% (2023: 96%). The increase in the insurance service result was driven by
a significant increase in Australia Health Insurance profit, due to the
reduction in the net cost of returning COVID-19 claims savings to customers.
This was partially offset by a loss in Niva Bupa from acquisition cost strain
and the absence of in-force profit earning through having recognised it at
fair value on acquisition of a controlling shareholding.
Taxation
The Group's taxation expense for the year of £212m, representing an effective
tax rate of 22% (2023: 25%), was lower than the UK statutory corporation tax
rate of 25%. This was mainly due to a deferred tax credit on the revaluation
of the deferred tax liability relating to the UK pension surplus following a
change in the tax rate applying to authorised payments from defined benefit
pension schemes from 35% to 25% and the fair value accounting gain on
acquisition of the additional stake in Niva Bupa, which is not subject to tax,
offset by the non-recognition of deferred tax assets across the Group.
Excluding the impact of these items, the effective tax rate would increase to
26%, which is in line with the UK statutory corporation tax rate.
Cash flow
Net cash generated from operating activities increased by £86m year-on-year
to £1,268m, driven by the increase in profit (excluding net financial income)
and the consolidation of Niva Bupa. This was partially offset by the timing of
collections on NHS contracts and other timing differences. Net cash flow used
in investing activities increased by £(829)m to £(983)m due to the
acquisition of a controlling interest in Niva Bupa and as more of the cash
generated from operating activities has been invested into financial assets
versus 2023 contributing to the lower cash and cash equivalent balances being
held at the year end. Cash used in financing activities has increased in the
period by £(396)m to £(465)m, primarily due to the issuance of €500m of
senior unsecured bonds in 2023.
Funding
We manage our funding prudently to ensure a strong platform for continued
growth. Bupa's policy is to maintain investment grade access to both the
senior and subordinated bond markets. In October 2024, Fitch upgraded the Bupa
Finance plc Issuer Default Rating to A from A- with Stable outlook and
upgraded the related bond ratings. Moody's reaffirmed Bupa's ratings in July
2024.
We continue to hold a good level of Group liquidity. At 31 December 2024, our
£900m Revolving Credit Facility (RCF) was undrawn (2023: undrawn). We
completed the Niva Bupa acquisition in January and also repaid a £300m senior
bond in April. These were funded through a combination of remaining cash
available from the €500m senior bond issued in October 2023 and temporary
drawings under the RCF. Coverage of financial covenants within the facility
remains strong.
We focus on managing our leverage in line with our credit rating objectives.
The reduction in leverage excluding IFRS 16 leases to 16.0% (2023: 20.1%) was
largely driven by the repayment of the £300m senior bond in April from
surplus cash. Strong repatriations in the second half of the year allowed the
RCF, which was drawn by £150m at half year 2024, to be fully repaid by year
end (2023: undrawn).
Solvency
Our solvency coverage ratio of 176% 22 remains strong and is above our target
working range of 140-170%.
The Group holds capital to cover its Solvency Capital Requirement (SCR),
calculated on a Standard Formula basis, considering all our risks, including
those related to non-insurance businesses. As at 31 December 2024, the
estimated SCR of £3.1bn was £0.2bn higher and Own Funds of £5.4bn was
£0.4bn higher when compared to 31 December 2023.
Our surplus capital was estimated to be £2.3bn, compared to £2.1bn at 31
December 2023, representing a solvency coverage ratio of 176% (2023: 175%).
The net impact of the acquisition of Niva in January 2024 and the subsequent
IPO in November 2024, led to a 5 percentage point reduction to the Group
solvency coverage ratio. Capital expenditure and debt finance costs also
reduced the Group solvency coverage ratio. Both of these reductions were
offset by the generation of capital in the year through our strong underlying
performance.
We perform an analysis of the relative sensitivity of our estimated solvency
coverage ratio to changes in market conditions and underwriting performance.
Each sensitivity is an independent stress of a single risk and before any
management actions. The selected sensitivities do not represent our
expectations for future market and business conditions. A movement in values
of properties that we own continues to be the most sensitive item, with a 10%
decrease having a 10 percentage point reduction to the solvency coverage
ratio.
Our capital position is resilient in the face of the individual risks,
illustrating the strength of our balance sheet.
Risk Sensitivities Solvency II coverage ratio
Solvency coverage ratio 176%
Property values -10% 166%
Loss ratio worsening by 2% 168%
Sterling depreciates by 20% 170%
Group Specific Parameter (GSP) +0.2% 173%
Credit spreads +100bps (no credit transition) 175%
Interest rate +/-100bps 175%
Equity markets -20% 175%
Pension risk +10% 176%
We include a Group Specific Parameter (GSP) in respect of the insurance risk
parameter in the Standard Formula, reflecting the Group's loss experience.
MARKET UNIT PERFORMANCE
Asia Pacific
Revenue Underlying profit
2024 £6,277m £446m
2023 (AER) £5,726m £154m
% growth 10% 190%
2023 (CER) £5,541m £148m
% growth 13% 201%
(Commentary on a CER basis)
Revenue in our Asia Pacific Market Unit increased by 13% to £6.3bn. The 2023
comparative year was significantly impacted by the return of COVID-19 claims
savings. Excluding this impact, revenue increased by 8% driven by customer
growth in Australia Health Insurance, higher utilisation in health provision
businesses and an increase in aged care occupancy, offsetting lower revenue in
New Zealand Aged Care due to care home divestments.
Asia Pacific underlying profit increased year-on-year from growth in all
business units. However, the most material driver of the year-on-year increase
was a significant reduction in the cost of returning COVID-19 claims savings
to Australia Health Insurance customers relative to 2023. The majority of the
remaining profit growth was attributable to Health Services, Australia and New
Zealand Aged Care, and Hong Kong.
In 2024, all Business Units improved their Net Promoter Score (NPS). We also
implemented over 3,000 customer experience improvements across our customer
journey.
In Australia Health Insurance, revenues increased by 6% (when excluding the
impact of returning COVID-19 claims savings) driven by new members. On a
reported basis, the Combined Operating Ratio (COR) improved to 93% (2023: 98%)
due to a significant reduction in the cost of returning COVID-19 claims
savings to customers relative to 2023.
Australia Health Insurance domestic market share was 25.54% at 31 December
2024, marking nine consecutive quarters of maintaining or growing market
share 23 . Health Insurance has continued to deliver strong growth across all
service propositions, including through our digital health platform, Blua. The
digital customer offering and coverage continues to expand, including Chemist
Delivery and Virtual GP consultations, with online doctor appointment
eligibility being expanded in October to include additional products,
increasing domestic coverage to 2.2m customers.
Australia Health Services delivered growth in both revenue and underlying
profit. Revenue growth was primarily attributable to a sustained demand for
temporary visa assessments within our Bupa Medical Visa Services business;
customer growth in our Australia Defence Force contract; enhanced procedure
mix and customer growth in Dental; and increased customers in Optical. As part
of our Connected Care strategy, four additional healthcare centres opened,
offering Bupa customers and the wider community access to GPs and a range of
healthcare professionals.
In Australia Villages and Aged Care, revenue and underlying profit increased,
driven by higher occupancy, closing at a six year high of 95% (2023: 91%),
improved operational performance and changes in government funding to support
enhanced resident care.
In New Zealand Villages and Aged Care, revenue decreased as a result of five
site divestments, while underlying profit increased. In Care Homes, occupancy
closed at 94% (2023: 91%), in part offsetting the impact of strategic care
home divestments on revenue. Despite a subdued New Zealand property market,
Village revenue grew, remaining strong from higher unit pricing on sales.
Hong Kong revenue grew driven by higher Health Services clinic utilisation and
the opening of seven new clinics. The return to profitability within the
Health Insurance business in 2024, was achieved through the effective
implementation of a revised pricing and retention strategy.
Europe and Latin America
Revenue Underlying profit
2024 £5,427m £442m
2023 (AER) £5,083m £355m
% growth 7% 25%
2023 (CER) £4,807m £340m
% growth 13% 30%
(Commentary on a CER basis)
Revenue in our Europe and Latin America Market Unit grew by 13% to £5.4bn as
a result of strong customer growth and pricing. Underlying profit increased by
30% to £442m driven by the increase in customers and higher investment
returns.
In 2024, the majority of our Business Units improved their NPS. We also
implemented around 4,800 customer experience improvements across the
prioritised parts of our customer journey.
Sanitas Seguros, our health insurance business in Spain, delivered higher
revenues due to organic customer growth and the impact of the acquisition of
the Asefa health portfolio in June 2023. 2024 marked another important
milestone for Sanitas Seguros, with the sale of more than 500,000 new policies
in a year, a record figure for the company. Underlying profits increased
driven by stable margins with a 90% COR (2023: 89%) combined with higher
revenues and investment returns. We also continued to expand digital services
and, in 2024, we reached an average of 77,000 video consultations per month
(compared to an average of 68,000 per month in 2023).
Our dental business in Spain saw a strong increase in revenue and underlying
profit, driven by higher customer volumes and improved margins. In the year,
Sanitas started its expansion plan, acquiring seven clinics and opening six.
We also reached our highest ever NPS score of 75.
In our hospitals business in Spain, revenue reduced as our public private
hospital partnership contract came to the end of its term while underlying
profit increased. Excluding this contract, both revenue and underlying profit
increased due to higher levels of activity. During 2024, Sanitas Hospitales
opened 3 new centres, 1 medical centre in Madrid and 2 for advanced
rehabilitation, in Madrid and Barcelona. Work also continued on the
construction of a new hospital in Madrid, in Valdebebas, which is expected to
open in 2025. We also announced plans to open two new hospitals in Barcelona
(Marina) and Madrid (Arganzuela).
Sanitas Mayores, our aged care division in Spain, continues to perform well.
Occupancy remained high at 95% (2023: 96%) with the decrease resulting from
the opening of a new care home in October, which will take time to reach
capacity.
In Chile, insurance revenue decreased and the business reported an underlying
loss following the cancellation of the GES price increase in the Isapre
business and other losses associated with adverse government measures. As
disclosed previously, Bupa's Isapre business in Chile has been negatively
impacted by governmental, judicial and regulatory action, including regarding
the method and implementation of statutory Risk Factor Tables (used to adjust
the price of insurance contracts based on risk factors such as age). Due to
uncertainty caused by Chile's measures, it had not been possible to reliably
estimate the value of any future payments at FY 2023, resulting in the
disclosure of a contingent liability. Following further legislation and
guidance from the local regulator, the Superintendent of Health (SIS), the
Group had a policyholder payment plan approved by the SIS in relation to the
Risk Factor Tables matter which has led to a financial liability being
recognised for £187m for the amounts owed payable over 13 years. Chile
provision profits remained stable in 2024. Additionally, in both the provider
and insurance segments, Bupa Chile continues to focus on providing the best
possible experience to its patients and clients, and increasing its
recommendation levels, alongside the opening of a new medical centre
"Libertad" in Viña del Mar during 2024.
In Poland, LUX MED revenue and underlying profit increased as result of strong
customer growth in health provision and the development of the new InPMI 24
product. In 2024, we acquired a new hospital in Krakow, with advanced
orthopaedics provision with the potential to add additional capabilities,
alongside opening 23 new centres, image diagnostic clinics, medical centres
and mental health clinics. Throughout the period, we have maintained our
support for Ukrainian refugees who have been forced to flee the war.
Bupa Türkiye has delivered substantial revenue and underlying profit growth,
driven by pricing increases to keep pace with higher rates of inflation and
increased investment returns in our health insurance business, Bupa Acıbadem
Sigorta. The economy is classified as being a hyperinflationary environment,
leading to the application of IAS 29. A net monetary loss of £16m (as of 31
December 2024) has been recorded outside of underlying profit for the period
for Bupa Türkiye. In addition, we completed the acquisition of CompuGroup
Medical Information systems, Inc., a healthcare software company and opened 3
new dental clinics as we look to expand our connected care footprint.
Care Plus in Brazil delivered very strong revenue and profit growth as result
of higher healthcare customer numbers and higher investment returns. There was
also a positive contribution from the dental and vaccination businesses
acquired in 2023 as we expand into other lines of healthcare provision. After
the reporting date, in February 2025, we completed the sale of a legacy
portfolio of individual health business, resulting in a post tax profit of
£14m.
Bupa Mexico delivered strong revenue and profit growth due to customer growth
in the insurance business where we have launched new domestic and corporate
products. We continue to work on maintaining and strengthening our
partnerships with BBVA.
Bupa Global Latin America revenue and underlying profit increased due to
improved margins and higher investment returns. In 2024, its business in
Bolivia was sold for a consideration of £3m.
Bupa Global, India and UK
Revenue Underlying profit
2024 £5,151m £228m
2023 (AER) £4,235m £269m
% growth/(decline) 22% (15%)
2023 (CER) £4,218m £269m
% growth/(decline) 22% (15%)
(Commentary on a CER basis)
Revenue in our Bupa Global, India and UK Market Unit increased by 22% to
£5.2bn. Excluding the consolidation of Niva Bupa, revenues increased by 11%
driven by increased customer numbers in UK Insurance and Bupa Global, UK
Dental and Health Services. Occupancy improved in UK Care Services and
portfolio growth in Health Services also drove higher customer numbers.
Underlying profit reduced as revenue growth was offset by the impact of fair
value adjustments recognised following the increase in shareholding in Niva
Bupa during the year. This resulted in an acquisition cost strain in the
income statement from the absence of in-force profit being earned in the
period. While in UK Insurance, profits reduced due to the timing impact of the
return of premium provision release in the prior year, which offset the tail
end of deferred COVID-19 claims, some of which arose in the first half of
2024.
In 2024, all Bupa Global, India and UK Business Units delivered improvements
in NPS. There were also over 2,600 customer experience improvements
implemented across prioritised interventions in our customer journey.
UK Insurance delivered strong growth in revenue, adding over 485,000 25 net
new customers across medical insurance, health trusts, dental insurance,
subscriptions and cash plan in 2024. Underlying profit reduced, driven by the
timing impact of the return of premium provision release and commission
expense timing on strong gross written premium growth. The launch of Bupa
Well+ health subscriptions to business and consumer customers has provided
more people access to our digital health and wellbeing support, including GP,
mental health and physio appointments. We also introduced a new dental
allowance for all consumer health insurance customers to be used for an
appointment and treatment at Bupa Dental Care practices.
In Bupa Global, our IPMI business, revenue and underlying profit increased
driven by growth in customer numbers, strong management of operating costs and
higher investment returns. Our focus remains on responding to the distinct
needs of our customers and people across global locations, while maximising
the efficiency of our operating model, improving systems and providing more
digital support for our customers.
The combined operating ratio for Bupa Insurance Limited, the UK based
insurance entity that underwrites both domestic and international insurance
was 96% (2023: 95%).
In January we increased our shareholding in Niva Bupa, a leading Indian health
insurer, to reach more customers with their healthcare needs. Bupa is now the
controlling shareholder of Niva Bupa and its results are fully consolidated
from this year. Alongside this we have transferred Niva Bupa from Other
businesses for segmental reporting into Bupa Global and UK, in line with the
management reporting structure. In November 2024, Niva Bupa successfully
completed an Initial Public Offering on the National Stock Exchange of India
and the Bombay Stock Exchange, which will enable ongoing sustainable growth
and provide continued investment to support future business ambitions. At Full
Year 2024 Niva Bupa contributed £461m in revenues and a £51m underlying
loss. The underlying loss was impacted by acquisition cost strain on new
business and renewals which arose because of fair value adjustments following
our increase in shareholding. Profit associated with the value of in-force
business was recognised at fair value on acquisition of a controlling
shareholding, of which £55m would normally have earned through 2024.
UK Dental returned to profitability in 2024 as it continued to deliver on its
turnaround strategy. Bupa Dental Care is striving to be the workplace of
choice for dental professionals, supported by a market-leading health benefits
proposition for frontline colleagues.
UK Care Services, our aged care business, delivered good growth in revenue.
Underlying profit increased due to growing occupancy, strong cost management,
which included reducing our reliance on agency staff, focusing on employee
retention and lower energy costs. Closing occupancy was 91% (2023: 90%).
Health Services delivered growth in revenue and returned to profitability in
2024, driven by higher customer numbers in Clinics and Cromwell Hospital, new
Blua digital services and an expanded network of health centres. The portfolio
has grown to 79 Bupa health centres through the acquisition of Blackberry
Clinics, London Medical and The Dermatology Partnership. Through this expanded
footprint and the launch of GP subscriptions, we continue to deliver our
long-term strategy to provide more services directly to customers. Cromwell
Hospital expansion continues with the addition of a new theatre which opened
in June.
Other businesses 26
Revenue Underlying profit
2024 £9m £97m
2023 (AER) £8m £85m
% growth 13% 14%
2023 (CER) £8m £83m
% growth 13% 17%
Underlying profit was up 17% to £97m driven mainly by higher volumes, margins
and increased investment returns in Bupa Arabia.
BUSINESS RISKS
We describe our main risks in the Risk section of the Annual Report and
Accounts 2024, which will be published in March and made available on
www.bupa.com. While economic volatility, geopolitical uncertainty, information
security and strategic workforce challenges remain heightened, the principal
risks facing Bupa remain consistent.
Risks related to managing the financial strength of the Group:
The Group continues to manage the key areas of risk that could impact on the
financial strength and resilience of the Group. The most material of these is
through potential property valuation movements, insurance risk and liquidity
risk. We have robust reporting and monitoring mechanisms in place, including
clearly defined risk appetites, to ensure these are managed and any
appropriate actions are taken if required.
Strategic risks impacting our ability to deliver for our customers:
Healthcare affordability continues to result in challenges for health
ecosystems and impacts both public and private participants. Although we have
seen a decrease in inflation and reducing interest rates these remain higher
than in recent years, and as a result the macroeconomic environment continues
to be challenging in most markets we operate in. Government debt levels remain
very high which is resulting in strained government finances and as they
respond through fiscal policies this is creating pressures on our customers.
Where possible we are taking actions to mitigate the impacts, including
pricing action and cost control measures.
In many markets, we continue to see strategic challenges associated with
workforce availability, particularly medical professionals, which may impact
our ability to deliver services.
Included in this category but of particular significance to Bupa is
Governmental, legal and regulatory policy risks and geopolitical uncertainty:
The geopolitical risk environment remains uncertain and volatile across the
Group. Globally, we have been operating in a period of significant
geopolitical uncertainty for some time, including ongoing and potential
conflicts in different regions. These challenges are likely to result in
continued economic uncertainty globally, particularly if they escalate, which
has the potential to further challenge already stretched household disposable
incomes and challenge affordability. We may also see supply chain and
third-party challenges which could impact inflation rates across our markets.
This risk becomes more pronounced in a period of political uncertainty and
political change which has taken place in a number of markets across the Group
and globally.
Changes in governmental, legal and regulatory policy has consistently been one
of our top risks given the nature of our businesses and this remains true. We
continue to engage governments and regulators in the markets we operate in to
understand and influence potential changes to ensure we are able to continue
to deliver quality and value for our customers.
Operational risks:
The Group continues to be exposed to a wide range of operational risks
including transformation execution and clinical risks. In particular,
information Security and Privacy remain key risks for the Group. Our focus on
information security, technology and operational resilience in recent years is
supported by significant investment to continue to uplift capability and
capacity in this area across the Group.
Financial risks from climate change:
Climate change remains one of the major risks we face as a society and is a
key priority for us as Sustainability was a core pillar of our 3x6 Strategy.
We closely manage our environmental impacts and promote positive environmental
practices. A key focus is our commitment to become a net zero business by 2040
across all our operations and throughout our value chain, underpinned by our
1.5 degree aligned science-based targets.
We have identified our key climate-related risks over the short, medium and
long term and these are set out in the Annual Report and Accounts 2024.
Our approach to risk management:
We have a well-established process for identifying and managing all business
risks, including all types of operational risk such as information security
and privacy. Monitoring and managing our risks is key to ensuring that we
achieve our strategic objectives in the long-term, meeting the evolving
expectations of our customers, people, bondholders and regulators. Internal
controls, particularly regarding customer conduct, information security,
privacy and operational resilience continue to be key areas of focus.
In line with the Principles set out in the UK Corporate Governance Code, the
Board completed an annual review of the Group's systems of risk management and
internal controls in 2024, covering the Group's material controls including
financial, operational and compliance, and the impact of the volatile economic
situation on the control environment. This review took into consideration the
work of the Audit and Risk Committees during the year, including reports
provided to those Committees from the first, second and third lines. In making
its assessment, the Board received and reviewed an integrated assurance report
which set out an overall assessment of the Group's systems of risk management
and internal control in 2024. The Board concluded that Bupa has maintained,
overall, sound risk management and internal control systems during 2024,
underpinned by the established three lines model, with some weaknesses that
are being addressed by management and will be monitored by the Risk and Audit
Committees.
BUPA AROUND THE WORLD
Bupa Asia Pacific
• Bupa Health Insurance Australia, with around 4.9m customers, is a
leading health insurance provider in Australia and also offers health
insurance for overseas workers and visitors.
• Bupa Health Services in Australia is a health provision business,
comprising dental, optical, audiology, medical assessment services, health
centres and healthcare for the Australian Defence Force.
• Bupa Villages and Aged Care Australia cares for around 5,600
residents across 57 homes. It also operates a retirement village in Australia.
• Bupa Villages and Aged Care New Zealand cares for around 3,000
residents across 40 care homes. It also operates retirement villages.
• Bupa Hong Kong comprises a health insurance business with around
0.4m customers and a Health Services business operating medical centres
providing healthcare services to around 1.2m customers.
Europe and Latin America
• Sanitas Seguros is the second largest health insurance provider in
Spain, with around 2.4m customers.
• Sanitas Dental provides dental services through 216 centres and
third-party networks in Spain. Recently, Sanitas Dental acquired 6 new clinics
operating under the brand 'Dental Star'.
• Sanitas Hospitales comprises four private hospitals, 25 private
medical clinics, 11 advanced rehabilitation centres, a Central Laboratory and
a Research Foundation.
• Sanitas Mayores cares for around 5,900 people in 44 care homes,
with 18 integrated day-care centres within these residences, manages 3
independent day-care centres, and provides professional home care services
with digital medical support for aged care in Spain.
• LUX MED is a leading private healthcare business in Poland,
operating in health funding and provision through 304 private medical clinics,
that include 16 hospitals.
• Bupa Chile is a leading health insurer serving more than 0.5m
customers and offering provision services to around 2.6m customers across
three hospitals and 33 medical clinics. In the first half of 2024, the
elimination of COVID-19 policies resulted in a drop in the number of insurance
customers.
• Bupa Türkiye offers services to over 1.3m customers through its
subsidiaries in insurance, distribution channels, TPA (Third Party
Administrator), dental care and provision. Bupa Acıbadem Sigorta, Türkiye's
second largest health insurance company, provides individual and corporate
insurance solutions through its network of around 7,000 medical facilities.
Bupa Türkiye also has four dental clinics.
• Care Plus is a leading health insurance company in Brazil, with
around 0.5m funding customers and 0.1m occupational health customers,
concentrated in São Paulo. Care Plus also has 9 dental clinics, and a
vaccination centre.
• Bupa Mexico operates with an integrated healthcare model offering
international and local private medical insurance to individuals and
corporates in Mexico. It has its own medical provision, Bité Médica
hospital, and a TPA called Vitamédica. It provides services to over 0.4m
customers.
• Bupa Global Latin America offers international health insurance
and local health insurance products in Latin America to around 0.1m customers.
It is headquartered in Miami and has operations in Ecuador, Dominican
Republic, Guatemala and Panama.
Bupa Global, India and UK
• Bupa UK Insurance is a leading health insurer, with around
3.9m 27 customers across medical insurance, health trusts, dental insurance,
subscriptions and cash plans.
• Bupa Global serves around 0.4m IPMI customers and administers
medical assistance for individuals, small businesses and corporate customers.
• Niva Bupa is a leading provider of health insurance in India with
around 19.6m customers.
• Bupa Dental Care is a leading provider of private dentistry,
providing dental services through around 400 centres across the UK and the
Republic of Ireland.
• Bupa Care Services cares for around 6,200 residents in 116 care
homes and ten Richmond care villages.
• Bupa Health Services comprises 79 health clinics 28 , including
on-site services, and the Cromwell Hospital.
Other businesses
• We also have an associate health insurance business in Saudi
Arabia (Bupa Arabia) and an interest in MyClinic in Saudi Arabia.
BUPA GROUP
Preliminary Announcement
Financial Information
Year ended 31 December 2024
The British United Provident Association Limited
Consolidated Income Statement
for the year ended 31 December 2024
2024 2023
£m £m
Insurance revenue 12,233 10,770
Insurance service expenses (11,600) (10,318)
Insurance service result before reinsurance contracts held 633 452
Net expense from reinsurance contracts held (11) (7)
Insurance service result 622 445
Care, health and other customer contract revenue 4,589 4,268
Other revenue 102 78
Total non-insurance revenue 4,691 4,346
Share of post-taxation results of equity-accounted investments 94 83
Impairment of goodwill and intangible assets (11) (17)
Other operating expenses (4,960) (4,443)
Other income and charges 331 42
Total other expenses, income and charges (4,546) (4,335)
Profit before financial income and expense 767 456
Financial income and expense
Financial income 509 363
Financial expense (197) (192)
Net financial expense from insurance contracts issued (70) (25)
Net monetary loss (16) (18)
Net impairment on financial assets (21) (20)
Net financial income 205 108
Profit before taxation expense 972 564
Taxation expense (212) (140)
Profit for the year 760 424
Attributable to:
Bupa 772 422
Non-controlling interests (12) 2
Profit for the year 760 424
The British United Provident Association Limited
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
2024 2023
£m £m
Profit for the year 760 424
Other comprehensive income/(expense)
Items that will not be reclassified to the Income Statement
Unrealised gain/(loss) on revaluation of property 123 (15)
Remeasurement loss on pension schemes (65) (40)
Taxation (charge)/credit on income and expenses recognised directly in other (18) 14
comprehensive income
Items that may be reclassified subsequently to the Income Statement
Foreign exchange translation differences on goodwill (99) (55)
Other foreign exchange translation differences (274) (235)
Net gain on hedge of net investment in overseas subsidiaries 79 73
Share of other comprehensive (expense)/income of equity-accounted investments (2) 2
Change in fair value of financial investments through other comprehensive 11 (4)
income
Change in expected credit losses (ECL) of financial investments through other 5 1
comprehensive income
Realised loss on disposal of financial investments at fair value through other - 4
comprehensive income
Change in cash flow hedge reserve 7 (7)
Release of foreign exchange translation reserve on derecognition of 11 (2)
equity-accounted investments and subsidiaries
Taxation charge on income and expenses recognised directly in other (3) -
comprehensive income
Total other comprehensive expense (225) (264)
Comprehensive income for the year 535 160
Attributable to:
Bupa 547 160
Non-controlling interests (12) -
Comprehensive income for the year 535 160
The British United Provident Association Limited
Consolidated Statement of Financial Position
for the year ended 31 December 2024
2024 2023
£m £m
Assets
Goodwill and intangible assets 3,178 2,705
Property, plant and equipment 3,737 3,629
Investment property 756 776
Equity-accounted investments 1,016 1,056
Post-employment benefit net assets 333 384
Deferred taxation assets 193 208
Restricted assets 137 122
Financial investments 4,693 3,638
Derivative assets 65 46
Reinsurance contract assets 90 38
Current taxation assets 19 54
Inventories 67 76
Trade and other receivables 822 815
Assets held for sale 28 48
Cash and cash equivalents 1,992 2,278
Total assets 17,126 15,873
Liabilities
Subordinated liabilities (772) (747)
Other interest-bearing liabilities (759) (1,090)
Post-employment benefit net liabilities (46) (51)
Lease liabilities (884) (900)
Deferred taxation liabilities (195) (243)
Share purchase liability (6) -
Derivative liabilities (40) (63)
Provisions for liabilities and charges (345) (352)
Insurance contract liabilities (3,064) (2,608)
Current taxation liabilities (68) (35)
Trade and other payables (2,869) (2,462)
Liabilities associated with assets held for sale (39) (9)
Total liabilities (9,087) (8,560)
Net assets 8,039 7,313
Equity
Foreign exchange translation reserve 21 241
Property revaluation reserve 668 601
Cash flow hedge reserve - (7)
Income and expenditure reserve 6,918 6,163
Equity attributable to the Company 7,607 6,998
Restricted Tier 1 notes 297 297
Non-controlling interests 135 18
Total equity 8,039 7,313
6
The British United Provident Association Limited
Consolidated Statement of Cash Flows
for the year ended 31 December 2024
2024 2023
£m £m
Cash flow from operating activities
Profit before taxation expense 972 564
Adjustments for:
Net financial income (291) (151)
Net monetary loss 16 18
Depreciation, amortisation and impairment 509 525
Other non-cash items¹ (526) (182)
Changes in working capital and provisions:
Increase in insurance contract liabilities 336 342
Increase in reinsurance contract assets (8) (18)
Funded pension scheme employer contributions (3) (2)
(Increase)/decrease in trade and other receivables, and other assets (51) 1
Increase in trade and other payables, and other liabilities 513 246
Cash generated from operations 1,467 1,343
Income taxation paid (201) (167)
Decrease in cash held in restricted assets 2 6
Net cash generated from operating activities 1,268 1,182
Cash flow from investing activities
Acquisition of subsidiaries and businesses, net of cash acquired (268) (63)
Investment in equity-accounted investments (6) (22)
Dividends received from equity-accounted investments 47 42
Disposal of subsidiaries and other businesses, net of cash disposed of 69 30
Purchase of intangible assets (170) (122)
Purchase of property, plant and equipment (311) (266)
Proceeds from sale of property, plant and equipment 5 19
Purchase of investment property (30) (38)
Purchases of financial investments, excluding deposits with credit (2,778) (1,983)
institutions
Proceeds from sale and maturities of financial investments, excluding deposits 2,037 1,921
with credit institutions
Net (investments into)/withdrawals from deposits with credit institutions (18) 88
Interest received 440 240
Net cash used in investing activities (983) (154)
Cash flow from financing activities
Payment of Restricted Tier 1 coupon (12) (12)
Proceeds from issue of interest-bearing liabilities and drawdowns on other - 493
borrowings
Repayment of interest-bearing liabilities and other borrowings (318) (342)
Principal repayment of lease liabilities (138) (148)
Payment of interest on lease liabilities (49) (49)
Capital contributions from non-controlling interests in subsidiary 72 -
Interest paid (72) (66)
Net receipts on settlement of hedging instruments 55 57
Dividends paid to non-controlling interests (3) (2)
Net cash used in financing activities (465) (69)
Net (decrease)/increase in cash and cash equivalents (180) 959
Cash and cash equivalents at beginning of year² 2,362 1,479
Effect of exchange rate changes (87) (76)
Cash and cash equivalents at end of year² 2,095 2,362
1. 2024 includes a £309m gain as a result of the Group's existing stake in Niva
Bupa, prior to the majority stake acquisition, having been remeasured to fair
value.
2. Includes restricted cash of £103m (2023: £87m) which are considered cash and
cash equivalents along with cash balances classified as held for sale of £nil
(2023: £2m) and bank overdrafts of £nil (2023: £1m) which are not
considered cash and cash equivalents.
The British United Provident Association Limited
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
Foreign exchange translation reserve Property revaluation reserve Cash flow hedge reserve Income and expenditure reserve Total attributable to the Company Restricted Tier 1 notes Non-controlling interests Total equity
£m £m £m £m £m £m £m £m
2024
Balance as at 1 January 2024 241 601 (7) 6,163 6,998 297 18 7,313
Profit/(loss) for the year - - - 772 772 - (12) 760
Other comprehensive income/(expense)
Unrealised gain on revaluation of property - 123 - - 123 - - 123
Realised revaluation profit on disposal of property - (9) - 9 - - - -
Remeasurement loss on pension schemes - - - (65) (65) - - (65)
Foreign exchange translation differences on goodwill (99) - - - (99) - - (99)
Other foreign exchange translation differences (212) (22) - (36) (270) - (4) (274)
Net gain on hedge of net investment in overseas subsidiaries 79 - - - 79 - - 79
Share of other comprehensive income of equity-accounted investments - - - (2) (2) - - (2)
Change in fair value of financial investments through other comprehensive - - - 7 7 - 4 11
income
Change in ECL of financial investments through other comprehensive income - - - 4 4 - 1 5
Change in cash flow hedge reserve - - 7 - 7 - - 7
Release of foreign exchange translation reserve on derecognition of 11 - - - 11 - - 11
equity-accounted investments and subsidiaries
Taxation credit/(charge) on income and expense recognised directly in other 1 (25) - 4 (20) - (1) (21)
comprehensive income
Other comprehensive (expense)/income for the year, net of taxation (220) 67 7 (79) (225) - - (225)
Total comprehensive (expense)/income for the year (220) 67 7 693 547 - (12) 535
Payment of Restricted Tier 1 coupon, net of taxation - - - (9) (9) - - (9)
Recognition of share purchase liability - - - (111) (111) - - (111)
Release of share purchase liability - - - 120 120 - - 120
Gain on disposal/dilution of shares - - - 62 62 - - 62
Changes in non-controlling interests - - - - - - 132 132
Dividends paid to non-controlling interests - - - - - - (3) (3)
Balance as at 31 December 2024 21 668 - 6,918 7,607 297 135 8,039
Foreign exchange translation reserve Property revaluation reserve Cash flow hedge reserve Income and expenditure reserve Total attributable to the Company Restricted Tier 1 notes Non-controlling interests Total equity
£m £m £m £m £m £m £m £m
2023
Balance as at 1 January 2023 437 634 - 5,777 6,848 297 20 7,165
Profit for the year - - - 422 422 - 2 424
Other comprehensive income/(expense)
Unrealised loss on revaluation of property - (15) - - (15) - - (15)
Realised revaluation profit on disposal of property - (5) - 5 - - - -
Remeasurement loss on pension schemes - - - (40) (40) - - (40)
Foreign exchange translation differences on goodwill (55) - - - (55) - - (55)
Other foreign exchange translation differences (212) (13) - (8) (233) - (2) (235)
Net gain on hedge of net investment in overseas subsidiaries 73 - - - 73 - - 73
Share of other comprehensive income of equity-accounted investments - - - 2 2 - - 2
Change in fair value of financial investments through other comprehensive - - - (4) (4) - - (4)
income
Change in ECL of financial investments through other comprehensive income - - - 1 1 - - 1
Realised loss on disposal of financial investments at fair value through other - - - 4 4 - - 4
comprehensive income
Change in cash flow hedge reserve - - (7) - (7) - - (7)
Release of foreign exchange translation reserve on derecognition of (2) - - (2) - - (2)
subsidiaries
Taxation credit on income and expense recognised directly in other - - - 14 14 - - 14
comprehensive income
Other comprehensive expense for the year, net of taxation (196) (33) (7) (26) (262) - (2) (264)
Total comprehensive (expense)/income for the year (196) (33) (7) 396 160 - - 160
Payment of Restricted Tier 1 coupon, net of taxation - - - (10) (10) - - (10)
Dividends paid to non-controlling interests - - - - - - (2) (2)
Balance as at 31 December 2023 241 601 (7) 6,163 6,998 297 18 7,313
The British United Provident Association Limited
Notes to the Consolidated Financial Statements
for the year ended 31 December 2024
Segmental Information
The organisational structure of the Group is managed through three Market
Units based on geographic locations and customers: Bupa Asia Pacific; Europe
and Latin America; and Bupa Global, India and UK. Management monitors the
operating results of the Market Units separately to assess performance and
make decisions about the allocation of resources. The segmental disclosures
below are reported consistently with the way the business is managed and
reported internally.
Following the acquisition of a controlling interest in Niva Bupa on 8 January
2024, the financial results of Niva Bupa have been fully consolidated into the
Bupa Global and UK Market Unit from the acquisition date and the Market Unit
has been renamed Bupa Global, India and UK (BGIUK). Other businesses
represents the Group's associate investment, Bupa Arabia, and for 2023,
included Niva Bupa's results as an associate investment.
Reportable segments Service and products
Bupa Asia Bupa Health Insurance: Health insurance, international health cover in
Australia.
Pacific
Bupa Health Services: Health provision business, comprising dental, optical,
audiology, medical assessment services, health centres and healthcare for the
Australian Defence Force.
Bupa Villages and Aged Care Australia: Nursing, residential, respite care and
residential villages.
Bupa Villages and Aged Care New Zealand: Nursing, residential, respite care
and residential villages.
Bupa Hong Kong: Domestic health insurance, primary healthcare and day care
clinics including diagnostics.
Europe and Sanitas Seguros: Health insurance and related products in Spain.
Latin America Sanitas Dental: Insurance and dental services through clinics and third-party
networks in Spain.
Sanitas Hospitales and New Services: Management and operation of hospitals,
rehabilitation centres and health clinics in Spain.
Sanitas Mayores: Nursing, residential and respite care in care homes and day
centres in Spain.
LUX MED: Medical subscriptions, health insurance, and the management and
operation of diagnostics, health clinics and hospitals in Poland.
Bupa Acıbadem Sigorta: Domestic health insurance, related products and dental
services through clinics in Türkiye.
Bupa Chile: Domestic health funding and the management and operation of health
clinics and hospitals in Chile.
Care Plus: Domestic health insurance, dental services through clinics and a
vaccination centre in Brazil.
Bupa Mexico: Health insurance and the management and operation of a hospital
in Mexico.
Bupa Global Latin America: International health insurance.
Bupa Global, India Bupa UK Insurance: Domestic health insurance, and administration services for
Bupa health trusts.
and UK
Bupa Dental Care UK: Dental services and related products.
Bupa Care Services: Nursing, residential, respite care and care villages.
Bupa Health Services: Clinical services, health assessment related products
and management and operation of a private hospital.
Bupa Global: International health insurance to individuals, small businesses
and corporate customers.
Associate: Highway to Health (United States of America) (operating as
GeoBlue).
From 2024:
Niva Bupa (India): Health insurance and related products in India.
Other Associate: Bupa Arabia (Kingdom of Saudi Arabia).
businesses Prior to 2024:
Associate: Niva Bupa (India): Health insurance and related products in India.
A key performance measure of operating segments utilised by the Group is
underlying profit. Underlying profit is used to distinguish business
performance from other constituents of the IFRS reported profit before
taxation not directly related to the trading performance of the business.
Underlying profit
The following items are excluded from underlying profit:
- Impairment of intangible assets and goodwill arising on business combinations
- these impairments are considered to be one-off and not reflective of the
in-year trading performance of the business.
- Short-term fluctuations on investment return - underlying profit is based on
an expected long-term investment return over the period for return-seeking
financial assets. Any variance between the total investment return (including
realised and unrealised gains) and the expected return over the period is
disclosed separately outside underlying profit, in short-term fluctuations.
These fluctuations are not considered to be directly related to underlying
trading performance.
- Net gains/losses on disposal of businesses and transaction costs on business
combinations - gains/losses on disposal of businesses that are material and
one-off in nature to the reportable segment are not considered part of the
continuing business. Transaction costs that relate to material acquisitions or
disposals are not related to the ongoing trading performance of the business.
- Net property revaluation gains/losses - short-term fluctuations which do not
reflect underlying trading performance. This includes deficit on the
revaluation of freehold properties and property impairment losses.
- Realised and unrealised foreign exchange gains/losses - fluctuations outside
of management control, which do not reflect underlying trading performance.
This includes the net impact of applying hyperinflationary accounting.
- Amortisation of bed licences - following the Australian Government's
announcement of the deregulation of bed licences from 1 July 2024, their
amortisation term was reviewed and updated from having an indefinite useful
life to amortising over the period to 1 July 2024. In May 2024, the Australian
Government announced that the deregulation would be delayed until 1 July 2025.
In November 2024, the remaining bed license were impaired as part of external
care home valuation process. The impact of the amortisation of bed licences is
not considered reflective of the trading performance of the business.
- Other Market Unit/Group non-underlying items - includes items that are
considered material to the reportable segment or Group and are not reflective
of ongoing trading performance. This includes items such as restructuring
costs and profit or loss amounts related to changes to strategic investments.
The total underlying profit of the reportable segments is reconciled below to
the profit before taxation expense in the Consolidated Income Statement.
(i) Revenues
Bupa Asia Pacific Europe and Latin America Bupa Global, India and UK Other businesses Group Functions Adjustment¹ Total
2024 £m £m £m £m £m £m £m
Insurance revenue 4,776 3,575 3,823 - - 59 12,233
Inter-Market Unit revenue (65) - 65 - - - -
Insurance revenue for reportable segments 4,711 3,575 3,888 - - 59 12,233
Care, health and other customer contract revenue 1,496 1,832 1,261 - - - 4,589
Other revenue 70 20 2 9 - 1 102
Non-insurance revenue for reportable segments 1,566 1,852 1,263 9 - 1 4,691
Total revenue for reportable segments 6,277 5,427 5,151 9 - 60 16,924
1 Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
Bupa Asia Pacific Europe and Latin America Bupa Global and UK Other businesses Group Functions Adjustment¹ Total
2023 £m £m £m £m £m £m £m
Insurance revenue 4,412 3,359 2,935 - - 64 10,770
Inter-Market Unit revenue (59) - 59 - - - -
Insurance revenue for reportable segments 4,353 3,359 2,994 - - 64 10,770
Care, health and other customer contract revenue 1,320 1,710 1,238 - - - 4,268
Other revenue 53 14 3 8 - - 78
Non-insurance revenue for reportable segments 1,373 1,724 1,241 8 - - 4,346
Total revenue for reportable segments 5,726 5,083 4,235 8 - 64 15,116
1. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
(ii) Segmental result
Bupa Asia Pacific Europe and Latin America Bupa Global, India and UK¹ Other businesses¹,² Group Functions Adjustment³ Total
2024 £m £m £m £m £m £m £m
Underlying profit 446 442 230 97 (145) - 1,070
Borrowing costs - - (2) - (84) - (86)
Group investment funding - - - - (70) - (70)
Consolidated underlying profit before taxation expense 446 442 228 97 (299) - 914
Non-underlying items:
Impairments of intangible assets and goodwill arising on business combinations (2) - - - - - (2)
Short-term fluctuation on investment returns (1) - (8) - - - (9)
Net (loss)/gain on disposal of businesses and transaction costs on business (8) 1 (12) (1) (6) - (26)
combinations
Net property revaluation gain 3 1 5 - - - 9
Realised and unrealised FX (loss)/gain - (2) 23 - 1 (12) 10
Amortisation of bed licenses (13) - - - - - (13)
Other non-underlying items²,⁴ (1) (199) (20) 309 - - 89
Total non-underlying items 58
Consolidated profit before taxation expense 972
1. Niva Bupa has been fully consolidated into the Bupa Global, India and UK
Market Unit from the acquisition date in FY 2024 and the entity is no longer
included in Other businesses.
2. Other businesses includes a £309m gain as a result of the Group's existing
stake in Niva Bupa, prior to the majority stake acquisition, having been
remeasured to fair value.
3. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
4. Europe and Latin America includes the impact of recognising a £187m expense
in relation to Isapre Cruz Blanca in Chile and the retrospective liability
relating to statutory Risk Factor Tables. This is excluded from underlying
profit as it is considered a one-off material retrospective matter which is
not reflective of ongoing trading performance.
Bupa Asia Pacific Europe and Latin America Bupa Global and UK Other businesses Group Functions Adjustment¹ Total
2023 £m £m £m £m £m £m £m
Underlying profit 154 355 269 85 (130) - 733
Borrowing costs - - - - (82) - (82)
Group investment funding - - - - (52) - (52)
Consolidated underlying profit before taxation expense 154 355 269 85 (264) - 599
Non-underlying items:
Impairments of intangible assets and goodwill arising on business combinations - (1) - - - - (1)
Short-term fluctuation on investment returns 12 - 16 - 3 - 31
Net (loss)/gain on disposal of businesses and transaction costs on business (2) (9) 10 - - - (1)
combinations
Net property revaluation loss (3) - (18) - - - (21)
Realised and unrealised FX (loss)/gain - (7) 12 2 5 (10) 2
Amortisation of bed licenses (32) - - - - - (32)
Other non-underlying items² - (17) (23) 27 - - (13)
Total non-underlying items (35)
Consolidated profit before taxation expense 564
1. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
2. Other non-underlying items includes £17m and £18m relating to restructuring
costs in Europe and Latin America and Bupa Global and UK. Other businesses
includes a £27m dilution gain on the issue of share capital in Niva Bupa to
external investors.
General information
The information in this announcement does not constitute the Group's statutory
accounts as defined in section 434 of the Companies Act 2006 for the years
ended 31 December 2024 or 2023. Statutory accounts for the year ended
31 December 2023 have been delivered to the Registrar of Companies, and those
for the year ended 31 December 2024 will be delivered in due course. The
report of the auditor on those accounts is unqualified and did not draw
attention to matters by way of emphasis.
1 Revenues from associate businesses are excluded from reported figures.
Customer numbers include 100% of our associates. Economic post-tax profits
include the associate contribution in line with our shareholding.
2 Customer counting methodologies vary between business units, and in
certain business units customers are counted more than once if they choose to
purchase or utilise multiple products or services as part of our connected
care offering.
3 Revenue calculated based on the aggregation of 'insurance revenue' and
'total non-insurance revenue' as shown in the Consolidated Income Statement.
4 Underlying profit is a Non-GAAP financial measure. A reconciliation to
statutory profit before taxation can be found in the notes to the financial
statements.
5 The FY 2024 Solvency II capital coverage ratio is an estimate and
unaudited.
6 Refers to Hong Kong SAR (Special Administrative Region) across the
statement.
7 In January 2024 we increased our shareholding by 22% to 63%, becoming the
controlling shareholder. Subsequently in November 2024, Niva Bupa successfully
listed on the National Stock exchange of India via an IPO. The new listing
resulted in new capital being raised and the sale of some of the Group's
existing holding, reducing the Group's controlling interest to 56%.
8 Following the acquisition of a controlling shareholding in Niva Bupa in
January 2024 the results are fully consolidated into the Bupa Global and UK
market unit, creating the new Bupa Global, India and UK market unit. Prior
year comparatives remain within Other Businesses on an equity accounted basis.
9 Locations where Bupa provides services at corporate offices with exclusive
access for its employees, including dentistry services.
10 Blua or an equivalent digital solution. Applicable to all references to
Blua herein.
11 Refers to Bupa Arabia and My Clinic.
12 To maximise impact, the 40 Ambition is focused on the Australian, Spanish
and UK Insurance Businesses.
13 The 60 Ambition is focused on funding BUs.
14 The 80 Ambition is relevant to all BUs.
15 APRA industry data as at 31 December 2024
16 Digital consultations relates to Poland, UK, Spain and Australia.
17 Excludes insurance customers from associate businesses and Niva Bupa.
18 Excludes provision customers from associate businesses.
19 Closing occupancy.
20 Garantías Explícitas en Salud price increase was originally approved by
the Chilean regulator in October 2022, subsequently overruled by the supreme
court and cancelled from 1 January 2024.
21 COR is calculated based on "Insurance service expense" plus "Net expense
from reinsurance contracts held" divided by "Insurance revenue" as shown in
the Consolidated Income Statement.
22 The 2024 Solvency II capital coverage ratio is an estimate and unaudited.
23 Source: APRA industry data.
24 Inpatient Private Medical insurance product.
25 Includes Health Trust customers which are excluded from the Group's total
customer count.
26 Following the acquisition of a controlling shareholding in Niva Bupa in
January 2024 the results are fully consolidated into the Bupa Global, and UK
market unit, creating the new Bupa Global, India and UK market unit. Prior
year comparatives remain within Other Businesses on an equity accounted basis.
27 Includes Health Trust customers which are excluded from the Group's total
customer count.
28 Includes both Bupa Owned & franchised units
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