Bupa Finance has reported impressive financial gains in the first half of 2024, driven by substantial revenue growth and robust market performance.
The company’s underlying profit surged by 45%, underpinned by increased revenues and enhanced returns from different market segments.
Overview of Financial Performance
Bupa Finance has reported a notable increase in underlying profit, up by 45% for the first half of the year. The company’s revenues rose significantly, marking a 16% increase to £8.3 billion, compared to £7.1 billion in the prior year. During this period, the company’s total underlying profit reached £454 million, a substantial rise from £313 million in the previous year.
Growth in Customer Base
In the first half of 2024, Bupa experienced significant growth in its customer base. The number of insurance customers increased by 23%, reaching 33.2 million. Additionally, provision customers served rose by 12% to 14.2 million, and aged care occupancy rates increased by 2 percentage points to 93%.
Regional Market Performance
In the Asia Pacific region, Bupa reported a 16% increase in revenue, amounting to £3,071 million. The growth was partly due to the return of Covid-related claims savings to customers in Australia Health Insurance. The underlying profit in this area climbed from £193 million to £231 million.
Performance in Europe and Latin America
Bupa’s revenue in Europe and Latin America grew by 11%, reaching £2,678 million. The underlying profit in these regions saw an 11% increase to £156 million. This growth was driven by revenue gains and higher investment returns, despite challenges such as a loss in Chile following the cancellation of the Garantias Explicitas en Salud price increase.
Bupa Global, India, and the UK Financials
Revenue for Bupa Global, India, and the UK increased by 23%, totalling £2,524 million. Despite this revenue growth, the underlying profit declined by 55% to £64 million. The reduction resulted from a combination of factors, including deficits from Niva Bupa and skewed prior-year comparisons due to one-off elements such as premium releases and deferred claims.
International Expansion and Digital Growth
Bupa has continued with the international expansion of its health services. In the first half of 2024, they inaugurated several new facilities worldwide, including a hospital, clinics, and dentistry centres. Additionally, Bupa’s digital healthcare platform, Blua, surpassed 6.8 million users, with plans to increase this user base significantly.
CEO’s Perspective
Bupa Group CEO, Iñaki Ereño, commented on the company’s strong performance, stating, “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.” Ereño emphasised the company’s focus on excellent customer service and high standards of care as they progress with their strategy.
Bupa Finance’s first-half performance reflects its successful strategy and robust growth across various operations.
With continued focus on customer service, strategic expansion, and digital innovation, Bupa is well-positioned to build on its strong foundations.
