Loading

0

Close

Governance and Risk Management Report

Board Assurance

banner

Related party transactions

Related parties represent major shareholders, Board Members, and key management personnel of Bupa Arabia and the companies of which they are principal owners and any other entities controlled, jointly controlled, or significantly influenced by them. Contract pricing policies and terms are conducted on an arm’s length basis, and transactions are approved by the Company’s Management or, if necessary, by the Company’s Board of Directors.

In any instance where any Board Member was conflicted, whether personally or via a related party relationship, the conflicted Board Member did not vote. The following are the details of the major related party transactions during the year and their related balances:

Legal entity Related party Description 2022 period 2023 period 2022 SR ’000 2023 SR ’000 Change
Bupa Global Bupa Reinsurance Premium Ceded (Bupa International Saudi Arabia Plan) 12 months January-December 12 months January-December 93,406 175,533 82,127
Various Various Other Expenses – net 12 months January-December 12 months January-December 2,068 1,720 (348)
Bupa Investments Overseas Limited (BIOL) Bupa Tax Equalization – net 12 months January-December 12 months January-December 68,431 35,129 (33,302)
Bupa Investments Overseas Limited (BIOL) Bupa Board and Committee Member Remuneration 12 months January-December 12 months January-December 915 920 5
Bupa Middle East Holdings Two. W.L.L. (BMEH2) Bupa and Nazer Trademark Fees 12 months January-December 12 months January-December 32,094 39,227 7,133

All contracts are for a 12-month period for both 2022 and 2023.

Related party transactions relating to insurance contracts

Details of health insurance contracts associated with Bupa Arabia’s Board Members, or that of their first-degree relatives, are reflected below:

Bupa Arabia Board Members’ personal/family health insurance with Bupa Arabia

Board Member name Contract description Period Saudi Riyals Gross Written Premium (GWP)
2022 2023 2023
change
Eng. Loay H. Nazer Nazer Group Ltd. Related Contracts (multiple contracts) 12 months SR millions 18 8 (10)
Dr. Abdulla Elyas Careem Contract Health Insurance Scheme 12 months SR millions 1 1 0
Mr. Tal Nazer Bupa Arabia Employees Health Insurance Scheme 12 months SR millions 22 28 6
Mr. Nader Ashoor Bupa Arabia Employees Health Insurance Scheme 12 months SR millions 22 28 6
Mr. Osamah Shaker Gulf International Bank (GIB) – (GIB Capital) 12 months SR millions 17 21 4

The explanations for these contracts are available below:

Board Member name Contract explanation
Eng. Loay H Nazer Health cover for self and family as an employee of the Nazer Group Ltd. and the Nazer Group Ltd. settles to Bupa Arabia directly
Mr. Tal Nazer and Health cover for self and family, as well as all employee members of the Bupa Arabia Health Insurance Scheme are reflected within the staff costs
Mr. Nader Ashoor
Dr. Abdulla Elyas Health cover for self and family is as an employee of Careem, and Careem settles to Bupa Arabia directly
Mr. Osamah Shaker Health cover for self and family is as an employee of GIB Capital, and Gulf International Bank (GIB) – (GIB Capital) settles to Bupa Arabia directly

Bupa Arabia Board members’ other related party health insurance with Bupa Arabia

Board Member name Contract description Period Saudi riyals Gross Written Premium (GWP)
2022 2023 2023
change
Ms. Huda Bin Ghoson Saudi National Bank (SNB) 12 months SR millions 277
Mr. Nader Ashoor Saudi Ground Services 12 months SR millions 107 105 (2)
SISCO – Saudi Industrial Services Co. 12 months SR millions 1 1 0
Mr. Tal Nazer NAJM for Insurance Services Co. 12 months SR millions 43 31 (12)
Cool Inc. Hospitality Company (multiple contracts) 12 months SR millions 3 4 1
Dr. Abdulla Elyas Tam Development 12 months SR millions 1 1 0
Mr. Ali Sheneamer
Mr. Tariq Alamoudi Saudi Logistics Services (SAL) 12 months SR millions 26 0

Any health insurance coverage which Bupa Arabia provides to any Bupa Arabia Board Member, and/or if applicable, his company, family, or other individuals with whom he may be associated or have an interest, is strictly on an arm’s length basis, with no preferential treatment in any form, and in accordance with the pricing and loss ratio targets outlined in the Company’s underwriting Policy/Manual. This is in full compliance with the medical pricing regulations set by the Insurance Authority and the CHI medical insurance product regulations.

Declarations relating to waiver of salary, compensation, and rights to dividends

The Company confirms the below declarations:

  • That it has not issued, nor granted, any convertible debt instruments, options, warrants, or similar rights during the financial year and accordingly has not received any consideration for the same.
  • That it has not converted, issued, or granted any subscription rights under any convertible debt instruments, contractually based securities, warrants, or similar rights during the financial year.
  • That it has not redeemed, purchased, or canceled any redeemable debt instruments during the financial year. The Company has no such securities outstanding so the value of the same is nil.

Our shareholders and our disclosure of information to all stakeholders

As of 31 December 2023, the major shareholders were as per the table below:

Name of shareholder Shares Shares percentage
Bupa Investments Overseas Limited (BIOL) 64,875,000 43.25
Nazer Group Holding Company Ltd. (Nazer) 7,507,500 5.005
Major shareholders 72,382,500 48.255
Public shareholders 77,617,500 51.745
Total 150,000,000 100

Tadawul shareholder database requests

During 2023, Bupa Arabia made five (5) requests of Tadawul for its shareholder database, on a variety of dates as follows:

Request date Request purpose
1. 17 January 2023 Corporate Action
2. 27 February 2023 Corporate Action
3. 18 June 2023 General Assembly
4. 21 June 23 Dividend Entitlement
5. 22 June 23 General Assembly

Other Disclosures and Information in Accordance with Laws and Regulations

Provision of Corporate Governance

Bupa Arabia is committed to and in full compliance with and adherence to the provisions of the Insurance Authority Insurance Corporate Governance Regulations, as well as with the requirements of the Company’s Code of Corporate Governance. There are several guiding requirements within the CMA regulations which Bupa Arabia has decided to either adopt, for example, within the RMC scope, which is related to corporate governance, or to adopt them in the future, either when required as mandatory, or earlier if they are considered appropriate and best practice.

Article number Article section and narrative Reason for non-compliance
Article 90: Disclosure of Remunerations Article 90 paragraph (4) point (b) Disclosure of the five Senior Executives who have received the highest remuneration from the Company, provided that the Chief Executive Officer and Chief Financial Officer are among them. Bupa Arabia has disclosed the top five executive payments, including the CEO and CFO, in totals under the remuneration section of this report.
51 – Audit Committee Formation Paragraph (c) The Chairman of the Audit Committee shall be an Independent Director. Bupa Arabia’s Audit Committee Chairman is an independent member, who is not a member of the Board of Directors as this article is a guiding article.

In terms of the CMA Corporate Governance Regulation Article Number 86, regarding policies that regulate the relationship with stakeholders to protect their respective rights, Bupa Arabia has enhanced its policies during 2023 to ensure a stronger alignment with regulations and the latest international best practices.

My Report

At the moment, there are no entries available for display