Chairman’s Message

It is with great pleasure that I take this opportunity to highlight 2023’s noteworthy achievements and successes of Bupa Arabia as we complete our 26th year of operations. Bupa Arabia remains committed to serving the insurance sector and has contributed immensely to improving the health insurance sector of the Kingdom of Saudi Arabia over the years. Whilst thanking our team for their loyalty to the Company and for their services to our customers, it is our view that Bupa Arabia is in a unique position to cater to the ever-evolving needs of our valued members and customers in the years ahead.

Regulatory breakthrough

Health insurance, which accounts for about two thirds of the insurance sector in Saudi Arabia, has been operating under a dual regulatory setup (The Saudi Central Bank (SAMA), and the Council of Health Insurance (CHI)) since the launch of insurance regulations two decades ago. While this setup was fit-for-purpose in the early days, it became a burden as the sector matured, specifically in the following areas:

• Excessive levies, by regional and global benchmarks, to fund two entities in charge of regulations.
• An exhaustive list of sector initiatives, driven by two regulators, eating into the bandwidth of the limited resources at insurance companies.

It was clear that a single regulator was the logical solution in order for the sector to fully flourish and become a key contributor to the Saudi economy while delivering on the KPIs of the Financial Sector Development Program, a Saudi Vision 2030 program. A single regulator under the name “Insurance Authority” was created at the end of 2023, and we believe this marked a pivotal point in the growth journey of the sector which was well-received and welcomed by the sector.

We believe the Insurance Authority has an opportunity to produce a set of sector laws and regulations to propel the sector for the next two to three decades and address all pain points of the existing regulations and we trust that the current leadership of the Insurance Authority have such intentions.

Performance highlights

During the year, the KSA insurance industry’s gross written premiums grew by 25%, driven by many factors such as regulations, enforcement, technology, giga projects, participation of women workforce etc. Bupa Arabia, albeit a single line insurer, had maintained a healthy 28% market share of the total insurance sector.

In 2023, Bupa Arabia achieved a gross written premium of SR 16.7 billion, a growth of 20% versus 2022, a total revenue of SR 15.9 billion, a growth of 23% versus 2022 and a net profit of SR 940 million, a growth of 17%. As a result, the company’s earnings per share also improved by approximately 17% to SR 6.29 in 2023, compared to SR 5.39 in 2022.

Commitment to community well-being

In 2023, we remained focused on elevating our role in enhancing social well-being by championing diversity and inclusion, actively supporting local communities, and ensuring equitable treatment of both customers and employees. We also initiated a range of programs aimed at enhancing access to insurance for everyone and provided local SMEs with a chance to participate in bids as a means of fortifying relationships. Furthermore, the Company has given precedence in promoting insurance literacy and awareness. On the corporate social responsibility front, we held numerous fitness sessions at our gym facilities and sponsored sports events including football, padel, ping-pong, cricket tournaments. And additionally, we conducted mental well-being programs, to help our employees manage their professional, social and personal lives, while being involved in social welfare activities in the community such as donating to orphanages and volunteering for our community well-being programs.

Commitment to employees well-being

We remain committed to the mental and physical well-being of our colleagues, with our burnt-out services (mental health) initiative aimed at supporting employees and their families facing mental health challenges, in addition to a twice-yearly ‘health lounge’ campaign and health awareness sessions. Our Flexible Working Model is an added benefit for staff members, whereby we provide them with different degrees of flexibility. Our employee engagement survey to gauge overall satisfaction and engagement recorded an engagement score (e-sat) of 87% and 88% for May and November 2023 respectively, exceeding the target of 80% for both periods.

Awards and recognition

We take great pride in the local and global recognition of our unwavering commitment towards excellence in the insurance industry and beyond. In 2023, Bupa Arabia was presented with a number of brand awards, including being named the Most Valuable Insurance Brand (KSA – by Kantar BrandZ), and being recognized among the Top 10 Strongest Brands in the country (by Brand Finance). We were also named Health Insurer of the Year (by InsureTek), Best Health Insurance Mobile App (by World Economic Magazine), and were ranked 69th among the Top 100 Companies in the Middle East in 2023 (by Forbes).

Acknowledgements

On behalf of the Board of Directors, I take this opportunity to thank our employees for their commitment to grow the business and deliver robust results. I also wish to convey our gratitude to all our valued stakeholders, including investors, customers, suppliers and partners, for rendering their continuous support throughout our journey. We are deeply appreciative of the confidence placed in us, as we work tirelessly towards taking Bupa Arabia to ever greater heights in the years ahead.

By order of the Board

Eng. Loay Hisham Nazer
Chairman