Revenues up 17% and surplus up 117% at PMI provider

Private Medical insurer and healthcare provider Bupa, announced revenues up 17% to £6.94bn, with organic growth of 5%, favourable foreign exchange movements of 7% and the full year effect of recent acquisitions of 5%.

It said its surplus before tax was up 117% to £416.5m and its underlying surplus before tax was up 4% to £428.2m.

Financial highlights £m (2008 in brackets)

  • Revenues 6,941.4 (5,923.9)
  • Surplus before taxation 416.5 (191.9)
  • Underlying surplus before tax 428.2 (413.4)
  • Net cash generated from operating activities 522.3 (306.5)

Bupa said customer numbers increased to 10.4 million (2008: 10.3 million) with success in new customer acquisitions offsetting higher lapse rates due primarily to rising unemployment.

It saw strong growth in international customer numbers in 2009, and secured or extended significant major corporate accounts in the UK for 2010.

Bupa’s new UK insurance operating platform was successfully launched which, the company claims, will improve operational efficiency and enhance speed and flexibility of new product development.

Economic recession

Ray King, Bupa's chief executive, said: "In a year during which a number of our core markets were impacted by economic recession, the Bupa Group demonstrated its resilience by maintaining customer numbers, increasing surplus and repaying a significant amount of debt.

“We delivered a number of major operational programmes including a new operating platform for our UK insurance business and the integration and rebranding of our recently acquired care home operations in Australasia.

“The integration of MBF remains on track with projected synergies ahead of original estimates.

Long-term growth

“The markets in which Bupa operates offer excellent opportunities for long-term growth, driven by customers' desire to access better healthcare.

“The global trends of ageing populations, rising affluence, the increasing incidence of chronic disease and advances in medical technology will drive demand for our services.

“Bupa is well positioned to take advantage of these trends given our geographic breadth, strong balance sheet, trusted brands and excellent market positions.

“We are investing in our portfolio in pursuit of organic growth and remain focused on delivering our strategy of helping customers live longer, healthier, happier lives."