King Salman bin Abdulaziz Al-Saud Custodian of the Two Holy Mosques HRH Prince Mohammad. 8. Middle East Insurance Industry Awards – Health Insurance Company of the Year 2020 and 2021 – Saudi Arabia.
2021 – FLAGGED CHALLENGES
We knew that 2020's lower claims, due to the shutdown and reduced number of medical providers, would increase more in 2021 as delayed procedures materialized and steps intensified.
2021 – GUIDING COMPASS
Our Key Performance Indicators Snapshot
SR 730.7 million
Seeding for the Future
2021 – KEY ACHIEVEMENTS IN DIGITAL
RPA: 56
CULTURE, THE FUEL OF HIGH PERFORMANCE
Business Report
Our Global Presence
12.9 billion
405 million
423 million
907 million
75 years
Bupa’s purpose is helping
We believe in people, in helping them feel better and helping them stay that way.
Ambition – To be the world's most customer-centric
Values
Health insurance
71% of revenue 21.1 million
Health provision
21% of revenue 16.9 million
Dental
What we do
Residential aged care
SR 731 million
3 million+
Our Landscape
Our Year at a Glance
Launch of Bupa Arabia Ventures –
NPS) of 54
- million
- million+
- million
Won CIPD Employer of
Purpose – To help people live longer, healthier, happier lives and make the world a better place. Officially launched across the Organization in 2020, the 1Bupa strategy is based on our long-term aim to "help people live longer, healthier, happier lives and make a better world" and fully aligns with the vision to be "the most trusted health". insurer in Saudi Arabia".
Risk
External Environment and Market Dynamics
2022 Economy Outlook
The Insurance Market in Saudi Arabia
GWP's 2021 Market Share
Market Value Share 2021 (GWP) Health Segment
Health Insurance Industry 2022 Outlook
Risk management is an integral part of our operations and our Risk Management Cycle is an ongoing process that ensures we have a detailed understanding of our risk profile.
Our principal risks
Key Risks to Value Creation
Business Review
Intellectual Capital
Intellectual capital consists of tangible and intangible aspects of a company, such as product improvements, brand identity, and research and development. Within Bupa Arabia, efforts to revitalize the brand and improve the company's digital capabilities played a key role in developing its intellectual capital during the year.
Brand-building Our new logos
In pursuit of this goal, we used content that was relevant on each platform to resonate with our target audiences. This insight gave us the edge we needed to optimize our media spend and user journey.
Digitally-powered Healthcare
Our strategy this year was to build on the awareness people have about us, and then generate increased levels of engagement on our online platforms. Through extensive study, we learned that visuals with a human element and minimal text and video campaigns had a better impact on our audience.
Digital Initiatives in 2021
Our Accomplishments in 2021
Our Impact
Addressing Cybersecurity
Awards and Recognition
We are aware of all development requirements and listen closely to our customers' feedback as we innovate and fine-tune our products and services.
Customer Capital
Highlights
The Value We Deliver
The Products We Offer
Enhancing Customer Experience
Wellness services dedicated to improving the health and well-being of our members by encouraging them to adopt a healthier lifestyle. Available in major Saudi Arabian hospitals, the Rahatkom program works to support our members when they need it most.
Human Capital
As an organization, we understand that it is our people who deliver Bupa Arabia's exceptional customer experiences, and we strive to create a culture that can reach and retain the most talented and highly engaged employees. The HR team is not only responsible for developing and implementing policies, but is also there to serve our people so they can stay engaged, develop and become the future leaders of our organization.
Corporate Social Responsibility (CSR)
Bupa Arabia as an organization distinguished itself by putting its people at the heart of the business and implementing practices that resulted in a productive, engaged and motivated workforce. Bupa Arabia is committed to doing business in an ethical and sustainable manner, transforming healthcare in the Arab world and leaving a lasting impact on community members and the environment.
Environmental, Social, and Corporate Governance (ESG)
Bupa also takes into account broader ESG considerations, based on the community, people and environment framework. Green initiatives are embedded in our activities and measure and limit our impact on the environment.
ESG Policy and Strategy
Environmental, Social, and Corporate Governance (ESG) is a framework of non-financial performance indicators that help evaluate an organization's collective conscientiousness and commitment to its stakeholders, the environment and communities in which it operates. While the direct impact of the insurance industry on the environment is limited, Bupa Arabia believes in taking a proactive approach to making a positive impact on the world.
Sustainable Technology Digital Health Insurance Cards
Environment
Communities
People
Sustainable Relationships
Engagement with Investors
Financial Review
The decline in earnings was mainly driven by the increase in loss ratio to bps growth from 2020) as a result of the deferral of claims following the easing of lockdown restrictions. In addition, bad debt provisions fell by 24% as a result of record collection performance of more than SR 12.5 billion, the highest in the Company's history.
Summary of Financial Position
The results were further supported by record investment income, which rose by more than 23% thanks to the strong performance of local equities. This is evident from the premium receivable balance, which increased by more than SR 440 million due to the strong insurance results.
The Zakat and Tax, Custom Authority of Zakat and Income Tax (ZATCA)
Saudi Central Bank (SAMA)
Council of Health Insurance (CHI)
The General Organization for Social Insurance (GOSI)
Tadawul and the Capital Market Authority (CMA)
Regulatory Penalties
Dividends and the Company’s Policy for the Distribution of Profits
Dividend History – Last Five Fiscal Years
Governance and Risk
Management Report
Our Board Members
Independent member of the Board of Bupa Arabia since 2014 and became a member of the Audit Committee (AC) in July 2019. He is also Vice Chairman of Tellurian Incorporated and Advisory Chairman of Moelis and the Company's Global Energy Group.
Our Chief Executive Team
He then assumed executive roles as the Deputy General Manager, Personal Financial Services, responsible for all sales functions (branch, direct sales, financial planning and Takaful sales) in KSA. He was responsible for all the commercial purchasing and supply chain of Panda's business in KSA, the UAE and Egypt.
Audit Committee Report 2021
The purpose of the board is to determine strategy and deliver value to all shareholders and stakeholders, in accordance with the regulations and laws of the Kingdom, in an ethical and transparent manner. The Board of Directors is responsible for the Company's values, mission and long-term vision and for providing strategic direction and guidance to the Company's operations, including the ultimate responsibility for ensuring that the Company has exemplary corporate governance and follows exemplary business ethics and to provide a robust system of internal controls and procedures should be put in place to meet the company's compliance, both in substance and timeliness, with all requirements of all applicable laws and regulations of the jurisdictions in which it is active.
Board Purpose and Meetings
The board of directors approves the chairman of the board of directors, the vice chairman of the board of directors, the chief executive officer and the secretary of the board of directors of the company for each term, subject to regulatory approval where necessary and appropriate, and for the fifth term all have been approved as reappointments in the fourth term. The Board of Directors also appoints the Board Secretaries for each new term in which the Director of Internal Audit is appointed in the current term as AC Secretary, Head of Compensation and Benefits for NRC Secretary, Director of Asset Management and Operations Consultant as IC Secretary, Director of Risk Management as RMC Secretary and Head of Company Secretariat as Company Board Secretary and EC Secretary.
Board Meeting Attendance
Major Board Approvals/Resolutions
Assessment of the Board/Board Committees and the Members’ Performance
Ms. Abeer Albornu
Board Secretary
Board Committees
Audit Committee (AC)
Board Member and Chairman of the Audit Committee and Member of the Risk Committee of Saudi Telecom Company (STC) (April 2021 to date). Vice Chairman of the Board and Chairman of the Audit and Risk Committee of Saudi Electric Company (SEC) (January 2021 to date).
Executive Committee (EC)
Vice Chairman of the Board of Directors and Chairman of the Audit Committee of Saudi Agricultural and Livestock Company (SALIC) (owned by PIF), (since December 2019). Board member and member of the Audit, Risk and Compliance Committees of MEPCO, last term started in May 2018 (originally joined in March 2014).
Investment Committee (IC)
Nomination and Remuneration Committee (NRC)
Risk Management Committee (RMC)
Our Governance Framework
SAMA
SHAREHOLDERS
Risk Governance and Internal Controls
Our Corporate Governance and Risk Intelligence
Our Code of Conduct
Our Enterprise Policies
Our Whistle-blowing Policy
Our Shariah Compliance
Corporate Governance and Bupa Arabia Commitment
Bupa Arabia reaffirms its commitment to implementing the highest professional standards and international best practices for the prevention of bribery, corruption, fraud, financial crime and its commitment to prevent anti-competitive practices. Bupa Arabia reaffirms its commitment to maintain and develop its formal Corporate Governance Framework (CGF), including its Code of Corporate Governance (CCG), in line with international best practice and in accordance with the regulators' corporate governance rules.
Control Functions
He was also selected as one of the top three information security leaders for the 2020 edition in the UK by the International Data Corporation IDC Summit. He joined Bupa Arabia in 2018 to lead transformation activities related to the investment management function and assist with key strategic initiatives across the company as part of the business advisory function.
Independent Functions
He also served as chairman of the financial sector cyber security committee at SAMA. The primary role of the IAD is to assist Bupa Arabia's Board and AC to protect the assets, reputation and sustainability of the Organization.
Related Party Transactions
Related Party Transactions Relating to Insurance Contracts
Board Assurance
Health cover for yourself and family as well as all employed members of the Bupa Arabia health insurance scheme and reflected in staff costs. Abdulla Elya's Health cover for yourself and family is as an employee of Careem, and Careem settles directly to Bupa Arabia Bupa Arabia board members' other related health insurance with Bupa Arabia.
Other Disclosures and Information in Accordance with Laws and Regulations
Description of the Bupa Arabia Equities of the Board Members and their Immediate Family Members
Description of the Bupa Arabia Equities of the Senior Management Executives and their Immediate Family
Description of any Interest in a Class of Voting Shares Held by Other Persons
Board Members and
Senior Executives’ Interests
Board and Board Committee Policies, Benefits and Emoluments of Board/Board Committee
Remuneration
Remunerations for members of the management board/board for BIOL representatives who are employees of Bupa are received by the legal entity Bupa BIOL and not by individuals personally. Remunerations for members of the management board/board for BIOL representatives who are employees of Bupa are received by the legal entity Bupa BIOL and not by individuals personally.
Top Five Executives Senior Executive Remuneration (including CEO and CFO)
Board committee member 2021 remuneration and meeting fees, excluding board members' fees, are reflected below:. Apart from compensation for participation in board meetings) SR ’000. In 2021, we held two (2) Extraordinary GA Meetings (EGM) and we included the highlights of our key Tadawul announcements and the summary of the approved GA resolutions.
GA Meetings Attendance by the Board Members
Shareholders are referred to our fully detailed Tadawul announcements, our 2020 AFS and our corporate website's Investor Relations Governance section, including the GA minutes, as we feel they contain sufficient information to keep shareholders fully informed in making their decisions:.
EGM Resolutions Approved on 24 June 2021 (results announced on 27 June 2021)
General Assembly (GA) Meetings
EGM Resolutions Approved on 4 November 2021 (results announced on 7 November 2021)
The following sections contain additional disclosures in accordance with Saudi Arabian laws and regulations, including the SAMA Insurance Corporate Governance Regulations and the CMA Corporate Governance Regulations.
Subsidiaries
Additional Disclosures
No Borrowings or Loans
Declarations Relating to Debt Instruments, Options, Warrants and Rights
Description of any Punishment, Penalty or Statutory Reserve or Restriction Imposed on
Financial
Statements
Independent Auditors’ Report
To the Shareholders of Bupa Arabia for Cooperative Insurance Company
Other information consists of the information in the company's annual report for 2021, apart from the annual accounts and our audit report on this. Those responsible for management, i.e. The company's board of directors is responsible for overseeing the company's financial reporting process.
Statement of Financial Position
For the year ended 31 December 2021 Bupa Arabia for Cooperative Insurance Company (a Saudi Joint Stock Company).
Statement of Income
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
The accompanying notes 1 to 40 form an integral part of these financial statements for the year ended 31 December 2021 Bupa Arabia for Cooperative Insurance Company.
1 Organization and Principal Activities
2 BASIS OF PREPARATION
Notes to the Financial Statements
Goodwill impairment is determined by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill is related. If the recoverable amount of the cash-generating unit (or group of cash-generating units) is lower than the book value of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated, an impairment loss is recognised.
3 SIGNIFICANT ACCOUNTING POLICIES
GOODWILL
The entire amount was paid over the years, to the seller, after obtaining the required regulatory approvals. A change in the discount rate of +/- 300 basis points, other variables being constant, would not result in an impairment of goodwill.
5 Cash and Cash Equivalents
6 Premiums Receivable – Net
It is Company policy that all customers wishing to trade on credit terms are subject to credit verification procedures. Additionally, receivables are monitored on an ongoing basis to reduce the Company's exposure to bad debts.
7 Investments
8 Prepaid Expenses and Other Assets
9 Term Deposits
10 Fixtures, Furniture and Right of Use Assets – Net 10.1 Fixtures, Furniture
- Right-of-Use Assets
11 Intangible Assets
12 Statutory Deposit
13 Technical Reserves
Movement in unearned premiums Movements in unearned premiums are as follows
Net outstanding claims and reserves
14 Deferred Policy Acquisition Costs
15 Claims Development Table
16 Fiduciary Assets
17 Commitments and Contingencies
18 Accrued and Other Liabilities
Lease liability
19 Trademark Fees
20 Insurance Operations’ Surplus Payable
21 Employees’ end of Service Benefits
Movement of end-of-service benefits
Principal actuarial assumptions
22 Fair Value of Financial Instruments
23 Operating Segments
24 Related Parties Transactions and Balances
25 Reinsurers’ Balance Payable
26 Zakat and Income Tax (a) Zakat
The Company has filed its Zakat and Income Tax returns for the financial years up to and including 2020 with the Zakat, Taxes and Customs Authority (“ZATCA”). In February 2021, the Company reached an agreement with ZATCA for all zakat, corporate income tax and withholding tax for the years 2008 to 2016 and 2018.
27 Share Capital
For the fiscal periods 2008 to 2018, the company received assessments of additional zakat, corporate income tax and withholding tax in addition to late fines for various assessed items. For 2017 assessments, the company has referred the matter to the General Secretariat of Taxation Committees (“GSTC”) and their review is awaited.
28 Statutory Reserve
29 Share-Based Payments
30 Capital Management
31 General and Administrative Expenses
32 Selling and Marketing Expenses
33 Investment Income, Net
34 Earnings Per Share
35 Risk Management (a) Insurance risk
The above sensitivity analysis is only on FVSI investments that directly affect the company's profit. There are no differences between contractual and expected maturity of the financial liabilities of the Company.
36 Supplementary Information Statement of Financial Position
ITEMS THAT ARE OR MAY BE RECLASSIFIED TO THE INCOME STATEMENT IN FOLLOWING YEARS Net changes in fair value available for sale.
37 RESTATEMENT OF COMPARATIVE FIGURES
38 IMPACT OF COVID-19 COMPENSATION FOR GOVERNMENT PROVIDERS
39 DIVIDENDS DECLARED
40 APPROVAL OF THE FINANCIAL STATEMENTS
Regional Offices
New Imperatives
