Financial Headlines
- Revenue1 of £12.1bn is flat at constant exchange rates (CER).
- Underlying profit2 before taxation of £388m, was down 4% at CER (2019: £404m) with the performance of the insurance businesses partially offset by the challenging conditions in our health provision and aged care businesses.
- Statutory profit before taxation of £410m was up £488m at AER (2019 loss before taxation: £(78)m), primarily due to goodwill impairments made in 2019 not recurring.
- Solvency II capital coverage ratio3 remains strong at 160% (2019: 159%).
Business context
- Full Year 2020 results reflect our financial resilience and the benefits of our diversified business despite volatile trading conditions caused by the COVID-19 pandemic.
- Throughout the pandemic, our priority is to focus on the welfare of our customers and our people, and to play our part in government and public health responses.
- For health insurance, our largest business line, we undertook a range of actions to support our customers and deliver value. Underlying profit primarily increased due to the reduced levels of claims, as lockdown measures restricted access to private healthcare and postponed elective procedures. As restrictions had largely been lifted by the end of the year it is anticipated that claims will rebound in 2021, however, the timing and quantification will vary by market.
Iñaki Ereño, Group CEO, commented:
“The pandemic is having a terrible impact across the world at a very human level. In the context of that huge challenge, I am very proud of how everyone at Bupa has been responding, focusing on our customers and supporting each other and society. Our financial results reflect our financial resilience and the benefits of our diversified business. Despite volatile market and trading conditions we maintained revenue flat with underlying profit marginally down.
Looking forward, it is an important time for Bupa and for the healthcare industry. COVID-19 has changed many aspects of society and this will continue. I am proud to lead Bupa in this new period as we deliver for customers and play our part in national health efforts. My focus is on growth, transformation and sustainability. We must grow the businesses of today and innovate to become the business of tomorrow.”
Read also the Bupa Finance PLC Annual Report and Accounts 2020
