RCS - Brit Utd ProvAscBUPA - Bupa 2025 Half Year Report
07/08/2025 08:15
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RNS Number : 3170U British Utd Provident Assoc (BUPA) 07 August 2025
The British United Provident Association Limited (Bupa):
HALF YEAR STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2025
Financial headlines
• Insurance customers 1 (#_ftn1) of 40.9m, up 23%, provision
customers served of 15.1m, up 7%; and aged care occupancy of 94%, up 1ppt.
• Revenue £8.8bn, up 11% (HY 2024: £8.0bn) at Constant Exchange
Rates (CER).
• Underlying profit 2 (#_ftn2) before taxation £480m, up 41% at
CER (HY 2024: £341m) driven by the strong growth in revenues, improved
margins and higher investment returns.
• Statutory profit before taxation £501m, up 19% at Actual Exchange
Rates (AER) (HY 2024: £420m).
• Solvency II capital coverage ratio of 182% (FY 2024: 176%).
• Leverage (excluding IFRS 16 lease liabilities) of 15.8% (FY 2024:
16.0%).
Iñaki Ereño, Group CEO, commented:
"In the first six months of the year, we have served more customers than ever
before, we have scaled Blua, our digital healthcare solution, and we have
opened 61 new health provision sites around the world, giving our customers
even more choice and convenience when it comes to accessing our healthcare
services.
"I am proud of the results we have delivered and I would like to thank our
customers and colleagues. We are building on the strong foundations that we
have developed over the past four years. Bupa's new 3x100 Strategy is helping
us to go further and faster to deliver our purpose and our ambition for Bupa
to be the most customer-centric healthcare company in the world."
Market Unit performance (all at CER)
• Bupa Asia Pacific: Revenue increased by 7% to £3,085m driven by
customer growth across all business units, particularly in provision as we
expand our health network. Underlying profit increased by 12% to £244m driven
by the revenue growth and higher margins across provision, aged care and Hong
Kong Insurance.
• Europe and Latin America: Revenue grew by 14% to £2,911m driven
by customer growth and higher policy pricing in Chile Insurance, approved by
the regulator following cancellation of the GES 3 (#_ftn3) price increase at
the start of 2024. Underlying profit increased by 44% to £202m as a result of
higher revenues, margins and investment returns.
• Bupa Global, India and UK: Revenue grew by 12% to £2,807m driven
by insurance as we saw strong customer growth, particularly in Niva Bupa, and
higher premiums driven by rate changes in response to higher claims in the UK.
Underlying profit increased by 89% to £126m driven by the revenue growth,
improved margins in provision and aged care, and Niva Bupa turning to
profitability due to continued strong business performance and the absence of
prior year one-off impacts related to our increased shareholding 4 (#_ftn4)
.
• Other businesses: Our businesses in Saudi Arabia delivered
underlying profit of £45m, down (17)% driven by lower margins in insurance
due to inflationary pressures in the first half of 2025 more than offsetting
revenue growth.
Group profitability
• Total underlying profit was £480m, up 41% at CER (HY 2024:
£341m) driven by the increase in Market Unit profits, partly offset by an
increase in Group Investment Funding spend as we re-invest profits from
enhanced financial performance into high-impact and strategically important
initiatives, directly aligned with our purpose. Borrowing costs and other
central functions costs reduced following the redemption of £300m senior
unsecured bonds in April 2024 and due to the timing of project spend.
• Statutory profit before tax was £501m, up 19% at AER (HY 2024:
£420m) driven by the £111m AER increase in underlying profit. A positive
non-underlying result of £21m (HY 2024: £51m) was driven by a gain on the
disposal of a legacy portfolio of individual health contracts in Brazil.
Financial position
• Solvency II capital coverage ratio of 182% remains strong and is
above our 140-170% target range (FY 2024: 176%).
• Leverage ratio of 22.9% (FY 2024: 23.1%) when including IFRS 16
lease liabilities. Excluding these liabilities, the leverage ratio was 15.8%
(FY 2024: 16.0%).
• Net cash generated from operating activities remained strong at
£869m (HY 2024: £676m).
Customer highlights
• We launched our new 3x100 Strategy in January 2025 which sets out
the initiatives we are focused on in service of our purpose from 2025-2027. It
has been rolled out across Bupa and there is positive momentum on our new
strategic initiatives.
• We increased our insurance customers by 23% to 40.9m, served 15.1m
provision customers, up 7%, and our aged care occupancy rate is 94%, up 1ppt.
• We have scaled Blua, our digital health solution, which now has
over 8.1m customers, offering customers virtual consultations, health
programmes and remote healthcare.
• We remain committed to customer experience improvement. When
compared to the same period last year, 91% of our Business Units (BUs)
improved their Net Promoter Score (NPS). In addition, 57% of our BUs achieved
an NPS score of over 70, covering all lines of business.
• We expanded our provision footprint in the first half of 2025,
opening 2 hospitals, 34 health clinics 5 (#_ftn5) , 11 dental centres, 13
on-site service centres 6 (#_ftn6) and 1 care home globally.
• We launched Mindplace, dedicated mental health centres to make
high-quality, mental healthcare accessible to more people. Over the next three
years, we are committed to opening 200 Mindplaces worldwide and we opened 7 in
the first half of 2025. 7 (#_ftn7)
• In Spain, we opened Hospital Blua Sanitas Valdebebas, a new
digital hospital which combines technology, sustainability and personalised
care, and we also acquired Hospital Magnus in the city of Łódź in Poland.
• In the UK, we agreed terms to acquire New Victoria Hospital, our
first hospital acquisition in the UK since 2008. The acquisition is due to
complete in Summer 2025.
• Under our 'My Genomic Health' programme, we have analysed the DNA
of over 9,000 participants in a pilot across Spain, the UK and Poland. We are
the first private healthcare provider in these countries to offer whole genome
sequencing with integrated follow-up care pathways, underpinning our
commitment to improving customers' health.
People highlights
• In our global People Pulse survey in May, our overall engagement
score was 83, exceeding the benchmark for the top 10% most engaged companies
globally.
• We launched Bupa Campus, a global learning platform for Bupa
colleagues, designed to further build the skills and capabilities of people
across the business. Since the start of the year, we've launched these
dedicated learning spaces in Spain, Australia and the UK.
Sustainability highlights
• We announced new sustainability goals to build on what we've
already achieved, which are linked to our 3x100 Strategy. This will further
our support for people, communities and our planet, so we can deliver a
healthier society for more people.
Enquiries
Media - Duncan West (External Communications): duncan.west@bupa.com
Investors - Gareth Evans (Treasury): ir@bupa.com
(Bupa 1025Z LN)
This statement is also available at www.bupa.com/financials/results-centre
About Bupa
Established in 1947, Bupa's purpose is helping people live longer, healthier,
happier lives and making a better world. We are an international healthcare
company serving over 60 million customers worldwide 8 (#_ftn8) . With no
shareholders, we reinvest profits into providing more and better healthcare
for the benefit of current and future customers. Bupa has businesses around
the world, principally in the UK, Australia, Spain, Chile, Poland, New
Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico and India. We also have
associate businesses 9 (#_ftn9) in Saudi Arabia.
For more information, see www.bupa.com (http://www.bupa.com) .
Disclaimer: Cautionary statement concerning forward-looking statements
This document may contain certain 'forward-looking statements'.
Forward-looking statements often use words such as 'intend', 'aim', 'project',
'anticipate', 'estimate', 'plan', 'believe', 'expect', 'forecasts', 'may',
'could', 'should', 'will', 'continue' or other words of similar meaning.
Statements that are not historical facts, including statements about the
beliefs and expectations of The British United Provident Association Limited
(Bupa) and Bupa's directors or management, are forward-looking statements. In
particular, but not exclusively, these may relate to Bupa's plans, current
goals and expectations relating to future financial condition, performance and
results.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend upon future circumstances that may or
may not occur, many of which are beyond Bupa's control and all of which are
solely based on Bupa's current beliefs and expectations about future events.
These circumstances include, among others, global economic and business
conditions, market-related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of governmental and regulatory
authorities, risks arising out of health crises and pandemics, the impact of
competition, the timing, impact and other uncertainties of future mergers or
combinations within relevant industries. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause the actual future condition, results, performance or achievements of
Bupa or its industry to be materially different to those expressed or implied
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and are cautioned against relying on, any forward-looking statements. Except
as required by any laws and regulations, Bupa expressly disclaims any
obligations or undertakings to release publicly any updates or revisions to
any forward-looking statements to reflect any change in the expectations of
Bupa with regard thereto or any change in events, conditions or circumstances
on which any such statement is based.
Forward-looking statements in this document are current only as of the date on
which such statements are made. No statement in this document is intended to
be a profit forecast. Neither the content of Bupa's website nor the content of
any other website accessible from hyperlinks on Bupa's website is incorporated
into, or forms part of, this document.
Group CEO's Review
While we have made significant progress over the last four years, we know
there is still more we can achieve. To go further and faster in delivering our
purpose and ambition, earlier this year we launched Bupa's new strategy for
2025-27 - the 3x100 Strategy. It is designed to build on the success of the
3x6 Strategy and sets a global framework to guide and focus Bupa's Market
Units and Business Units on the same key priorities. We are focused on
accelerating the progress we have made, maintaining our commitment to
providing a world-class customer experience, continuing to build our data and
digital capabilities, and delivering a healthier society for more people.
Overview of the 3x100 Strategy
Our purpose, values and ambition remain constant and continue to guide our
decisions and actions when setting and delivering the new strategy. The new
elements in 2025 are three bold Ambition KPIs which we are striving towards:
• To have a Net Promoter Score of 100.
• To achieve a 100% Complete Customer Dataset.
• To have 100m customers supported by Bupa.
There are three supporting pillars to achieve these Ambition KPIs which will
ensure we strengthen our customer experience, our Cloud and data capability,
and our Connected Care model to grow and link together our offerings in
healthcare funding and provision.
We will deliver three global Emblematic Projects. These illustrate how we're
re-investing our profit into our purpose, demonstrating how we are helping
people live longer, healthier, happier lives and making a better world.
• Genomics: This is an expansion of our work over the last two years
on genomic testing and sequencing, known as My Genomic Health. This programme
uses genomic testing to help customers better understand their health, their
risk of serious disease and opportunities to optimise their lifestyle.
• Improving doctor/patient interactions through better data: This
project is designed to create structured, usable customer health information
from various data sources and systems, increasing quality and completeness of
our data. This will allow our clinicians to spend more time helping our
customers.
• Mental health: This is our commitment to expanding mental health
services to better serve existing and new customers. We are committed to
opening 200 mental health centres worldwide called Mindplaces, making
high-quality, mental healthcare accessible to more people.
Sustainability strategy
Alongside our new 3x100 Strategy, we have also set new sustainability goals to
deliver a healthier society for more people. Our new sustainability strategy
is called 'Better World' and is focused on the following pillars:
• People: By 2027, we aim to support 25 million more people with
access to more affordable and preventative healthcare, through innovation,
digital health solutions and programmes like Healthy Cities.
• Communities: We aim to have supported 50 cities to be healthier
and more inclusive by 2027. We'll do this by addressing the biggest health
challenges in cities caused by the changing climate and we'll champion
inclusion through activities such as sports.
• Planet: By 2027, we aim to have committed to restoring 75,000
hectares of nature in support of people's health.
To do this, we remain committed to decarbonising patient care, reducing
emissions and waste, and reusing materials. Our sustainability strategy builds
on what we've already achieved and broadens our efforts beyond the
environment, to create healthier societies for more people. By supporting the
communities we live in, the planet and the healthcare industry, we will work
towards our purpose of helping people live longer, healthier, happier lives
and making a better world.
Outlook
We are encouraged by the growth and performance across the Group through the
first six months of our new 3x100 Strategy. We remain relentlessly focused on
providing a world-class customer experience while continuing to drive the
transformation of Bupa by building our data and digital capabilities.
The continued global macro-economic and geopolitical uncertainty creates
challenges for our business to navigate while changes in governmental and
regulatory policy remain one of our top risks. However, we remain well-placed
to navigate these challenges and to take advantage of opportunities because of
our underlying financial strength, resilience and diversified business model.
We are confident for the future and there is positive momentum behind our
3x100 Strategy and our ambition to be the world's most customer-centric
healthcare company. There is much to do and we are focused on doing more to
meet people's changing health and wellbeing needs, now and into the future.
FINANCIAL REVIEW
Group summary
HY 2025 HY 2024 (AER) % growth HY 2024 (CER) % growth
Revenue £8.8bn £8.3bn 7 % £8.0bn 11 %
Underlying profit £480m £369m 30 % £341m 41 %
Cash generated from operating activities £869m £676m 29 % n/a n/a
Statutory Profit before tax £501m £420m 19 % n/a n/a
Leverage (excl. IFRS 16) 15.8 % 18.4 % 2.6ppts n/a n/a
Leverage (incl. IFRS 16) 22.9 % 25.6 % 2.7ppts n/a n/a
Solvency 182 % 167 % 15ppts n/a n/a
Revenue (CER)
Group revenue was up 11% driven by customer growth in insurance, increased
activity in health provision and higher occupancy in aged care. Pricing
changes also contributed to higher revenues as we seek to balance the impacts
of inflation, remaining competitive for customers and maintaining discipline
in our underwriting of insurance risk.
Revenue in health insurance grew by 12% with period-on-period growth across
all market units driven by customer growth of 25% when excluding associate
businesses. In the period we also saw increased revenues from higher policy
pricing in Chile Insurance, approved by the regulator after the supreme court
overruled and cancelled the GES price increase at the start of 2024.
Our health provision businesses saw revenue growth of 8% driven by higher
levels of activity across all market units as we continue to expand our
provision footprint and digital offering in line with our connected care
strategy.
In aged care, revenue was up 7% as occupancy rates continued to increase
across all of our businesses in the UK, Spain, Australia and New Zealand.
Underlying profit (CER)
Group underlying profit increased 41% to £480m (HY 2024: £341m) driven by
the strong increase in revenues across all market units.
Health insurance underlying profit increased across all Market Units as the
Group COR 10 (#_ftn10) improved to 95% (HY 2024: 97%). In our Asia Pacific
Market Unit profits increased driven by Hong Kong as we continued to see COR
improvement as a result of the pricing and retention strategy launched to
transform performance in 2023. Our Europe and Latin America Market Unit saw
very strong profit growth driven by an improved COR in Chile and Türkiye,
where we have also seen increased investment returns against a continued
backdrop of hyperinflation. In our Bupa Global, India and UK Market Unit
underlying profit increased driven by Niva Bupa as a result of strong customer
growth, an improving COR, higher investment returns and the absence of prior
year one-off impacts related to our increased shareholding.
Profits grew strongly in health provision supported by customer growth and
higher margins whilst in aged care profits grew strongly from higher occupancy
and margin improvement.
Central costs reduced to £(137)m (HY 2024: £(139)m) driven by a reduction in
borrowing costs and other central functions costs following the redemption of
£300m senior unsecured bonds in April 2024 and due to the timing of project
spend respectively. This was partially offset by an increase in Group
Investment Funding spend as we re-invest profits from enhanced financial
performance into high-impact and strategically important initiatives. These
investments are directly aligned with our purpose - helping people live
longer, healthier, happier lives and making a better world.
Statutory profit
Statutory profit before taxation was £501m, up 19% at AER (HY 2024: £420m),
with positive non-underlying items totalling £21m (HY 2024: £51m).
The key driver of non-underlying items at HY 2025 was a gain on the disposal
of a legacy portfolio of individual health contracts in Brazil. Short-term
fluctuations on investment returns resulted in a gain of £3m (HY 2024:
£(12)m loss). We also reported a gain on realised and unrealised foreign
exchange in the period of £1m (HY 2024: £8m gain) and other items of £(8)m
(HY 2024: £(14)m) related to restructuring costs.
HY 2025 HY 2024
£m £m
Bupa Asia Pacific at CER 244 218
Europe and Latin America at CER 202 140
Bupa Global, India and UK at CER 126 66
Other businesses at CER 45 55
Central costs (137) (139)
Consolidated underlying profit before taxation at CER 480 341
Foreign exchange re-translation on 2024 results (CER/AER) - 28
Consolidated underlying profit before taxation at AER 480 369
Short-term fluctuation on investment returns 3 (12)
Niva Bupa fair value gain on pre-existing shareholding - 309
Chile payment plan provision - (215)
Net gain/(loss) on disposal of businesses and transaction costs on business 25 (13)
combinations
Realised and unrealised foreign exchange gains 1 8
Amortisation of bed licences - (12)
Other non-underlying items (8) (14)
Total non-underlying items 21 51
Statutory profit before taxation at AER 501 420
Insurance service result
Under IFRS 17 we are required to report an insurance service result which
comprises: insurance revenue, less insurance service expenses. This result
excludes financial income and expenses. For HY 2025 the Group insurance
service result increased to £328m (HY 2024: £188m) driven by strong customer
growth and higher margins across the majority of our insurance business units,
resulting in a Group COR of 95% (HY 2024: 97%).
Taxation
The Group's effective taxation rate for the period was 27% (HY 2024: 16%; FY
2024: 22%), which is in line with the current UK corporation taxation rate of
25%.
The Group operates in the UK where tax legislation to implement a global
minimum top-up tax (known as "Pillar Two Model Rules") was enacted in July
2023 and became effective from 1 January 2024. The legislation seeks to
establish a 15% global minimum tax rate for multinational enterprises. In
accordance with IAS 12, the Group has applied a temporary mandatory relief
from deferred tax accounting for the impacts of the top-up tax, and instead
accounts for it as a current tax when it is incurred. The current tax charge
with respect to the top-up tax for the period was £nil (HY 2024: £nil; FY
2024: £nil). The Group is continuing to monitor the development of Pillar Two
rules and guidance from tax authorities.
Cash flow
Net cash generated from operating activities remained strong at £869m (HY
2024: £676m). The £193m increase was delivered through business growth,
particularly in our Bupa Global, India and UK market unit and the timing of
collections on contracts. Net cash flow used in investing activities decreased
by £441m to £389m, primarily reflecting the acquisition of a controlling
stake in Niva Bupa in 2024. Net cash used in financing activities also reduced
by £194m to £87m due to the redemption of £300m senior unsecured bonds in
April 2024.
Funding
We manage our funding prudently to ensure a strong platform for continued
growth. Bupa's policy is to maintain investment grade access to both the
senior and subordinated bond markets. In October 2024, Fitch upgraded the Bupa
Finance plc Issuer Default Rating to A from A- with Stable outlook and
upgraded the related bond ratings. There were no rating movements in the 6
months to 30 June 2025.
We continue to hold a good level of Group liquidity. At 30 June 2025, our
£900m Revolving Credit Facility (RCF) was undrawn (HY 2024: £150m). Coverage
of financial covenants within the facility remains strong.
We focus on managing our leverage in line with our credit rating objectives.
Leverage excluding IFRS 16 leases was marginally down to 15.8% (FY 2024:
16.0%) with the reduction driven by an increase in net assets in the period.
Solvency
Our solvency coverage ratio of 182% remains strong and is above our target
working range of 140-170%.
The Group holds capital to cover its Solvency Capital Requirement (SCR),
calculated on a Standard Formula basis, considering all our risks, including
those related to non-insurance businesses. As at 30 June 2025, the estimated
SCR of £3.2bn was £0.1bn higher, and Own Funds of £5.8bn was £0.4bn higher
when compared to 31 December 2024.
Our surplus capital was estimated to be £2.6bn, compared to £2.3bn at 31
December 2024, representing a solvency coverage ratio of 182% (FY 2024: 176%).
Our business continued to generate capital through our strong underlying
profitability. This capital generation was partially offset by capital
expenditure, debt finance costs, currency risk charge and FX movements. We
perform analysis of the relative sensitivity of our estimated solvency
coverage ratio to changes in market conditions and underwriting performance.
Each sensitivity is an independent stress of a single risk and before any
management actions. The selected sensitivities do not represent our
expectations for future market and business conditions. A movement in values
of properties that we own continues to be the most sensitive item, with a 10%
decrease having a 10 percentage point reduction to the solvency coverage
ratio.
Our capital position is resilient in the face of the individual risks,
illustrating the strength of our balance sheet.
Risk Sensitivities Solvency II coverage ratio
Solvency coverage ratio 182%
Property values -10% 172%
Loss ratio worsening by 2% 11 (#_ftn11) 174%
Sterling depreciates by 20% 176%
Group Specific Parameter (GSP) +0.2% 179%
Credit spreads +100bps (no credit transition) 180%
Interest rate +/-100bps 182%
Pension risk +10% 182%
Equity markets -20% 182%
We include a Group Specific Parameter ('GSP') in respect of the insurance risk
parameter in the Standard Formula, reflecting the Group's own loss experience.
MARKET UNIT PERFORMANCE
Bupa Asia Pacific
Revenue Underlying profit
HY 2025 £3,085m £244m
HY 2024 (AER) £3,071m £233m
% growth -% 5%
HY 2024 (CER) £2,895m £218m
% growth 7% 12%
(Commentary on a CER basis)
Revenue in our Asia Pacific Market Unit increased by 7% to £3.1bn driven by
customer growth across all business units, expansion of our health provision
network, and growing aged care occupancy levels. Underlying profit increased
by 12% to £244m driven by the revenue growth and higher margins across
provision, aged care and Hong Kong Insurance.
Australia Health Insurance revenues increased by 6%, with domestic market
share growing 3 basis points to 25.57% in the March 2025 quarter, marking ten
consecutive quarters of maintaining or growing market share 12 (#_ftn12) . On
a reported basis, the COR remained stable at 92% (2024: 91%) with increased
revenues offset by higher payments to private hospitals and increased member
benefits, such as zero out-of-pocket costs for three Virtual GP bookings and
any preventative dental procedures through our Members First Ultimate Network.
Australia Health Insurance has continued to demonstrate growth across all
service offerings, notably through our digital health platform, Blua. We
expanded digital services significantly, averaging 17.6k Virtual consultations
per month by June 2025, up 57% year on year. Amidst increasing cost pressures,
we secured agreements with several private hospital groups including Ramsay
Health Care, Healthscope and St John of God Health Care.
In June 2025, Bupa and the Australian Competition and Consumer Commission (the
ACCC) jointly proposed to the Federal Court to settle an action relating to
breaches of Australian consumer law by our Australia Health Insurance business
for AU$35 million (£17m), which was provided for in our full year 2024
results. We are already well progressed with compensating affected customers
and providers and will continue to uplift compliance.
Australia Health Services delivered very strong revenue and underlying profit
growth, underpinned by continued momentum across all businesses. Revenue
growth was driven by the expansion of our medical centres network through
strategic acquisitions along with increased demand under the Australian
Defence Force contract. Our Optical business steadily increased customer
numbers and Bupa Dental improved financial performance through network growth
and rising patient volumes from our private health insurance customer base.
Our ongoing investment in primary healthcare and mental health services will
continue to accelerate growth. By 30 June 2025, we had 23 Bupa medical centres
in operation (up from 5 as at 31 December 2024), as well as our first 3 mental
health clinics (Mindplace), both of which are open to Bupa members and the
wider public. These developments reflect our commitment to meet the evolving
health needs of our community and strengthen our integrated care model.
In Australia Villages and Aged Care, both revenue and underlying profit grew
from increasing occupancy 13 (#_ftn13) to 95% (HY 2024: 92%), and from a
higher resident revenue rate.
In New Zealand Villages and Aged Care, both revenue and underlying profit
increased. Occupancy reached a seven-year high of 95% (up from 92% at HY
2024), driven by enhanced collaboration with health sector partners. Profit
growth in Villages was driven by an increase in occupied units and higher
average pricing per unit.
In Hong Kong revenue and underlying profit experienced strong growth. Our Hong
Kong Insurance business benefited from the continued positive impact of the
revised pricing and retention strategy. Health Services profitability
continues to improve, driven by pricing and effective cost management.
Europe and Latin America
Revenue Underlying profit
HY 2025 £2,911m £202m
HY 2024 (AER) £2,678m £155m
% growth 9% 30%
HY 2024 (CER) £2,551m £140m
% growth 14% 44%
(Commentary on a CER basis)
Revenue in our Europe and Latin America Market Unit grew by 14% to £2.9bn as
a result of customer growth and pricing. Underlying profit increased by 44% to
£202m driven by the increase in revenues, cost efficiencies and higher
investment returns.
Sanitas Seguros, our health insurance business in Spain, delivered strong
revenue growth through organic customer growth. Underlying profit reduced due
to lower investment returns and higher commission costs on increased customer
volumes resulting in a COR of 96% (HY 2024: 95%). In the period Sanitas
Seguros also expanded its health insurance business entering the Portuguese
market by opening a branch under the Bupa Portugal brand. We also continued
to expand our digital services and, in June, reached an average of 94,000
video consultations per month (compared to an average of 75,000 per month in
2024).
Our dental business in Spain saw a strong increase in revenue and improved
underlying profit year on year, driven by higher customer volumes. In 2025,
Sanitas continued its expansion by opening four new clinics.
In our hospitals business in Spain, revenue decreased as one public private
hospital partnership contract came to the end of its term in May 2024.
Revenues excluding this partnership increased year on year, driven by higher
demand and footprint expansion. In the period we opened a new hospital in
Valdebebas, Madrid, receiving new patients from mid-June. We also continue to
make progress against plans to open three new hospitals, in Madrid, Barcelona
and Palma de Mallorca (the last two, in collaboration with Mapfre).
Sanitas Mayores, our aged care business in Spain, continues to perform well
with growth in revenues and underlying profit. Occupancy remained high at 96%
(2024: 96%). The company has opened a new care home in Barcelona and it has
acquired a new one in Madrid.
In Poland, LUX MED's revenue and underlying profit increased driven by strong
growth in the number of health insurance and subscription customers, specially
focusing on new InPMI 14 (#_ftn14) customers and enabling more activity in
our medical centres and hospitals. In the period we also opened three health
centres and acquired Hospital Magnus in the city of Łódź.
In Chile, revenues and underlying profit grew across both insurance and
provision. Our insurance business delivered improved performance as the
regulator approved higher policy pricing. This is compared to underlying
losses in 2024 following the supreme court decision to overrule and cancel the
GES price increase in the Isapre business, together with losses associated
with other adverse governmental, regulatory and judicial measures. Chile
provision performance was driven by higher volumes in the period and
consolidation of its value proposition in the local market. Bupa Chile has
continued to improve the experience of our patients and customers across both
business segments in Chile, increasing NPS in provider and in insurance
business.
Bupa Acıbadem Sigorta, our health insurance business in Türkiye, reported an
increase in both revenue and underlying profit as we continue to navigate the
challenging economic environment. Higher investment returns drove an increase
in underlying profit as interest rates remained high in response to
hyperinflation. The economy has been classified as hyperinflationary since
2022, leading to the application of IAS 29. A net monetary loss of £(13)m (as
of 30 June 2025) has been recorded in the non-underlying result for the
period.
Care Plus in Brazil delivered strong revenue and profit growth from higher
insurance volumes, improved medical margins and increased investment returns.
In February 2025, we completed the sale of a legacy portfolio of individual
health contracts, resulting in a pre-tax profit of £28m.
Bupa Mexico delivered good revenue growth in the insurance business as the
portfolio grew. Bupa Mexico has its own hospital, Bité Médica, which is
currently expanding its inpatient capacity while performing more than 80
medical procedures each month. Mexico's model is complemented by a TPA called
Vitamédica, which provides services to more than 426,000 clients.
Bupa Global Latin America underlying profit remained constant year on year,
with higher margins offset by a reduction in investment returns. We continue
to strengthen our alliance with Mapfre, increasing activity in Peru and
Paraguay. The partnership is delivering high margins, and we remain aligned on
long-term growth plans across the region.
Bupa Global, India and UK
Revenue Underlying profit
HY 2025 £2,807m £126m
HY 2024 (AER) £2,524m £64m
% growth 11% 98%
HY 2024 (CER) £2,504m £66m
% growth 12% 89%
(Commentary on a CER basis)
Revenue in our Bupa Global, India and UK Market Unit increased by 12% to
£2.8bn driven by insurance as we saw strong customer growth, particularly in
Niva Bupa, and higher premiums driven by rate changes in response to higher
claims in the UK. Underlying profit increased by 89% to £126m driven by the
revenue growth, improved margins in provision and aged care, Niva Bupa turning
to profitability due to strong business performance and the absence of prior
year one-off impacts related to our increased shareholding.
UK Insurance delivered strong growth in revenue as we added over 149,000 15
(#_ftn15) net new customers across medical insurance, health trusts, dental
insurance and cash plan in the first half of 2025. Higher premiums also
contributed to the revenue growth driven by rate changes in response to higher
claims. Underlying profit reduced, driven by a higher loss ratio, increased
acquisition costs and additional investment to facilitate further growth.
In Bupa Global, our IPMI business, revenue and underlying profit increased
driven by growth in customer numbers, and lower loss ratios from global claims
management. Our focus remains on responding to the distinct needs of our
customers and people across global locations. In the first half of 2025, we
have expanded our presence in France and Qatar through new strategic
partnerships and opened a new office in Nairobi to support growth across East
Africa.
The COR for Bupa Insurance Limited, the UK based insurance entity that
underwrites both domestic and international insurance was stable at 97% (HY
2024: 97%).
Following the increase in our investment to become the controlling shareholder
in H1 2024, Niva Bupa grew revenue significantly and turned to an underlying
profit driven by strong customer growth, improved COR and investment returns.
With a comprehensive portfolio of innovative health insurance products and
plans across all stages of the customer lifecycle, Niva Bupa's strong customer
growth is enabled by its broad distribution model.
UK Dental continues to deliver against its turnaround strategy with high
growth in underlying profit. We are seeing strong demand for our quality
services, including our subscription product, Bupa Smile Plan, to help
customers access oral care in our clinics.
UK Care Services, our aged care business, delivered growth in revenue and
strong growth in underlying profit through increasing occupancy to 91% (HY
2024: 90%) and record property sales in our retirement village business. This
performance was further supported by robust cost management and high levels of
employee retention contributing to record low utilisation of agency labour.
UK Health Services delivered growth in revenue and underlying profit. The
increase in profit was driven by higher customer numbers in Clinics and the
Cromwell Hospital, new Blua digital services and our expanded network of
health centres. We've also grown our portfolio through the acquisition of
London Medical, a specialist outpatient clinic and The Dermatology Partnership
and announced the acquisition of New Victoria Hospital in London - our first
hospital acquisition in the UK since 2008 - enabling us to provide more Bupa
services directly to our customers.
Other businesses
Revenue Underlying profit
HY 2025 £5m £45m
HY 2024 (AER) £5m £56m
% growth -% (20)%
HY 2024 (CER) £5m £55m
% growth 2% (17)%
(Commentary on a CER basis)
Our businesses in Saudi Arabia delivered underlying profit of £45m down 17%
on the prior year driven by lower margins in insurance due to inflationary
pressures in the first half of 2025 more than offsetting revenue growth and
higher investment returns.
BUSINESS RISKS
We described our main risks in the Risk section of the Annual Report and
Accounts 2024, which are available on www.bupa.com. While geopolitical
uncertainty, economic volatility, information security and strategic workforce
challenges remain heightened, the principal risks and themes previously
identified at the 2024 year end remain.
This includes risks related to Environmental, Social and Governance (ESG)
factors, as well as key climate-related risks for the short, medium and long
term.
Strategic and financial risks and risks impacting our ability to deliver for
customers:
The geopolitical and macroeconomic environment continues to be challenging in
most markets we operate in. Ongoing conflicts in the Middle East, Russia and
Ukraine, and increased global financial volatility following tariffs imposed
by the USA, could lead to further wider economic and supply chain uncertainty
and could result in increased medical inflation impacting claims costs. We
also continue to see strategic challenges associated with workforce
availability, particularly medical professionals, which may impact our ability
to deliver services.
While the new 3x100 Strategy does not currently introduce any material new
risks, it does increase and/or change aspects of our risk profile. Affordable
access and provision of quality healthcare remains a fundamental strategic
challenge for all participants in global healthcare systems. Our strategy is
intended to help mitigate these impacts as far as possible and leverage our
ability to link together our healthcare and funding offerings, but challenges
in the system will remain that we will need to continue to navigate.
Our robust approach to managing the key areas of risk that could impact on the
financial strength and resilience of the Group ensures that reporting and
monitoring mechanisms are in place, including clearly defined risk appetites,
so these are managed and prompt actions are taken if needed. We continue to
maintain a strong balance sheet, a resilient business model with well managed
capital and liquidity positions.
Governmental, legal and regulatory policy risks:
Changes in governmental, legal and regulatory policy have consistently been
one of our top risks given the nature of our businesses and this remains true.
Many of the markets we operate in, and the USA, have held elections in the
last 18 months and we are experiencing the effects of these changes in
government and the uncertainty this brings as they embed and implement new
fiscal policies. Despite ongoing global conflicts, trade protectionism,
including the implications of tariffs imposed by the USA, and geopolitical
tensions at elevated levels, we have not yet experienced material immediate
impacts on our businesses. However, we are monitoring developments,
particularly any changes in government funding levels to position ourselves to
manage these risks and identify potential opportunities.
We continue to engage governments and regulators in the markets we operate in
to understand and influence potential changes to ensure we are able to
continue to deliver quality and value for our customers and complement public
healthcare systems.
Operational risks:
The Group continues to be exposed to a wide range of operational risks
including transformation execution and clinical risks. In particular,
Information Security and Privacy remain key risks for the Group. Our focus on
Information Security, Technology, Operational Resilience and Third Party risk
management in recent years is supported by significant investment to continue
to uplift capability and capacity in this area across the Group. Managing the
risks associated with third parties (and further connected parties) is
increasingly important as our business grows and their contribution to our
overall operational resilience increases. As customer and regulatory
expectations rise, we remain committed to improving systems and processes to
effectively manage our conduct risk as we strive for operational excellence
and prioritising fair treatment of our customers. While progress has been made
in these particular areas, investment continues and is necessary to make sure
we are as prepared as possible in increasingly challenging environments.
Our approach to risk management:
We have a well-established process for identifying and managing all business
risks, including all types of operational risk such as information security
and privacy. Monitoring and managing our risks is key to ensuring that we
achieve our strategic objectives in the long-term, meeting the evolving
expectations of our customers, people, bondholders and regulators. Internal
controls for all key risk areas continue to be a primary focus. As outlined
in the Annual Report and Accounts, the Board conducts an annual review of the
Group's risk management and internal control systems. The 2024 review
concluded that Bupa maintained sound systems throughout the year, underpinned
by the established three lines model. This will be refreshed and reported in
the 2025 Annual Report and Accounts.
BUPA AROUND THE WORLD
Bupa Asia Pacific
• Bupa Health Insurance Australia, with 4.7m customers, is a leading
health insurance provider in Australia and also offers health insurance for
overseas workers and visitors.
• Bupa Health Services in Australia is a health provision business,
comprising dental, optical, audiology, visa medical assessment services,
medical centres and healthcare for the Australian Defence Force and Veterans,
and Mental Health centres (Mindplace). By June 2025 three Mindplace centres
were operational.
• Bupa Villages and Aged Care Australia cares for around 5,500
residents across 57 homes. It also operates one retirement village in
Australia.
• Bupa Villages and Aged Care New Zealand cares for around 5,100
residents across 40 care homes and 36 retirement villages.
• Bupa Hong Kong comprises a health insurance business with around
0.4m customers and a Health Services business operating medical centres
providing healthcare services to around 0.8m customers.
Europe and Latin America
• Sanitas Seguros is the second largest health insurance provider in
Spain, serving more than 2.5m customers. Sanitas Seguros has opened a branch
in Portugal under the Bupa Portugal brand.
• Sanitas Dental provides services through 219 centres and
third-party networks in Spain.
• Sanitas Hospitales comprises five private hospitals, 27 private
medical clinics, 20 advanced rehabilitation centres, a Central Laboratory and
a Research Foundation.
• Sanitas Mayores cares for around 6,000 people in 45 care homes, 19
of those with integrated day-care centres, manages three independent day-care
centres and offers professional home care services with digital medical
support for aged care in Spain.
• LUX MED is a leading private healthcare business in Poland,
operating in health funding and provision through 16 hospitals and 285 private
medical clinics.
• Bupa Chile is a leading health insurer serving more than 0.5m
insurance customers and offering provision services to around 1.8m customers
across three hospitals, 33 medical clinics and a laboratory.
• Bupa Türkiye stands at the forefront of integrated healthcare
services, end-to-end solutions aligned with its ambitious growth strategy.
Bupa Türkiye has over 1.2m 16 (#_ftn16) customers through its diverse
portfolio of subsidiaries spanning health insurance, distribution networks,
third-party administration (TPA) and healthcare provision. Bupa Türkiye also
leads in oral and dental health services. Its flagship insurance brand, Bupa
Acıbadem Sigorta is the Turkey's second largest private health insurer with
approximately 7,200 contracted healthcare providers.
• Care Plus is a leading health insurance company in Brazil, with
around 0.5m funding customers and 0.1m occupational health customers,
concentrated in São Paulo. Care Plus also has nine dental clinics and a
vaccination centre.
• Bupa Mexico operates with an integrated healthcare model offering
international and local private medical insurance to individuals and
corporates in Mexico. It has its own medical provision, Bité Médica
hospital, and a TPA called Vitamédica. It provides services to more than 0.4m
customers.
• Bupa Global Latin America offers international health insurance
and local health insurance products in Latin America to around 0.1m customers.
It is headquartered in Miami and has operations in Ecuador, Dominican
Republic, Guatemala and Panama. Bupa Global Latin America also has operations
in Peru, where we served around 0.1m provision customers in the first half of
2025.
Bupa Global, India and UK
• Bupa UK Insurance is a leading health insurer, with over 4.1m
customers across medical insurance, health trusts, dental insurance,
subscriptions and cash plans.
• Bupa Global serves around 0.4m IPMI customers and administers
medical assistance for individuals, small businesses and corporate customers.
• Niva Bupa is a leading provider of health insurance in India with
over 22.2m customers.
• Bupa Dental Care is a leading provider of private dentistry,
providing dental services through around 393 centres across the UK and the
Republic of Ireland.
• Bupa Care Services cares for around 6,000 residents in 115 care
homes and ten Richmond care villages.
• Bupa Health Services comprises 93 health clinics 17 (#_ftn17) ,
including on-site services, and the Cromwell Hospital.
Other businesses
• We also have an associate health insurance business in Saudi
Arabia (Bupa Arabia) and an interest in MyClinic in Saudi Arabia.
The British United Provident Association Limited
(Company Number 432511)
Condensed Consolidated Half Year Financial Statements (unaudited)
Six months ended 30 June 2025
The British United Provident Association Limited
Condensed Consolidated Income Statement
for the six months ended 30 June 2025 (unaudited)
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
Note £m £m £m
Insurance revenue 2, 13.1 6,354 5,937 12,233
Insurance service expenses 13.1 (6,009) (5,748) (11,600)
Insurance service result before reinsurance contracts held 13.1 345 189 633
Net expense from reinsurance contracts held 13.2 (17) (1) (11)
Insurance service result 328 188 622
Care, health and other customer contract revenue 3 2,423 2,303 4,589
Other revenue 3 45 42 102
Total non-insurance revenue 3 2,468 2,345 4,691
Share of post-taxation results of equity-accounted investments 44 54 94
Impairment of goodwill and intangible assets 7 - - (11)
Other operating expenses (2,470) (2,597) (4,960)
Other income and charges 4 38 314 331
Total other expenses, income and charges (2,388) (2,229) (4,546)
Profit before financial income and expense 408 304 767
Financial income and expense
Financial income 5 257 239 509
Financial expense 5 (94) (100) (197)
Net financial expense from insurance contracts issued 5.1, 13.1 (51) (9) (70)
Net monetary loss 1.6 (13) (5) (16)
Net impairment on financial assets (6) (9) (21)
Net financial income 93 116 205
Profit before taxation expense 501 420 972
Taxation expense 6 (134) (66) (212)
Profit for the period 367 354 760
Attributable to:
Bupa 362 365 772
Non-controlling interests 5 (11) (12)
Profit for the period 367 354 760
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
The British United Provident Association Limited
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2025 (unaudited)
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
Note £m £m £m
Profit for the period 367 354 760
Other comprehensive income/(expense)
Items that will not be reclassified to the Income Statement
Unrealised gain on revaluation of property 4 - 123
Remeasurement loss on pension schemes 10 (4) (47) (65)
Taxation credit/(charge) on income and expenses recognised directly in other - 3 (18)
comprehensive income
Items that may be reclassified subsequently to the Income Statement
Foreign exchange translation differences on goodwill 7 (76) (18) (99)
Other foreign exchange translation differences (166) (99) (274)
Net gain on hedge of net investment in overseas subsidiaries 19 25 79
Share of other comprehensive income/(expense) of equity-accounted investments 2 (4) (2)
Change in fair value of financial investments through other comprehensive 14 1 11
income
Change in expected credit losses (ECL) of financial investments through other 2 3 5
comprehensive income
Realised gain on disposal of financial investments at fair value through other (2) - -
comprehensive income
Change in cash flow hedge reserve - 7 7
Release of foreign exchange translation reserve on derecognition of - 11 11
equity-accounted investments and subsidiaries
Taxation charge on income and expenses recognised directly in other (4) - (3)
comprehensive income
Total other comprehensive expense (211) (118) (225)
Comprehensive income for the period 156 236 535
Attributable to:
Bupa 158 248 547
Non-controlling interests (2) (12) (12)
Comprehensive income for the period 156 236 535
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
The British United Provident Association Limited
Condensed Consolidated Statement of Financial Position
as at 30 June 2025 (unaudited)
At 30 June 2025 At 31 December 2024 At 30 June 2024
Note £m £m £m
Assets
Goodwill and intangible assets 7 3,117 3,178 3,239
Property, plant and equipment 8 3,780 3,737 3,607
Investment property 9 774 756 779
Equity-accounted investments 942 1,016 967
Post-employment benefit net assets 10 336 333 343
Deferred taxation assets 189 193 211
Restricted assets 11 164 137 129
Financial investments 12 4,958 4,693 4,694
Derivative assets 70 65 26
Reinsurance contract assets 13.2 115 90 110
Current taxation assets 14 19 33
Inventories 67 67 68
Trade and other receivables 944 822 963
Assets held for sale 14 24 28 9
Cash and cash equivalents 15 2,299 1,992 1,796
Total assets 17,793 17,126 16,974
Liabilities
Subordinated liabilities 16 (770) (772) (772)
Other interest-bearing liabilities 16 (767) (759) (924)
Post-employment benefit net liabilities 10 (45) (46) (49)
Lease liabilities (891) (884) (887)
Deferred taxation liabilities (197) (195) (188)
Share purchase liabilities (7) (6) (120)
Derivative liabilities (44) (40) (46)
Provisions for liabilities and charges (377) (345) (558)
Insurance contract liabilities 13.1 (3,548) (3,064) (3,388)
Current taxation liabilities (65) (68) (58)
Trade and other payables (2,894) (2,869) (2,468)
Liabilities associated with assets held for sale 14 - (39) -
Total liabilities (9,605) (9,087) (9,458)
Net assets 8,188 8,039 7,516
Equity
Foreign exchange translation reserve (185) 21 189
Property revaluation reserve 669 668 587
Income and expenditure reserve 7,277 6,918 6,354
Equity attributable to the Company 7,761 7,607 7,130
Restricted Tier 1 notes 17 297 297 297
Non-controlling interests 130 135 89
Total equity 8,188 8,039 7,516
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
The British United Provident Association Limited
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2025 (unaudited)
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
Note £m £m £m
Cash flow from operating activities
Profit before taxation expense 501 420 972
Adjustments for:
Net financial income (157) (130) (291)
Net monetary loss 1.6 13 5 16
Depreciation, amortisation and impairment 7, 8, 14 241 250 509
Other non-cash items¹ (160) (366) (526)
Changes in working capital and provisions:
Increase in insurance contract liabilities 628 529 336
Increase in reinsurance contract assets (32) (27) (8)
Funded pension scheme employer contributions - - (3)
Increase in trade and other receivables, and other assets (102) (107) (51)
Increase in trade and other payables, and other liabilities 53 180 513
Cash generated from operations 985 754 1,467
Income taxation paid (115) (77) (201)
(Increase)/decrease in cash held in restricted assets (1) (1) 2
Net cash generated from operating activities 869 676 1,268
Cash flow from investing activities
Acquisition of subsidiaries and businesses, net of cash acquired (27) (252) (268)
Investment in equity-accounted investments (9) (3) (6)
Dividends received from equity-accounted investments 1 - 47
Disposal of subsidiaries and other businesses, net of cash disposed of 13 32 69
Purchase of intangible assets 7 (69) (58) (170)
Purchase of property, plant and equipment (155) (113) (311)
Proceeds from sale of property, plant and equipment 4 2 5
Purchase of investment property (12) (11) (30)
Purchases of financial investments, excluding deposits with credit (1,962) (1,400) (2,778)
institutions
Proceeds from sale and maturities of financial investments, excluding deposits 1,553 958 2,037
with credit institutions
Net investments into deposits with credit institutions (4) (165) (18)
Interest received 278 180 440
Net cash used in investing activities (389) (830) (983)
Cash flow from financing activities
Payment of Restricted Tier 1 coupon 17 (6) (6) (12)
Proceeds from issue of interest-bearing liabilities and drawdowns on other - 150 -
borrowings
Repayment of interest-bearing liabilities and other borrowings (1) (318) (318)
Principal repayment of lease liabilities (70) (65) (138)
Payment of interest on lease liabilities (25) (24) (49)
Capital contributions from non-controlling interests in subsidiary - - 72
Interest paid (22) (41) (72)
Net receipts on settlement of hedging instruments 40 26 55
Dividends paid to non-controlling interests (3) (3) (3)
Net cash used in financing activities (87) (281) (465)
Net increase/(decrease) in cash and cash equivalents 393 (435) (180)
Cash and cash equivalents at beginning of period² 2,095 2,362 2,362
Effect of exchange rate changes (60) (40) (87)
Cash and cash equivalents at end of period² 15 2,428 1,887 2,095
1. HY 2024 and FY 2024 include a £309m gain as a result of the Group's existing
stake in Niva Bupa, prior to the majority stake acquisition, having been
remeasured to fair value.
2. Includes restricted cash of £130m (HY 2024: £93m; FY 2024: £103m) which is
considered cash and cash equivalents along with bank overdrafts of £1m (HY
2024: £2m; FY 2024: £nil) which are not considered a component of cash and
cash equivalents within Note 16.
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
The British United Provident Association Limited
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2025 (unaudited)
Foreign exchange translation reserve Property revaluation reserve Income and expenditure reserve Total attributable to the Company Restricted Tier 1 notes Non-controlling interests Total equity
For six months ended 30 June 2025 Note £m £m £m £m £m £m £m
Balance as at 1 January 2025 21 668 6,918 7,607 297 135 8,039
Profit for the period - - 362 362 - 5 367
Other comprehensive income/(expense)
Unrealised gain on revaluation of property - 4 - 4 - - 4
Remeasurement loss on pension schemes 10 - - (4) (4) - - (4)
Foreign exchange translation differences on goodwill 7 (76) - - (76) - - (76)
Other foreign exchange translation differences (148) (2) (5) (155) - (11) (166)
Net gain on hedge of net investment in overseas subsidiaries 19 - - 19 - - 19
Share of other comprehensive income of equity-accounted investments - - 2 2 - - 2
Change in fair value of financial investments through other comprehensive - - 9 9 - 5 14
income
Change in ECL of financial investments through other comprehensive income - - 2 2 - - 2
Realised gain on disposal of financial investments at fair value through other - - (2) (2) - - (2)
comprehensive income
Taxation charge on income and expense recognised directly in other (1) (1) (1) (3) - (1) (4)
comprehensive income
Other comprehensive (expense)/income for the period, net of taxation (206) 1 1 (204) - (7) (211)
Total comprehensive (expense)/income for the period (206) 1 363 158 - (2) 156
Payment of Restricted Tier 1 coupon, net of taxation 17 - - (5) (5) - - (5)
Changes in non-controlling interests - - 1 1 - - 1
Dividends paid to non-controlling interests - - - - - (3) (3)
Balance as at 30 June 2025 (185) 669 7,277 7,761 297 130 8,188
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Foreign exchange translation reserve Property revaluation reserve Cash flow hedge reserve Income and expenditure reserve Total attributable to the Company Restricted Tier 1 notes Non-controlling interests Total equity
For year ended 31 December 2024 Note £m £m £m £m £m £m £m £m
Balance as at 1 January 2024 241 601 (7) 6,163 6,998 297 18 7,313
Profit/(loss) for the year - - - 772 772 - (12) 760
Other comprehensive income/(expense)
Unrealised gain on revaluation of property - 123 - - 123 - - 123
Realised revaluation profit on disposal of property - (9) - 9 - - - -
Remeasurement loss on pension schemes 10 - - - (65) (65) - - (65)
Foreign exchange translation differences on goodwill 7 (99) - - - (99) - - (99)
Other foreign exchange translation differences (212) (22) - (36) (270) - (4) (274)
Net gain on hedge of net investment in overseas subsidiaries 79 - - - 79 - - 79
Share of other comprehensive expense of equity-accounted investments - - - (2) (2) - - (2)
Change in fair value of financial investments through other comprehensive - - - 7 7 - 4 11
income
Change in ECL of financial investments through other comprehensive income - - - 4 4 - 1 5
Change in cash flow hedge reserve - - 7 - 7 - - 7
Release of foreign exchange translation reserve on derecognition of 11 - - - 11 - - 11
equity-accounted investments and subsidiaries
Taxation credit/(charge) on income and expense recognised directly in other 1 (25) - 4 (20) - (1) (21)
comprehensive income
Other comprehensive (expense)/income for the year, net of taxation (220) 67 7 (79) (225) - - (225)
Total comprehensive (expense)/income for the year (220) 67 7 693 547 - (12) 535
Payment of Restricted Tier 1 coupon, net of taxation 17 - - - (9) (9) - - (9)
Recognition of share purchase liability - - - (111) (111) - - (111)
Release of share purchase liability - - - 120 120 - - 120
Gain on disposal/dilution of shares - - - 62 62 - - 62
Changes in non-controlling interests - - - - - - 132 132
Dividends paid to non-controlling interests - - - - - - (3) (3)
Balance as at 31 December 2024 21 668 - 6,918 7,607 297 135 8,039
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Foreign exchange translation reserve Property revaluation reserve Cash flow hedge reserve Income and expenditure reserve Total attributable to the Company Restricted Tier 1 notes Non-controlling interests Total equity
For six months ended 30 June 2024 Note £m £m £m £m £m £m £m £m
Balance as at 1 January 2024 241 601 (7) 6,163 6,998 297 18 7,313
Profit/(loss) for the period - - - 365 365 - (11) 354
Other comprehensive income/(expense)
Realised revaluation profit on disposal of property - (8) - 8 - - - -
Remeasurement loss on pension schemes 10 - - - (47) (47) - - (47)
Foreign exchange translation differences on goodwill 7 (18) - - - (18) - - (18)
Other foreign exchange translation differences (70) (6) - (22) (98) - (1) (99)
Net gain on hedge of net investment in overseas subsidiaries 25 - - - 25 - - 25
Share of other comprehensive expense of equity-accounted investments - - - (4) (4) - - (4)
Change in fair value of financial investments through other comprehensive - - - 1 1 - - 1
income
Change in ECL of financial investments through other comprehensive income - - - 3 3 - - 3
Change in cash flow hedge reserve - - 7 - 7 - - 7
Release of foreign exchange translation reserve on derecognition of 11 - - - 11 - - 11
equity-accounted investments and subsidiaries
Taxation credit on income and expense recognised directly in other - - - 3 3 - - 3
comprehensive income
Other comprehensive (expense)/income for the period, net of taxation (52) (14) 7 (58) (117) - (1) (118)
Total comprehensive (expense)/income for the period (52) (14) 7 307 248 - (12) 236
Payment of Restricted Tier 1 coupon, net of taxation 17 - - - (5) (5) - - (5)
Recognition of share purchase liability - - - (111) (111) - - (111)
Changes in non-controlling interests - - - - - - 86 86
Dividends paid to non-controlling interests - - - - - - (3) (3)
Balance as at 30 June 2024 189 587 - 6,354 7,130 297 89 7,516
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
The British United Provident Association Limited
Notes to the Condensed Consolidated Financial Statements
for the six months ended 30 June 2025 (unaudited)
1 Basis of preparation
1.1 Basis of preparation
The British United Provident Association Limited ('Bupa' or the 'Company'), a
company limited by guarantee and incorporated in England and Wales and
domiciled in the United Kingdom, together with its subsidiaries (collectively
the 'Group') is an international healthcare business, providing health
insurance, treatment in clinics, dental centres and hospitals, and operating
care homes. The Company is the ultimate parent entity of the Group.
The Condensed Consolidated Half Year Financial Statements of the Company as at
and for the six months ended 30 June 2025 comprise those of the Company and
its subsidiary companies.
The interim financial statements have been prepared in accordance with
UK-adopted International Accounting Standard 34 Interim Financial Reporting
and the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
The interim financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2024, which have been
prepared in accordance with UK-adopted international accounting standards, in
conformity with the requirements of the Companies Act 2006. The interim
financial statements have been prepared on the basis of the accounting
policies set out in the annual financial statements for the year ended
31 December 2024 updated for the application of new and amended accounting
standards as set out in Note 1.4.
The interim financial statements were approved by a duly appointed and
authorised committee of the Board of Directors of Bupa on 6 August 2025.
The financial information contained in these interim financial statements does
not constitute statutory accounts of Bupa within the meaning of Section 434 of
the Companies Act 2006. The comparative figures for the financial year ended
31 December 2024 are not the Company's statutory accounts for that financial
year. Those accounts have been reported on by the Company's auditor and
delivered to the Registrar of Companies. The report of the auditor was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
1.2 Going concern
Following a detailed assessment of the Group's current position and forecast
results, along with scenario-based stress testing and reverse stress testing,
the Directors have concluded that the Group has adequate resources to operate
for at least the next 12 months from the approval of these financial
statements and that it is appropriate to prepare the interim financial
statements on a going concern basis. This assessment considered forecast and
reasonably possible adverse changes to the Group's liquidity, regulatory
solvency, access to funding and trading profitability over the next 12 months.
The assessment identified the risks and uncertainties most likely to impact
the Group and considered the impact to the Group's businesses under a number
of reasonably plausible severe scenarios as well as consideration of
contingent liabilities.
Our most severe reasonably possible scenarios considered worsening
geopolitical conflicts and the potential knock-on impacts on global growth and
economic conditions leading to a global economic recession, and a variety of
local scenarios developed by each business unit, with the majority focusing on
climate change, stroke of pen and/or affordability pressures. Under these
scenarios, although significant short-term reductions in profitability arise,
the Group would continue to operate over the next 12 months and would remain
within its risk appetites for liquidity and regulatory solvency. Management
actions would allow downside impacts to be mitigated, and risk appetites
controlled, by reducing expenditure, obtaining additional funding or divesting
investments or businesses. Within its liquidity resources, the Group makes use
of a £900m revolving credit facility ('RCF') as described in Note 16. The
Group expects to remain compliant with the RCF's covenants under stressed
scenarios and may further draw down on the RCF in order to meet liquidity
needs.
Details of the Group's business activities, together with the factors likely
to affect its future development, performance and position are set out in the
Half Year 2025 Results Announcement. The financial position of the Group, its
cash flows, liquidity position and borrowing facilities are described in the
Financial Review of the Half Year 2025 Results Announcement.
1.3 Accounting estimates and judgements
The preparation of financial statements requires the use of certain accounting
estimates and assumptions that affect the reported assets, liabilities, income
and expenses. It also requires management to exercise judgement in applying
the Group's accounting policies.
The areas involving a higher degree of judgement or complexity, or where
estimates are significant to the Condensed Consolidated Financial Statements,
are set out below. Changes in these estimates could lead to a material
adjustment to the carrying value of the assets and liabilities in the next
financial year. Further detail is in the related notes.
Area Details Note
Goodwill and intangible assets Goodwill and intangible assets are recognised on acquired businesses based on 7
fair values at the date of acquisition. Goodwill and intangible assets with
indefinite lives are tested for impairment on an annual basis, or more
frequently when there are indicators of impairment. Other intangible assets
are tested for impairment when there are indicators of impairment.
As at 30 June 2025, all cash-generating units (CGU) and intangible assets were
reviewed for indicators of impairment. A full assessment was performed on Bupa
Dental Care UK, the results of which are included in Note 7.
Sources of estimation uncertainty
Value in use based impairment tests include a number of sources of estimation
uncertainty as the key assumptions used when modelling the recoverable amount
are the discount rate, terminal growth rate and the forecast cash flows.
Estimation uncertainties within these cash flows vary by CGU. For provision
business these include the number of customers, available clinician hours, fee
rates and operating expenses.
Accounting judgements
Judgement has been applied to determine whether there is an indication of
impairment to intangible assets and goodwill or an indication that prior
impairments of intangible assets should be reversed. In making these
judgements, the Group has considered current trading and future plans
associated with each of the assets, along with external market factors, in
order to assess whether a full valuation is required to assess for impairments
or reversal of impairments.
Property valuations The Group has a significant portfolio of care home, hospital and office 8, 9
properties. These are subject to periodic and at least triennial valuations
performed by external independent valuers, with directors' valuations
performed in intervening years. In addition, the Group has a significant
portfolio of investment properties, primarily retirement villages in New
Zealand. These properties are revalued annually.
Sources of estimation uncertainty
Significant assumptions for freehold properties are normalised earnings,
average occupancy and capitalisation rates, whereas for investment property
significant assumptions are discount and capital growth rates.
Accounting judgements
In valuing care home property, a judgement is made on the highest and best use
of the property. In the majority of cases this leads to the property being
valued as part of a group of assets making up a going concern business using
market-based assumptions. The business is valued on a fair maintainable trade
basis with the fair value thus calculated being allocated to plant and
equipment where applicable at net book value (as a proxy for fair value), with
the residual value being allocated to the property.
Defined benefit pension obligations The Group's principal defined benefit scheme is in the UK, The Bupa Pension 10
Scheme. The scheme closed to future accrual as at 31 December 2020, although
members retain any ongoing salary link, with future benefits payable dependent
upon member salary at the date of leaving or retirement.
Sources of estimation uncertainty
External actuarial advice has been taken in setting the assumptions used in
the valuation of the defined benefit pension obligations, which are the
discount rate, rates of inflation, salary increases and mortality. As defined
benefit schemes are long-term in nature these assumptions can be subject to
uncertainty.
Insurance contracts Sources of estimation uncertainty 13
Best estimate of claims provisioning
Estimates included in the insurance contract liabilities include expected
claims payments and expenses required to settle existing insurance contract
obligations. The key assumptions used in the calculation of the liability for
incurred claims (LFIC) include claims development, claims costs inflation,
medical trends and seasonality. Uncertainty exists particularly in relation to
estimating the frequency and severity of incurred claims for the most recent
months prior to the period end.
Accounting judgements
Premium allocation approach (PAA)
The Group exercises judgement in determining whether the PAA eligibility
criteria are met at initial recognition. For a small number of insurance
contracts, which have a coverage period that is greater than 12 months, the
Group elects to apply the PAA, if at the inception of the contract the Group
reasonably expects that it will provide a liability for remaining coverage
(LFRC) that would not differ materially from the General Measurement Model
(GMM).
1.4 Changes in accounting policies
The interim financial statements have been prepared on the basis of the
accounting policies set out in the annual financial statements for the year
ended 31 December 2024.
A number of amended standards became applicable for the current reporting
period. The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these amended standards.
1.5 Forthcoming financial reporting requirements
The Group does not expect any impact on its financial statements from the
initial application of any new accounting standards or changes to accounting
standards published during the current reporting period.
1.6 Foreign exchange
The following significant exchange rates applied during the period:
Average rate Closing rate
30 June 2025 31 December 2024 30 June 2024 30 June 2025 31 December 2024 30 June 2024
Australian dollar 2.05 1.94 1.92 2.09 2.02 1.89
Brazilian real 7.47 6.89 6.43 7.45 7.74 7.06
Chilean peso 1,239.33 1,206.35 1,189.89 1,277.32 1,244.25 1,189.54
Danish krone 8.86 8.81 8.73 8.69 9.01 8.80
Egyptian pound 65.49 57.98 52.62 68.06 63.65 60.71
Euro 1.19 1.18 1.17 1.16 1.21 1.18
Hong Kong dollar 10.12 9.97 9.89 10.77 9.72 9.87
Indian rupee 111.71 106.94 105.30 117.59 107.14 105.38
Mexican peso 25.88 23.43 21.65 25.73 26.14 23.18
New Zealand dollar 2.24 2.11 2.08 2.25 2.24 2.07
Polish zloty 5.02 5.09 5.05 4.95 5.17 5.09
Saudi riyal 4.87 4.80 4.75 5.15 4.70 4.74
Turkish lira¹ 54.62 44.26 41.38 54.62 44.26 41.38
US dollar 1.30 1.28 1.27 1.37 1.25 1.26
1. Closing rate of Turkish lira applied to average rate due to the application of
IAS 29.
Türkiye is a hyperinflationary economy and IAS 29 Financial Reporting in
Hyperinflationary Economies has been applied from June 2022 onwards. As a
consequence, the results and balances for the Group's Turkish operations have
been adjusted for changes in the general purchasing power of the Turkish lira.
In order to make this adjustment the Group refers to the CPI index published
by the Turkish Statistical Institute. The value of CPI at 30 June 2025 was
3,131.96 (HY 2024: 2,319.23; FY 2024: 2,684.47) and the movement in CPI for
the period ended 30 June 2025 was 447 (HY 2024: 460; FY 2024: 825), an
increase of 16.7% (HY 2024: 24.7%; FY 2024: 44.4%).
A loss of £13m (HY 2024: £5m; FY 2024: £16m) arising from the devaluation
of net monetary assets has been recognised within net financial expense in the
Condensed Consolidated Income Statement. This includes the impact of indexing
amounts in the Condensed Consolidated Income Statement for the application of
IAS 29, reducing profit before taxation by £15m for the period (HY 2024:
£9m; FY 2024: £12m).
For segmental reporting purposes, the net impact of applying hyperinflationary
accounting has been excluded from underlying profit and included within
realised and unrealised FX gain/loss as this is how the Group measures the
performance of the business.
All Turkish lira amounts are translated to the Group's presentation currency
of sterling, using the closing exchange rate in effect on 30 June 2025 of
54.62 (HY 2024: 41.38; FY 2024: 44.26). The impact of this adjustment is
recorded within other foreign exchange translation differences in the
Condensed Consolidated Statement of Comprehensive Income and within the
foreign exchange translation reserve in the Condensed Consolidated Statement
of Financial Position. The Group recognises the remaining exchange difference
arising on consolidation within other foreign exchange translation differences
through other comprehensive income in the foreign exchange translation
reserve.
2 Operating segments
The Group operates in three Market Units, Bupa Asia Pacific; Europe and Latin
America; and Bupa Global, India and UK. Management monitors the operating
results of the Market Units separately to assess performance and make
decisions about the allocation of resources. Other businesses represents the
Group's associate investment, Bupa Arabia.
Reportable Segments Services and Products
Bupa Asia Pacific Bupa Health Insurance: Health insurance, international health cover in
Australia.
Bupa Health Services: Health provision business, comprising dental, optical,
audiology, medical assessment services, health centres and healthcare for the
Australian Defence Force.
Bupa Villages and Aged Care Australia: Nursing, residential, respite care and
residential villages.
Bupa Villages and Aged Care New Zealand: Nursing, residential, respite care
and residential villages.
Bupa Hong Kong: Domestic health insurance, primary healthcare and day care
clinics including diagnostics.
Europe and Latin America Sanitas Seguros: Health insurance and related products in Spain and Portugal.
Sanitas Dental: Insurance and dental services through clinics and third-party
networks in Spain.
Sanitas Hospitales (Prior to 2025: Sanitas Hospitales and New Services):
Management and operation of hospitals, rehabilitation centres and health
clinics in Spain.
Sanitas Mayores: Nursing, residential and respite care in care homes and day
centres in Spain.
LUX MED: Medical subscriptions, health insurance, and the management and
operation of diagnostics, health clinics and hospitals in Poland.
Bupa Acıbadem Sigorta: Domestic health insurance, related products and dental
services through clinics in Türkiye.
Bupa Chile: Domestic health funding and the management and operation of health
clinics and hospitals in Chile.
Care Plus: Domestic health insurance, dental services through clinics and a
vaccination centre in Brazil.
Bupa Mexico: Health insurance and the management and operation of a hospital
in Mexico.
Bupa Global Latin America: International health insurance and health clinics
in Peru.
Bupa Global, India and UK Bupa UK Insurance: Domestic health insurance, and administration services for
Bupa health trusts.
Bupa Dental Care UK: Dental services and related products.
Bupa Care Services: Nursing, residential, respite care and care villages.
Bupa Health Services: Clinical services, health assessment related products
and management and operation of a private hospital.
Bupa Global: International health insurance to individuals, small businesses
and corporate customers.
Niva Bupa (India): Health insurance and related products in India.
Associate: Highway to Health (United States of America) (operating as
GeoBlue).
Other businesses Associate: Bupa Arabia (Kingdom of Saudi Arabia).
A key performance measure of operating segments utilised by the Group is
underlying profit. Underlying profit is used to distinguish business
performance from other constituents of the IFRS reported profit before
taxation not directly related to the trading performance of the business.
Underlying profit
The following items are excluded from underlying profit:
- Impairment of intangible assets and goodwill arising on business combinations
- these impairments are considered to be one-off and not reflective of the
in-year trading performance of the business.
- Short-term fluctuations on investment return - underlying profit is based on
an expected long-term investment return over the period for return-seeking
financial assets. Any variance between the total investment return (including
realised and unrealised gains) and the expected return over the period is
disclosed separately outside underlying profit, in short-term fluctuations.
These fluctuations are not considered to be directly related to underlying
trading performance.
- Net gains/losses on disposal of businesses and transaction costs on business
combinations - gains/losses on disposal of businesses that are material and
one-off in nature to the reportable segment are not considered part of the
continuing business. Transaction costs that relate to material acquisitions or
disposals are not related to the ongoing trading performance of the business.
- Net property revaluation gains/losses - short-term fluctuations which do not
reflect underlying trading performance. This includes deficit on the
revaluation of freehold properties and property impairment losses.
- Realised and unrealised foreign exchange gains/losses - fluctuations outside
of management control, which do not reflect underlying trading performance.
This includes the net impact of applying hyperinflationary accounting.
- Amortisation of bed licences (2024 only) - Following the Australian
Government's announcement of the deregulation of bed licences from 1 July
2024, the amortisation term was reviewed and updated from having an indefinite
useful life to amortising over the period to 1 July 2024. The amortisation
term was extended to 1 July 2025, when the Australian Government announced
that the deregulation was delayed to that date. In November 2024, the
remaining bed licences were impaired as part of the external care home
valuation process. The impact of the amortisation of bed licences was not
considered reflective of the trading performance of the business.
- Other Market Unit/Group non-underlying items - includes items that are
considered material to the reportable segment or Group and are not reflective
of ongoing trading performance. This includes items such as restructuring
costs and profit or loss amounts related to changes to strategic investments.
The total underlying profit of the reportable segments is reconciled below to
the profit before taxation expense in the Condensed Consolidated Income
Statement.
Bupa Asia Pacific Europe and Latin America Bupa Global, India and UK Other businesses Group Functions Adjustments¹ Total
For six months ended 30 June 2025 £m £m £m £m £m £m £m
Revenues
Insurance revenue 2,348 1,886 2,106 - - 14 6,354
Inter-Market Unit revenue (36) - 36 - - - -
Insurance revenue for reportable segments 2,312 1,886 2,142 - - 14 6,354
Care, health and other customer contract revenue 747 1,012 664 - - - 2,423
Other revenue 26 13 1 5 - - 45
Non-insurance revenue for reportable segments 773 1,025 665 5 - - 2,468
Total revenue for reportable segments 3,085 2,911 2,807 5 - 14 8,822
Segmental result
Underlying profit for reportable segments 244 202 127 45 (60) - 558
Borrowing costs - - (1) - (38) - (39)
Group investment funding - - - - (39) - (39)
Consolidated underlying profit before taxation expense 244 202 126 45 (137) - 480
Non-underlying items:
Short-term fluctuation on investment returns - (1) 4 - - - 3
Net (loss)/gain on disposal of businesses and transaction costs on business (1) 28 (1) (1) - - 25
combinations
Realised and unrealised FX (loss)/gain - (5) 1 - 20 (15) 1
Other non-underlying items (5) - (3) - - - (8)
Total non-underlying items 21
Consolidated profit before taxation expense 501
1. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
Bupa Asia Pacific Europe and Latin America¹ Bupa Global, India and UK Other businesses² Group Functions Adjustments³ Total
For six months ended 30 June 2024 £m £m £m £m £m £m £m
Revenues
Insurance revenue 2,349 1,746 1,839 - - 3 5,937
Inter-Market Unit revenue (31) - 31 - - - -
Insurance revenue for reportable segments 2,318 1,746 1,870 - - 3 5,937
Care, health and other customer contract revenue 725 925 653 - - - 2,303
Other revenue 28 7 1 5 - 1 42
Non-insurance revenue for reportable segments 753 932 654 5 - 1 2,345
Total revenue for reportable segments 3,071 2,678 2,524 5 - 4 8,282
Segmental result
Underlying profit for reportable segments 233 155 65 56 (67) - 442
Borrowing costs - - (1) - (45) - (46)
Group investment funding - - - - (27) - (27)
Consolidated underlying profit before taxation expense 233 155 64 56 (139) - 369
Non-underlying items:
Short-term fluctuation on investment returns (3) - (8) - (1) - (12)
Net (loss)/gain on disposal of businesses and transaction costs on business (5) 1 (6) - (3) - (13)
combinations
Realised and unrealised FX gain/(loss) - - 21 - (4) (9) 8
Amortisation of bed licences (12) - - - - - (12)
Other non-underlying items ¹,² - (218) (11) 309 - - 80
Total non-underlying items 51
Consolidated profit before taxation expense 420
1. Europe and Latin America includes the impact of recognising a £215m provision
in relation to Isapre Cruz Blanca in Chile and the retrospective liability
relating to statutory Risk Factor Tables. This is excluded from underlying
profit as it is considered a one-off material retrospective matter which is
not reflective of on-going trading performance.
2. Other businesses includes a £309m gain as a result of the Group's existing
stake in Niva Bupa, prior to the majority stake acquisition, having been
remeasured to fair value.
3. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
Bupa Asia Pacific Europe and Latin America¹ Bupa Global, India and UK Other businesses² Group Functions Adjustments³ Total
For year ended 31 December 2024 £m £m £m £m £m £m £m
Revenues
Insurance revenue 4,776 3,575 3,823 - - 59 12,233
Inter-Market Unit revenue (65) - 65 - - - -
Insurance revenue for reportable segments 4,711 3,575 3,888 - - 59 12,233
Care, health and other customer contract revenue 1,496 1,832 1,261 - - - 4,589
Other revenue 70 20 2 9 - 1 102
Non-insurance revenue for reportable segments 1,566 1,852 1,263 9 - 1 4,691
Total revenue for reportable segments 6,277 5,427 5,151 9 - 60 16,924
Segmental result
Underlying profit for reportable segments 446 442 230 97 (145) - 1,070
Borrowing costs - - (2) - (84) - (86)
Group investment funding - - - - (70) - (70)
Consolidated underlying profit before taxation expense 446 442 228 97 (299) - 914
Non-underlying items:
Impairments of intangible assets and goodwill arising on business combinations (2) - - - - - (2)
Short-term fluctuation on investment returns (1) - (8) - - - (9)
Net (loss)/gain on disposal of businesses and transaction costs on business (8) 1 (12) (1) (6) - (26)
combinations
Net property revaluation gain 3 1 5 - - - 9
Realised and unrealised FX (loss)/gain - (2) 23 - 1 (12) 10
Amortisation of bed licences (13) - - - - - (13)
Other non-underlying items ¹,² (1) (199) (20) 309 - - 89
Total non-underlying items 58
Consolidated profit before taxation expense 972
1. Europe and Latin America includes the impact of recognising a £187m expense
in relation to Isapre Cruz Blanca in Chile and the retrospective liability
relating to statutory Risk Factor Tables. This is excluded from underlying
profit as it is considered a one-off material retrospective matter which is
not reflective of ongoing trading performance.
2. Other businesses includes a £309m gain as a result of the Group's existing
stake in Niva Bupa, prior to the majority stake acquisition, having been
remeasured to fair value.
3. Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies
for Türkiye.
3 Non-insurance revenues
Non-insurance revenue has been analysed at Business Unit level reflecting the
nature of services provided that is reported internally to management.
Care, health and other customer contract revenue Other revenue Total non-insurance revenues
For six months ended 30 June 2025 £m £m £m
Bupa Health Insurance 4 - 4
Bupa Health Services 342 - 342
Bupa Villages and Aged Care Australia 214 16 230
Bupa Villages and Aged Care New Zealand 70 10 80
Bupa Hong Kong 117 - 117
Bupa Asia Pacific 747 26 773
Sanitas Seguros 9 - 9
Sanitas Dental 82 3 85
Sanitas Hospitales 44 - 44
Sanitas Mayores 88 - 88
LUX MED 543 - 543
Bupa Acıbadem Sigorta - 8 8
Bupa Chile 227 - 227
Care Plus 4 - 4
Bupa Mexico 8 1 9
Bupa Global Latin America 7 1 8
Europe and Latin America 1,012 13 1,025
Bupa UK Insurance 18 - 18
Bupa Dental Care UK 259 - 259
Bupa Care Services 255 - 255
Bupa Health Services 132 1 133
Bupa Global, India and UK 664 1 665
Other - 5 5
Other businesses - 5 5
Consolidated non-insurance revenues 2,423 45 2,468
Care, health and other customer contract revenue Other revenue Total non-insurance revenues
For six months ended 30 June 2024 £m £m £m
Bupa Health Insurance 4 2 6
Bupa Health Services 331 1 332
Bupa Villages and Aged Care Australia 204 15 219
Bupa Villages and Aged Care New Zealand 72 10 82
Bupa Hong Kong 114 - 114
Bupa Asia Pacific 725 28 753
Sanitas Seguros 7 - 7
Sanitas Dental 74 3 77
Sanitas Hospitales and New Services 101 - 101
Sanitas Mayores 83 - 83
LUX MED 457 - 457
Bupa Acıbadem Sigorta - 3 3
Bupa Chile 188 - 188
Care Plus 5 - 5
Bupa Mexico 10 - 10
Bupa Global Latin America - 1 1
Europe and Latin America 925 7 932
Bupa UK Insurance 13 - 13
Bupa Dental Care UK 269 - 269
Bupa Care Services 245 - 245
Bupa Health Services 126 1 127
Bupa Global, India and UK 653 1 654
Other - 5 5
Other businesses - 5 5
Adjustments - 1 1
Consolidated non-insurance revenues 2,303 42 2,345
Care, health and other customer contract revenue Other revenue Total non-insurance revenues
For year ended 31 December 2024 £m £m £m
Bupa Health Insurance 8 16 24
Bupa Health Services 681 - 681
Bupa Villages and Aged Care Australia 426 35 461
Bupa Villages and Aged Care New Zealand 145 19 164
Bupa Hong Kong 236 - 236
Bupa Asia Pacific 1,496 70 1,566
Sanitas Seguros 14 4 18
Sanitas Dental 146 5 151
Sanitas Hospitales and New Services 143 1 144
Sanitas Mayores 167 - 167
LUX MED 941 - 941
Bupa Acıbadem Sigorta - 8 8
Bupa Chile 395 - 395
Care Plus 9 - 9
Bupa Mexico 17 1 18
Bupa Global Latin America - 1 1
Europe and Latin America 1,832 20 1,852
Bupa UK Insurance 29 - 29
Bupa Dental Care UK 512 1 513
Bupa Care Services 498 - 498
Bupa Health Services 222 1 223
Bupa Global, India and UK 1,261 2 1,263
Other - 9 9
Other businesses - 9 9
Adjustments - 1 1
Consolidated non-insurance revenues 4,589 102 4,691
4 Other income and charges
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
£m £m £m
Fair value gain on acquisition of Niva Bupa - 309 309
Net gain/(loss) on disposal and restructuring of businesses 26 (9) (15)
Gain on revaluation of property - - 9
Research and Development tax credit - 1 1
Net gain on disposal of property, plant and equipment - 2 -
Surplus on fair value of investment property 12 11 27
Total other income and charges 38 314 331
5 Financial income and expense
Financial income
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
£m £m £m
Interest income:
Investments at fair value through profit or loss 36 32 79
Investments at fair value through other comprehensive income 49 23 69
Investments at amortised cost 163 156 325
Net realised gain/(loss):
Net realised gain on investments at fair value through profit or loss 29 2 3
Net realised loss on financial investments at fair value through other - - (3)
comprehensive income
Net movement in fair value:
Changes in share purchase liabilities - (9) (15)
Investments at fair value through profit or loss (19) 10 19
Net foreign exchange translation gain/(loss) (1) 25 32
Total financial income 257 239 509
Financial expense
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
£m £m £m
Interest expense on financial liabilities at amortised cost 42 55 102
Finance charges in respect of leases and restoration provisions 26 25 51
Other financial expense 26 20 44
Total financial expense 94 100 197
Other financial expense for the six months ended 30 June 2025 includes £14m
(HY 2024: £12m; FY 2024: £26m) of imputed financial expenses in relation to
interest-free refundable accommodation deposits received by the Group in
respect of payment for aged care units in Bupa Villages and Aged Care
Australia.
5.1 Net financial expense from insurance contracts issued
The Group's insurance financial expense of £51m (HY 2024: £9m; FY 2024:
£70m) arises from the impact of unwinding discount rates and any change in
discount rates from the beginning of the year, which causes movement in
the overall insurance contract liability. Discounting of insurance contracts
is only applied by exception (see Note 13).
The net financial expense from insurance contracts issued includes £51m of
interest expense (HY 2024: £21m interest expense and £12m interest income;
FY 2024: £86m interest expense and £16m interest income).
6 Taxation expense
The Group's effective taxation rate for the period was 27% (HY 2024: 16%; FY
2024: 22%), which is in line with the current UK corporation taxation rate of
25%.
The Group operates in the UK where tax legislation to implement a global
minimum top-up tax was enacted in July 2023 and became effective from 1
January 2024. This legislation seeks to establish a 15% global minimum tax
rate for multinational enterprises.
In accordance with IAS 12, the Group has applied a mandatory temporary relief
from deferred tax accounting for the impacts of the top-up tax, and instead
accounts for it as a current tax when it is incurred. The current tax charge
with respect to the top-up tax for the period was £nil (HY 2024: £nil; FY
2024: £nil). The Group is continuing to monitor the development of Pillar Two
rules and guidance from tax authorities.
7 Goodwill and intangible assets
Goodwill Computer software Brands/trademarks Customer relationships Other¹ Total
At 30 June 2025 £m £m £m £m £m £m
Net book value at beginning of period 2,428 406 93 184 67 3,178
Arising on business combinations 25 1 - 1 - 27
Additions - 68 - - 1 69
Amortisation - (51) (4) (15) (4) (74)
Other - 2 - - - 2
Foreign exchange (76) (5) (2) (3) 1 (85)
Net book value at end of period 2,377 421 87 167 65 3,117
Goodwill Computer software Brands/trademarks Customer relationships Other¹ Total
At 31 December 2024 £m £m £m £m £m £m
Net book value at beginning of period 1,961 391 105 178 70 2,705
Arising on business combinations 574 3 2 40 1 620
Additions - 147 - - 23 170
Disposals (8) (5) - - (1) (14)
Amortisation - (109) (8) (29) (22) (168)
Impairment loss - (9) - - (2) (11)
Foreign exchange (99) (12) (6) (5) (2) (124)
Net book value at end of period 2,428 406 93 184 67 3,178
Goodwill Computer software Brands/trademarks Customer relationships Other¹ Total
At 30 June 2024 £m £m £m £m £m £m
Net book value at beginning of period 1,961 391 105 178 70 2,705
Arising on business combinations 558 3 1 38 1 601
Additions - 57 - - 1 58
Disposals (6) (2) - - - (8)
Amortisation - (53) (4) (15) (16) (88)
Other - (1) - - - (1)
Foreign exchange (18) (4) (4) (2) - (28)
Net book value at end of period 2,495 391 98 199 56 3,239
1. Predominantly comprises distribution networks and licences to operate care
homes.
Goodwill and intangible assets of £3,117m (HY 2024: £3,239m; FY 2024:
£3,178m) include £299m (HY 2024: £353m; FY 2024: £325m) attributable to
other intangible assets arising on business combinations comprising of
brands/trademarks, customer relationships and other in the above table.
Computer software assets with a net book value of £421m (HY 2024: £391m; FY
2024: £406m) include £288m (HY 2024: £271m; FY 2024: £285m) attributable
to capitalised internal development costs. The cost attributable to these
assets is £736m (HY 2024: £683m; FY 2024: £708m). £58m of costs (HY 2024:
£48m; FY 2024: £119m) were capitalised in the period.
Goodwill by CGU is as follows:
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Bupa Asia Pacific
Bupa Australia Health Insurance 729 753 806
Bupa Health Services Australia 270 257 273
Hong Kong 113 125 123
Europe and Latin America
LUX MED 300 282 288
Sanitas Seguros 75 73 72
Sanitas Mayores 21 20 21
Bupa Acıbadem Sigorta 61 64 60
Care Plus 34 33 36
Bupa Mexico 9 9 10
Bupa Global, India and UK
Niva Bupa 480 527 536
Bupa Dental Care UK 193 193 192
Bupa Global 68 68 68
Bupa Health Services 24 24 10
Total 2,377 2,428 2,495
Impairment testing of goodwill and indefinite life intangible assets
Goodwill and intangible assets with an indefinite useful life are tested at
least annually for impairment in accordance with IAS 36 Impairment of Assets
and IAS 38 Intangible Assets. As at 30 June 2025, all CGUs and intangible
assets were reviewed for indicators of impairment. Where impairment indicators
were identified an impairment test was carried out by comparing the net
carrying value with the recoverable amount, using value in use calculations
based on the latest cash flow forecasts for CGUs as at 30 June 2025. No
impairments have been identified as at 30 June 2025 (HY 2024: £nil; FY 2024:
£nil).
Management continues to closely monitor the headroom on Bupa Dental Care UK,
following the impairments recognised in 2022, to ascertain whether any further
impairments to goodwill or reversals to impairment of intangible assets or
property, plant and equipment should be recognised. Headroom increased at
30 June 2025 to £77m (HY 2024: £57m; FY 2024: £56m), due to an increase in
value in use driven by a decrease in the discount rate and the unwind of
discounting. Sensitivities of the headroom to changes in key assumptions are
included in the table below.
Headroom Discount rate Terminal growth rate Reduction in headroom from 1% increase in discount rate Reduction in headroom from 0.5% reduction in terminal growth rate Reduction in headroom from 10% reduction in cash flows
£m % % £m £m £m
Bupa Dental Care UK 77 12.0 2.1 (34) (14) (31)
8 Property, plant and equipment
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Net book value at beginning of period 3,737 3,629 3,629
Assets arising on business combinations 17 29 18
Additions 201 403 150
Transfer to assets held for sale (14) (10) -
Disposals (11) (23) (9)
Revaluations 4 132 -
Remeasurements 26 61 31
Depreciation charge for the period (168) (328) (162)
Other (8) 1 1
Foreign exchange (4) (157) (51)
Net book value at end of period 3,780 3,737 3,607
Property, plant and equipment are the physical assets or rights to use leased
assets, which are utilised by the Group to carry out business activities and
generate revenues and profits. The majority of assets held relate to care
homes, hospital properties, equipment and office buildings. Leased
right-of-use assets relate primarily to property leases.
Freehold properties are initially measured at cost and subsequently at
revalued amount less accumulated depreciation and impairment losses. These
properties are subject to external valuations at least every three years. In
years where a full external valuation is not completed, a directors' valuation
is conducted based on significant underlying assumptions such as cash flows
and other market variables. An internal review of the significant underlying
assumptions is conducted during interim periods. Consideration is also given
to whether there are any factors which indicate a full out-of-cycle external
revaluation is required. Independent external valuations were performed on a
small number of freehold properties in Australia by Ernst & Young as at
30 June 2025.
Care homes, clinics and hospital freehold property valuations are either
determined based on a capitalisation of earnings approach where each
facility's normalised earnings are calculated based on what a reasonably
efficient operator could be expected to achieve then divided by an appropriate
capitalisation rate to determine a value in use, or based on discounted future
cash flow projections where the discount rate is determined according to the
time value of money, the level of risk of the industry and the corresponding
premium risk. All other properties are valued by external valuers, based on
observable market values of similar properties.
An uplift of £4m was recognised in the property revaluation reserve in
respect of owned property as at 30 June 2025 and no write-downs were
recognised (HY 2024: no uplifts or write-downs, FY 2024: uplifts of £132m,
with a net revaluation gain of £123m being recognised in the property
revaluation reserve and a £9m revaluation gain being credited to the
Condensed Consolidated Income Statement within other income and charges).
Impairment testing of tangible assets
Right-of-use assets have been reviewed for indicators of impairment as at
30 June 2025. Where impairment indicators are identified an impairment test
is carried out by comparing the net carrying value with the recoverable
amount, using the higher of fair value or the value in use based on the latest
cash flow forecasts for CGUs.
No impairments have been identified as at 30 June 2025 (HY 2024: £nil; FY
2024: £nil).
9 Investment property
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
At beginning of period 756 776 776
Additions 12 30 12
Increase in fair value 12 27 11
Foreign exchange (6) (77) (20)
At end of period 774 756 779
Investment properties are physical assets that are not occupied by the Group
and are leased to third parties to generate rental income.
Investment properties are initially measured at cost and subsequently at fair
value, determined individually, on a basis appropriate to the purpose for
which the property is intended and consistent with market transactions for
similar properties in the same location. Where no active market exists, as is
the case for retirement villages where each village is unique due to building
configuration and location, these properties are valued using discounted cash
flow projections. Investment property is revalued externally at least
annually, with any gain or loss arising from a change in fair value recognised
in the Condensed Consolidated Income Statement within other income and
charges.
The carrying value of investment properties primarily consists of the Group's
portfolio of retirement villages in New Zealand of £706m (HY 2024: £706m, FY
2024: £687m) and Australia of £53m (HY 2024: £53m, FY 2024: £49m). At 30
June 2025 the properties were valued by management using internally prepared
discounted cash flow projections, supported by the terms of any existing lease
and other contracts. Discount rates are used to reflect current market
assessments of the uncertainty in the amount or timing of the cash flows.
10 Post-employment benefits
The Group operates several funded defined benefit and defined contribution
pension schemes for the benefit of employees and Directors, in addition to
unfunded schemes and a post-retirement medical benefit scheme.
The defined benefit pension schemes provide benefits based on final
pensionable salary. The Group's net obligation in respect of the defined
benefit pension and the post-retirement medical scheme is calculated
separately for each scheme and represents the present value of the defined
benefit obligation less the fair value of scheme assets. The discount rate
used is the yield at the reporting date on high-quality corporate bonds
denominated in the currency in which the benefit will be paid, and taking
account of the maturities of the defined benefit obligations. When the
calculation results in a benefit to the Group, the recognised asset is limited
to the present value of any future refunds from the scheme or reductions in
future contributions to the scheme.
The principal defined benefit scheme is The Bupa Pension Scheme which has been
closed to new entrants since 1 October 2002 and closed to future accrual on 31
December 2020, although members retain any ongoing salary link, with future
benefits payable dependent upon member salary at the date of leaving or
retirement. Existing current employees who were members of the Bupa Pension
Scheme were automatically enrolled into the new defined contribution pension
scheme, the My Bupa LifeSight Plan from 1 January 2021.
The Bupa Pension Scheme has been valued as at 30 June 2025, under IAS 19
Employee Benefits, using the projected unit method based on data used for the
most recent completed triennial valuation as at 1 July 2023.
Unfunded defined benefit pension arrangements exist for certain former
employees in excess of the funded pension arrangements provided by the Group.
There are no separate funds or assets in the Condensed Consolidated Statement
of Financial Position to support the unfunded schemes; however, cash deposits
are included in the Condensed Consolidated Statement of Financial Position in
respect of these liabilities and assets are ring-fenced to support these
liabilities (see Note 11). The latest valuation of these arrangements was
performed as at 30 June 2025 under IAS 19 by the Group's independent actuary.
The Group also provides unfunded post-retirement medical benefits for certain
former employees. These benefits were granted under an agreement which closed
to new entrants in 1992. The latest actuarial valuation of this scheme was
carried out as at 30 June 2025 by a qualified actuary employed by the Group
by rolling forward the actuarial valuation as at 31 December 2024 and
adjusting for market and scheme demographic assumptions appropriate as at
30 June 2025 under IAS 19.
Amount recognised in the Condensed Consolidated Income Statement
The amounts (credited)/charged to other operating expenses for the period are:
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
£m £m £m
Net interest income on defined benefit liability/asset (8) (8) (16)
Administrative expenses 1 1 2
Total amount credited to the Consolidated Income Statement (7) (7) (14)
Amount recognised directly in other comprehensive income
The amounts charged/(credited) directly to equity are:
For six months ended 30 June 2025 For six months ended 30 June 2024 For year ended
31 December 2024
£m £m £m
Actual return less expected return on assets 32 86 167
Gain arising from changes to financial assumptions (25) (55) (122)
(Gain)/loss arising from changes to experience assumptions (3) 19 23
Gain arising from changes to demographic assumptions - (3) (3)
Total remeasurement loss charged directly to equity 4 47 65
Assets and liabilities of schemes
The assets and liabilities in respect of the defined benefit funded pension
schemes, unfunded pension and post-retirement medical benefit scheme are as
follows:
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Present value of funded obligations (1,063) (1,084) (1,147)
Fair value of scheme assets 1,393 1,412 1,483
Net assets of funded schemes 330 328 336
Present value of unfunded obligations (39) (41) (42)
Net recognised assets 291 287 294
Represented on the Condensed Consolidated Statement of Financial Position:
Net liabilities (45) (46) (49)
Net assets 336 333 343
Net recognised assets 291 287 294
The Bupa Pension Scheme's liabilities fluctuate in line with interest rates
and inflation. However the Scheme's investment strategy aims to hedge against
interest and inflation risk as measured on a long-term funding basis, via a
liability-driven investment strategy that utilises a combination of
high-quality gilts and swaps. This means that on a funding valuation basis,
assets will move broadly in the same direction as the liabilities, although
this can differ under the IAS 19 valuation.
In June 2023, the High Court handed down a decision in the Virgin Media Ltd
versus NTL Pension Trustees II Ltd, which considered the implications of
section 37 of the Pension Schemes Act 1993, which required that the rules of a
salary-related contracted-out pension scheme cannot be altered, in relation to
post April 1997 service, unless the actuary confirmed that the scheme would
continue to satisfy the statutory standards. The High Court found that, where
the required actuarial confirmation was not supplied, the effect of section 37
was to render the relevant amendment to any contracted-out right automatically
void. It also held that references in the legislation included both past and
future service rights and that the requirement for actuarial confirmation
applied to all amendments to the rules of a contracted-out scheme. This
decision was appealed to the Court of Appeal and, in July 2024, the Court of
Appeal upheld the decision of the High Court. In June 2025, the Government
announced its intention to introduce legislation to give pension schemes the
ability to retrospectively obtain written actuarial confirmation that historic
benefit changes met the necessary standards.
The Group is awaiting the assessment of the Trustees of the defined benefit
pension schemes of the scheme amendments to decide whether any subsequent
actions are required and will continue to monitor developments. The Group has
considered information available to it and has concluded not to make any
allowance for the possible impact of the ruling in its IAS 19 liabilities as
it is currently unclear whether any additional liabilities might arise, and if
they were to arise, how they would be reliably measured.
11 Restricted assets
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Non-current restricted assets 32 32 34
Current restricted assets 132 105 95
Total restricted assets 164 137 129
Restricted assets are amounts held in respect of specific obligations and
potential liabilities and may be used only to discharge those obligations and
potential liabilities if and when they crystallise. The non-current restricted
assets balance of £32m (HY 2024: £34m; FY 2024: £32m) consists of cash
deposits held to secure a charge over certain unfunded pension scheme
obligations (see Note 10). Included in current restricted assets is £130m (HY
2024: £92m; FY 2024: £103m) in respect of claims funds held on behalf of
corporate customers.
12 Financial investments
The Group generates cash from its underwriting, trading and financing
activities and invests the surplus cash in financial investments. These
include government bonds, corporate bonds, pooled investment funds and
deposits with credit institutions.
Recognition, measurement and classification
All financial investments are initially recognised at fair value, which
includes transaction costs for financial investments not classified at fair
value through profit or loss. Financial investments are recorded using trade
date accounting at initial recognition.
Financial investments are derecognised when the rights to receive cash flows
from the financial investments have expired or where the Group has transferred
substantially all risks and rewards of ownership.
The Group has classified its financial investments into the following
categories: at fair value through profit or loss, at fair value through other
comprehensive income (FVOCI) and at amortised cost.
Impairment
Under IFRS 9, impairment provisions for expected credit losses (ECL) are
recognised for financial investments measured at amortised cost and FVOCI. An
allowance for either a 12-month or lifetime ECL is required, depending on
whether there has been a significant increase in credit risk since initial
recognition. For trade receivables, lifetime ECL is always applied. An
assumption can be made that the credit risk on a financial instrument has not
increased significantly since initial recognition if the financial instrument
is determined to have low credit risk at the reporting date (e.g. it is
investment grade). The Group applies a 12-month ECL allowance to all assets
other than trade receivables, as no significant increases in credit risk since
initial recognition have been identified.
The measurement of ECL should reflect a probability-weighted outcome, the time
value of money and the best available forward-looking information.
Financial investments are analysed as follows:
At 30 June 2025 At 31 December 2024 At 30 June 2024
Carrying value Fair value Carrying value Fair value Carrying value Fair value
£m £m £m £m £m £m
Fair value through profit or loss
Corporate debt securities and secured loans 410 410 386 386 380 380
Government debt securities 32 32 44 44 28 28
Pooled investment funds 449 449 429 429 493 493
Deposits with credit institutions 6 6 11 11 30 30
Equities 7 7 33 33 35 35
Fair value through other comprehensive income
Corporate debt securities and secured loans 1,058 1,058 504 504 381 381
Government debt securities 334 334 316 316 220 220
Amortised cost
Corporate debt securities and secured loans 1,099 1,103 1,293 1,298 1,335 1,337
Government debt securities 533 539 614 617 550 552
Deposits with credit institutions 1,030 1,031 1,063 1,064 1,241 1,243
Other loans - - - - 1 1
Total financial investments 4,958 4,969 4,693 4,702 4,694 4,700
Non-current 2,105 2,109 1,645 1,648 1,489 1,492
Current 2,853 2,860 3,048 3,054 3,205 3,208
Fair value of financial investments
An asset's fair value is the price at which an orderly transaction to sell or
transfer the asset would take place between market participants at the
measurement date under current market conditions (i.e. an exit price at the
measurement date from the perspective of the market participant that holds the
asset). The objective of a fair value measurement is to estimate this price.
The fair values of quoted investments in active markets are based on current
bid prices. The fair values of unlisted securities and quoted investments for
which there is no active market are established by using valuation techniques
supported by market transactions and observable market data provided by
independent third parties. These may include reference to the current fair
value of other investments that are substantially the same and discounted cash
flow analysis.
The fair values of financial investments are determined using different
valuation inputs categorised into a three-level hierarchy. The different
levels are defined by reference to the lowest level input that is significant
to the fair value measurement, as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities.
• Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
An analysis of financial investment fair values by hierarchy level is as
follows:
Level 1 Level 2 Level 3 Total
£m £m £m £m
At 30 June 2025
Fair value through profit or loss
Corporate debt securities and secured loans 17 392 1 410
Government debt securities 10 22 - 32
Pooled investment funds 75 351 23 449
Deposits with credit institutions 6 - - 6
Equities 1 - 6 7
Fair value through other comprehensive income
Corporate debt securities and secured loans 493 565 - 1,058
Government debt securities 283 51 - 334
Amortised cost
Corporate debt securities and secured loans 432 670 1 1,103
Government debt securities 393 146 - 539
Deposits with credit institutions 34 997 - 1,031
Total financial investments 1,744 3,194 31 4,969
Level 1 Level 2 Level 3 Total
£m £m £m £m
At 31 December 2024
Fair value through profit or loss
Corporate debt securities and secured loans 21 365 - 386
Government debt securities 8 36 - 44
Pooled investment funds 64 340 25 429
Deposits with credit institutions 11 - - 11
Equities 1 - 32 33
Fair value through other comprehensive income
Corporate debt securities and secured loans 59 445 - 504
Government debt securities 303 13 - 316
Amortised cost
Corporate debt securities and secured loans 360 937 1 1,298
Government debt securities 370 247 - 617
Deposits with credit institutions - 1,064 - 1,064
Total financial investments 1,197 3,447 58 4,702
Level 1 Level 2 Level 3 Total
£m £m £m £m
At 30 June 2024
Fair value through profit or loss
Corporate debt securities and secured loans 21 359 - 380
Government debt securities 6 22 - 28
Pooled investment funds 64 405 24 493
Deposits with credit institutions 30 - - 30
Equities 1 - 34 35
Fair value through other comprehensive income
Corporate debt securities and secured loans 16 365 - 381
Government debt securities 207 13 - 220
Amortised cost
Corporate debt securities and secured loans 416 921 - 1,337
Government debt securities 328 224 - 552
Deposits with credit institutions - 1,243 - 1,243
Other loans - - 1 1
Total financial investments 1,089 3,552 59 4,700
Transfers between fair value hierarchy levels
The Group's policy is to determine whether transfers have occurred between
fair value hierarchy levels at the end of a reporting period. Classification
is reassessed based on the lowest level input that is significant to the fair
value measurement as a whole.
There were no transfers between fair value hierarchy levels in the period (HY
2024: £nil; FY 2024: £nil).
The Group currently holds Level 3 financial investments totalling £31m (HY
2024: £59m; FY 2024: £58m). The majority of Level 3 investments are unlisted
equities and pooled investment funds valued at recent subscription values and
conversion prices, which are considered to be unobservable inputs. Changes to
the valuation assumptions which are reasonably possible could result in a
change in fair value of plus or minus £2m (HY 2024: £3m; FY 2024: £3m).
The table below shows movement in the Level 3 assets measured at fair value:
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Balance at beginning of period 58 61 61
Additions 3 3 2
Disposals (27) (1) (1)
Net decrease in fair value¹ - (1) (1)
Foreign exchange (3) (4) (2)
Balance at end of period 31 58 59
1. All gains and losses are recognised in financial income and financial expense
in the Condensed Consolidated Income Statement.
13 Insurance and reinsurance contracts
Insurance contracts are contracts under which the Group accepts significant
insurance risk from a policyholder by agreeing to compensate the policyholder
if a specified uncertain future event adversely affects the policyholder.
Unit of account
A portfolio of insurance contracts is defined as insurance contracts subject
to similar risks and managed together. The Group defines portfolios as
insurance Business Units at a minimum, as the Group essentially sells one
health insurance product line where cash flows are generally expected to
respond similarly in direction and timing to changes in assumptions and as the
Group manages the insurance business at geographical Business Unit level.
There may be further disaggregation if there are business lines which are
managed separately and have different risk profiles.
PAA eligibility
The Group applies the PAA for the measurement of the majority of insurance
contracts. The majority of the Group's contracts automatically qualify as the
coverage period of each contract in the group is one year or less. As a
result, the Group has taken the available policy choice to apply the PAA to
these contracts. The Group also has a small number of policy groups with a
coverage period of greater than one year. For these groups of contracts, the
Group assesses whether the measurement of the LFRC under the PAA is expected
to differ materially from that under the GMM. This requires the use of GMM and
materiality thresholds determined by management for these policies, as well as
the selection of reasonably expected scenarios against which eligibility is
assessed. As a result of this assessment, these remaining contracts are also
eligible to use the PAA measurement model with the exception of one legacy
portfolio of individual health contracts in Brazil which the Group disposed of
in February 2025.
Measurement
Liability for remaining coverage
On initial recognition of each group of insurance contracts, the carrying
amount of the LFRC is based on the premiums received less any directly
attributable acquisition costs not expensed as incurred. In subsequent
periods, the LFRC is increased for any additional premiums received and the
release of any insurance acquisition cash flows and decreased for the
recognition of insurance revenue that is generally released on a straight-line
basis over the coverage period. The Group's default policy is not to adjust
the LFRC to reflect the time value of money and the effect of financial risk,
as the Group expects on initial recognition of each group of contracts that
the time between providing each part of the services and the related premium
due date is typically no more than one year. However, discounting may be
applied in exceptional circumstances as described below in the Discounting
section.
Insurance acquisition cash flows
The Group's policy is to expense acquisition costs as they are incurred where
the coverage period of each contract in the group is no more than one year.
For the remaining contracts with a longer coverage period, insurance
acquisition costs are allocated to the relevant group of insurance contracts
and reduce the LFRC. The allocated acquisition costs are amortised
consistently with the pattern of insurance revenue recognition.
Onerous contracts
If facts and circumstances indicate that a group of contracts is onerous,
detailed testing is performed by comparing the carrying amount of the LFRC to
the estimated fulfilment cash flows, which include an assessment of the risk
adjustment using a confidence level approach. If the carrying amount of the
LFRC is less than the estimated fulfilment cash flows, a loss component is
recognised. The loss component increases the LFRC and an increase in loss
component is recognised as an expense in the Condensed Consolidated Income
Statement. Subsequently, the loss component is reassessed, with any movements
in the loss component adjusting the LFRC and being recognised within the
Condensed Consolidated Income Statement.
Liability for incurred claims
The LFIC represents the estimated liability arising from claims episodes in
current and preceding financial years which have not yet given rise to claims
paid. A claims episode is an insured medical service that the Group has an
obligation to fund which could be consultation fees, diagnostic
investigations, hospitalisation or treatment costs. The liability includes an
allowance for claims management and handling expenses.
The Group recognises the LFIC of a group of insurance contracts as the present
value of the expected cash flows required to settle the obligation with an
adjustment for non-financial risk. The Group does not adjust the future cash
flows either for the time value of money or for the effect of financial risk
for portfolios in which incurred claims are expected to be paid within one
year of occurrence except in exceptional circumstances, as described below in
the Discounting section.
The LFIC across the Group is set in line with the Group's Claims Reserving
standards, at a level to achieve an appropriate probability of sufficiency and
is estimated based on current information. The ultimate liability may vary as
a result of subsequent information and events. Adjustments to claims estimates
for prior years are included in the Condensed Consolidated Income Statement in
the financial year in which the change is made. The methods used and estimates
made for the LFIC are reviewed regularly.
Risk adjustment
The risk adjustment reflects the compensation the Group requires for bearing
the uncertainty about the amount and timing of the cash flows from
non-financial risk as the Group fulfils insurance contracts. The Group has
estimated the risk adjustment using a confidence level approach at the 85th
percentile (HY 2024 and FY 2024: 85th percentile) which is in line with the
Group's risk appetite for claims reserving risks, and any movements in the
risk adjustment are recognised in full within the insurance service result.
Insurance service expenses
Judgement is exercised in determining which expenses are directly attributable
to insurance contracts, and therefore included within insurance service
expenses. The Group classifies the majority of expenses incurred by insurance
entities within insurance service expenses, except for those not directly
attributable to insurance contracts.
Discounting
Discounting is optional for the LFRC carrying amount if the time between
providing each part of the coverage and the related premium due date is one
year or less and for the LFIC if claims are expected to be paid in one year or
less from the date the claims are incurred. The Group does not apply
discounting to the majority of policies. However, Bupa Acıbadem Sigorta has
applied discounting to both the LFRC and LFIC due to the high interest rate
and high inflation environment in Türkiye. Bupa Global has also applied
discounting to the LFIC for certain groups of insurance contracts as a
material proportion of claims are expected to be settled more than one year
after being incurred. In addition, the LFRC for the legacy individual health
policies in Brazil was discounted due to the long-term nature of these
contracts prior to its disposal in February 2025.
Where discounting is applied, the Group policy is to use either the PRA
published discount rates, European Insurance and Occupational Pensions
Authority (EIOPA) specified discount rates or discount rates derived from
Bloomberg published data. The exception to this was the discount rate applied
to the legacy portfolio of individual health contracts in Brazil, measured on
a GMM basis, for which the rates were derived from the yields of local
Brazilian Government bonds with an adjustment applied to bring the applied
discount rate broadly in line with EIOPA's published discount rates. Discount
rates are calculated based on a bottom-up approach.
Reinsurance contracts held
For reinsurance contracts held, the Group applies the PAA for the majority of
reinsurance contracts as the coverage period is one year or less. The Group
assesses the remaining contracts and applies the PAA as the resulting
measurement would not differ materially from the result of applying the
requirements in the GMM for reinsurance contracts held.
The Group measures the asset for remaining coverage (AFRC) on initial
recognition of a group of reinsurance contracts held as the amount of ceded
premiums paid. Subsequently the remaining coverage is increased for ceded
premiums paid and decreased for amounts of ceded premiums recognised as
reinsurance expenses for the services received in the period. The Group
releases ceded reinsurance premiums on a passage of time basis over the
coverage period. The Group does not adjust the AFRC for the time value of
money or for the effect of financial risk as the time between providing the
coverage and the related underlying premium is one year or less.
The carrying amount of a group of reinsurance contracts held also includes the
asset for incurred claims (AFIC) comprising the fulfilment cash flows related
to the past service allocated to the group. The Group does not adjust the AFIC
for the time value of money or effect of financial risk as recoveries are
expected to be paid within one year of occurrence.
The estimates for future cash flows of a group of reinsurance contracts held
should allow for the risk of non-performance by reinsurers, which is the
probability weighted expected value of the effect of reinsurance counterparty
failure to fulfil the contractual obligations. Bupa's policy is to set the
non-performance risk to zero as there are restrictions in place on the credit
quality and amount of reinsurance ceded to individual counterparties and Bupa
uses reinsurance only to a limited extent to mitigate insurance risks.
Investment components
An insurance provision was included in LFIC which was a non-distinct
investment component for cash payments to Australian Health Insurance
customers under a COVID-19 customer support programme. The provision was
recognised at the point the Group formally announced the payment and insurance
revenue recognised within the Condensed Consolidated Income Statement was
reduced accordingly. The insurance provision was subsequently utilised on
payment to the eligible customers or paid to an Australian State Revenue
Office under the unclaimed money process. As at 30 June 2025, the insurance
provision included in LFIC relating to these cash giveback payments is £nil
(HY 2024: £46m; FY 2024: £16m).
The Group does not recognise any other material investment components or
separate components from insurance contracts.
13.1 Insurance contracts roll forward
Liability for remaining coverage Liability for incurred claims Total
For six months ended 30 June 2025 Excluding loss component Loss component Estimates of present value of future cash flows Risk adjustment £m
£m
£m¹
£m £m
Insurance contract liabilities at beginning of period 1,656 40 1,335 33 3,064
Insurance revenue (6,354) - - - (6,354)
Insurance service expenses 28 (7) 5,984 4 6,009
Incurred claims and other expenses - - 6,124 36 6,160
Amortisation of insurance acquisition cash flows 28 - - - 28
Losses on onerous contracts and (reversals) of those losses - (7) - - (7)
Changes to liabilities for incurred claims relating to past service - - (140) (32) (172)
Insurance service result (6,326) (7) 5,984 4 (345)
Foreign exchange (88) (5) (50) (1) (144)
Net finance expense from insurance contracts issued 27 3 21 - 51
Total changes in statement of comprehensive income (6,387) (9) 5,955 3 (438)
Other movements¹ - - (83) - (83)
Non-distinct investment components (14) - 14 - -
Cash flows
Premiums received 6,849 - - - 6,849
Claims and other expenses paid - - (5,785) - (5,785)
Insurance acquisition cash flows (59) - - - (59)
Total cash flows 6,790 - (5,785) - 1,005
Insurance contract liabilities at end of period 2,045 31 1,436 36 3,548
1. Other movements include £83m of amortisation and depreciation expenses
included within insurance service expense that are non-cash items that do not
form part of the insurance contract liabilities balance.
Liability for remaining coverage Liability for incurred claims Total
For year ended 31 December 2024 Excluding loss component Loss component Estimates of present value of future cash flows Risk adjustment £m
£m¹
£m²
£m³
£m
Insurance contract liabilities at beginning of year 1,177 91 1,313 27 2,608
Insurance revenue (12,233) - - - (12,233)
Insurance service expenses 26 11 11,555 8 11,600
Incurred claims and other expenses - - 11,665 34 11,699
Amortisation of insurance acquisition cash flows 26 - - - 26
Losses on onerous contracts and (reversals) of those losses - 11 - - 11
Changes to liabilities for incurred claims relating to past service - - (110) (26) (136)
Insurance service result (12,207) 11 11,555 8 (633)
Foreign exchange (53) (4) (75) (2) (134)
Net finance expense from insurance contracts issued 45 (14) 39 - 70
Total changes in statement of comprehensive income (12,215) (7) 11,519 6 (697)
Other movements¹,²,³ 305 (44) (159) - 102
Non-distinct investment components (23) - 23 - -
Cash flows
Premiums received 12,518 - - - 12,518
Claims and other expenses paid - - (11,361) - (11,361)
Insurance acquisition cash flows (106) - - - (106)
Total cash flows 12,412 - (11,361) - 1,051
Insurance contract liabilities at end of year 1,656 40 1,335 33 3,064
1. Other movements include £301m of insurance contract liabilities recognised on
the consolidation of Niva Bupa.
2. Other movements include £44m within the loss component related to the legacy
portfolio of individual health contracts in Brazil which have been
reclassified to liabilities associated with assets held for sale. See Note 14.
3. Other movements include £159m of amortisation and depreciation expenses
included within insurance service expense that are non-cash items that do not
form part of the insurance contract liabilities balance.
Liability for remaining coverage Liability for incurred claims Total
For six months ended 30 June 2024 Excluding loss component Loss component Estimates of present value of future cash flows Risk adjustment £m
£m¹
£m²
£m £m
Insurance contract liabilities at beginning of period 1,177 91 1,313 27 2,608
Insurance revenue (5,937) - - - (5,937)
Insurance service expenses 23 (13) 5,733 5 5,748
Incurred claims and other expenses - - 5,842 12 5,854
Amortisation of insurance acquisition cash flows 23 - - - 23
Losses on onerous contracts and (reversals) of those losses - (13) - - (13)
Changes to liabilities for incurred claims relating to past service - - (109) (7) (116)
Insurance service result (5,914) (13) 5,733 5 (189)
Foreign exchange (15) (5) (31) (1) (52)
Net finance expense from insurance contracts issued - (10) 19 - 9
Total changes in statement of comprehensive income (5,929) (28) 5,721 4 (232)
Other movements¹,² 305 - (74) - 231
Non-distinct investment components (11) - 11 - -
Cash flows
Premiums received 6,327 - - - 6,327
Claims and other expenses paid - - (5,484) - (5,484)
Insurance acquisition cash flows (62) - - - (62)
Total cash flows 6,265 - (5,484) - 781
Insurance contract liabilities at end of period 1,807 63 1,487 31 3,388
1. Other movements include £301m of insurance contract liabilities recognised on
the consolidation of Niva Bupa.
2. Other movements include £74m of amortisation and depreciation expenses
included within insurance service expense that are non-cash items that do not
form part of the insurance contract liabilities balance.
Contracts measured on a GMM basis
The Group had a legacy portfolio of individual health contracts in Brazil,
measured on a GMM basis, which was included within the loss component. This
portfolio was onerous as, due to regulatory restrictions on pricing, the
insurance contracts continued to renew at premium rates that did not reflect
the current cost of claims.
At 31 December 2024, the Brazil portfolio was classified as being held for
sale and the loss component balance of £44m was transferred to liabilities
associated with assets held for sale within the Condensed Consolidated
Statement of Financial Position. The disposal was completed in February 2025.
See Note 18.
13.2 Reinsurance contracts roll forward
For six months ended 30 June 2025 Asset for remaining coverage Amount recoverable on incurred claims Total
£m £m £m
Reinsurance contract assets at beginning of period (26) 116 90
Allocation of reinsurance premiums (164) - (164)
Amounts recoverable from reinsurers for incurred claims:
Amounts recoverable for incurred claims and other expenses - 148 148
Changes to amounts recoverable for incurred claims relating to past service - (1) (1)
Net expense from reinsurance contracts held (164) 147 (17)
Foreign exchange (2) (5) (7)
Cash flows
Premiums paid 189 - 189
Recoveries from reinsurance - (140) (140)
Total cash flows 189 (140) 49
Reinsurance contract assets at end of period (3) 118 115
A risk adjustment is estimated on the amount recoverable on incurred claims
using a confidence level approach at the 85th percentile (HY 2024 and FY 2024:
85th percentile). As this only totals £1m, this has not been separately
presented.
For year ended 31 December 2024 Asset for remaining coverage Amount recoverable on incurred claims Total
£m £m £m
Reinsurance contract assets at beginning of year (16) 54 38
Allocation of reinsurance premiums (284) - (284)
Amounts recoverable from reinsurers for incurred claims:
Amounts recoverable for incurred claims and other expenses - 275 275
Changes to amounts recoverable for incurred claims relating to past service - (2) (2)
Net expense from reinsurance contracts held (284) 273 (11)
Foreign exchange (1) (1) (2)
Other movements¹ 46 - 46
Cash flows
Premiums paid 229 - 229
Recoveries from reinsurance - (210) (210)
Total cash flows 229 (210) 19
Reinsurance contract assets at end of year (26) 116 90
1. Other movements include £46m of reinsurance contract assets recognised on the
consolidation of Niva Bupa.
For six months ended 30 June 2024 Asset for remaining coverage Amount recoverable on incurred claims Total
£m
£m £m
Reinsurance contract assets at beginning of period (16) 54 38
Allocation of reinsurance premiums (135) - (135)
Amounts recoverable from reinsurers for incurred claims:
Amounts recoverable for incurred claims and other expenses - 134 134
Net expense from reinsurance contracts held (135) 134 (1)
Foreign exchange (1) - (1)
Other movements¹ 46 - 46
Cash flows
Premiums paid 106 - 106
Recoveries from reinsurance - (78) (78)
Total cash flows 106 (78) 28
Reinsurance contract assets at end of period - 110 110
1. Other movements include £46m of reinsurance contract assets recognised on the
consolidation of Niva Bupa.
14 Assets and liabilities held for sale
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Assets held for sale
Property, plant and equipment 24 14 9
Deferred taxation assets - 14 -
Total assets held for sale 24 28 9
Liabilities associated with assets held for sale
Insurance contract liabilities - (39) -
Total liabilities held for sale - (39) -
Net assets/(liabilities) held for sale 24 (11) 9
Net assets held for sale as at 30 June 2025 comprise a number of care homes
within Bupa Care Services.
An impairment loss of £nil (HY 2024: £nil; FY 2024: £1m) has been
recognised within other income and charges (see Note 4) in the Condensed
Consolidated Income Statement resulting from write-downs on the classification
of assets as held for sale in the period.
Net liabilities held for sale as at 31 December 2024 predominantly comprised
a legacy portfolio of individual health contracts in Brazil and a number of
care homes within Bupa Care Services. As at 30 June 2024, net assets held for
sale comprised a number of care homes within Bupa Care Services, and land,
buildings and other care homes assets within Bupa Villages and Aged Care New
Zealand and Australia.
15 Cash and cash equivalents
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Cash at bank and in hand 1,225 1,095 1,073
Short-term deposits 1,074 897 723
Total cash and cash equivalents 2,299 1,992 1,796
Cash and cash equivalents comprise cash balances, call deposits and other
short-term highly liquid investments (including money market funds) with
original maturities of three months or less, which are subject to an
insignificant risk of change in value.
Bank overdrafts of £1m (HY 2024: £2m; FY 2024: £nil) that are repayable on
demand are reported within other interest-bearing liabilities (Note 16) in the
Condensed Consolidated Statement of Financial Position. Demand deposits with
restrictions on use set by a third party that fundamentally change their
nature are reported within restricted assets (Note 11) in the Condensed
Consolidated Statement of Financial Position. Both of these are considered
components of cash and cash equivalents for the purpose of the Condensed
Consolidated Statement of Cash Flows.
16 Borrowings
At 30 June 2025 At 31 December 2024 At 30 June 2024
£m £m £m
Subordinated liabilities
Subordinated unguaranteed bonds 770 772 772
Total subordinated liabilities 770 772 772
Other interest-bearing liabilities
Senior unsecured bonds 741 714 735
Fair value adjustment in respect of hedged interest rate risk (6) (14) (25)
Bank loans and overdrafts 27 27 180
Other debt 5 32 34
Total other interest-bearing liabilities 767 759 924
Total borrowings 1,537 1,531 1,696
Non-current 1,506 1,477 1,619
Current 31 54 77
Bank loans and overdrafts
The Group maintains a £900m revolving credit facility in the name of Bupa
Finance plc, which matures in December 2028. The facility was undrawn at
30 June 2025 (HY 2024: £150m; FY 2024: undrawn). Bank loans and overdrafts
bear interest at commercial rates linked to SONIA for sterling or equivalent
for other currencies.
Other debt
The Group has other debt of £5m (HY 2024: £34m; FY 2024: £32m), which
included a loan from George Health Enterprises Pty Ltd settled in February
2025 (HY 2024: £29m; FY 2024: £27m).
Fair value of financial liabilities
The fair value of a financial liability is defined as the amount for which the
liability could be exchanged in an arm's-length transaction between informed
and willing parties. Fair values of subordinated liabilities and senior
unsecured bonds are calculated based on quoted prices. The fair values of
quoted liabilities in active markets are based on current offer prices. The
fair values of financial liabilities for which there is no active market are
established using valuation techniques. These may include reference to the
current fair value of other instruments that are substantially the same and
discounted cash flow analysis.
Financial liabilities are categorised into a three-level hierarchy. A
description of the different levels is detailed in Note 12. Where the fair
value of a bond cannot be otherwise determined from quoted market values, the
instrument is discounted using similar duration treasuries and applying an
instrument-specific spread.
An analysis of borrowings by fair value classification is as follows:
Level 1 Level 2 Level 3 Total
At 30 June 2025 £m £m £m £m
Subordinated liabilities 702 22 - 724
Senior unsecured bonds 750 - - 750
Other debt - - 5 5
Bank loans and overdrafts - 27 - 27
Total fair value 1,452 49 5 1,506
Level 1 Level 2 Level 3 Total
At 31 December 2024 £m £m £m £m
Subordinated liabilities 695 24 - 719
Senior unsecured bonds 729 - - 729
Other debt - - 32 32
Bank loans and overdrafts - 27 - 27
Total fair value 1,424 51 32 1,507
Level 1 Level 2 Level 3 Total
At 30 June 2024 £m £m £m £m
Subordinated liabilities 633 24 - 657
Senior unsecured bonds 689 - - 689
Other debt - - 34 34
Bank loans and overdrafts - 179 - 179
Total fair value 1,322 203 34 1,559
The Group does not have any material Level 3 financial liabilities except for
other debt.
17 Restricted Tier 1 (RT1) notes
On 24 September 2021, Bupa Finance plc issued £300m of RT1 notes with a fixed
coupon of 4.000% paid semi-annually in arrears. Transaction costs of £3m were
recognised in respect of the issue. The total coupon paid during the period
was £6m (HY 2024: £6m; FY 2024: £12m).
The RT1 notes are perpetual with no fixed maturity or redemption date. The
notes have a first call date of 24 March 2032 and interest is payable at the
sole and absolute discretion of Bupa Finance plc, with cancelled interest
providing no rights to the holder of the notes nor being considered a default.
The RT1 notes are therefore treated as equity. The notes are convertible to
share capital of Bupa Finance plc on the occurrence of certain trigger events.
18 Business combinations and disposals
(a) 2025 acquisitions
In January 2025, the Group acquired the business and assets of Eastbrooke
Medical Centres for consideration of £22m which comprised £18m cash payments
and contingent consideration of £4m. This transaction expands Bupa's
healthcare centres network in Australia by an additional 16 health clinics.
Net assets of £1m and goodwill of £21m were recognised on acquisition.
In April 2025, the Group acquired Medical Magnus, a leading private multi
profile hospital in Łódź, Poland, for consideration of £12m. Intangible
assets consisting of customer relationships, computer software and
brands/trademarks totalling £2m, other net assets of £6m and resulting
goodwill of £4m were recognised on acquisition.
Included in the Condensed Consolidated Income Statement is revenue of £7m and
profit before taxation of £1m in relation to those businesses acquired in the
period.
If the acquisition date of the businesses acquired during the period had been
1 January 2025, the Group would have reported revenue of £8,826m and profit
before taxation of £502m for the period ended 30 June 2025.
(b) 2025 disposals
In February 2025, the Group completed the sale of the legacy portfolio of
individual health contracts in Brazil, which was held for sale at 31 December
2024 (see Note 14), for a consideration paid of £13m. This has resulted in a
pre tax gain on disposal of £28m.
During the period, the Group completed the sale of 2 care homes in Bupa UK
Care Services for a total consideration of £5m. Other minor disposals in the
period include the sale of units in Cedar Manor Village in New Zealand.
19 Commitments and contingencies
Capital commitments
Capital expenditure for the Group contracted at 30 June 2025 but for which no
provision has been made in the Condensed Consolidated Financial Statements
amounted to £41m (HY 2024: £28m; FY 2024: £59m). Of this, £39m (HY 2024:
£25m; FY 2024: £58m) predominantly relates to aged care facility and
retirement village project commitments in Australia and New Zealand and
hospital projects in the UK; specifically £29m (HY 2024: £10m; FY 2024:
£40m) in relation to property, plant and equipment and £10m (HY 2024: £15m;
FY 2024: £18m) in relation to investment property. £2m (HY 2024: £3m, FY
2024: £1m) relates to computer software projects commitments in Australia and
the UK.
Contingent assets
The Group currently has no contingent assets.
Contingent liabilities
The Group has contingent liabilities arising in the ordinary course of
business. These include losses which might arise from litigation, consumer
matters, other disputes, regulatory compliance (including data protection) and
interpretation of law (including employment law and tax law). It is not
considered that the ultimate outcome of any contingent liabilities could have
a significant adverse impact on the financial condition of the Group.
The British United Provident Association Limited
Statement of Directors' responsibilities for the six months ended 30 June
2025
We confirm that to the best of our knowledge:
• The condensed set of financial statements have been prepared in accordance
with UK-adopted International Accounting Standard 34 Interim Financial
Reporting and the Disclosure Guidance and Transparency Rules sourcebook of the
United Kingdom's Financial Conduct Authority.
• The interim management report includes a fair review of the information
voluntarily provided in accordance with the requirements of:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the financial year.
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related parties' transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the Group during that period; and any changes in
the related parties transactions described in the last annual report that
could have a material effect on the financial position of the Group during the
first six months of the current financial year.
During the period 1 January 2025 to 30 June 2025 and to the date of this
statement, the Board of Directors of The British United Provident Association
Limited remained as listed in the Company's 2024 Annual Report with the
following exceptions: Don Robert became a Director on 27 February 2025, after
financial year-end on 31 December 2024 and before the 2024 Annual Report was
signed; and Sally Clark and Roger Davis both retired as Directors at the
Company's Annual General Meeting on 21 May 2025 and did not seek re-election.
By order of the Board
Iñaki
Ereño
James Lenton
Group
CEO
Group CFO
6 August 2025
Independent review report to The British United Provident Association Limited
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed The British United Provident Association Limited's condensed
consolidated interim financial statements (the "interim financial statements")
in the Condensed Consolidated Half Year Financial Statements of The British
United Provident Association Limited for the 6 month period ended 30 June 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority as if the company were required to comply with these rules.
The interim financial statements comprise:
• the Condensed Consolidated Statement of Financial Position as
at 30 June 2025;
• the Condensed Consolidated Income Statement for the period
then ended;
• the Condensed Consolidated Statement of Comprehensive Income
for the period then ended;
• the Condensed Consolidated Statement of Cash Flows for the
period then ended;
• the Condensed Consolidated Statement of Changes in Equity for
the period then ended; and
• the explanatory notes to the interim financial statements.
The interim financial statements included in the Condensed Consolidated Half
Year Financial Statements of The British United Provident Association Limited
have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority as if the company were required to comply with these rules.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Condensed Consolidated
Half Year Financial Statements and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the interim
financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Condensed Consolidated Half Year Financial Statements, including the
interim financial statements, is the responsibility of, and has been approved
by the directors. The directors are responsible for preparing the Condensed
Consolidated Half Year Financial Statements in accordance with the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority as if the company were required to comply with these rules.
In preparing the Condensed Consolidated Half Year Financial Statements,
including the interim financial statements, the directors are responsible for
assessing the group's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Condensed Consolidated Half Year Financial Statements based
on our review. Our conclusion, including our Conclusions relating to going
concern, is based on procedures that are less extensive than audit procedures,
as described in the Basis for conclusion paragraph of this report. This
report, including the conclusion, has been prepared for and only for the
company for the purpose of complying with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority as if the company were required to comply with these rules and for
no other purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
6 August 2025
1 (#_ftnref1) All references to customer numbers herein include 100% of our
associate businesses. Note customer counting methodologies may vary between
business units, and in certain business units customers are counted more than
once if they choose to purchase or utilise multiple products or services as
part of our connected care offering.
2 (#_ftnref2) Underlying profit is a Non-GAAP financial measure. A
reconciliation to statutory profit before taxation can be found in the notes
to the financial statements.
3 (#_ftnref3) Garantías Explícitas en Salud price increase was originally
approved by the regulator in October 2022, subsequently overruled by the
supreme court and cancelled from 1 January 2024.
4 (#_ftnref4) In January 2024 we increased our shareholding in Niva Bupa to
become the controlling shareholder. On acquisition we remeasured the business
to fair value, recognising a £321m increase in the value of our existing
stake to £417m. On a fully consolidated basis at HY 2024 on Actual Exchange
Rates, Niva Bupa reported a £45m underlying loss, resulting from acquisition
cost strain on short term new business and renewals. Profit associated with
the value of in-force business of £48m was recognised at fair value on
acquisition of a controlling shareholding, of which £43m would have normally
earned through in HY 2024.
5 (#_ftnref5) Includes 7 Mental health clinics.
6 (#_ftnref6) Locations where Bupa provides services at corporate offices
with exclusive access for its employees, including dentistry services.
7 (#_ftnref7) Our mental health centres are branded as Harmonia clinics in
Poland.
8 (#_ftnref8) As reported at full year 2024 which includes a full 12 month
of provision customers served.
9 (#_ftnref9) Refers to Bupa Arabia and My Clinic.
10 (#_ftnref10) COR for our fully consolidated businesses is calculated
based on "Insurance service expense" plus "Net expense from reinsurance
contracts held" divided by "Insurance revenue" as shown in the Consolidated
Income Statement. Solo insurer CORs presented throughout are as a contribution
to Group, which may differ from the local statutory or regulatory basis.
11 (#_ftnref11) Calculated as the impact on Own Funds using the
retrospective 12-month net earned premium.
12 (#_ftnref12) Source: APRA industry data to 31 March 2025
13 (#_ftnref13) Closing occupancy.
14 (#_ftnref14) Inpatient Private Medical insurance product.
15 (#_ftnref15) Includes Health Trust customers which are excluded from the
Group's total customer count.
16 (#_ftnref16) TPA customers are excluded from the Group's total customer
count.
17 (#_ftnref17) Includes both Bupa owned & franchised units.
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