RCS - Brit Utd ProvAscBUPA - Bupa's 2024 Preliminary Results
06/03/2025 07:00
RNS Number : 5556Z British Utd Provident Assoc (BUPA) 06 March 2025 The British United Provident Association Limited (Bupa): FULL YEAR STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 Financial headlines[1],[2] • Total customers of 60.5m (2023: 50.0m) as we continue to deliver strong growth. • Revenue[3] of £16.9bn, up 16% (2023: £14.6bn) at Constant Exchange Rates (CER). Excluding Niva Bupa, which has been consolidated from this year, and the return of COVID-19 claims savings to customers in Australia Health Insurance, Group revenues increased by 10%. • Underlying profit[4] before taxation of £914m, up 59% at CER (2023: £576m) driven by strong revenue growth, supported by higher investment returns. • Statutory profit before taxation of £972m, up 72% at Actual Exchange Rates (AER) (2023: £564m). • Solvency II capital coverage ratio remains strong at 176%[5] (2023: 175%). • Leverage (excluding IFRS 16 lease liabilities) of 16.0% (2023: 20.1%). • In January 2024 we increased our investment to become the controlling shareholder in Niva Bupa, a leading Indian health insurance company. Subsequently, in November, Niva Bupa successfully listed a minority shareholding via IPO and raised additional capital, marking an exciting next step in the growth of the business. Iñaki Ereño, Group CEO, commented: "We have made strong progress over the past year, growing our business to support more customers across health insurance, health provision and aged care. We have continued to focus on improving our customers' experience and have expanded our digital health solution, Blua, which is now available in all our major markets. "Our 3x6 Strategy, which ran from 2021-24, has enabled us to accomplish a lot this year in support of Bupa's purpose: helping people live longer, healthier, happier lives and making a better world. While we have made significant progress, we know there is still more we can achieve. We are excited about our new strategy for 2025-27 which will help us to further deliver against our purpose." Market performance (all at CER) • Bupa Asia Pacific: Revenue increased by 13% to £6,277m. Excluding the return of COVID-19 related claims savings to customers in Australia Health Insurance (2024: £20m and 2023: £302m), revenue increased by 8%. Underlying profit increased by £297m to £446m due to increased demand in our provision businesses and actions taken to return our Hong Kong[6] insurance business to profitability, whilst the headline profit increase saw significant fluctuation driven by the reduction in the final return of COVID-19 claims savings to customers in Australia Health Insurance partially offset by the claims savings arising from COVID-19 disruption in 2023 not arising in 2024. • Europe and Latin America: Revenue grew by 13% to £5,427m while underlying profit increased by 30% to £442m in the year. The strong performance was driven by customer growth across the Market Unit and higher investment returns. Following adverse governmental, regulatory and judicial measures in Chile, referenced as a contingent liability in full year 2023, Isapre Cruz Blanca now has an approved payment plan. Accordingly, we have now recognised a financial liability of £187m (see market unit performance section for further detail). • Bupa Global, India and UK: Revenue grew by 22% to £5,151m. Excluding Niva Bupa revenue of £461m, which has been consolidated from this year, revenue increased by 11%. Despite growth in revenues and investment returns underlying profit reduced by (15%) to £228m. Niva Bupa reported a £51m underlying loss due to acquisition cost strain and the absence of £55m of in-force profit earning through in the period having recognised it at fair value on acquisition of a controlling shareholding. In the year, we were pleased to increase our investment in Niva Bupa to 56%[7] becoming the controlling shareholder, whilst the listing of a minority interest and raising of additional capital via IPO, marked an exciting next step for the growth of the business. On acquisition of a controlling shareholding we remeasured the business to fair value and revalued the existing carrying value of the business, recognising a gain of £309m in non-underlying items, highlighting the significant growth in value against our initial investment. • Other businesses[8]: Our associate businesses in Saudi Arabia have delivered significant growth, with underlying profit increasing by 17% to £97m as a result of higher volumes and investment returns. Group profitability • Total underlying profit was £914m, up 59% at CER (2023: £576m) driven by the increase in Market Unit profits, partially offset by an increase in central costs as we support business growth and increase investments into global capabilities, including environmental, social and governance (ESG) activities. • Statutory profit before tax was £972m, up 72% at AER (2023: £564m) driven by the £315m AER increase in underlying profit and £93m improvement in non-underlying items. The positive non-underlying result was mainly driven by the £309m gain on remeasuring the value of our existing minority stake in Niva Bupa to fair value, partially offset by the payment plan financial liability of £187m in Chile (see market unit performance section for further detail). Financial position • Solvency II capital coverage ratio remained strong at 176% (2023: 175%). • Leverage ratio is 23.1% (2023: 27.2%) when including IFRS 16 lease liabilities. Excluding these liabilities, the leverage ratio is 16.0% (2023: 20.1%). • Net cash generated from operating activities remained strong at £1,268m (2023: £1,182m). Other highlights • We expanded our provision footprint, opening 59 clinics, 34 dental centres, 16 on-site service centres[9], 2 care homes and 1 new hospital globally. • We've continued to expand Blua, our digital health solution, which is now available in all our major markets. We now have almost 7.5 million customers using Blua[10]. • In 2024, 92% of our Business Units improved their Net Promoter Score (NPS). • In our global People Pulse survey in November, we achieved our highest ever global engagement result of 84 (up from 82 in November 2023), exceeding the high performing (top decile) external benchmark by four points. • We invested £14.3m in our communities, with over £5.4m of this through the Bupa Foundations. • During 2024, we maintained our commitment to securing renewable electricity, moving from 91% in 2023 to 94% at the end of 2024, and remaining at 100% in our Bupa Asia Pacific market unit. In 2024, Spain, Türkiye and Mexico continued to secure 100% renewable energy. • In 2024, we became partners with three new Paralympic associations, having signed agreements with New Zealand, Hong Kong and Ecuador ahead of the 2024 Summer Paralympics in Paris, bringing our support of Paralympic associations to nine in total. These partnerships provide a valuable opportunity to create a positive social impact and strengthen our reputation. • In June, we became the official global healthcare partner of the All Blacks, Teams in Black, and the international healthcare partner of the Black Ferns. This four-year partnership will focus on exploring and promoting the connections between health and high performance across all teams. Enquiries Media - Duncan West (Corporate Affairs): 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. 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 Australia, the UK, Spain, Poland, Chile, Hong Kong SAR, India, Türkiye, Brazil, Mexico and New Zealand. We also have associate businesses[11] in Saudi Arabia. For more information, visit 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 by such forward-looking statements. Recipients should not place reliance on, 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 We have accomplished a lot this year in support of Bupa's purpose: helping people live longer, healthier, happier lives and making a better world. Everyone at Bupa should be proud of the progress we've made, both in 2024, and over the past four years since we launched our 3x6 Strategy. I'm incredibly proud of the dedication and hard work our Bupa colleagues have shown in caring for our customers and improving our performance. Their commitment to delivering outstanding care has made a real difference. Our strategy is centred on digital transformation, enhancing the customer experience and making Bupa an even better place to work - all while growing our business to support more customers and doing what we can to make the world a better place. We now serve over 60 million customers and almost 7.5 million people are using Blua, our digital health solution. In 2024, we made positive progress in three priority areas - our financial performance, our customer experience and our colleague engagement. • We've driven strong financial performance with revenue and underlying profit continuing to increase which is enabling us to reinvest in line with our purpose. • Listening to our customers and implementing improvements based on their feedback has enabled us to keep improving our customers' experience. As a result, the majority (92%) of our business units (BUs) have improved their NPS this year with four BUs exceeding our world-class ambition of 80 NPS across the Group. • In our second colleague engagement survey of the year, our score was 84 (up 2 from last year), a result that is regarded as world-class. More colleagues than ever took part, with over 70,000 employees completing the survey. Strategic progress Since 2021, we have been focused on delivering our 3x6 Strategy - centred around three bold ambitions, supported by six strategic and enabling pillars. We are proud of the significant progress we have made, having delivered demonstrable results against each of our three ambitions. Performance in 2024, the final year of the 3x6 Strategy, was especially strong as we were able to build on the positive momentum generated over previous years. • 40% customer care touchpoints owned by Bupa[12]: At the end of 2024, we owned 26% of our customer care touchpoints, having significantly expanded our digital health offerings (via Blua) and our physical provision network. • 60% active digital customers[13]: We ended the year with 46% of our funding customers actively engaging with us through digital channels, having successfully increased customer awareness and adoption of Blua. • 80 NPS[14]: By the end of the year, we achieved an average NPS score of 67, having focused on implementing customer experience improvements for the benefit our customers. Looking forward, there is more we can do to deliver on our three ambitions, and we are committed to accelerating our progress across these key priorities in 2025 and beyond. In the final year of the strategy, we also made significant progress against our six strategic and enabling pillars, including: • Customer: Our ambition is to be the world's most customer-centric healthcare company, which means we are committed to listening to our customers and acting on their feedback. This year, we implemented over 10,500 improvements to enhance the experience of our customers, patients and residents. These improvements have led to tangible benefits for our customers, as shown by the growth in NPS across the majority (92%) of our BUs. • Growth: We continue to grow our business through strong organic customer growth2. We have around 38m health insurance customers, reflecting a 27% increase from last year, and 23m provision customers, representing a 12% growth compared to 2023. In Australia, we've achieved nine consecutive quarters of maintaining or growing market share[15]. • Transformation: A key driver of our customer growth is Blua, our digital health solution, which is helping us attract and retain customers who prefer to access healthcare digitally. Currently, almost 7.5 million customers are using Blua globally (+36% vs 2023), benefiting from a network of more than 16,700 clinicians. In 2024, we delivered more than 6.5m digital consultations[16]. • Sustainability: In 2024, our Healthy Cities programme took place across all Market Units. This initiative aims to improve the physical and mental health of 1 million people by 2025, while also contributing to the restoration and regeneration of local environments. Last year, there were 63,000 active participants in Healthy Cities, collectively taking 16 billion steps (a 68% increase in steps from 2023) and unlocking £3.5 million in nature-related investments (a 75% increase from 2023). • Agile culture: Building an agile culture is central to our strategy, and customer feedback plays a key role in that. Through Bupa's Customer System, we've listened to more than 81,000 customer feedback calls and videos (+33% vs 2023), generated 39,000 improvement ideas (+66% vs 2023) via our internal Customer Listening Programme and made over 10,500 improvements (+31% vs 2023) to the customer experience. • Data: Data is transforming how we support our customers, enabling smarter, faster and more personalised care. Over 16,000 Bupa employees are now using data from our platforms to inform decision-making (a 33% increase from 2023). In 2024, we also ran our B-Disruptive Hackathon, an internal initiative designed to upskill employees in technology and unlock their innovative ideas to provide a better experience for our customers. Over 750 employees from 16 countries took part, generating ideas for integrating Artificial Intelligence (AI) into Blua. Outlook While we have made significant progress, we know there is still more we can achieve. That's why we have launched a new '3x100 Strategy' for 2025-27 which is designed to be an evolution and acceleration of the current 3x6 Strategy. We must stay focused on the work we've been doing over the past four years, while maintaining our relentless dedication to providing a world-class customer experience and continuing to build our data and digital capabilities. And we want to do more: more to support healthcare systems by making high quality healthcare available to more people and using our global influence for good; more to support our people by creating even more ways for them to enjoy working at Bupa; and more to deliver healthcare sustainably, protecting our planet and supporting the communities we serve. One example of how we are focused on the future is our industry-leading genome sequencing programme, My Genomic Health. This pilot programme offers more than 14,000 customers across the UK and Spain access to their genetic risk profiles for identifying preventable conditions, including certain types of cancer. This initiative is a key milestone in our journey to becoming a preventative healthcare partner for our customers. The macro-economic, political and regulatory outlook continues to be uncertain, but we remain confident for the future. We are well-placed to navigate challenges and take opportunities because of our underlying financial strength, resilience and diversified business model. Our purpose, ambition and values continue to guide everything we do and every decision we make. Our vision for the future is to do even more to help people live longer, healthier, happier lives and make a better world. FINANCIAL REVIEW Summary
| FY 2024 | FY 2023 (AER) | % growth | FY 2023 (CER) | % growth | |
| Revenue | £16.9bn | £15.1bn | 12% | £14.6bn | 16% |
| Underlying profit | £914m | £599m | 53% | £576m | 59% |
| Cash generated from operating activities | £1,268m | £1,182m | 7% | n/a | n/a |
| Statutory profit before taxation | £972m | £564m | 72% | n/a | n/a |
| Leverage (excl. IFRS 16) | 16.0% | 20.1% | 4.1ppts | n/a | n/a |
| Leverage (incl. IFRS 16) | 23.1% | 27.2% | 4.1ppts | n/a | n/a |
| Solvency | 176% | 175% | 1.0ppts | n/a | n/a |
| 2024 | 2023 | |
| £m | £m | |
| Bupa Asia Pacific at CER | 446 | 148 |
| Europe and Latin America at CER | 442 | 340 |
| Bupa Global, India and UK at CER | 228 | 269 |
| Other businesses at CER | 97 | 83 |
| Central costs | (299) | (264) |
| Consolidated underlying profit before taxation at CER | 914 | 576 |
| Foreign exchange re-translation on 2023 results (CER/AER) | - | 23 |
| Consolidated underlying profit before taxation at AER | 914 | 599 |
| Impairment of intangible assets and goodwill arising on business combinations | (2) | (1) |
| Niva Bupa fair value gain on pre-existing shareholding | 309 | - |
| Chile payment plan payable | (187) | - |
| Short-term fluctuation on investment returns | (9) | 31 |
| Net loss on disposal of businesses and transaction costs on business combinations | (26) | (1) |
| Net property revaluation gains/(losses) | 9 | (21) |
| Realised and unrealised foreign exchange gains | 10 | 2 |
| Amortisation of bed licences | (13) | (32) |
| Other non-underlying items | (33) | (13) |
| Total non-underlying items | 58 | (35) |
| Statutory profit before taxation at AER | 972 | 564 |
| Risk Sensitivities | Solvency II coverage ratio |
| Solvency coverage ratio | 176% |
| Property values -10% | 166% |
| Loss ratio worsening by 2% | 168% |
| Sterling depreciates by 20% | 170% |
| Group Specific Parameter (GSP) +0.2% | 173% |
| Credit spreads +100bps (no credit transition) | 175% |
| Interest rate +/-100bps | 175% |
| Equity markets -20% | 175% |
| Pension risk +10% | 176% |
| Revenue | Underlying profit | |
| 2024 | £6,277m | £446m |
| 2023 (AER) | £5,726m | £154m |
| % growth | 10% | 190% |
| 2023 (CER) | £5,541m | £148m |
| % growth | 13% | 201% |
| Revenue | Underlying profit | |
| 2024 | £5,427m | £442m |
| 2023 (AER) | £5,083m | £355m |
| % growth | 7% | 25% |
| 2023 (CER) | £4,807m | £340m |
| % growth | 13% | 30% |
| Revenue | Underlying profit | |
| 2024 | £5,151m | £228m |
| 2023 (AER) | £4,235m | £269m |
| % growth/(decline) | 22% | (15%) |
| 2023 (CER) | £4,218m | £269m |
| % growth/(decline) | 22% | (15%) |
| Revenue | Underlying profit | |
| 2024 | £9m | £97m |
| 2023 (AER) | £8m | £85m |
| % growth | 13% | 14% |
| 2023 (CER) | £8m | £83m |
| % growth | 13% | 17% |
| 2024 | 2023 | |
| £m | £m | |
| Insurance revenue | 12,233 | 10,770 |
| Insurance service expenses | (11,600) | (10,318) |
| Insurance service result before reinsurance contracts held | 633 | 452 |
| Net expense from reinsurance contracts held | (11) | (7) |
| Insurance service result | 622 | 445 |
| Care, health and other customer contract revenue | 4,589 | 4,268 |
| Other revenue | 102 | 78 |
| Total non-insurance revenue | 4,691 | 4,346 |
| Share of post-taxation results of equity-accounted investments | 94 | 83 |
| Impairment of goodwill and intangible assets | (11) | (17) |
| Other operating expenses | (4,960) | (4,443) |
| Other income and charges | 331 | 42 |
| Total other expenses, income and charges | (4,546) | (4,335) |
| Profit before financial income and expense | 767 | 456 |
| Financial income and expense | ||
| Financial income | 509 | 363 |
| Financial expense | (197) | (192) |
| Net financial expense from insurance contracts issued | (70) | (25) |
| Net monetary loss | (16) | (18) |
| Net impairment on financial assets | (21) | (20) |
| Net financial income | 205 | 108 |
| Profit before taxation expense | 972 | 564 |
| Taxation expense | (212) | (140) |
| Profit for the year | 760 | 424 |
| Attributable to: | ||
| Bupa | 772 | 422 |
| Non-controlling interests | (12) | 2 |
| Profit for the year | 760 | 424 |
| 2024 | 2023 | |
| £m | £m | |
| Profit for the year | 760 | 424 |
| Other comprehensive income/(expense) | ||
| Items that will not be reclassified to the Income Statement | ||
| Unrealised gain/(loss) on revaluation of property | 123 | (15) |
| Remeasurement loss on pension schemes | (65) | (40) |
| Taxation (charge)/credit on income and expenses recognised directly in other comprehensive income | (18) | 14 |
| Items that may be reclassified subsequently to the Income Statement | ||
| Foreign exchange translation differences on goodwill | (99) | (55) |
| Other foreign exchange translation differences | (274) | (235) |
| Net gain on hedge of net investment in overseas subsidiaries | 79 | 73 |
| Share of other comprehensive (expense)/income of equity-accounted investments | (2) | 2 |
| Change in fair value of financial investments through other comprehensive income | 11 | (4) |
| Change in expected credit losses (ECL) of financial investments through other comprehensive income | 5 | 1 |
| Realised loss on disposal of financial investments at fair value through other comprehensive income | - | 4 |
| Change in cash flow hedge reserve | 7 | (7) |
| Release of foreign exchange translation reserve on derecognition of equity-accounted investments and subsidiaries | 11 | (2) |
| Taxation charge on income and expenses recognised directly in other comprehensive income | (3) | - |
| Total other comprehensive expense | (225) | (264) |
| Comprehensive income for the year | 535 | 160 |
| Attributable to: | ||
| Bupa | 547 | 160 |
| Non-controlling interests | (12) | - |
| Comprehensive income for the year | 535 | 160 |
| 2024 | 2023 | |
| £m | £m | |
| Assets | ||
| Goodwill and intangible assets | 3,178 | 2,705 |
| Property, plant and equipment | 3,737 | 3,629 |
| Investment property | 756 | 776 |
| Equity-accounted investments | 1,016 | 1,056 |
| Post-employment benefit net assets | 333 | 384 |
| Deferred taxation assets | 193 | 208 |
| Restricted assets | 137 | 122 |
| Financial investments | 4,693 | 3,638 |
| Derivative assets | 65 | 46 |
| Reinsurance contract assets | 90 | 38 |
| Current taxation assets | 19 | 54 |
| Inventories | 67 | 76 |
| Trade and other receivables | 822 | 815 |
| Assets held for sale | 28 | 48 |
| Cash and cash equivalents | 1,992 | 2,278 |
| Total assets | 17,126 | 15,873 |
| Liabilities | ||
| Subordinated liabilities | (772) | (747) |
| Other interest-bearing liabilities | (759) | (1,090) |
| Post-employment benefit net liabilities | (46) | (51) |
| Lease liabilities | (884) | (900) |
| Deferred taxation liabilities | (195) | (243) |
| Share purchase liability | (6) | - |
| Derivative liabilities | (40) | (63) |
| Provisions for liabilities and charges | (345) | (352) |
| Insurance contract liabilities | (3,064) | (2,608) |
| Current taxation liabilities | (68) | (35) |
| Trade and other payables | (2,869) | (2,462) |
| Liabilities associated with assets held for sale | (39) | (9) |
| Total liabilities | (9,087) | (8,560) |
| Net assets | 8,039 | 7,313 |
| Equity | ||
| Foreign exchange translation reserve | 21 | 241 |
| Property revaluation reserve | 668 | 601 |
| Cash flow hedge reserve | - | (7) |
| Income and expenditure reserve | 6,918 | 6,163 |
| Equity attributable to the Company | 7,607 | 6,998 |
| Restricted Tier 1 notes | 297 | 297 |
| Non-controlling interests | 135 | 18 |
| Total equity | 8,039 | 7,313 |
| 2024 | 2023 | |
| £m | £m | |
| Cash flow from operating activities | ||
| Profit before taxation expense | 972 | 564 |
| Adjustments for: | ||
| Net financial income | (291) | (151) |
| Net monetary loss | 16 | 18 |
| Depreciation, amortisation and impairment | 509 | 525 |
| Other non-cash items¹ | (526) | (182) |
| Changes in working capital and provisions: | ||
| Increase in insurance contract liabilities | 336 | 342 |
| Increase in reinsurance contract assets | (8) | (18) |
| Funded pension scheme employer contributions | (3) | (2) |
| (Increase)/decrease in trade and other receivables, and other assets | (51) | 1 |
| Increase in trade and other payables, and other liabilities | 513 | 246 |
| Cash generated from operations | 1,467 | 1,343 |
| Income taxation paid | (201) | (167) |
| Decrease in cash held in restricted assets | 2 | 6 |
| Net cash generated from operating activities | 1,268 | 1,182 |
| Cash flow from investing activities | ||
| Acquisition of subsidiaries and businesses, net of cash acquired | (268) | (63) |
| Investment in equity-accounted investments | (6) | (22) |
| Dividends received from equity-accounted investments | 47 | 42 |
| Disposal of subsidiaries and other businesses, net of cash disposed of | 69 | 30 |
| Purchase of intangible assets | (170) | (122) |
| Purchase of property, plant and equipment | (311) | (266) |
| Proceeds from sale of property, plant and equipment | 5 | 19 |
| Purchase of investment property | (30) | (38) |
| Purchases of financial investments, excluding deposits with credit institutions | (2,778) | (1,983) |
| Proceeds from sale and maturities of financial investments, excluding deposits with credit institutions | 2,037 | 1,921 |
| Net (investments into)/withdrawals from deposits with credit institutions | (18) | 88 |
| Interest received | 440 | 240 |
| Net cash used in investing activities | (983) | (154) |
| Cash flow from financing activities | ||
| Payment of Restricted Tier 1 coupon | (12) | (12) |
| Proceeds from issue of interest-bearing liabilities and drawdowns on other borrowings | - | 493 |
| Repayment of interest-bearing liabilities and other borrowings | (318) | (342) |
| Principal repayment of lease liabilities | (138) | (148) |
| Payment of interest on lease liabilities | (49) | (49) |
| Capital contributions from non-controlling interests in subsidiary | 72 | - |
| Interest paid | (72) | (66) |
| Net receipts on settlement of hedging instruments | 55 | 57 |
| Dividends paid to non-controlling interests | (3) | (2) |
| Net cash used in financing activities | (465) | (69) |
| Net (decrease)/increase in cash and cash equivalents | (180) | 959 |
| Cash and cash equivalents at beginning of year² | 2,362 | 1,479 |
| Effect of exchange rate changes | (87) | (76) |
| Cash and cash equivalents at end of year² | 2,095 | 2,362 |
| 1. | 2024 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. |
| 2. | Includes restricted cash of £103m (2023: £87m) which are considered cash and cash equivalents along with cash balances classified as held for sale of £nil (2023: £2m) and bank overdrafts of £nil (2023: £1m) which are not considered cash and cash equivalents. |
| 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 | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| 2024 | ||||||||
| 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 | - | - | - | (65) | (65) | - | - | (65) |
| Foreign exchange translation differences on goodwill | (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 income of equity-accounted investments | - | - | - | (2) | (2) | - | - | (2) |
| Change in fair value of financial investments through other comprehensive income | - | - | - | 7 | 7 | - | 4 | 11 |
| 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 equity-accounted investments and subsidiaries | 11 | - | - | - | 11 | - | - | 11 |
| Taxation credit/(charge) on income and expense recognised directly in other comprehensive income | 1 | (25) | - | 4 | (20) | - | (1) | (21) |
| 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 | - | - | - | (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 |
| 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 | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| 2023 | ||||||||
| Balance as at 1 January 2023 | 437 | 634 | - | 5,777 | 6,848 | 297 | 20 | 7,165 |
| Profit for the year | - | - | - | 422 | 422 | - | 2 | 424 |
| Other comprehensive income/(expense) | ||||||||
| Unrealised loss on revaluation of property | - | (15) | - | - | (15) | - | - | (15) |
| Realised revaluation profit on disposal of property | - | (5) | - | 5 | - | - | - | - |
| Remeasurement loss on pension schemes | - | - | - | (40) | (40) | - | - | (40) |
| Foreign exchange translation differences on goodwill | (55) | - | - | - | (55) | - | - | (55) |
| Other foreign exchange translation differences | (212) | (13) | - | (8) | (233) | - | (2) | (235) |
| Net gain on hedge of net investment in overseas subsidiaries | 73 | - | - | - | 73 | - | - | 73 |
| Share of other comprehensive income of equity-accounted investments | - | - | - | 2 | 2 | - | - | 2 |
| Change in fair value of financial investments through other comprehensive income | - | - | - | (4) | (4) | - | - | (4) |
| Change in ECL of financial investments through other comprehensive income | - | - | - | 1 | 1 | - | - | 1 |
| Realised loss on disposal of financial investments at fair value through other comprehensive income | - | - | - | 4 | 4 | - | - | 4 |
| Change in cash flow hedge reserve | - | - | (7) | - | (7) | - | - | (7) |
| Release of foreign exchange translation reserve on derecognition of subsidiaries | (2) | - | - | (2) | - | - | (2) | |
| Taxation credit on income and expense recognised directly in other comprehensive income | - | - | - | 14 | 14 | - | - | 14 |
| Other comprehensive expense for the year, net of taxation | (196) | (33) | (7) | (26) | (262) | - | (2) | (264) |
| Total comprehensive (expense)/income for the year | (196) | (33) | (7) | 396 | 160 | - | - | 160 |
| Payment of Restricted Tier 1 coupon, net of taxation | - | - | - | (10) | (10) | - | - | (10) |
| Dividends paid to non-controlling interests | - | - | - | - | - | - | (2) | (2) |
| Balance as at 31 December 2023 | 241 | 601 | (7) | 6,163 | 6,998 | 297 | 18 | 7,313 |
| Reportable segments | Service 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. Sanitas Dental: Insurance and dental services through clinics and third-party networks in Spain. 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. |
| 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. Associate: Highway to Health (United States of America) (operating as GeoBlue). From 2024: Niva Bupa (India): Health insurance and related products in India. |
| Other businesses | Associate: Bupa Arabia (Kingdom of Saudi Arabia). Prior to 2024: Associate: Niva Bupa (India): Health insurance and related products in India. |
| - | 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 - following the Australian Government's announcement of the deregulation of bed licences from 1 July 2024, their amortisation term was reviewed and updated from having an indefinite useful life to amortising over the period to 1 July 2024. In May 2024, the Australian Government announced that the deregulation would be delayed until 1 July 2025. In November 2024, the remaining bed license were impaired as part of external care home valuation process. The impact of the amortisation of bed licences is 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. |
| Bupa Asia Pacific | Europe and Latin America | Bupa Global, India and UK | Other businesses | Group Functions | Adjustment¹ | Total | |
| 2024 | £m | £m | £m | £m | £m | £m | £m |
| 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 |
| 1 | Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye. |
| Bupa Asia Pacific | Europe and Latin America | Bupa Global and UK | Other businesses | Group Functions | Adjustment¹ | Total | |
| 2023 | £m | £m | £m | £m | £m | £m | £m |
| Insurance revenue | 4,412 | 3,359 | 2,935 | - | - | 64 | 10,770 |
| Inter-Market Unit revenue | (59) | - | 59 | - | - | - | - |
| Insurance revenue for reportable segments | 4,353 | 3,359 | 2,994 | - | - | 64 | 10,770 |
| Care, health and other customer contract revenue | 1,320 | 1,710 | 1,238 | - | - | - | 4,268 |
| Other revenue | 53 | 14 | 3 | 8 | - | - | 78 |
| Non-insurance revenue for reportable segments | 1,373 | 1,724 | 1,241 | 8 | - | - | 4,346 |
| Total revenue for reportable segments | 5,726 | 5,083 | 4,235 | 8 | - | 64 | 15,116 |
| 1. | Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye. |
| Bupa Asia Pacific | Europe and Latin America | Bupa Global, India and UK¹ | Other businesses¹,² | Group Functions | Adjustment³ | Total | |
| 2024 | £m | £m | £m | £m | £m | £m | £m |
| Underlying profit | 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 combinations | (8) | 1 | (12) | (1) | (6) | - | (26) |
| Net property revaluation gain | 3 | 1 | 5 | - | - | - | 9 |
| Realised and unrealised FX (loss)/gain | - | (2) | 23 | - | 1 | (12) | 10 |
| Amortisation of bed licenses | (13) | - | - | - | - | - | (13) |
| Other non-underlying items²,⁴ | (1) | (199) | (20) | 309 | - | - | 89 |
| Total non-underlying items | 58 | ||||||
| Consolidated profit before taxation expense | 972 |
| 1. | Niva Bupa has been fully consolidated into the Bupa Global, India and UK Market Unit from the acquisition date in FY 2024 and the entity is no longer included in Other businesses. |
| 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. |
| 4. | 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. |
| Bupa Asia Pacific | Europe and Latin America | Bupa Global and UK | Other businesses | Group Functions | Adjustment¹ | Total | |
| 2023 | £m | £m | £m | £m | £m | £m | £m |
| Underlying profit | 154 | 355 | 269 | 85 | (130) | - | 733 |
| Borrowing costs | - | - | - | - | (82) | - | (82) |
| Group investment funding | - | - | - | - | (52) | - | (52) |
| Consolidated underlying profit before taxation expense | 154 | 355 | 269 | 85 | (264) | - | 599 |
| Non-underlying items: | |||||||
| Impairments of intangible assets and goodwill arising on business combinations | - | (1) | - | - | - | - | (1) |
| Short-term fluctuation on investment returns | 12 | - | 16 | - | 3 | - | 31 |
| Net (loss)/gain on disposal of businesses and transaction costs on business combinations | (2) | (9) | 10 | - | - | - | (1) |
| Net property revaluation loss | (3) | - | (18) | - | - | - | (21) |
| Realised and unrealised FX (loss)/gain | - | (7) | 12 | 2 | 5 | (10) | 2 |
| Amortisation of bed licenses | (32) | - | - | - | - | - | (32) |
| Other non-underlying items² | - | (17) | (23) | 27 | - | - | (13) |
| Total non-underlying items | (35) | ||||||
| Consolidated profit before taxation expense | 564 |
| 1. | Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye. |
| 2. | Other non-underlying items includes £17m and £18m relating to restructuring costs in Europe and Latin America and Bupa Global and UK. Other businesses includes a £27m dilution gain on the issue of share capital in Niva Bupa to external investors. |
Recent news on Exact Sciences
See all newsNASDAQ TRADE HALT CONTINUES REASON NOT AVAILABLE AT 03:58 AM
NASDAQ TRADE HALT CONTINUES TRADING HALTED; FOR INFORMATION REQUESTED BY NASDAQ AT 03:28 AM
NASDAQ TRADE HALT CONTINUES TRADING HALTED; FOR INFORMATION REQUESTED BY NASDAQ AT 03:28 AM
NASDAQ TRADE HALT TRADING HALTED; FOR INFORMATION REQUESTED BY NASDAQ AT 07:50 PM
Brief: Exact Sciences Stockholders Approve Acquisition By Abbott