Half-year Financial Report
Bupa Finance plc (Bupa Finance)
HALF YEAR STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2026
Iñaki Ereño, Bupa Group CEO, commented:
"We are at the halfway point of our 3x100 Strategy[1] and we are encouraged to see more customers than ever choose Bupa which is driving strong performance as we scale the business. This is enabling us to invest further in our digital and in-person health provision to make it even easier for our customers to access high-quality care in a way that's convenient for them."
Performance headlines
• Insurance customers increased by 12% to 49.7m, health provision customers increased 8% to 15.5m and aged care closing occupancy remained high at 94%.
• As a result of this strong customer growth and price increases, revenue increased by 10% to £9.9bn. Combined with a 1ppt improvement in the Group Combined Operating Ratio (COR)[2] of Bupa's insurance business to 94%, this drove a 20% increase in underlying profit to £683m at constant exchange rates (CER).
• Statutory profit before tax of £654m was up 12% at actual exchange rates (AER).
• Solvency II capital coverage ratio of 189% is above the top end of Bupa's working range, reflecting the Bupa Group's strong capital position underpinned by the short-duration profile of its insurance liabilities.
Trading performance
HY 2026
HY 2025 (CER)
% growth
(CER)
HY 2025 (AER)
% growth
(AER)
Customers[3]
65.2m
n/a
n/a
58.9m
11%
Revenue[4]
£9.9bn
£9.0bn
10%
£8.8bn
12%
Underlying profit[5]
£683m
£571m
20%
£560m
22%
Statutory profit before tax
£654m
n/a
n/a
£582m
12%
Cash and capital
HY 2026
HY 2025 (AER)
% growth
(AER)
Cash generated from operating activities
£863m
£974m
(11%)
Leverage (excl. lease liabilities)
14.9%
16.4%
1.5ppts
Leverage (incl. lease liabilities)
22.4%
23.7%
1.3ppts
Solvency
189%
182%
7ppts
Strategic progress
• Bupa's drive to implement customer experience improvements has helped it reach a global average NPS score of 74, up +4.5 pts year-on-year and +2.1 pts over the last six months, and 7.3 points since the start of the strategy. When compared to the same period last year, 96% of its business units improved their NPS and 70% achieved an NPS score of over 70.
• Bupa has continued to expand the number of health provision sites available to its customers with 95 additional sites in the last year (+23 over the last six months) across hospitals, clinics and dental. In June 2026, Bupa announced the acquisition of Partnered Health Group in Australia, subject to regulatory approval.
• Since the start of the project, Bupa has opened 53 Mindplaces across six countries (+7 over the last six months). It now has a total of 59 Mindplaces[6] globally, helping make high-quality mental healthcare accessible to more people.
• Bupa has continued to expand its genomics capabilities, introducing pharmacogenomic testing, polygenic risk testing and whole genome sequencing across selected markets. Last year, it also launched what is now Europe's largest whole genome sequencing programme by a private healthcare company.
Outlook
• Bupa is encouraged by the strong growth and performance across the Group as it reaches the half way point in its 3x100 Strategy. While global macro-economic and geopolitical uncertainty creates challenges, and changes in governmental and regulatory policy remain one of our top risks, the Group is well positioned to navigate these challenges and look for further opportunities.
Enquiries
Media - Duncan West (External Communications): duncan.west@bupa.com
Investors - Mike Lunn (Treasury): ir@bupa.com
This statement is also available at www.bupa.com/financials/results-centre
About Bupa Finance plc
Bupa Finance plc (the Company) is a company incorporated in England and Wales. The Condensed Consolidated Half Year Financial Statements comprise the financial results and position of the Company and its subsidiaries (together referred to as the Group). The immediate and ultimate parent of the Company and its Group is The British United Provident Association Limited (the Parent or 'Bupa'), and Bupa together with its subsidiaries is referred to as the Bupa Group.
Established in 1947, Bupa's purpose is helping people live longer, healthier, happier lives and making a better world. The Bupa Group is an international healthcare company which served 68 million customers worldwide in 2025[7]. As Bupa is a company limited by guarantee, and therefore has no shareholders, it can reinvest profits into providing more and better healthcare for the benefit of current and future customers. The Bupa Group has businesses around the world, principally in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico and India. It also has associate businesses[8] in Saudi Arabia.
For more information, see 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 Bupa Finance plc 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.
Bupa Group CEO's Review
Progress against our 3x100 strategy
Bupa launched its new 3x100 Strategy at the start of 2025 which set three Ambition KPIs which the Bupa Group are striving towards. As Bupa reaches the halfway point of its three-year strategy, it has made good progress against each of its ambitions:
• To have a Customer Net Promoter Score of 100. Since the launch of its 3x6 strategy, and now through 3x100, Bupa have continued to see more customers recommending them. Since this time last year, it has increased our NPS score by +4.5pts (including +2.1pts over the last six months), to achieve an average NPS score of 74 across all its business units. This represents an increase of 7.3pts since the beginning of the strategy. This is a new high score for Bupa and demonstrates its focus on achieving its ambition to be the world's most customer-centric healthcare company.
• To achieve a 100% Complete Customer Dataset. In 2025, Bupa reached its first 60% goal on data foundations. The Group is now focused on expanding customer clinical data, the remaining 40% of its ambition.
• To have 100m customers supported by Bupa. Compared to the first six months of 2025, Bupa increased its insurance customers by 12% to 49.7m, served 15.5m provision customers, up 8%, and its aged care occupancy rate is 94%.
Other highlights
• Increased health provision: In line with Bupa's Connected Care strategy to bring health funding and provision care pathways together for its customers, it has increased the number of health provision sites available to its customers with 95 opening in the last year (+23 over the last six months). It now operates 919 dental centres, 538 clinics and health centres, and 28 hospitals around the world.On completion, the acquisition of Partnered Health Group will add 68 primary care clinics, three urgent care clinics, and corporate health and wellbeing services, further strengthening Bupa's health provision footprint in Australia.
• Digital healthcare: More customers are engaging with Bupa digitally through Blua, its digital healthcare solution. Its registered customers reached almost 9m by 30 June 2026, up by around 0.9m, when compared to the same period last year (+0.3m over the last six months), and up by around 1.5m since the start of the strategy.
• Healthy Cities: Central to Bupa's purpose is making a better world. Through its 2026 Healthy Cities programme, Bupa is progressing towards its aim of supporting three million people to adopt healthier lifestyles while regenerating urban environments.
• People engagement: Bupa's latest global people engagement score in May 2026 was 84, maintaining its highest score to date and exceeding Microsoft Viva Glint's high performing benchmark (top 10%) of the most engaged companies globally. All its Market Units are now at or above this benchmark. Participation was at 86%. This high level of engagement across the Group has supported Bupa's strong strategic momentum.
Outlook
Bupa is encouraged by the strong growth and performance across the Group as it reaches the half way point in its 3x100 Strategy and the commitment from Bupa's colleagues.
Continued global macro-economic and geopolitical uncertainty create challenges for Bupa's businesses to navigate while changes in governmental and regulatory policy remain one of the Bupa Group's top risks. The Bupa Group remains well-placed to navigate these challenges and to take advantage of opportunities because of its underlying financial strength, resilience and diversified business model.
Bupa is confident for the future given there is positive momentum behind its 3x100 Strategy and its ambition to be the world's most customer-centric healthcare company. There is much to do and the Bupa Group is focused on supporting people's changing health and wellbeing needs by investing in innovation and provision, now and into the future.
FINANCIAL REVIEW
Summary
HY 2026
£m
HY 2025 (CER)
% growth
(CER)
HY 2025
(AER)
% growth
(AER)
Bupa Asia Pacific
3,433
3,255
5%
3,085
11%
Europe and Latin America
3,387
2,976
14%
2,911
16%
Bupa Global, India and UK
3,068
2,767
11%
2,807
9%
Other Businesses
6
4
39%
5
34%
Adjustment[9]
21
13
62%
14
50%
Total Revenue
9,915
9,015
10%
8,822
12%
Bupa Asia Pacific
268
256
5%
242
11%
Europe and Latin America
262
204
28%
203
29%
Bupa Global, India and UK
154
122
26%
123
25%
Other Businesses
52
43
21%
45
16%
Market Unit Underlying Profit
736
625
18%
613
20%
Group Functions
6
8
(25%)
8
(25%)
Borrowing Costs
(39)
(38)
3%
(38)
3%
Group Investment Fund
(20)
(24)
(17%)
(23)
(13%)
Total Underlying Profit
683
571
20%
560
22%
Statutory profit before tax
654
n/a
n/a
582
12%
Group COR
94%
n/a
n/a
95%
1ppts
Cash generated from operating activities
863
n/a
n/a
974
(11)%
Leverage (excl. lease liabilities)
14.9%
n/a
n/a
16.4%
1.5ppts
Leverage (incl. lease liabilities)
22.4%
n/a
n/a
23.7%
1.3ppts
Solvency II ratio
189%
n/a
n/a
182%
7ppts
All commentary is on a CER basis unless stated otherwise.
Bupa Asia Pacific
Revenue in our Asia Pacific Market Unit increased by 5% to £3.4bn driven by price increases and customer growth, supported by the expansion of our health provision network whilst occupancy[10] levels in our aged care businesses remained high. Underlying profit increased by 5% to £268m.
Australia Health Insurance grew revenue and underlying profit against a headwind from reduced investment income. Domestic market share was 25.6% for the March 2026 quarter, marking over three consecutive years of maintaining or growing market share in a highly competitive environment. The COR improved to 91% (HY25: 92%) due to a lower opex ratio.
Australia Health Services revenue and underlying profit increased, driven by growth in customer volumes along with the expansion of our provision network. Since FY25, we have added a further two medical centres. In June 2026, we announced the acquisition of Partnered Health Group, subject to regulatory approval. Following the announcement of the acquisition, Partnered Health Group notified us of a cyber security incident affecting some of its systems. As the transaction has not yet completed and no systems have been integrated, no Bupa-held customer or employee data has been impacted.
In aged care, Australia Villages and Aged Care delivered revenue growth supported by higher resident fees, and sustained high occupancy at 95% (HY25: 95%), with underlying profit broadly in line with the prior year. In New Zealand Villages and Aged Care, revenue and underlying profit increased, driven by strong demand supporting higher average pricing for village units and occupancy remaining high at 95% (HY25: 95%).
Our Hong Kong business achieved revenue and underlying profit growth, from an improved loss ratio and customer retention in insurance along with higher volumes across our provision business.
Europe and Latin America
Revenue in our Europe and Latin America Market Unit grew by 14% to £3.4bn, driven by price increases and customer growth. Underlying profit increased by 28% to £262m, driven by revenue growth and higher margins.
Sanitas Seguros, our health insurance business in Spain, delivered strong revenue growth through price increases and higher customer volumes. Underlying profit increased as a result of the higher volumes and improved COR of 94% (HY25: 96%).
Our dental business in Spain saw revenue and underlying profit increase, driven by higher customer volumes and improved margins.
In our hospitals business in Spain, we saw revenues increase due to strong customer growth driven by higher levels of activity and footprint expansion. Profit was flat as the strong volume growth was offset by the impact of expansion.
Sanitas Mayores, our aged care business in Spain, increased revenues due to capacity expansion, with two new care homes in 2026 whilst occupancy remained high at 94% (HY25: 96%). Underlying profit remained stable year on year.
In Poland, LUX MED's revenue and underlying profit increased, driven by margin improvement and strong growth in the number of health insurance customers, generating more activity in our medical centres, hospitals and dental centres.
In Chile, our business delivered revenue and underlying profit growth, driven by the increased activity in hospitals and medical centres, and stability within the Isapre, with a positive impact on customer numbers and prices.
Bupa Acıbadem Sigorta, our health insurance business in Türkiye, reported growth in revenue and underlying profit as we priced for high inflation, customer numbers increased and the COR improved.
Care Plus in Brazil delivered strong revenue and underlying profit growth from higher customer volumes, while the loss ratio and investment returns also saw improvement.
Bupa Mexico delivered revenue growth driven by customer growth in insurance. Underlying profit reduced as the improved business performance was offset by the impact of new tax legislation denying the recoverability of VAT borne on hospital and medical expenses.
Bupa Global Latin America revenue and underlying profit increased due to improved customer retention and growth in new sales.
Bupa Global, India and UK
Revenue in our Bupa Global, India and UK market unit increased by 11% to £3.1bn driven by customer growth and average premiums across the insurance businesses, particularly in Niva Bupa, and higher customer volumes in provision following the acquisitions of King Edward VII Hospital and New Victoria Hospital in the UK. Underlying profit increased by 26% to £154m driven by revenue growth and improved margins.
UK Insurance delivered growth in revenue and underlying profit with the increased performance driven by higher volumes and improved loss ratio, net of reduced investment income.
In Bupa Global, our international private medical insurance business, revenue and underlying profit increased due to higher volumes and higher average premiums, net of reduced investment income.
The COR for Bupa Insurance Limited, the UK based insurance entity that underwrites both domestic and international insurance, remained stable at 97% (HY25: 97%).
Niva Bupa, our health insurance business in India, continues to deliver material customer and revenue growth amidst increasing demand for health insurance. Underlying profit grew as a result of the customer growth, reduced operating expense ratio and higher investment returns.
In Bupa Dental Care, revenue and underlying profit increased due to improved margins as our clinics treat higher volumes of Bupa dental insurance customers, alongside strong Bupa Smile Plan performance and disciplined cost control.
UK Care Services, our aged care business, delivered growth in revenue and underlying profit through increasing occupancy to 92% (HY25: 90%) and disciplined cost management.
UK Health Services delivered growth in revenue driven by higher customer volumes and the acquisitions of King Edward VII Hospital and New Victoria Hospital. Underlying profit reduced as we invest in these businesses to support future growth.
Other Businesses
Profit from our associate insurance and provision businesses in Saudi Arabia increased, driven by higher investment income in insurance and volume growth and operating efficiency in provision.
Central costs
The Bupa Group investment funding of £(20)m (HY25:£(24)m) reduced driven by the transfer of certain costs out as they become business as usual activity. This was partially offset by an increase in borrowing costs £(39)m (HY25: £(38)m) due to higher subordinated debt costs.
Statutory profit before tax
Statutory profit before tax of £683m at AER increased by £72m driven by underlying profit growth on a CER basis which increased by a further £11m at AER as the Australian Dollar strengthened against Sterling.
This was partially offset by a £51m reduction in non-underlying items, largely driven by a £28m gain in HY25 on the disposal of a legacy portfolio of individual health contracts in Brazil and FX losses of £(24)m driven by a net monetary loss of £(17)m (HY25: £(15)m) resulting from the application of IAS 29[11], compared to a £1m gain at HY25 where the IAS29 loss was offset by a FX gain on US Dollar movements.
HY 2026
HY 2025
£m
£m
Consolidated underlying profit before taxation at CER
683
571
Foreign exchange re-translation on HY25 results (CER/AER)
-
(11)
Consolidated underlying profit before taxation at AER
683
560
Short-term fluctuation on investment returns
(4)
3
Net gain on disposal of businesses and transaction costs on business combinations
3
25
Realised and unrealised foreign exchange (losses)/gains
(24)
1
Other non-underlying items
(4)
(7)
Total non-underlying items
(29)
22
Statutory profit before taxation at AER
654
582
Taxation
The Group's effective taxation rate for the period was 23% (HY 2025: 27%; FY 2025: 25%), which is in line with the current UK corporation taxation rate of 25%.
Group COR
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 HY26 the Group insurance service result increased to £437m (HY25: £328m at AER) resulting in an improvement in the Group COR to 94% (HY25: 95%).
Net cash generated from operating activities
Net cash generated from operating activities remained strong at £863m (HY25: £974m at AER). The year on year decrease was driven by increased profitability being offset by the timing of claims payments, tax instalments and other working capital movements.
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. There were no rating movements in the 6 months to 30 June 2026.
We continue to hold a good level of Group liquidity. At 30 June 2026, our £900m Revolving Credit Facility (RCF) was undrawn (FY 2025: undrawn). 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 down to 14.9% (FY 2025: 16.1%) with the reduction driven by an increase in net assets in the period.
Bupa Group Solvency
Bupa Group Solvency II capital coverage ratio of 189%[12] is above the top end of our 140-170% working range, reflecting our strong capital position underpinned by the short-duration profile of our insurance liabilities.
Solvency Position
HY 2026
HY 2025
% growth
Own Funds
£6.8bn
£5.8bn
17%
Solvency Capital Requirement
£3.6bn
£3.2bn
13%
Solvency Coverage Ratio
189%
182%
7ppts
Risk Sensitivities[13]
Solvency II coverage ratio
Solvency coverage ratio
189%
Property values -10%
180%
Loss ratio worsening by 2%
182%
Sterling depreciates by 20%
182%
Group Specific Parameter (GSP) +0.2%
187%
Credit spreads +100bps (no credit transition)
187%
Interest rate -100bps
189%
Equity markets -20%
189%
Pension risk +10%
189%
A movement in the value of our owned properties remains the most significant sensitivity. Most of the Group's property portfolio relates to our provision businesses, where valuations are driven by sector-specific earnings assumptions. Exposure to wider commercial property market trends is limited to a relatively small amount of office properties. Bupa's property risk sensitivity therefore primarily reflects the risk of property devaluation arising from sustained deterioration in profitability expectations across the provision sectors in which its assets operate rather than volatility from commercial property market valuations.
BUSINESS RISKS
We described our main risks in the Risk section of the Annual Report and Accounts 2025, available on www.bupa.com. While geopolitical uncertainty, economic volatility and information security risks are heightened, Bupa's principal risks remain consistent with those set out in that report.
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:
The geopolitical and macroeconomic environment, influenced by ongoing global conflicts, continues to be challenging in most markets we operate in. In H1 2026, we have been monitoring the potential risks to our business of the escalating conflict in the Middle East. To date, there have been limited direct impacts on customers or performance and other short-term impacts on our businesses have been limited and localised. We continue to monitor potential longer-term impacts, alongside macroeconomic conditions and indicators across the markets. This includes potential impacts arising from more persistent inflation on customer purchasing decisions, product pricing and costs, including impacts on energy prices, supply chain costs, and wider market volatility. Workforce availability remains a strategic risk to the ongoing delivery of Bupa's products and services.
We manage risks to the Group's financial strength and resilience through clear reporting and monitoring mechanisms, including clearly defined risk appetites and prompt management action where needed. We continue to maintain a strong capital position, resilient business model, and a prudently managed liquidity position.
Governmental, legal and regulatory policy risks:
Changes in governmental, legal and regulatory policy remains a principal risk given the nature of our businesses and differing local market environments in which they operate.
We monitor potential developments to position ourselves to manage these risks proactively, and to respond appropriately when they emerge. We engage with governments and regulators, as appropriate, to understand and influence potential changes to ensure we continue to deliver quality and value for our customers, and complement public health systems.
Operational risks:
The Group continues to face a wide range of operational risks, including those relating to the use of technology, information security, third-parties and workforce. We have an established risk management framework, including the setting of risk appetite and associated monitoring and governance processes, to help manage these, and other operational risks, appropriately.
While the rapid developments in frontier-AI creates opportunities, it also increases the potential size and speed of downside cybersecurity-related threats. Managing this risk is a key priority for the Group. We continue to invest in information security, technology, operational resilience, and third-party risk management to uplift capability and capacity across the Group, and strengthen our preparedness and ability to respond.
Managing risks to our customers, including those relating to clinical and conduct-related activities remains a priority. In 2026 we strengthened our oversight of clinical governance, quality and safety through the establishment of the Board's Clinical Governance and Oversight Committee.
Our approach to risk management:
We have a well-established process for identifying and managing business risks. Monitoring and managing our risks supports delivery of our strategic objectives, and helps meet the evolving expectations of our stakeholders, including customers, people, bondholders, and regulators. Our approach to managing risk, including the operation of our 'three lines model' also ensures that we establish, operate and continually improve the effectiveness of our internal controls.
Bupa Finance plc
(Company Number 2779134)
Condensed Consolidated Half Year Financial Statements (unaudited)
Six months ended 30 June 2026
Bupa Finance plc
Condensed Consolidated Income Statement
for the six months ended 30 June 2026 (unaudited)
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
Note
£m
£m
£m
Insurance revenue
2, 13.1
7,111
6,354
13,102
Insurance service expenses
13.1
(6,637)
(6,009)
(12,272)
Insurance service result before reinsurance contracts held
13.1
474
345
830
Net expense from reinsurance contracts held
13.2
(37)
(17)
(32)
Insurance service result
437
328
798
Care, health and other customer contract revenue
3
2,757
2,423
4,950
Other revenue
3
47
45
102
Total non-insurance revenue
3
2,804
2,468
5,052
Share of post-taxation results of equity-accounted investments
49
44
82
Impairment of goodwill and intangible assets
7
-
-
(15)
Other operating expenses
(2,711)
(2,389)
(4,974)
Other income and charges
4
23
38
42
Total other expenses, income and charges
(2,639)
(2,307)
(4,865)
Profit before financial income and expense
602
489
985
Financial income and expense
Financial income
5
248
257
516
Financial expense
5
(110)
(94)
(204)
Net financial expense from insurance contracts issued
5.1, 13.1
(60)
(51)
(105)
Net monetary loss
1.6
(19)
(13)
(30)
Net impairment on financial assets
(7)
(6)
(15)
Net financial income
52
93
162
Profit before taxation expense
654
582
1,147
Taxation expense
6
(152)
(155)
(288)
Profit for the period
502
427
859
Attributable to:
Shareholder of Bupa Finance plc
493
422
847
Non-controlling interests
9
5
12
Profit for the period
502
427
859
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Bupa Finance plc
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2026 (unaudited)
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
Note
£m
£m
£m
Profit for the period
502
427
859
Other comprehensive income/(expense)
Items that will not be reclassified to the Income Statement
Unrealised gain on revaluation of property
8
-
4
70
Remeasurement gain on pension schemes
10
-
-
1
Taxation charge on income and expenses recognised directly in other comprehensive income
-
(1)
(15)
Items that may be reclassified subsequently to the Income Statement
Foreign exchange translation differences on goodwill
7
39
(76)
(39)
Other foreign exchange translation differences
75
(166)
(73)
Net (loss)/gain on hedge of net investment in overseas subsidiaries
(17)
19
5
Share of other comprehensive (expense)/income of equity-accounted investments
(8)
2
(6)
Change in fair value of financial investments through other comprehensive income
(4)
14
1
Change in expected credit losses (ECL) of financial investments through other comprehensive income
-
2
2
Realised loss on disposal of financial investments at fair value through other comprehensive income
-
(2)
(2)
Change in cash flow hedge reserve
1
-
(1)
Taxation credit/(charge) on income and expenses recognised directly in other comprehensive income
3
(4)
-
Total other comprehensive income/(expense)
89
(208)
(57)
Comprehensive income for the period
591
219
802
Attributable to:
Shareholder of Bupa Finance plc
588
221
803
Non-controlling interests
3
(2)
(1)
Comprehensive income for the period
591
219
802
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Bupa Finance plc
Condensed Consolidated Statement of Financial Position
as at 30 June 2026 (unaudited)
At 30 June 2026
At 31 December 2025
restated¹At 30 June 2025
restated¹
Note
£m
£m
£m
Assets
Goodwill and intangible assets
7
3,248
3,185
3,087
Property, plant and equipment
8
4,248
4,144
3,754
Investment property
9
812
781
774
Equity-accounted investments
1,016
1,008
942
Post-employment benefit net assets
10
2
2
2
Deferred taxation assets
112
129
88
Restricted assets
11
187
167
164
Financial investments
12
5,989
5,362
4,958
Derivative assets
22
52
70
Reinsurance contract assets
13.2
151
130
115
Current taxation assets
14
17
9
Inventories
88
73
67
Trade and other receivables
1,040
940
928
Assets held for sale
14
14
19
24
Cash and cash equivalents¹
15
1,997
2,016
2,303
Total assets
18,940
18,025
17,285
Liabilities
Subordinated liabilities
16
(872)
(872)
(770)
Other interest-bearing liabilities
16
(672)
(723)
(767)
Post-employment benefit net liabilities
10
(4)
(6)
(7)
Lease liabilities
(1,001)
(968)
(885)
Deferred taxation liabilities
(163)
(167)
(147)
Share purchase liabilities
(10)
(10)
(7)
Derivative liabilities
(40)
(33)
(44)
Provisions for liabilities and charges
(335)
(345)
(365)
Insurance contract liabilities
13.1
(3,940)
(3,329)
(3,548)
Current taxation liabilities
(64)
(112)
(113)
Trade and other payables¹
(3,038)
(3,164)
(2,822)
Liabilities associated with assets held for sale
14
(6)
(2)
-
Total liabilities
(10,145)
(9,731)
(9,475)
Net assets
8,795
8,294
7,810
Equity
Share capital
200
200
200
Foreign exchange translation reserve
20
(74)
(185)
Property revaluation reserve
726
724
669
Cash flow hedge reserve
-
(1)
-
Income and expenditure reserve
7,413
7,014
6,699
Equity attributable to shareholder of Bupa Finance plc
8,359
7,863
7,383
Restricted Tier 1 notes
17
297
297
297
Non-controlling interests
139
134
130
Total equity
8,795
8,294
7,810
1.
Amounts have been restated for the adoption of Amendments to the Classification and Measurement of Financial Instruments. See Note 1.4(a).
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Bupa Finance plc
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2026 (unaudited)
For six months ended 30 June 2026
For six months ended 30 June 2025
restated¹For year ended 31 December 2025
restated¹
Note
£m
£m
£m
Cash flow from operating activities
Profit before taxation expense
654
582
1,147
Adjustments for:
Net financial income
(131)
(157)
(297)
Net monetary loss
1.6
19
13
30
Depreciation, amortisation and impairment
7, 8, 14
270
232
508
Other non-cash items
(101)
(152)
(211)
Changes in working capital and provisions:
Increase in insurance contract liabilities
604
628
383
Increase in reinsurance contract assets
(22)
(32)
(48)
Funded pension scheme employer contributions
(2)
-
(2)
Increase in trade and other receivables, and other assets
(70)
(71)
(107)
(Decrease)/increase in trade and other payables, and other liabilities¹
(186)
47
297
Cash generated from operations
1,035
1,090
1,700
Income taxation paid
(171)
(115)
(278)
(Increase)/decrease in cash held in restricted assets
(1)
(1)
2
Net cash generated from operating activities
863
974
1,424
Cash flow from investing activities
Acquisition of subsidiaries and businesses, net of cash acquired
(6)
(27)
(64)
Investment in equity-accounted investments
-
(9)
(20)
Dividends received from equity-accounted investments
-
1
38
Disposal of subsidiaries and other businesses, net of cash disposed of
13
13
(1)
Purchase of intangible assets
7
(100)
(66)
(168)
Purchase of property, plant and equipment
(165)
(151)
(402)
Proceeds from sale of property, plant and equipment
1
4
9
Purchase of investment property
(12)
(12)
(35)
Disposal of investment property
9
-
-
2
Purchases of financial investments, excluding deposits with credit institutions
(2,221)
(1,962)
(3,668)
Proceeds from sale and maturities of financial investments, excluding deposits with credit institutions
1,898
1,553
3,041
Net investments into deposits with credit institutions
(235)
(4)
(119)
Interest received
235
278
457
Net cash used in investing activities
(592)
(382)
(930)
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 borrowings
-
-
392
Repayment of interest-bearing liabilities and other borrowings
(17)
(1)
(449)
Principal repayment of lease liabilities
(71)
(70)
(143)
Payment of interest on lease liabilities
(32)
(25)
(54)
Acquisition of non-controlling interests in subsidiary company
-
-
(1)
Capital contributions from non-controlling interests in subsidiary
1
-
5
Interest paid
(28)
(22)
(66)
Net receipts from hedging instruments
1
40
50
Dividends paid
(88)
(115)
(212)
Dividends paid to non-controlling interests
-
(3)
(4)
Net cash used in financing activities
(240)
(202)
(494)
Net increase in cash and cash equivalents
31
390
-
Cash and cash equivalents at beginning of period¹,²
2,092
2,102
2,102
Effect of exchange rate changes
15
(60)
(10)
Cash and cash equivalents at end of period¹,²
15
2,138
2,432
2,092
1.
Amounts have been restated for the adoption of Amendments to the Classification and Measurement of Financial Instruments. See Note 1.4(a).
2.
Includes restricted cash of £156m (HY 2025: £130m; FY 2025: £136m) which is considered cash and cash equivalents along with bank overdrafts of £15m (HY 2025: £1m; FY 2025: £60m) which are presented on the statement of financial position within Restricted assets (see Note 11) and Borrowings (see Note 16) respectively.
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Bupa Finance plc
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2026 (unaudited)
Share Capital
Foreign exchange translation reserve
Property revaluation reserve
Cash flow hedge reserve
Income and expenditure reserve
Total attributable to shareholder of Bupa Finance plc
Restricted Tier 1 notes
Non-controlling interests
Total equity
For six months ended 30 June 2026
Note
£m
£m
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 January 2026
200
(74)
724
(1)
7,014
7,863
297
134
8,294
Profit for the period
-
-
-
-
493
493
-
9
502
Other comprehensive income/(expense)
Realised revaluation profit on disposal of property
-
-
(5)
-
5
-
-
-
-
Foreign exchange translation differences on goodwill
7
-
39
-
-
-
39
-
-
39
Other foreign exchange translation differences
-
70
7
-
3
80
-
(5)
75
Net loss on hedge of net investment in overseas subsidiaries
-
(17)
-
-
-
(17)
-
-
(17)
Share of other comprehensive expense of equity-accounted investments
-
-
-
-
(8)
(8)
-
-
(8)
Change in fair value of financial investments through other comprehensive income
-
-
-
-
(3)
(3)
-
(1)
(4)
Change in cash flow hedge reserve
-
-
-
1
-
1
-
-
1
Taxation credit on income and expense recognised directly in other comprehensive income
-
2
-
-
1
3
-
-
3
Other comprehensive income/(expense) for the period, net of taxation
-
94
2
1
(2)
95
-
(6)
89
Total comprehensive income for the period
-
94
2
1
491
588
-
3
591
Payment of Restricted Tier 1 coupon, net of taxation
17
-
-
-
-
(5)
(5)
-
-
(5)
Gain on disposal/dilution of shares
-
-
-
-
1
1
-
-
1
Changes in non-controlling interests
-
-
-
-
-
-
-
2
2
Dividends paid to shareholder of the Company
-
-
-
-
(88)
(88)
-
-
(88)
Balance as at 30 June 2026
200
20
726
-
7,413
8,359
297
139
8,795
Share Capital
Foreign exchange translation reserve
Property revaluation reserve
Cash flow hedge reserve
Income and expenditure reserve
Total attributable to shareholder of Bupa Finance plc
Restricted Tier 1 notes
Non-controlling interests
Total equity
For year ended 31 December 2025
Note
£m
£m
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 January 2025
200
21
668
-
6,392
7,281
297
135
7,713
Profit for the year
-
-
-
-
847
847
-
12
859
Other comprehensive income/(expense)
Unrealised gain on revaluation of property
8
-
-
70
-
-
70
-
-
70
Realised revaluation profit on disposal of property
-
-
(5)
-
5
-
-
-
-
Remeasurement gain on pension schemes
10
-
-
-
-
1
1
-
-
1
Foreign exchange translation differences on goodwill
7
-
(39)
-
-
-
(39)
-
-
(39)
Other foreign exchange translation differences
-
(62)
6
-
(2)
(58)
-
(15)
(73)
Net gain on hedge of net investment in overseas subsidiaries
-
5
-
-
-
5
-
-
5
Share of other comprehensive expense of equity-accounted investments
-
-
-
-
(6)
(6)
-
-
(6)
Change in fair value of financial investments through other comprehensive income
-
-
-
-
(1)
(1)
-
2
1
Change in ECL of financial investments through other comprehensive income
-
-
-
-
2
2
-
-
2
Realised loss on disposal of financial investments at fair value through other comprehensive income
-
-
-
-
(2)
(2)
-
-
(2)
Change in cash flow hedge reserve
-
-
-
(1)
-
(1)
-
-
(1)
Taxation credit/(charge) on income and expense recognised directly in other comprehensive income
-
1
(15)
-
(1)
(15)
-
-
(15)
Other comprehensive (expense)/income for the year, net of taxation
-
(95)
56
(1)
(4)
(44)
-
(13)
(57)
Total comprehensive (expense)/income for the year
-
(95)
56
(1)
843
803
-
(1)
802
Payment of Restricted Tier 1 coupon, net of taxation
17
-
-
-
-
(9)
(9)
-
-
(9)
Recognition of share purchase liability
-
-
-
-
(3)
(3)
-
-
(3)
Gain on disposal/dilution of shares
-
-
-
-
2
2
-
-
2
Changes in non-controlling interests
-
-
-
-
1
1
-
4
5
Dividends paid to shareholder of the Company
-
-
-
-
(212)
(212)
-
-
(212)
Dividends paid to non-controlling interests
-
-
-
-
-
-
-
(4)
(4)
Balance as at 31 December 2025
200
(74)
724
(1)
7,014
7,863
297
134
8,294
Share Capital
Foreign exchange translation reserve
Property revaluation reserve
Income and expenditure reserve
Total attributable to shareholder of Bupa Finance plc
Restricted Tier 1 notes
Non-controlling interests
Total equity
For six months ended 30 June 2025
Note
£m
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 January 2025
200
21
668
6,392
7,281
297
135
7,713
Profit for the period
-
-
-
422
422
-
5
427
Other comprehensive income/(expense)
Unrealised gain on revaluation of property
8
-
-
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 income
-
-
-
9
9
-
5
14
Change in ECL of financial investments through other comprehensive income
-
-
-
2
2
-
-
2
Realised loss on disposal of financial investments at fair value through other comprehensive income
-
-
-
(2)
(2)
-
-
(2)
Taxation charge on income and expense recognised directly in other comprehensive income
-
(1)
(1)
(2)
(4)
-
(1)
(5)
Other comprehensive (expense)/income for the period, net of taxation
-
(206)
1
4
(201)
-
(7)
(208)
Total comprehensive (expense)/income for the period
-
(206)
1
426
221
-
(2)
219
Payment of Restricted Tier 1 coupon, net of taxation
17
-
-
-
(5)
(5)
-
-
(5)
Changes in non-controlling interests
-
-
-
1
1
-
-
1
Dividends paid to shareholder of the Company
-
-
-
(115)
(115)
-
-
(115)
Dividends paid to non-controlling interests
-
-
-
-
-
-
(3)
(3)
Balance as at 30 June 2025
200
(185)
669
6,699
7,383
297
130
7,810
Notes 1-19 form part of these Condensed Consolidated Financial Statements.
Bupa Finance plc
Notes to the Condensed Consolidated Financial Statements
for the six months ended 30 June 2026 (unaudited)
1 Basis of preparation
1.1 Basis of preparation
Bupa Finance plc (the 'Company'), a company 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 immediate and ultimate parent of the Company is The British United Provident Association Limited (the 'Parent' or 'Bupa' and together with its subsidiaries, the 'Bupa Group').
The Condensed Consolidated Half Year Financial Statements of the Company as at and for the six months ended 30 June 2026 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 2025, 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 2025 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 Finance plc on 5 August 2026.
The financial information contained in these interim financial statements does not constitute statutory accounts of Bupa Finance plc within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2025 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 plausible stressed scenarios considered a stagflation scenario, characterised by persistent inflation, suppressed consumer spending, minimal or negative economic growth, and elevated unemployment, and a variety of local scenarios developed by each Business Unit, with the majority focusing on affordability pressures, stroke of pen risks (i.e. the risk of sudden government policy changes) and/or weakening market positioning. 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. Furthermore, under the stressed scenarios considered, the Group expects to remain compliant with covenants of its £900m revolving credit facility ('RCF', see Note 16) 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 2026 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 2026 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 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.
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 require estimating 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.
7
Property valuations
The Group has a significant portfolio of care home, hospital and office 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.
8, 9
Insurance contracts
Sources of estimation uncertainty
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).
13
1.4 Changes in accounting policies
Except for the changes detailed below, 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 2025.
(a) Amendments to the Classification and Measurement of Financial Instruments-Amendments to IFRS 9 and IFRS 7
The Group has adopted Amendments to the Classification and Measurement of Financial Instruments-Amendments to IFRS 9 and IFRS 7 from 1 January 2026. The amendments clarify the date on which a financial asset or financial liability is derecognised. For financial liabilities settled through an electronic payment system, an accounting policy option is available to derecognise the liability before cash is delivered on the settlement date if specified criteria are met. The amendments also provide clarifications on the classification for certain financial assets, such as those with environmental, social and corporate governance and similar features, and amend certain disclosure requirements.
The Group elected to apply the accounting policy option to derecognise financial liabilities settled using an electronic payment system before the settlement date. For financial liabilities settled by cheque, the liability will not be derecognised until payment is settled. As a result of adopting these amendments, the Group has retrospectively reclassified uncleared cheque payments, resulting in an increase in both cash and cash equivalents and trade and other payables of £7m at 1 January 2025, £5m at 31 December 2025, and £4m at 30 June 2025. There was no further impact on these financial statements as a result of adopting the amendments.
(b) Contracts Referencing Nature-dependent Electricity-Amendments to IFRS 9 and IFRS 7
The Group has adopted these amendments from 1 January 2026. The amendments provide requirements for contracts such as power purchase agreements ('PPAs') that expose an entity to variability arising from natural conditions, such as weather, that impact the generation of electricity. For such contracts, the amendments clarify the application of the IFRS 9 'own use' scope exemption, allow a variable portion to be designated as part of a hedging relationship, and add additional disclosure requirements.
Additional disclosures required by these amendments will be made in the annual financial statements for the year ended 31 December 2026. There was no further impact on these financial statements and the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting the amendments,
(c) Other
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
(a) IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024 the International Accounting Standards Board (IASB) issued IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 will supersede IAS 1 Presentation of Financial Statements, providing general presentation requirements for financial statements prepared in line with IFRS accounting standards. In 2026 the IFRS Interpretations Committee published several Agenda Decisions related to IFRS 18.
The standard requires new subtotals in the income statement, including operating profit. Entities must provide disclosures about management-defined performance measures. The standard also provides additional guidance on the aggregation and disaggregation of data in financial statements.
IFRS 18 is effective for the Group from 1 January 2027. The detailed application of this standard is currently being evaluated by the Group. The standard is expected to impact presentation and disclosure, but have no impact on recognition and measurement. The Agenda Decisions published in 2026 are not expected to have any impact on decisions already taken as part of the Group's implementation of IFRS 18.
(b) IFRS 20 Regulatory Assets and Regulatory Liabilities
In May 2026 the IASB issued IFRS 20 Regulatory Assets and Regulatory Liabilities. IFRS 20 will supersede IFRS 14 Regulatory Deferral Accounts.
The standard applies to companies subject to rate regulation under which compensation for regulatory goods or services supplied during the period is charged to customers through regulated rates in a different period, creating a timing difference. IFRS 20 specifies how to account for the assets, liabilities, income and expense arising from these timing differences. Regulated insurance premiums are not in scope and the standard is mainly expected to affect companies in industries such as utilities, energy and transportation.
IFRS 20 is effective from 1 January 2029, subject to endorsement in the UK, which has not yet taken place. The impact of this standard is currently being evaluated by the Group.
1.6 Foreign exchange
The following significant exchange rates applied during the period:
Average rate
Closing rate
30 June 2026
31 December 2025
30 June 2025
30 June 2026
31 December 2025
30 June 2025
Australian dollar
1.92
2.04
2.05
1.92
2.02
2.09
Brazilian real
6.93
7.37
7.47
6.85
7.38
7.45
Chilean peso
1,201.85
1,254.03
1,239.33
1,223.99
1,212.19
1,277.32
Danish krone
8.62
8.71
8.86
8.67
8.56
8.69
Egyptian pound
67.97
64.95
65.49
65.25
64.17
68.06
Euro
1.15
1.17
1.19
1.16
1.15
1.16
Hong Kong dollar
10.52
10.28
10.12
10.40
10.48
10.77
Indian rupee
125.14
114.95
111.71
125.37
121.03
117.59
Mexican peso
23.50
25.30
25.88
23.18
24.25
25.73
New Zealand dollar
2.29
2.27
2.24
2.33
2.34
2.25
Polish zloty
4.89
4.95
5.02
4.99
4.84
4.95
Saudi riyal
5.05
4.95
4.87
4.98
5.05
5.15
Turkish lira¹
61.83
57.79
54.62
61.83
57.79
54.62
US dollar
1.35
1.32
1.30
1.33
1.35
1.37
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 2026 was 4,137.71 (HY 2025: 3,131.96; FY 2025: 3,513.93) and the movement in CPI for the period ended 30 June 2026 was 624 (HY 2025: 447; FY 2025: 829), an increase of 17.8% (HY 2025: 16.7%; FY 2025: 30.9%).
A loss of £19m (HY 2025: £13m; FY 2025: £30m) arising from the devaluation of net monetary assets has been recognised within net financial income 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 £17m for the period (HY 2025: £15m; FY 2025: £25m).
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 2026 of 61.83 (HY 2025: 54.62; FY 2025: 57.79). 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, and the management and operation of a dental clinic in Portugal.
Sanitas Hospitales: Management and operation of hospitals, rehabilitation centres and health clinics in Spain and health clinics in Peru.
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 three private hospitals.
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, Inc. (United States of America) (operating as Blue Cross Blue Shield Global Solutions).
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.
-
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 2026
£m
£m
£m
£m
£m
£m
£m
Revenues
Insurance revenue
2,602
2,179
2,310
-
-
20
7,111
Inter-Market Unit revenue
(39)
(1)
40
-
-
-
-
Insurance revenue for reportable segments
2,563
2,178
2,350
-
-
20
7,111
Care, health and other customer contract revenue
837
1,202
717
-
-
1
2,757
Other revenue
33
7
1
6
-
-
47
Non-insurance revenue for reportable segments
870
1,209
718
6
-
1
2,804
Total revenue for reportable segments
3,433
3,387
3,068
6
-
21
9,915
Segmental result
Underlying profit
268
262
155
52
6
-
743
Borrowing costs
-
-
(1)
-
(39)
-
(40)
Group investment funding
-
-
-
-
(20)
-
(20)
Consolidated underlying profit before taxation expense
268
262
154
52
(53)
-
683
Non-underlying items:
Short-term fluctuation on investment returns
1
-
(4)
-
(1)
-
(4)
Net gain on disposal of businesses and transaction costs on business combinations
1
-
2
-
-
-
3
Realised and unrealised FX gain/(loss)
1
(5)
(2)
-
(1)
(17)
(24)
Other non-underlying items
(3)
-
(1)
-
-
-
(4)
Total non-underlying items
(29)
Consolidated profit before taxation expense
654
1.
Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye.
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
242
203
124
45
8
-
622
Borrowing costs
-
-
(1)
-
(38)
-
(39)
Group investment funding
-
-
-
-
(23)
-
(23)
Consolidated underlying profit before taxation expense
242
203
123
45
(53)
-
560
Non-underlying items:
Short-term fluctuation on investment returns
-
(1)
4
-
-
-
3
Net (loss)/gain on disposal of businesses and transaction costs on business combinations
(1)
28
(1)
(1)
-
-
25
Realised and unrealised FX (loss)/gain
-
(5)
1
-
20
(15)
1
Other non-underlying items
(5)
-
(2)
-
-
-
(7)
Total non-underlying items
22
Consolidated profit before taxation expense
582
1.
Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye.
Bupa Asia Pacific
Europe and Latin America
Bupa Global, India and UK
Other businesses
Group Functions
Adjustments¹
Total
For year ended 31 December 2025
£m
£m
£m
£m
£m
£m
£m
Revenues
Insurance revenue
4,789
3,914
4,347
-
-
52
13,102
Inter-Market Unit revenue
(73)
-
73
-
-
-
-
Insurance revenue for reportable segments
4,716
3,914
4,420
-
-
52
13,102
Care, health and other customer contract revenue
1,541
2,075
1,334
-
-
-
4,950
Other revenue
59
27
2
10
-
4
102
Non-insurance revenue for reportable segments
1,600
2,102
1,336
10
-
4
5,052
Total revenue for reportable segments
6,316
6,016
5,756
10
-
56
18,154
Segmental result
Underlying profit
459
461
324
84
9
-
1,337
Borrowing costs
-
-
(3)
-
(74)
-
(77)
Group investment funding
-
-
-
-
(80)
-
(80)
Consolidated underlying profit before taxation expense
459
461
321
84
(145)
-
1,180
Non-underlying items:
Impairments of intangible assets and goodwill arising on business combinations
-
(8)
-
-
-
-
(8)
Short-term fluctuation on investment returns
-
(1)
6
-
-
-
5
Net (loss)/gain on disposal of businesses and transaction costs on business combinations
(4)
28
(7)
(1)
-
-
16
Net property revaluation (loss)/gain
(5)
-
1
-
-
-
(4)
Realised and unrealised FX (loss)/gain
(1)
(4)
(5)
-
16
(25)
(19)
Other non-underlying items
(13)
(3)
(7)
-
-
-
(23)
Total non-underlying items
(33)
Consolidated profit before taxation expense
1,147
1.
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 2026
£m
£m
£m
Bupa Health Insurance
4
1
5
Bupa Health Services
403
2
405
Bupa Villages and Aged Care Australia
243
20
263
Bupa Villages and Aged Care New Zealand
73
10
83
Bupa Hong Kong
114
-
114
Bupa Asia Pacific
837
33
870
Sanitas Seguros
12
-
12
Sanitas Dental
92
4
96
Sanitas Hospitales
64
-
64
Sanitas Mayores
99
-
99
LUX MED
639
-
639
Bupa Acıbadem Sigorta
13
1
14
Bupa Chile
270
-
270
Care Plus
5
-
5
Bupa Mexico
9
1
10
Bupa Global Latin America
-
1
1
Europe and Latin America
1,203
7
1,210
Bupa UK Insurance
20
-
20
Bupa Dental Care UK
265
-
265
Bupa Care Services
259
-
259
Bupa Health Services
173
1
174
Bupa Global, India and UK
717
1
718
Other
-
6
6
Other businesses
-
6
6
Consolidated non-insurance revenues
2,757
47
2,804
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 year ended 31 December 2025
£m
£m
£m
Bupa Health Insurance
8
6
14
Bupa Health Services
714
1
715
Bupa Villages and Aged Care Australia
442
33
475
Bupa Villages and Aged Care New Zealand
143
19
162
Bupa Hong Kong
234
-
234
Bupa Asia Pacific
1,541
59
1,600
Sanitas Seguros
19
-
19
Sanitas Dental
162
6
168
Sanitas Hospitales
62
1
63
Sanitas Mayores
182
-
182
LUX MED
1,134
-
1,134
Bupa Acıbadem Sigorta
-
15
15
Bupa Chile
473
-
473
Care Plus
9
1
10
Bupa Mexico
17
3
20
Bupa Global Latin America
17
1
18
Europe and Latin America
2,075
27
2,102
Bupa UK Insurance
36
-
36
Bupa Dental Care UK
516
-
516
Bupa Care Services
516
-
516
Bupa Health Services
266
2
268
Bupa Global, India and UK
1,334
2
1,336
Other
-
10
10
Other businesses
-
10
10
Adjustments
-
4
4
Consolidated non-insurance revenues
4,950
102
5,052
4 Other income and charges
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
£m
£m
£m
Sundry income
3
-
1
Net gain on disposal and restructuring of businesses
2
26
22
Loss on revaluation of property
-
-
(4)
Research and development tax credit
-
-
1
Net gain/(loss) on disposal of property, plant and equipment
7
-
(2)
Surplus on fair value of investment property
11
12
24
Total other income and charges
23
38
42
5 Financial income and expense
Financial income
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
£m
£m
£m
Interest income:
Investments at fair value through profit or loss
36
36
79
Investments at fair value through other comprehensive income
71
49
111
Investments at amortised cost
149
163
312
Net realised gain/(loss):
Net realised gain on investments at fair value through profit or loss
1
29
34
Net realised gain on financial investments held at amortised cost
-
-
1
Net realised loss on financial investments at fair value through other comprehensive income
(1)
-
(2)
Net movement in fair value:
Investments at fair value through profit or loss
(3)
(19)
(16)
Net foreign exchange translation loss
(5)
(1)
(3)
Total financial income
248
257
516
Financial expense
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
£m
£m
£m
Interest expense on financial liabilities at amortised cost
44
42
89
Finance charges in respect of leases and restoration provisions
33
26
56
Other financial expense
33
26
59
Total financial expense
110
94
204
Other financial expense for the six months ended 30 June 2026 includes £19m (HY 2025: £14m; FY 2025: £31m) 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 £60m (HY 2025: £51m; FY 2025: £105m) 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 £60m of interest expense (HY 2025: £51m interest expense; FY 2025: £105m interest expense).
There is an option to disaggregate any insurance financial income or expense between other comprehensive income and the income statement. Bupa has elected to recognise all insurance financial expense within the Consolidated Income Statement.
6 Taxation expense
The Group's effective taxation rate for the period was 23% (HY 2025: 27%; FY 2025: 25%), which is in line with the current UK corporation taxation rate of 25%.
The Group operates in the UK where a 15% global minimum tax rate for multinational enterprises has been implemented since 1 January 2024.
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 £1m (HY 2025: £nil; FY 2025: £1m). 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 2026
£m
£m
£m
£m
£m
£m
Net book value at beginning of period
2,438
449
88
152
58
3,185
Arising on business combinations
3
(3)
-
-
-
-
Additions
-
99
-
-
1
100
Disposals
-
(1)
-
-
(1)
(2)
Amortisation
-
(56)
(4)
(14)
(4)
(78)
Foreign exchange
39
4
(1)
(2)
3
43
Net book value at end of period
2,480
492
83
136
57
3,248
Goodwill
Computer software
Brands/trademarks
Customer relationships
Other¹
Total
At 31 December 2025
£m
£m
£m
£m
£m
£m
Net book value at beginning of period
2,428
373
93
184
67
3,145
Arising on business combinations
55
4
3
3
-
65
Additions
-
168
-
-
-
168
Disposals
(4)
-
-
-
-
(4)
Amortisation
-
(97)
(8)
(32)
(10)
(147)
Impairment loss
(2)
(7)
(3)
(1)
(2)
(15)
Other
-
4
-
-
-
4
Foreign exchange
(39)
4
3
(2)
3
(31)
Net book value at end of period
2,438
449
88
152
58
3,185
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
373
93
184
67
3,145
Arising on business combinations
25
1
-
1
-
27
Additions
-
65
-
-
1
66
Amortisation
-
(45)
(4)
(15)
(4)
(68)
Other
-
2
-
-
-
2
Foreign exchange
(76)
(5)
(2)
(3)
1
(85)
Net book value at end of period
2,377
391
87
167
65
3,087
1.
Predominantly comprises distribution networks and licences to operate care homes.
Goodwill and intangible assets of £3,248m (HY 2025: £3,087m; FY 2025: £3,185m) include £254m (HY 2025: £299m; FY 2025: £275m) 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 £492m (HY 2025: £391m; FY 2025: £449m) include £418m (HY2025 restated1: £331m; FY 2025: £381m) attributable to capitalised internal development costs. The cost attributable to these assets is £1,152m (HY 2025 restated1: £980m; FY 2025: £1,062m). £90m of costs (HY 2025: £56m; FY 2025: £143m) were capitalised in the period.
1.
HY 2025 computer software categorisation has been updated to reclassify certain assets as internally generated rather than externally acquired, increasing its net book value by £69m (historical cost by £388m).
Goodwill by CGU is as follows:
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Bupa Asia Pacific
Bupa Australia Health Insurance
797
755
729
Bupa Health Services Australia
305
287
270
Hong Kong
117
116
113
Europe and Latin America
LUX MED
307
315
300
Sanitas Seguros
74
74
75
Sanitas Mayores
23
23
21
Bupa Acıbadem Sigorta
72
65
61
Care Plus
36
34
34
Bupa Mexico
10
10
9
Bupa Global, India and UK
Niva Bupa
450
467
480
Bupa Dental Care UK
193
193
193
Bupa Global
68
68
68
Bupa Health Services
28
31
24
Total
2,480
2,438
2,377
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 2026, 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 2026. No impairments have been identified as at 30 June 2026 (HY 2025: £nil; FY 2025: £2m impairment on goodwill).
Management continues to closely monitor the headroom on Bupa Dental Care UK, following the impairments recognised in 2022, to ascertain whether any further impairments, or reversals to impairment of intangible assets or property, plant and equipment should be recognised. Headroom increased at 30 June 2026 to £79m (HY 2025: £77m; FY 2025: £74m), due to an increase in value in use driven by positive cashflow progression offset by an increase in the discount rate. 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
79
12.3
2.1
(36)
(14)
(33)
8 Property, plant and equipment
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Net book value at beginning of period
4,144
3,711
3,711
Assets arising on business combinations
25
99
17
Additions
226
536
197
Transfer to assets held for sale
(6)
(13)
(14)
Disposals
(7)
(16)
(11)
Revaluations
-
66
4
Remeasurements
41
64
26
Depreciation charge for the period
(192)
(341)
(164)
Impairment loss
-
(4)
-
Other
(10)
(11)
(8)
Foreign exchange
27
53
(4)
Net book value at end of period
4,248
4,144
3,754
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. No external valuations were performed as at 30 June 2026.
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 internal review of the significant underlying assumptions underpinning the property valuations as at 30 June 2026 resulted in no uplifts or write-downs in respect of owned property (HY 2025: uplifts of £4m and no write-downs, FY 2025: uplifts of £66m, with a net revaluation gain of £70m recognised in the property revaluation reserve and a revaluation loss of £4m debited to the 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 2026. 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 2026 (HY 2025: £nil; FY 2025: £4m).
9 Investment property
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
At beginning of period
781
756
756
Additions
12
35
12
Transfer from/(to) assets held for sale
3
(3)
-
Disposals
-
(2)
-
Reclassification from property, plant and equipment
-
2
-
Increase in fair value
11
24
12
Foreign exchange
5
(31)
(6)
At end of period
812
781
774
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 £740m (HY 2025: £706m, FY 2025: £712m) and Australia of £57m (HY 2025: £53m, FY 2025: £55m). At 30 June 2026 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, in addition to unfunded schemes.
The defined benefit pension schemes provide benefits based on final pensionable salary. The Group's net obligation in respect of the defined benefit pension is calculated separately for each scheme and represents the present value of the defined benefit obligation less the fair value of any 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.
Amount recognised in the Condensed Consolidated Income Statement
The total amount charged to the Condensed Consolidated Income Statement amounted to £nil (HY 2025: £nil; FY 2025: £2m).
Amount recognised directly in other comprehensive income
The amounts (credited)/charged directly to equity are:
For six months ended 30 June 2026
For six months ended 30 June 2025
For year ended
31 December 2025
£m
£m
£m
Actual return less expected return on assets
-
-
(2)
Loss arising from changes to experience assumptions
-
-
1
Total remeasurement gain credited directly to equity
-
-
(1)
Assets and liabilities of schemes
The assets and liabilities in respect of the defined benefit pension schemes are as follows:
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Present value of funded obligations
(55)
(54)
(53)
Fair value of scheme assets
54
52
49
Net liabilities of funded schemes
(1)
(2)
(4)
Present value of unfunded obligations
(1)
(2)
(1)
Net recognised liabilities
(2)
(4)
(5)
Represented on the Condensed Consolidated Statement of Financial Position:
Net liabilities
(4)
(6)
(7)
Net assets
2
2
2
Net recognised liabilities
(2)
(4)
(5)
11 Restricted assets
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Non-current restricted assets
29
29
32
Current restricted assets
158
138
132
Total restricted assets
187
167
164
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 £29m (HY 2025: £32m; FY 2025: £29m) consists of cash deposits held to secure a charge over certain Bupa Group unfunded pension scheme obligations. Included in current restricted assets is £155m (HY 2025: £130m; FY 2025: £135m) 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 2026
At 31 December 2025
At 30 June 2025
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
456
456
435
435
410
410
Government debt securities
50
50
50
50
32
32
Pooled investment funds
580
580
471
471
449
449
Deposits with credit institutions
4
4
4
4
6
6
Equities
8
8
8
8
7
7
Fair value through other comprehensive income
Corporate debt securities and secured loans
1,625
1,625
1,497
1,497
1,058
1,058
Government debt securities
489
489
464
464
334
334
Amortised cost
Corporate debt securities and secured loans
904
905
858
860
1,099
1,103
Government debt securities
460
465
413
418
533
539
Deposits with credit institutions
1,413
1,416
1,162
1,164
1,030
1,031
Total financial investments
5,989
5,998
5,362
5,371
4,958
4,969
Non-current
2,605
2,611
2,378
2,385
2,105
2,109
Current
3,384
3,387
2,984
2,986
2,853
2,860
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). Most of the level 2 financial assets have been valued using quoted prices for similar assets.
•
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 2026
Fair value through profit or loss
Corporate debt securities and secured loans
63
393
-
456
Government debt securities
11
39
-
50
Pooled investment funds
206
351
23
580
Deposits with credit institutions
4
-
-
4
Equities
1
-
7
8
Fair value through other comprehensive income
Corporate debt securities and secured loans
751
874
-
1,625
Government debt securities
478
11
-
489
Amortised cost
Corporate debt securities and secured loans
384
520
1
905
Government debt securities
420
45
-
465
Deposits with credit institutions
-
1,416
-
1,416
Total financial investments
2,318
3,649
31
5,998
Level 1
Level 2
Level 3
Total
£m
£m
£m
£m
At 31 December 2025
Fair value through profit or loss
Corporate debt securities and secured loans
58
377
-
435
Government debt securities
11
39
-
50
Pooled investment funds
148
300
23
471
Deposits with credit institutions
4
-
-
4
Equities
1
-
7
8
Fair value through other comprehensive income
Corporate debt securities and secured loans
643
854
-
1,497
Government debt securities
452
12
-
464
Amortised cost
Corporate debt securities and secured loans
381
478
1
860
Government debt securities
378
40
-
418
Deposits with credit institutions
-
1,164
-
1,164
Total financial investments
2,076
3,264
31
5,371
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
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 2025: £nil; FY 2025: £nil).
The Group currently holds Level 3 financial investments totalling £31m (HY 2025: £31m; FY 2025: £31m). 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.
The table below shows movement in the Level 3 assets measured at fair value:
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Balance at beginning of period
31
58
58
Additions
-
2
3
Net decrease in fair value¹,²
(1)
(29)
(27)
Foreign exchange
1
-
(3)
Balance at end of period
31
31
31
1.
All gains and losses are recognised in financial income and financial expense in the Condensed Consolidated Income Statement. HY 2025 and FY 2025 include dividend and return of capital from George Health Enterprises Pty Ltd.
2.
The 30 June 2025 movement has been updated to reflect the George Health Enterprises Pty Ltd. transaction as a decrease in fair value, consistent with 31 December 2025.
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.
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 2025 and FY 2025: 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.
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. 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
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 2026
Excluding loss component
£mLoss component
£m
Estimates of present value of future cash flows
£m¹Risk adjustment
£m
£m
Insurance contract liabilities at beginning of period
1,804
61
1,425
39
3,329
Insurance revenue
(7,111)
-
-
-
(7,111)
Insurance service expenses
46
(29)
6,616
4
6,637
Incurred claims and other expenses
-
-
6,721
44
6,765
Amortisation of insurance acquisition cash flows
46
-
-
-
46
Losses on onerous contracts and (reversals) of those losses
-
(29)
-
-
(29)
Changes to liabilities for incurred claims relating to past service
-
-
(105)
(40)
(145)
Insurance service result
(7,065)
(29)
6,616
4
(474)
Foreign exchange
(1)
-
8
1
8
Net finance expense from insurance contracts issued
33
4
23
-
60
Total changes in statement of comprehensive income
(7,033)
(25)
6,647
5
(406)
Other movements¹
-
-
(91)
-
(91)
Non-distinct investment components
(22)
-
22
-
-
Cash flows
Premiums received
7,570
-
-
-
7,570
Claims and other expenses paid
-
-
(6,397)
-
(6,397)
Insurance acquisition cash flows
(65)
-
-
-
(65)
Total cash flows
7,505
-
(6,397)
-
1,108
Insurance contract liabilities at end of period
2,254
36
1,606
44
3,940
1.
Other movements include £91m 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 2025
Excluding loss component
£mLoss component
£mEstimates of present value of future cash flows
£m¹Risk adjustment
£m
£m
Insurance contract liabilities at beginning of year
1,656
40
1,335
33
3,064
Insurance revenue
(13,102)
-
-
-
(13,102)
Insurance service expenses
74
22
12,170
6
12,272
Incurred claims and other expenses
-
-
12,300
39
12,339
Amortisation of insurance acquisition cash flows
74
-
-
-
74
Losses on onerous contracts and (reversals) of those losses
-
22
-
-
22
Changes to liabilities for incurred claims relating to past service
-
-
(130)
(33)
(163)
Insurance service result
(13,028)
22
12,170
6
(830)
Foreign exchange
(82)
(5)
(31)
-
(118)
Net finance expense from insurance contracts issued
59
4
42
-
105
Total changes in statement of comprehensive income
(13,051)
21
12,181
6
(843)
Other movements¹
-
-
(159)
-
(159)
Non-distinct investment components
(29)
-
29
-
-
Cash flows
Premiums received
13,357
-
-
-
13,357
Claims and other expenses paid
-
-
(11,961)
-
(11,961)
Insurance acquisition cash flows
(129)
-
-
-
(129)
Total cash flows
13,228
-
(11,961)
-
1,267
Insurance contract liabilities at end of year
1,804
61
1,425
39
3,329
1.
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 2025
Excluding loss component
£mLoss component
£m
Estimates of present value of future cash flows
£m¹Risk adjustment
£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
-
-
(79)
-
(79)
Non-distinct investment components
(14)
-
14
-
-
Cash flows
Premiums received
6,849
-
-
-
6,849
Claims and other expenses paid
-
-
(5,789)
-
(5,789)
Insurance acquisition cash flows
(59)
-
-
-
(59)
Total cash flows
6,790
-
(5,789)
-
1,001
Insurance contract liabilities at end of period
2,045
31
1,436
36
3,548
1.
Other movements include £79m 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.
13.2 Reinsurance contracts roll forward
For six months ended 30 June 2026
Asset for remaining coverage
£m
Amount recoverable on incurred claims
£m
Total
£m
Reinsurance contract assets at beginning of period
(36)
166
130
Allocation of reinsurance premiums
(207)
-
(207)
Amounts recoverable from reinsurers for incurred claims:
Amounts recoverable for incurred claims and other expenses
-
174
174
Changes to amounts recoverable for incurred claims relating to past service
-
(4)
(4)
Net expense from reinsurance contracts held
(207)
170
(37)
Foreign exchange
1
(2)
(1)
Cash flows
Premiums paid
224
-
224
Recoveries from reinsurance
-
(165)
(165)
Total cash flows
224
(165)
59
Reinsurance contract assets at end of period
(18)
169
151
A risk adjustment is estimated on the amount recoverable on incurred claims using a confidence level approach at the 85th percentile (HY 2025 and FY 2025: 85th percentile). As this only totals £1m, this has not been separately presented.
For year ended 31 December 2025
Asset for remaining coverage
£m
Amount recoverable on incurred claims
£m
Total
£m
Reinsurance contract assets at beginning of year
(26)
116
90
Allocation of reinsurance premiums
(357)
-
(357)
Amounts recoverable from reinsurers for incurred claims:
Amounts recoverable for incurred claims and other expenses
-
328
328
Changes to amounts recoverable for incurred claims relating to past service
-
(3)
(3)
Net expense from reinsurance contracts held
(357)
325
(32)
Foreign exchange
(1)
(7)
(8)
Cash flows
Premiums paid
348
-
348
Recoveries from reinsurance
-
(268)
(268)
Total cash flows
348
(268)
80
Reinsurance contract assets at end of year
(36)
166
130
For six months ended 30 June 2025
Asset for remaining coverage
£m
Amount recoverable on incurred claims
£mTotal
£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
14 Assets and liabilities held for sale
At 30 June 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Assets held for sale
Property, plant and equipment
13
16
24
Investment property
-
3
-
Inventories
1
-
-
Total assets held for sale
14
19
24
Liabilities associated with assets held for sale
Lease liabilities
(6)
-
-
Provisions for liabilities and charges
-
(2)
-
Total liabilities held for sale
(6)
(2)
-
Net assets held for sale
8
17
24
Net assets held for sale as at 30 June 2026 comprise one care home within Bupa Care Services and two care homes within Bupa Villages and Aged Care New Zealand.
An impairment loss of £nil (HY 2025: £nil; FY 2025: £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 assets held for sale as at 31 December 2025 predominantly comprised a number of care homes within Bupa Care Services, and care home and retirement villages within Bupa Villages and aged Care New Zealand. As at 30 June 2025, net assets held for sale comprised a number of care homes within Bupa Care Services.
15 Cash and cash equivalents
At 30 June 2026
At 31 December 2025
restated¹At 30 June 2025
restated¹
£m
£m
£m
Cash at bank and in hand
1,059
968
1,229
Short-term deposits
938
1,048
1,074
Total cash and cash equivalents¹
1,997
2,016
2,303
1.
Amounts have been restated for the adoption of Amendments to the Classification and Measurement of Financial Instruments. See Note 1.4(a).
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 £15m (HY 2025: £1m; FY 2025: £60m) that are repayable on demand are reported within other interest-bearing liabilities (see 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 (see 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 2026
At 31 December 2025
At 30 June 2025
£m
£m
£m
Subordinated liabilities
Subordinated unguaranteed bonds
872
872
770
Total subordinated liabilities
872
872
770
Other interest-bearing liabilities
Senior unsecured bonds
636
630
741
Fair value adjustment in respect of hedged interest rate risk
3
2
(6)
Bank loans and overdrafts
33
86
27
Other debt
-
5
5
Total other interest-bearing liabilities
672
723
767
Total borrowings
1,544
1,595
1,537
Non-current
1,196
1,504
1,506
Current
348
91
31
Bank loans and overdrafts
Bank loans and overdrafts of £33m (HY 2025: £27m; FY 2025: £86m) include a portfolio of loans held in Bupa Chile totalling £16m (HY 2025: £26m; FY 2025: £26m) and bank overdrafts in Bupa Insurance Services Limited totalling £15m (HY 2025: £1m; FY 2025: £60m). In June 2026, Grupo Bupa Sanitas S.L. renewed its €30m bank facility until May 2027. The facility was undrawn at 30 June 2026 (HY 2025: undrawn; FY 2025: undrawn). Bank loans and overdrafts bear interest at commercial rates linked to SONIA for sterling or equivalent for other currencies.
The Group maintains a £900m revolving credit facility in the name of the Company, which matures in December 2028. The facility was undrawn at 30 June 2026 (HY 2025: undrawn; FY 2025: undrawn).
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 where available. 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, discounted cash flow analysis, discounting using similar duration treasuries and applying an instrument-specific spread.
Financial liabilities are categorised into a three-level hierarchy. A description of the different levels is detailed in Note 12.
An analysis of borrowings by fair value classification is as follows:
Level 1
Level 2
Level 3
Total
At 30 June 2026
£m
£m
£m
£m
Subordinated liabilities
811
21
-
832
Senior unsecured bonds
645
-
-
645
Bank loans and overdrafts
15
18
-
33
Total fair value
1,471
39
-
1,510
Level 1
Level 2
Level 3
Total
At 31 December 2025
£m
£m
£m
£m
Subordinated liabilities
819
21
-
840
Senior unsecured bonds
654
-
-
654
Other debt
-
-
5
5
Bank loans and overdrafts
60
27
-
87
Total fair value
1,533
48
5
1,586
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
The Group does not have any material Level 3 financial liabilities except for other debt (£nil as at 30 June 2026; HY 2025: £5m; FY 2025: £5m).
17 Restricted Tier 1 (RT1) notes
On 24 September 2021, the Company 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 2025: £6m; FY 2025: £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 the Company, 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 the Company on the occurrence of certain trigger events.
18 Business combinations and disposals
(a) 2026 acquisitions
During the period, the Group acquired 95% of Ortus Yazılım A.S., 100% shares of Lagos de Rivas, S.L. and 100% of TMS Disanstyka for total consideration of £4m. Goodwill of £2m and net assets of £2m were recognised on acquisition.
In June 2026, the Group also acquired CarePoint Darwin Medical Clinic for consideration of £3m. Goodwill of £3m was recognised on acquisition.
Following the purchase price allocation in respect of prior year acquisitions relating to New Victoria Hospital and King Edward VII's Hospital in the UK and Medical Magnus in Poland, there was an adjustment to goodwill and net assets. Goodwill decreased by £2m and net assets increased by £2m.
Included in the Condensed Consolidated Income Statement is revenue of £3m 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 2026, the Group would have reported revenue of £9,916m and profit before taxation of £654m for the period ended 30 June 2026.
(b) 2026 disposals
During the period, the Group disposed of 2 care homes in the UK for consideration of £13m.
19 Commitments and contingencies
Capital commitments
Capital expenditure for the Group contracted at 30 June 2026 but for which no provision has been made in the Condensed Consolidated Financial Statements amounted to £62m (HY 2025: £41m; FY 2025: £63m). Of this, £53m (HY 2025: £39m; FY 2025: £59m) relates to aged care development project commitments in Australia and the extension of Cromwell Hospital and property development commitments in the UK; specifically £35m (HY 2025: £29m; FY 2025: £38m) in relation to property, plant and equipment and £18m (HY 2025: £10m; FY 2025: £21m) in relation to investment property. £9m (HY 2025: £2m, FY 2025: £4m) relates to computer software and digital project commitments in Australia, the UK and India.
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 competition matters) 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.
Bupa Finance plc
Statement of Directors' responsibilities for the six months ended 30 June 2026
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 2026 to 30 June 2026 and to the date of this statement, the Board of Directors of Bupa Finance plc remained as listed in the Company's 2025 Annual Report with the following exceptions: Gareth Evans resigned as a Director on 30 June 2026; and Mike Lunn was appointed as a Director on 1 July 2026.
By order of the Board
James Lenton Clare Binmore
Director Director
5 August 2026
Independent review report to Bupa Finance plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Bupa Finance plc's condensed consolidated interim financial statements (the "interim financial statements") in the Condensed Consolidated Half Year Financial Statements of Bupa Finance plc for the 6 month period ended 30 June 2026 (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 2026;
· 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 Bupa Finance plc 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.
Use 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
5 August 2026
[1] We launched our 3x100 Strategy at the start of 2025 which guides and focuses Bupa's Market Units and Business Units on the same key priorities. For further information, see the Group CEO's Review on page four.
[2] Combined Operating Ratio (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.
[3] The HY25 comparative customer number has been updated for our new definition which was refreshed at FY25 to align with our 3x100 Strategy. Customers (which includes 100% of the customers of our Associate Businesses) are defined as the number of Bupa products or services that an individual chooses to access, whether funded personally, by their employer or other affinity - where they have the option to choose a non-Bupa alternative. The difference between the previous and current definition is not materially different in total.
[4] Revenue calculated based on the aggregation of 'insurance revenue' and 'total non-insurance revenue' as shown in the Consolidated Income Statement. For Constant exchange rate (CER), financials are the retranslation of the prior year Actual Exchange Rates (AER) financials based on the current financial year's average rate.
[5] 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.
[6] Includes six pre-existing Harmonia centres in Poland established before 2025.
[7] As reported at full year 2025 which includes a full 12 month of provision customers served.
[8] Refers to Bupa Arabia and My Clinic.
[9]Impact of applying IAS 29 Financial Reporting in Hyperinflationary Economies for Türkiye.
[10] Closing Occupancy
[11] Türkiye has been classified as a hyperinflationary economy since 2022, leading to the application of IAS 29
[12] The HY26 Solvency II capital coverage ratio is an estimate and unaudited. Bupa 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. We include a Group Specific Parameter (GSP) in respect of the insurance risk parameter in the Standard Formula, reflecting the Group's loss experience.
[13] Bupa performs an analysis of the relative sensitivity of our 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.
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