Saudi Arabia: Bupa Arabia to double capital to US$213 mln

Source: Middle East Insurance Review | Oct 2015

Bupa Arabia for Cooperative Insurance is proposing to double its capital to SAR800 million (US$213.3 million) from SAR400 million.

The increase will be effected through a one-for-one bonus issue, the health insurer said in a statement lodged with Tadawul, the Saudi bourse. The capital hike will be financed through transferring SAR400 million from retained earnings.

Bupa Arabia reported net profits of SAR149.9 million for the first half of this year, about eight times higher than the SAR17 million posted in the first half of 2014. The company attributed the surge in profits to growth in business, which led to higher net premiums.

It recently launched, together with National Commercial Bank, an insurance financing programme for public-sector employees. Under the partnership, the bank will release a 12-month financing policy for Saudi families’ insurance programmes, whereby potential members can apply for a personal insurance loan and pay it back over 12 months at a 0% profit margin.

SAR1 = US$0.27

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