RIYADH: Bupa Arabia for Cooperative Insurance has seen its profit drop by 10 percent in 2021 as it witnessed a fall in underwriting income.
Net profit stood at SR625 million ($167 million), compared to SR696 million a year earlier, the Saudi-based insurer said in a statement.
This came due to a drop of 11.3 percent in underwriting income — the difference between premiums received on insurance policies and expenses and claims paid.
Claims incurred during the year rose by SR326 million year-on-year to SR9 billion, on the back of a pandemic rebound from low levels witnessed during lockdowns.
Higher expenses of SR714 million also weighed on the results of the company, which was named the Middle East’s most valuable insurance provider in 2021 by Brand Finance.
This was partly offset by a 45 percent fall in policy acquisition costs, higher other income, and lower doubtful receivables, “driven by the record collection performance achieved in 2021.”