For the year ended 31 December 2021
Bupa Arabia for Cooperative Insurance Company (A Saudi Joint Stock Company)
| Notes | 2021 SR ’000 |
2020 SR ’000 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income attributed to the shareholders before Zakat and income tax | 730,701 | 823,669 | |
| Adjustments for non-cash items: | |||
| Net income attributed to the insurance operations | 20 | 58,347 | 80,141 |
| Depreciation of fixtures, furniture | 15,216 | 15,266 | |
| Amortization of Right-of-use assets | 15,939 | 16,241 | |
| Amortization of intangible assets | 14,446 | 15,731 | |
| Loss on disposal of Fixtures and Furniture | 2,521 | – | |
| Provision for LTIP | 20,386 | 16,034 | |
| Allowance for doubtful receivables | 22,458 | 28,770 | |
| Unrealized gains on investments held as FVSI | (2,643) | (876) | |
| Commission Income on Term Deposits | (58,357) | (120,178) | |
| Provision for end-of-service benefits | 27,495 | 27,294 | |
| Finance cost | 5,834 | 5,244 | |
| Changes in operating assets and liabilities: | |||
| Premiums receivable | (463,715) | 340,564 | |
| Reinsurers’ share of unearned premiums | (7,827) | 517 | |
| Reinsurers’ share of outstanding claims | (5,732) | (257) | |
| Reinsurers’ share of claims Incurred but not reported | (1,368) | (2,489) | |
| Deferred policy acquisition costs | (132,828) | 65,808 | |
| Prepaid expenses and other assets | (28,168) | 101,223 | |
| Accrued and other liabilities | 64,324 | 182,092 | |
| Reinsurers’ balances payable | 20,524 | (49,540) | |
| Unearned premiums | 686,224 | (352,888) | |
| Outstanding claims | 154,649 | (5,269) | |
| Claims incurred but not reported | 35,594 | 220,866 | |
| Premium deficiency Reserve | (189,149) | 263,751 | |
| Claims handling reserve | 1,042 | 2,263 | |
| Due to related parties | 24 | (60,557) | 27,800 |
| 925,356 | 1,701,777 | ||
| End-of-service benefits paid | (7,686) | (4,323) | |
| Surplus paid to policyholders | (68,678) | (48,204) | |
| Zakat and income tax paid | (187,514) | (92,776) | |
| Net cash generated from operating activities | 661,478 | 1,556,474 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Placement in term deposits | (2,213,328) | (788,850) | |
| Proceeds from maturity of term deposits | 1,974,512 | 3,266,791 | |
| Additions to investments | (15,166,118) | (13,748,860) | |
| Disposals of investments | 15,541,136 | 9,729,489 | |
| Additions to Fixtures, Furniture | (9,115) | (11,840) | |
| Disposal of Fixtures, Furniture | – | – | |
| Intangible assets acquired | (19,765) | (21,444) | |
| Net cash used in investing activities | 107,322 | (1,574,714) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Dividends paid | (408,000) | – | |
| Purchase of shares under LTIP | (14,263) | – | |
| Lease liability paid | (19,030) | (14,218) | |
| Net cash used in financing activities | (441,293) | (14,218) | |
| Net change in cash and cash equivalents | 327,507 | (32,458) | |
| Cash and cash equivalents at beginning of the year | 633,251 | 665,709 | |
| Cash and cash equivalents at end of the year | 960,758 | 633,251 | |
| Non-cash transactions | |||
| Movements in fair value reserve of available for sale investments | (46,702) | (168,367) | |
| Transfer from WIP to Fixtures, Furniture/Intangible assets | 22,257 | 22,653 | |
| Re-measurement gains/(losses) on employees’ EOSB | 7,535 | (20,700) | |
| Recognition of Right-of-use assets/lease liability | 2,929 | 54,245 | |
| Tax recoverable (to)/from non-Saudi shareholders | 14,241 | (1,873) |
Chairman
Director and Chief Executive Officer
Director and Chief Financial Officer
The accompanying Notes 1 to 40 form an integral part of these Financial Statements.