How did Bupa Asia Pacific navigate the 2023 financial landscape?

How did Bupa Asia Pacific navigate the 2023 financial landscape? | Insurance Business New Zealand

Insurance News

How did Bupa Asia Pacific navigate the 2023 financial landscape?

Company outlines efforts to enhance customer wellbeing

Insurance News

By
Roxanne Libatique

Bupa Asia Pacific has revealed its financial results for the year ending 2023, marking a period of stable financial health.

The firm reported a revenue increase to $10.7 billion in the Asia Pacific region, a 5% rise from 2022, fuelled by:

growth in health insurance memberships in Australia
higher occupancy rates in aged care facilities across Australia and New Zealand
an increase in health service utilisation in Hong Kong

However, the year also saw a reduction in underlying profits, which fell to $291 million, primarily as a consequence of elevated support to customers during the COVID-19 pandemic and a surge in claims.

Financial assistance to Bupa customers

Bupa allocated $585 million to aid Australian customers, encompassing cash back offers and premium rate deferrals. To date, Bupa has provided $1.35 billion in financial assistance to its customers since the pandemic began, through various support initiatives.

In the same timeframe, Bupa Australia recorded $6.15 billion in hospital and ancillary claims payments, positioning it among the top payers in the Australian health insurance sector. This period also saw an increase of 4.5% in Bupa’s health insurance clientele, reaching 4.3 million individuals.

“With ongoing cost of living challenges, we remain committed to supporting our customers and helping ensure they get the best value from their health insurance,” Bupa APAC CEO Nick Stone said. “In 2023, we introduced gap-free fillings and check-ups at Bupa owned dental practices, free access to Bupa’s mental health support program ‘This Way Up,’ and we are piloting 24/7 telehealth consultations through our Blua platform to our regional and rural customers.

“We are humbled by the number of customers trusting us with their healthcare, and we will continue to support them in better connecting their care and providing digital solutions to help them get the care they need, in ways that suit their lifestyles.”

Bupa’s health services

Despite facing challenges, Bupa’s Health Services line of business experienced growth in its dental and optical offerings.

The Australian aged care segment saw a return to profitability for the first time since 2018, driven by an uptick in occupancy and improved funding and compliance standards. New Zealand also reported positive outcomes with increased aged care occupancy and profitability from Village Unit resales.

Conversely, the Hong Kong market encountered setbacks, with an underlying loss reported due to heightened insurance claim rates, despite strategic expansions including the launch of new health clinics and better retention rates in health insurance.