2018
play

2018 Full year results presentation 12 months ended 31 December - PowerPoint PPT Presentation

Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 FY 2018 results presentation 2018 Full year results presentation 12 months ended 31 December 2018 1 Section 1 Section 2 Section 3 Section 4


  1. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 FY 2018 results presentation 2018 Full year results presentation 12 months ended 31 December 2018 1

  2. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 FY 2018 results presentation Agenda Section 1 Section 2 Section 4 Section 5 Section 3 Market Unit Overview Outlook and Questions Financial performance operating and answers review priorities Joy Linton Gareth Roberts Gareth Evans Chief Financial Officer Group Financial Controller Group Treasurer 2

  3. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Section 1 Overview Joy Linton Chief Financial Officer 3

  4. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 2018 Group highlights Revenue flat, underlying profit down due to disposals and challenges in Australia. Growth in health insurance, including Spain and the UK Excluding UK aged Statutory profit Revenue Underlying profit care divestment before tax before tax (CER) +3% £11.9bn £613m Revenue £502m Underlying -3% AER -19% AER -15% AER profit -6% 0% CER -12% CER Solvency coverage Leverage Solvency coverage Ratings ratio 1 ratio 1 Moody’s senior debt 23.5% 191% rating upgraded to 191% A3 180% FY 2017 25.3% FY 2017 180% FY 2017 Fitch stable at A- 4 (1) The FY18 Solvency II capital position, SCR and coverage ratio are estimates

  5. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 2018 Group highlights Innovating and investing to meet customers’ evolving expectations Continued to invest in Launched Business In Spain, we acquired Australian customer the dental sector, Mental Health Néctar Seguros and transformation including acquiring Advantage in UK Ginemed programme making 24 practices in the health insurance things easier and UK and Ireland faster for customers Set up a new Entered into the Sanitas Seguros Increased our stake in insurance entity in Turkish health enhanced our Blua Bupa Arabia by 5% to Ireland to maintain insurance market digital proposition in 39.25% service for IPMI through the Spain acquisition customers living in of Acıbadem Sigorta the EU (but outside the UK and Ireland) after Brexit 5

  6. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Section 2 Market unit performance Joy Linton Chief Financial Officer 6

  7. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Stable revenue, underlying profit down, driven by challenges Australia and in aged care and health insurance New Zealand Operating environment Performance Revenue − − Australian and New Zealand economies Affordability pressures and product changes £4,656m -5% AER remained subdued in 2018. impacted the profitability of our health 0% CER insurance business. (2017 FY: £4,635m CER) − In Australia, the government restricted health − insurance sector price increases at a lower rate Progress made on health insurance customer Underlying profit than claims inflation. transformation programme. £313m -15% AER -9% CER − − Continued strong government interest in health Bupa Medical Visa Services contract renewed; (2017 FY: £344m CER) insurance in Australia, with an expert selected as the health service provider for the committee looking at health insurance out-of- Australian Defence Force from July 2019. Revenue by business pocket costs. − Profit in our aged care business in Australia fell BUPA BUPA − VILLAGES HEALTH Australian Federal election to be held in the significantly, due to funding pressures, lower AND AGED INSURANCE first half of 2019. occupancy and higher costs. CARE 82% AUSTRALIA AND NEW ZEALAND − − Royal Commission into Aged Care Quality and New Zealand profits up; portfolio reshaped. 11% Safety underway. BUPA HEALTH SERVICES 7% 7

  8. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Steady growth driven by Spanish health insurance Europe and and dental businesses Latin America Operating environment Performance Revenue − − The Spanish economy grew at 2.6% with stable Good results in Spanish health insurance £3,041m +6% AER inflation. Political uncertainty continues with business, driven by partnerships and Blua. +6% CER General Elections in Spain announced for April. Acquired Néctar Seguros. (2017 FY: £2,865 CER) − − The Polish economy grew strongly, and consumer Growth in dental insurance customers and in our Underlying profit consumption increased due to a buoyant labour dental centres. £182m market. +2% AER − Acquired fertility services provider, Ginemed. Sold +2% CER (2017 FY: £179m CER) − The Chilean economy grew at 4% in 2018. The our stake in Torrejón Salud hospital. Chilean Government is leading the Isapre (1) reform Revenue by business − project engaging with all players in the sector. Strong performance in Sanitas Mayores, with high BUPA SANITAS occupancy rate. CHILE SEGUROS 33% 37% − In Poland, LUX MED grew organically and through acquisitions. SANITAS HOSPITALES AND NEW − SANITAS In Chile, insurance business reserve SERVICES MAYORES 10% 5% strengthened. Health services customer numbers up. Opened Clinica Bupa Santiago hospital, a SANITAS LUX £140m investment. DENTAL MED 4% 11% 8 (1) Healthcare in Chile is provided by the government via Fondo Nacional de Salud (FONASA) and by private insurers via Instituciones de Salud Previsional (ISAPREs)

  9. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Reshaping and investing in the UK to focus on changing United customer needs Kingdom Operating environment Performance Revenue − − Uncertainty remains around the full implications Profit growth in our health insurance business £2,537m -10% of Brexit. Low economic growth. driven by improved claims performance. Launched new mental health, cancer and 2017 FY: £2,807m) − Continuing pressure on the NHS with digital services. government commitment to increase future Underlying profit − funding. Further acquisitions in dental, strengthening £156m -22% our market position to c.480 centres. − Dental market remains competitive with a UK- (2017 FY: £199m) − wide review of NHS orthodontic contracts that The sale of 132 care homes in December 2017 will continue into 2019, and a shortage of and February 2018, reflected in aged care Revenue by business dentists. revenue and profit BUPA BUPA UK − HEALTH INSURANCE In aged care, demand for local authority-funded SERVICES 61% beds continues to increase but public funding 6% remains constrained. BUPA CARE SERVICES 16% BUPA DENTAL CARE 17% 9

  10. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Strategic investment in rapidly-developing and growing International markets Markets Operating environment Performance Revenue − − International Private Medical Insurance market Bupa Global IPMI business stabilised, with £1,626m -1% AER remained competitive progress in customer retention and customer +3% CER satisfaction. Post-Brexit arrangements − Saudi Arabia operating environment remained (2017 FY: £1,581m CER) established. challenging with increasing regulation and − Underlying profit (1) intense competition Integration of Care Plus in Brazil continues to progress well. -7% AER − Hong Kong’s economy expanded moderately. £36m +1% CER − Risks are increasing due to US-China relations Increased our stake in Bupa Arabia associate (2017 FY: £36m CER) business to 39.25%. Signed third-party − India remained one of the world’s fastest administration services agreement with Saudi growing economies; health insurance sector is Revenue by business (2) Aramco. increasingly competitive − Hong Kong grew revenue. Heath services MAX BUPA (INDIA) BUPA − Growth in the Turkish economy slowed due to 2% GLOBAL opened four medical centres and first Bupa- 55% geopolitical tensions; health insurance remains branded dental centre. an attractive long-term market − Announced a new partner (True North) for Max Bupa associate business in India, subject to regulatory approval. HONG KONG − 18% Entered the Turkish health insurance market with the acquisition of Acıbadem Sigorta in BUPA ARABIA January 2019. 25% (1) Revenues from our associates and joint ventures are excluded from our reported figures. The appropriate share of profit from these businesses are included in our reported figures. 10 (2) Chart includes our share of revenues from associates to give a sense of scale.

  11. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 Section 3 Financial Review Gareth Roberts Gareth Evans Group Financial Controller Group Treasurer [Image to come] 11

  12. Section 1 Section 2 Section 3 Section 4 Section 5 Bupa Full year results presentation 2018 FY 2018 Financial Overview Financial highlights Solvency capital Leverage ratio coverage 23.5% 191% (1) 2017: 25.3% 2017: 180% Net cash flow generated from operating activities £808m Down 13% on 2017 (1) The FY18 Solvency II capital position, SCR and coverage ratio are estimates and unaudited 12

Recommend


More recommend