RIYADH: Bupa Arabia for Cooperative Insurance’s shares gained at Thursday’s close, despite a 16-percent drop in half-year profit on the back of a fall in underwriting income.
Its net profit before Zakat stood at SR429 million ($114 million) in the first half of 2022, compared to SR509 million a year earlier, the Saudi-based insurer said in a statement.
Despite the announcement, the company’s share price closed 1.6 percent higher at SR161, after trading 1 percent lower at SR157 earlier in the day.
The profit decline came due to a drop of 12.3 percent in underwriting income — the difference between premiums received on insurance policies and expenses and claims paid.
Claims incurred during the six-month period rose by SR971 million year-on-year, on the back of a pandemic rebound from low levels witnessed during lockdowns.
This was partly offset by a 20 percent increase in net earned premiums to SR7.2 billion.
