Bupa APAC announces 2023 Full Year Financial Results
Bupa Asia Pacific today announced its 2023 Financial Results, delivering a solid result and demonstrating a continued focus on our customers’ health and wellbeing and care for our residents.
| APAC | Revenue | Underlying profit |
| 2023 | $10.7 billion | $291 million |
| 2022 | $10.2 billion | $756 million |
| % growth/(decline) | 5% | - 61% |
Bupa Asia Pacific today announced its 2023 Financial Results, delivering a solid result and demonstrating a continued focus on our customers’ health and wellbeing and care for our residents.
Revenue in our Asia Pacific Market Unit increased by 5% to $10.7 billion driven by an increase in Australian health insurance members, an increase in Australia and New Zealand aged care occupancy, and higher utilisation of Hong Kong health services.
Underlying profits reduced in 2023 to $291 million, due to an increase in COVID-19 customer support amounts and an increase in claims activity.
As part of our COVID-19 customer support, in 2023 we delivered $585 million in financial support to our Australian customers , which included $395 million in cash givebacks and $190 million in premium rate deferrals. Excluding these customer support measures; revenue grew 6% to $11.3 billion.
Bupa’s total announced financial support to customers since the pandemic started is $1.35 billion delivered through cash givebacks, premium rate deferrals, financial assistance for impacted customers and other support programs.
In 2023, Bupa Australia paid out $6.15 billion in hospital and ancillary claims across its domestic and international portfolios, amongst the highest of major health insurers in Australia. In 2023, there was a higher frequency of claims as customers continue to return to hospitals for procedures while making the most of their health insurance.
An increasing number of customers are trusting Bupa Australia with their health and wellbeing needs with the number of health insurance customers increasing by 4.5% to 4.3 million.
Bupa APAC Chief Executive Officer, Nick Stone, said Bupa was working hard to support its customers, residents and people during challenging economic times. Bupa has a renewed focus on leveraging its wide range of businesses across health insurance, dental, optical, and aged care to drive better value and more connected care for customers and residents.
“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,” Mr Stone said.
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.
“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.”
Mr Stone said Bupa was focused on further investing in digital and innovation to drive better customer access and outcomes. This will include fast-tracking technology upgrades to create a better customer experience and modernise healthcare journeys. In addition, we recently announced Bupa Ventures, a $20 million investment arm to support and invest in start-ups developing innovative models of healthcare.
“We saw a strong uptake in our programs designed to improve our customers’ health including dietary guidance, hospital stay preparation, treatment recovery to address health issues including heart attacks and strokes - and we will continue to build on that throughout this year,” he said.
Bupa’s Health Services business in Australia grew across dental and optical networks offset by lower assessment volumes in its Medical Visa Services business.
Revenues in Australian aged care increased driving a return to profitability for the first time since 2018. This was due to higher occupancy rates, improved government funding and enhanced compliance as the sector continues to recover from the impacts of COVID-19.
Mr Stone said whilst there was improvement in the aged care business, this was partly offset in regional areas which continue to have a challenging operating environment.
In New Zealand aged care occupancy uplifted and Village Unit resales increased driving higher revenues and profitability.
In Hong Kong, revenue grew with the opening of seven new health clinics and increased retention for health insurance. Overall, the Hong Kong business reported an underlying loss due to an increase in insurance claims utilisation.
