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INSURANCEBupa Arabia for Coop InsPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR20.1SR0.8bn ($214.7mn)40.0mn52 week range H/L (SR) 30.8/8.9Avg daily turnover (mn) SR US$3m 29.45 7.8612m 21.42 5.72Raw Beta 6m 1yr1.33 1.19ReutersBloomberg8210.SEBUPA ABPrice perform (%) 1M 3M 12MAbsolute (%) (3) 28 (29)Market (%) 6 32 (39)Sector (%) (2) 48 (26)Website: www bupame.comValuation multiples2006 2007 2008P/E (x) NA NA NMP/B (x) NA NA 1.2P/Sales (x) NA NA NADiv yield (%) NA NA NABUPA Arabia is a medical insurance company established in Jeddah in 2008 byacquiring Bupa Middle East (BME). BME which has been providing health insurancesince 1997 is a joint venture between Nazer Group and BIOL, a fully ownedsubsidiary of U.K. - based BUPA (The British United Provident Association).Company financials2008*YoY(%)CAGR(%)(05-08)Net Insurance Premium SRmn - - -Total Revenues SRmn - - -Net Income SRmn (2) - -Assets SRmn 393 - -Equity SRmn 390 - -Investments SRmn 352 - -Technical Reserves SRmn - - -Combined Ratio % - - -Net Mgn % - - -ROE % (0.4) - -ROA % (0.4) - -Div Payout % - -EPS SR (0.0) - -BVPS SR 9.7 - -Source: Company, NCBC Research* 2008 figures are for 8 months period ending December 31, 2008Segment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.07MSCI Saudi (domestic – small cap) NAFree float (%)Free float 40.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)40302010Bupa Arabia (RHS)BUPA Middle East Holding 22.5BUPA Investments Limited 15.0Modern Software Solutions for5.0Computer ServicesNadher Holding Group 5.0Asas Health Care Company 5.0Source: NCBC Research-Source: Company, NCBC Research• Product profile: BUPA’s customized healthcare plans have been divided into BUPADirect and BUPA Corporate Health Care Scheme. BUPA Direct targets companieswith 10 to 50 employees with three main schemes - Executive, Classic and Essential.BUPA Corporate Health Care Scheme targets companies with over 50 employees.• Financials: In 2008, the company incurred a net loss of SR1.7mn in 2008, mainlydue to high general and administrative expenses partially offset by income frominvestments. Total asset base as on 2008 was SR392.5mn, while the shareholder’sequity stood at SR389.9mn• Recent developments: BUPA reported its 1Q-09 results on April 21, 2009. Thecompany recorded a net profit of SR1.8mn in 1Q-09. Corresponding figures for theyear-ago period are not available. In April 2009, the company announced that it hasentered into a contract with the office of Dr. Mohammed Ali, according to which, thelatter will provide financial and investment consulting services to BUPA. In February2009, the company received Saudi Arabian Monetary Agency (SAMA)’s approval toproceed with its operations in health insurance. Furthermore, in February 2009, Mr.Pablo Juan and Mr. Anthony Cabrelli were appointed to BUPA’s board. In June2008, Saudi British Bank selected BUPA as a health insurance provider to itsemployees for the subsequent three years.JUNE 2009BUPA ARABIA FOR COOPERATIVE INSURANCE190