Half-year Report

Bupa Finance plc (Bupa Finance)

HALF YEAR STATEMENT FOR THE SIX MONTHS TO 30 JUNE 2025

Financial headlines

• Insurance customers[1] of 40.9m, up 23%, provision customers served of 15.1m, up 7%; and aged care occupancy of 94%, up 1ppt.

• Revenue £8.8bn, up 11% (HY 2024: £8.0bn) at Constant Exchange Rates (CER).

• Underlying profit[2] before taxation £560m, up 32% at CER (HY 2024: £426m) driven by the strong growth in revenues, improved margins and higher investment returns.

• Statutory profit before taxation £582m, up 14% at Actual Exchange Rates (AER) (HY 2024: £509m).

• Solvency II capital coverage ratio of 182% (FY 2024: 176%).

• Leverage (excluding IFRS 16 lease liabilities) of 16.4% (FY 2024: 16.6%).

Iñaki Ereño, Bupa Group CEO, commented:

"In the first six months of the year, we have served more customers than ever before, we have scaled Blua, our digital healthcare solution, and we have opened 61 new health provision sites around the world, giving our customers even more choice and convenience when it comes to accessing our healthcare services.

"I am proud of the results we have delivered and I would like to thank our customers and colleagues. We are building on the strong foundations that we have developed over the past four years. Bupa's new 3x100 Strategy is helping us to go further and faster to deliver our purpose and our ambition for Bupa to be the most customer-centric healthcare company in the world."

Market Unit performance (all at CER)

• Bupa Asia Pacific: Revenue increased by 7% to £3,085m driven by customer growth across all business units, particularly in provision as we expand our health network. Underlying profit increased by 12% to £242m driven by the revenue growth and higher margins across provision, aged care and Hong Kong Insurance.

• Europe and Latin America: Revenue grew by 14% to £2,911m driven by customer growth and higher policy pricing in Chile Insurance, approved by the regulator following cancellation of the GES[3] price increase at the start of 2024. Underlying profit increased by 44% to £203m as a result of higher revenues, margins and investment returns.

• Bupa Global, India and UK: Revenue grew by 12% to £2,807m driven by insurance as we saw strong customer growth, particularly in Niva Bupa, and higher premiums driven by rate changes in response to higher claims in the UK. Underlying profit increased by 84% to £123m driven by the revenue growth, improved margins in provision and aged care, and Niva Bupa turning to profitability due to continued strong business performance and the absence of prior year one-off impacts related to our increased shareholding[4].

• Other businesses: Our businesses in Saudi Arabia delivered underlying profit of £45m, down (17)% driven by lower margins in insurance due to inflationary pressures in the first half of 2025 more than offsetting revenue growth.

Group profitability

• Total underlying profit was £560m, up 32% at CER (HY 2024: £426m) driven by the increase in Market Unit profits, partly offset by an increase in Group Investment Funding spend as we re-invest profits from enhanced financial performance into high-impact and strategically important initiatives, directly aligned with our purpose. Borrowing costs and other central functions costs reduced following the redemption of £300m senior unsecured bonds in April 2024 and due to the timing of project spend.

• Statutory profit before tax was £582m, up 14% at AER (HY 2024: £509m) driven by the £106m AER increase in underlying profit. A positive non-underlying result of £22m (HY 2024: £55m) was driven by a gain on the disposal of a legacy portfolio of individual health contracts in Brazil.

Financial position

• Solvency II capital coverage ratio of 182% remains strong and is above our 140-170% target range (FY 2024: 176%).

• Leverage ratio of 23.7% (FY 2024: 23.8%) when including IFRS 16 lease liabilities. Excluding these liabilities, the leverage ratio was 16.4% (FY 2024: 16.6%).

• Net cash generated from operating activities remained strong at £977m (HY 2024: £750m).

Customer highlights

• We launched our new 3x100 Strategy in January 2025 which sets out the initiatives we are focused on in service of our purpose from 2025-2027. It has been rolled out across Bupa and there is positive momentum on our new strategic initiatives.

• We increased our insurance customers by 23% to 40.9m, served 15.1m provision customers, up 7%, and our aged care occupancy rate is 94%, up 1ppt.

• We have scaled Blua, our digital health solution, which now has over 8.1m customers, offering customers virtual consultations, health programmes and remote healthcare.

• We remain committed to customer experience improvement. When compared to the same period last year, 91% of our Business Units (BUs) improved their Net Promoter Score (NPS). In addition, 57% of our BUs achieved an NPS score of over 70, covering all lines of business.

• We expanded our provision footprint in the first half of 2025, opening 2 hospitals, 34 health clinics[5], 11 dental centres, 13 on-site service centres[6] and 1 care home globally.

• We launched Mindplace, dedicated mental health centres to make high-quality, mental healthcare accessible to more people. Over the next three years, we are committed to opening 200 Mindplaces worldwide and we opened 7 in the first half of 2025.[7]

• In Spain, we opened Hospital Blua Sanitas Valdebebas, a new digital hospital which combines technology, sustainability and personalised care, and we also acquired Hospital Magnus in the city of Łódź in Poland.

• In the UK, we agreed terms to acquire New Victoria Hospital, our first hospital acquisition in the UK since 2008. The acquisition is due to complete in Summer 2025.

• Under our 'My Genomic Health' programme, we have analysed the DNA of over 9,000 participants in a pilot across Spain, the UK and Poland. We are the first private healthcare provider in these countries to offer whole genome sequencing with integrated follow-up care pathways, underpinning our commitment to improving customers' health.

People highlights

• In our global People Pulse survey in May, our overall engagement score was 83, exceeding the benchmark for the top 10% most engaged companies globally.

• We launched Bupa Campus, a global learning platform for Bupa colleagues, designed to further build the skills and capabilities of people across the business. Since the start of the year, we've launched these dedicated learning spaces in Spain, Australia and the UK.

Sustainability highlights

• We announced new sustainability goals to build on what we've already achieved, which are linked to our 3x100 Strategy. This will further our support for people, communities and our planet, so we can deliver a healthier society for more people.

Enquiries

Media - Duncan West (External Communications): [email protected]

Investors - Gareth Evans (Treasury): [email protected]

This statement is also available at www.bupa.com/financials/results-centre

About Bupa Finance plc

Bupa Finance plc (the Company) is a company incorporated in England and Wales. The Condensed Consolidated Half Year Financial Statements comprise the financial results and position of the Company and its subsidiary companies (together referred to as the Group). The immediate and ultimate parent of the Company is The British United Provident Association Limited (the Parent), which is also the ultimate parent company of the Bupa Group (Bupa).

Established in 1947, Bupa's purpose is helping people live longer, healthier, happier lives and making a better world. We are an international healthcare company serving over 60 million customers worldwide[8]. With no shareholders, we reinvest profits into providing more and better healthcare for the benefit of current and future customers. Bupa has businesses around the world, principally in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico and India. We also have associate businesses[9] in Saudi Arabia.

For more information, see www.bupa.com.

Disclaimer: Cautionary statement concerning forward-looking statements

This document may contain certain 'forward-looking statements'. Forward-looking statements often use words such as 'intend', 'aim', 'project', 'anticipate', 'estimate', 'plan', 'believe', 'expect', 'forecasts', 'may', 'could', 'should', 'will', 'continue' or other words of similar meaning. Statements that are not historical facts, including statements about the beliefs and expectations of Bupa Finance plc and Bupa's directors or management, are forward-looking statements. In particular, but not exclusively, these may relate to Bupa's plans, current goals and expectations relating to future financial condition, performance and results.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur, many of which are beyond Bupa's control and all of which are solely based on Bupa's current beliefs and expectations about future events. These circumstances include, among others, global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, risks arising out of health crises and pandemics, the impact of competition, the timing, impact and other uncertainties of future mergers or combinations within relevant industries. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual future condition, results, performance or achievements of Bupa or its industry to be materially different to those expressed or implied by such forward looking statements. Recipients should not place reliance on, and are cautioned against relying on, any forward-looking statements. Except as required by any laws and regulations, Bupa expressly disclaims any obligations or undertakings to release publicly any updates or revisions to any forward-looking statements to reflect any change in the expectations of Bupa with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Forward-looking statements in this document are current only as of the date on which such statements are made. No statement in this document is intended to be a profit forecast. Neither the content of Bupa's website nor the content of any other website accessible from hyperlinks on Bupa's website is incorporated into, or forms part of, this document.

Bupa Group CEO's Review

While we have made significant progress over the last four years, we know there is still more we can achieve. To go further and faster in delivering our purpose and ambition, earlier this year we launched Bupa's new strategy for 2025-27 - the 3x100 Strategy. It is designed to build on the success of the 3x6 Strategy and sets a global framework to guide and focus Bupa's Market Units and Business Units on the same key priorities. We are focused on accelerating the progress we have made, maintaining our commitment to providing a world-class customer experience, continuing to build our data and digital capabilities, and delivering a healthier society for more people.

Overview of the 3x100 Strategy

Our purpose, values and ambition remain constant and continue to guide our decisions and actions when setting and delivering the new strategy. The new elements in 2025 are three bold Ambition KPIs which we are striving towards:

• To have a Net Promoter Score of 100.

• To achieve a 100% Complete Customer Dataset.

• To have 100m customers supported by Bupa.

There are three supporting pillars to achieve these Ambition KPIs which will ensure we strengthen our customer experience, our Cloud and data capability, and our Connected Care model to grow and link together our offerings in healthcare funding and provision.

We will deliver three global Emblematic Projects focused on Genomics, Improving doctor/patient interactions through better data, and Mental Health. These illustrate how we're re-investing our profit into our purpose, demonstrating how we are helping people live longer, healthier, happier lives and making a better world.

Sustainability strategy

Alongside our new 3x100 Strategy, we have also set new sustainability goals to deliver a healthier society for more people. Our new sustainability strategy is called 'Better World' and is focused on People, Communities and Planet. Our sustainability strategy builds on what we've already achieved and broadens our efforts beyond the environment, to create healthier societies for more people. By supporting the communities we live in, the planet and the healthcare industry, we will work towards our purpose of helping people live longer, healthier, happier lives and making a better world.

Outlook

We are encouraged by the growth and performance across the Group through the first six months of our new 3x100 Strategy. We remain relentlessly focused on providing a world-class customer experience while continuing to drive the transformation of Bupa by building our data and digital capabilities.

The continued global macro-economic and geopolitical uncertainty creates challenges for our business to navigate while changes in governmental and regulatory policy remain one of our top risks. However, we remain well-placed to navigate these challenges and to take advantage of opportunities because of our underlying financial strength, resilience and diversified business model.

We are confident for the future and there is positive momentum behind our 3x100 Strategy and our ambition to be the world's most customer-centric healthcare company. There is much to do and we are focused on doing more to meet people's changing health and wellbeing needs, now and into the future.

FINANCIAL REVIEW

Summary

Revenue (CER)

Group revenue was up 11% driven by customer growth in insurance, increased activity in health provision and higher occupancy in aged care. Pricing changes also contributed to higher revenues as we seek to balance the impacts of inflation, remaining competitive for customers and maintaining discipline in our underwriting of insurance risk.

Revenue in health insurance grew by 12% with period-on-period growth across all market units driven by customer growth of 25% when excluding associate businesses. In the period we also saw increased revenues from higher policy pricing in Chile Insurance, approved by the regulator after the supreme court overruled and cancelled the GES price increase at the start of 2024.

Our health provision businesses saw revenue growth of 8% driven by higher levels of activity across all market units as we continue to expand our provision footprint and digital offering in line with our connected care strategy.

In aged care, revenue was up 7% as occupancy rates continued to increase across all of our businesses in the UK, Spain, Australia and New Zealand.

Underlying profit (CER)

Group underlying profit increased 32% to £560m (HY 2024: £454m) driven by the strong increase in revenues across all market units.

Health insurance underlying profit increased across all Market Units as the Group COR[10] improved to 95% (HY 2024: 97%). In our Asia Pacific Market Unit profits increased driven by Hong Kong as we continued to see COR improvement as a result of the pricing and retention strategy launched to transform performance in 2023. Our Europe and Latin America Market Unit saw very strong profit growth driven by an improved COR in Chile and Türkiye, where we have also seen increased investment returns against a continued backdrop of hyperinflation. In our Bupa Global, India and UK Market Unit underlying profit increased driven by Niva Bupa as a result of strong customer growth, an improving COR, higher investment returns and the absence of prior year one-off impacts related to our increased shareholding.

Profits grew strongly in health provision supported by customer growth and higher margins whilst in aged care profits grew strongly from higher occupancy and margin improvement.

Central costs remained flat at £(53)m (HY 2024: £(53)m) as a reduction in borrowing costs and other central functions costs following the redemption of £300m senior unsecured bonds in April 2024 and due to the timing of project spend respectively was offset by an increase in Group Investment Funding spend as we re-invest profits from enhanced financial performance into high-impact and strategically important initiatives. These investments are directly aligned with our purpose - helping people live longer, healthier, happier lives and making a better world. 

Statutory profit

Statutory profit before taxation was £582m, up 14% at AER (HY 2024: £509m), with positive non-underlying items totalling £22m (HY 2024: £55m).

The key driver of non-underlying items at HY 2025 was a gain on the disposal of a legacy portfolio of individual health contracts in Brazil. Short-term fluctuations on investment returns resulted in a gain of £3m (HY 2024: £(12)m loss). We also reported a gain on realised and unrealised foreign exchange in the period of £1m (HY 2024: £8m gain) and other items of £(7)m (HY 2024: £(13)m) related to restructuring costs.

Insurance service result

Under IFRS 17 we are required to report an insurance service result which comprises: insurance revenue, less insurance service expenses. This result excludes financial income and expenses. For HY 2025 the Group insurance service result increased to £328m (HY 2024: £188m) driven by strong customer growth and higher margins across the majority of our insurance business units, resulting in a Group COR of 95% (HY 2024: 97%).

Taxation

The Group's effective taxation rate for the period was 27% (HY 2024: 26%; FY 2024: 26%), which is in line with the current UK corporation taxation rate of 25%.

The Group operates in the UK where tax legislation to implement a global minimum top-up tax (known as "Pillar Two Model Rules") was enacted in July 2023 and became effective from 1 January 2024. The legislation seeks to establish a 15% global minimum tax rate for multinational enterprises. In accordance with IAS 12, the Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax, and instead accounts for it as a current tax when it is incurred. The current tax charge with respect to the top-up tax for the period was £nil (HY 2024: £nil; FY 2024: £nil). The Group is continuing to monitor the development of Pillar Two rules and guidance from tax authorities.

Cash flow

Net cash generated from operating activities remained strong at £977m (HY 2024: £750m). The £227m increase was delivered through business growth, particularly in our Bupa Global, India and UK market unit and the timing of collections on contracts. Net cash flow used in investing activities decreased by £443m to £382m, primarily reflecting the acquisition of a controlling stake in Niva Bupa in 2024. Net cash used in financing activities also reduced by £159m to £202m due to the redemption of £300m senior unsecured bonds in April 2024.

Funding

We manage our funding prudently to ensure a strong platform for continued growth. Bupa's policy is to maintain investment grade access to both the senior and subordinated bond markets. In October 2024, Fitch upgraded the Bupa Finance plc Issuer Default Rating to A from A- with Stable outlook and upgraded the related bond ratings. There were no rating movements in the 6 months to 30 June 2025.

We continue to hold a good level of Group liquidity. At 30 June 2025, our £900m Revolving Credit Facility (RCF) was undrawn (HY 2024: £150m). Coverage of financial covenants within the facility remains strong.

We focus on managing our leverage in line with our credit rating objectives. Leverage excluding IFRS 16 leases was marginally down to 16.4% (FY 2024: 16.6%) with the reduction driven by an increase in net assets in the period.

Solvency

Our solvency coverage ratio of 182% remains strong and is above our target working range of 140-170%.

The Group holds capital to cover its Solvency Capital Requirement (SCR), calculated on a Standard Formula basis, considering all our risks, including those related to non-insurance businesses. As at 30 June 2025, the estimated SCR of £3.2bn was £0.1bn higher, and Own Funds of £5.8bn was £0.4bn higher when compared to 31 December 2024.

Our surplus capital was estimated to be £2.6bn, compared to £2.3bn at 31 December 2024, representing a solvency coverage ratio of 182% (FY 2024: 176%). Our business continued to generate capital through our strong underlying profitability. This capital generation was partially offset by capital expenditure, debt finance costs, currency risk charge and FX movements. We perform analysis of the relative sensitivity of our estimated solvency coverage ratio to changes in market conditions and underwriting performance. Each sensitivity is an independent stress of a single risk and before any management actions. The selected sensitivities do not represent our expectations for future market and business conditions. A movement in values of properties that we own continues to be the most sensitive item, with a 10% decrease having a 10 percentage point reduction to the solvency coverage ratio.

Our capital position is resilient in the face of the individual risks, illustrating the strength of our balance sheet.

We include a Group Specific Parameter ('GSP') in respect of the insurance risk parameter in the Standard Formula, reflecting the Group's own loss experience.

MARKET UNIT PERFORMANCE

Bupa Asia Pacific

(Commentary on a CER basis)

Revenue in our Asia Pacific Market Unit increased by 7% to £3.1bn driven by customer growth across all business units, expansion of our health provision network, and growing aged care occupancy levels. Underlying profit increased by 12% to £242m driven by the revenue growth and higher margins across provision, aged care and Hong Kong Insurance.

Australia Health Insurance revenues increased by 6%, with domestic market share growing 3 basis points to 25.57% in the March 2025 quarter, marking ten consecutive quarters of maintaining or growing market share[12]. On a reported basis, the COR remained stable at 92% (2024: 91%) with increased revenues offset by higher payments to private hospitals and increased member benefits, such as zero out-of-pocket costs for three Virtual GP bookings and any preventative dental procedures through our Members First Ultimate Network.

Australia Health Insurance has continued to demonstrate growth across all service offerings, notably through our digital health platform, Blua. We expanded digital services significantly, averaging 17.6k Virtual consultations per month by June 2025, up 57% year on year. Amidst increasing cost pressures, we secured agreements with several private hospital groups including Ramsay Health Care, Healthscope and St John of God Health Care.

In June 2025, Bupa and the Australian Competition and Consumer Commission (the ACCC) jointly proposed to the Federal Court to settle an action relating to breaches of Australian consumer law by our Australia Health Insurance business for AU$35 million (£17m), which was fully provided for in our full year 2024 results. We are already well progressed with compensating affected customers and providers and will continue to uplift compliance.

Australia Health Services delivered very strong revenue and underlying profit growth, underpinned by continued momentum across all businesses. Revenue growth was driven by the expansion of our medical centres network through strategic acquisitions along with increased demand under the Australian Defence Force contract. Our Optical business steadily increased customer numbers and Bupa Dental improved financial performance through network growth and rising patient volumes from our private health insurance customer base. Our ongoing investment in primary healthcare and mental health services will continue to accelerate growth. By 30 June 2025, we had 23 Bupa medical centres in operation (up from 5 as at 31 December 2024), as well as our first 3 mental health clinics (Mindplace), both of which are open to Bupa members and the wider public. These developments reflect our commitment to meet the evolving health needs of our community and strengthen our integrated care model.

In Australia Villages and Aged Care, both revenue and underlying profit grew from increasing occupancy[13] to 95% (HY 2024: 92%), and from a higher resident revenue rate.

In New Zealand Villages and Aged Care, both revenue and underlying profit increased. Occupancy reached a seven-year high of 95% (up from 92% at HY 2024), driven by enhanced collaboration with health sector partners. Profit growth in Villages was driven by an increase in occupied units and higher average pricing per unit.

In Hong Kong revenue and underlying profit experienced strong growth. Our Hong Kong Insurance business benefited from the continued positive impact of the revised pricing and retention strategy. Health Services profitability continues to improve, driven by pricing and effective cost management.

Europe and Latin America

(Commentary on a CER basis)

Revenue in our Europe and Latin America Market Unit grew by 14% to £2.9bn as a result of customer growth and pricing. Underlying profit increased by 44% to £203m driven by the increase in revenues, cost efficiencies and higher investment returns.

Sanitas Seguros, our health insurance business in Spain, delivered strong revenue growth through organic customer growth. Underlying profit reduced due to lower investment returns and higher commission costs on increased customer volumes resulting in a COR of 96% (HY 2024: 95%). In the period Sanitas Seguros also expanded its health insurance business entering the Portuguese market by opening a branch under the Bupa Portugal brand. We also continued to expand our digital services and, in June, reached an average of 94,000 video consultations per month (compared to an average of 75,000 per month in 2024).

Our dental business in Spain saw a strong increase in revenue and improved underlying profit year on year, driven by higher customer volumes. In 2025, Sanitas continued its expansion by opening four new clinics.

In our hospitals business in Spain, revenue decreased as one public private hospital partnership contract came to the end of its term in May 2024. Revenues excluding this partnership increased year on year, driven by higher demand and footprint expansion. In the period we opened a new hospital in Valdebebas, Madrid, receiving new patients from mid-June. We also continue to make progress against plans to open three new hospitals, in Madrid, Barcelona and Palma de Mallorca (the last two, in collaboration with Mapfre).

Sanitas Mayores, our aged care business in Spain, continues to perform well with growth in revenues and underlying profit. Occupancy remained high at 96% (2024: 96%). The company has opened a new care home in Barcelona and it has acquired a new one in Madrid.

In Poland, LUX MED's revenue and underlying profit increased driven by strong growth in the number of health insurance and subscription customers, specially focusing on new InPMI[14] customers and enabling more activity in our medical centres and hospitals. In the period we also opened three health centres and acquired Hospital Magnus in the city of Łódź.

In Chile, revenues and underlying profit grew across both insurance and provision. Our insurance business delivered improved performance as the regulator approved higher policy pricing. This is compared to underlying losses in 2024 following the supreme court decision to overrule and cancel the GES price increase in the Isapre business, together with losses associated with other adverse governmental, regulatory and judicial measures. Chile provision performance was driven by higher volumes in the period and consolidation of its value proposition in the local market. Bupa Chile has continued to improve the experience of our patients and customers across both business segments in Chile, increasing NPS in provider and in insurance business.

Bupa Acıbadem Sigorta, our health insurance business in Türkiye, reported an increase in both revenue and underlying profit as we continue to navigate the challenging economic environment. Higher investment returns drove an increase in underlying profit as interest rates remained high in response to hyperinflation. The economy has been classified as hyperinflationary since 2022, leading to the application of IAS 29. A net monetary loss of £(13)m (as of 30 June 2025) has been recorded in the non-underlying result for the period.

Care Plus in Brazil delivered strong revenue and profit growth from higher insurance volumes, improved medical margins and increased investment returns. In February 2025, we completed the sale of a legacy portfolio of individual health contracts, resulting in a pre-tax profit of £28m.

Bupa Mexico delivered good revenue growth in the insurance business as the portfolio grew. Bupa Mexico has its own hospital, Bité Médica, which is currently expanding its inpatient capacity while performing more than 80 medical procedures each month. Mexico's model is complemented by a TPA called Vitamédica, which provides services to more than 426,000 clients.

Bupa Global Latin America underlying profit remained constant year on year, with higher margins offset by a reduction in investment returns. We continue to strengthen our alliance with Mapfre, increasing activity in Peru and Paraguay. The partnership is delivering high margins, and we remain aligned on long-term growth plans across the region.

Bupa Global, India and UK

(Commentary on a CER basis)

Revenue in our Bupa Global, India and UK Market Unit increased by 12% to £2.8bn driven by insurance as we saw strong customer growth, particularly in Niva Bupa, and higher premiums driven by rate changes in response to higher claims. Underlying profit increased by 84% to £123m driven by the revenue growth, improved margins in provision and aged care, Niva Bupa turning to profitability due to strong business performance and the absence of prior year one-off impacts related to our increased shareholding.

UK Insurance delivered strong growth in revenue as we added over 149,000[15] net new customers across medical insurance, health trusts, dental insurance and cash plan in the first half of 2025. Higher premiums also contributed to the revenue growth driven by rate changes in response to higher claims. Underlying profit reduced, driven by a higher loss ratio, increased acquisition costs and additional investment to facilitate further growth.

In Bupa Global, our IPMI business, revenue and underlying profit increased driven by growth in customer numbers, and lower loss ratios from global claims management. Our focus remains on responding to the distinct needs of our customers and people across global locations. In the first half of 2025, we have expanded our presence in France and Qatar through new strategic partnerships and opened a new office in Nairobi to support growth across East Africa.

The COR for Bupa Insurance Limited, the UK based insurance entity that underwrites both domestic and international insurance was stable at 97% (HY 2024: 97%).

Following the increase in our investment to become the controlling shareholder in H1 2024, Niva Bupa grew revenue significantly and turned to an underlying profit driven by strong customer growth, improved COR and investment returns. With a comprehensive portfolio of innovative health insurance products and plans across all stages of the customer lifecycle, Niva Bupa's strong customer growth is enabled by its broad distribution model.

UK Dental continues to deliver against its turnaround strategy with high growth in underlying profit. We are seeing strong demand for our quality services, including our subscription product, Bupa Smile Plan, to help customers access oral care in our clinics.

UK Care Services, our aged care business, delivered growth in revenue and strong growth in underlying profit through increasing occupancy to 91% (HY 2024: 90%) and record property sales in our retirement village business. This performance was further supported by robust cost management and high levels of employee retention contributing to record low utilisation of agency labour.

UK Health Services delivered growth in revenue and underlying profit. The increase in profit was driven by higher customer numbers in Clinics and the Cromwell Hospital, new Blua digital services and our expanded network of health centres. We've also grown our portfolio through the acquisition of London Medical, a specialist outpatient clinic and The Dermatology Partnership and announced the acquisition of New Victoria Hospital in London - our first hospital acquisition in the UK since 2008 - enabling us to provide more Bupa services directly to our customers.

Other businesses

(Commentary on a CER basis)

Our businesses in Saudi Arabia delivered underlying profit of £45m down 17% on the prior year driven by lower margins in insurance due to inflationary pressures in the first half of 2025 more than offsetting revenue growth and higher investment returns.

BUSINESS RISKS

We described our main risks in the Risk section of the Annual Report and Accounts 2024, which are available on www.bupa.com. While geopolitical uncertainty, economic volatility, information security and strategic workforce challenges remain heightened, the principal risks and themes previously identified at the 2024 year end remain.

This includes risks related to Environmental, Social and Governance (ESG) factors, as well as key climate-related risks for the short, medium and long term.

Strategic and financial risks and risks impacting our ability to deliver for customers: 

The geopolitical and macroeconomic environment continues to be challenging in most markets we operate in. Ongoing conflicts in the Middle East, Russia and Ukraine, and increased global financial volatility following tariffs imposed by the USA, could lead to further wider economic and supply chain uncertainty and could result in increased medical inflation impacting claims costs. We also continue to see strategic challenges associated with workforce availability, particularly medical professionals, which may impact our ability to deliver services.

While the new 3x100 Strategy does not currently introduce any material new risks, it does increase and/or change aspects of our risk profile. Affordable access and provision of quality healthcare remains a fundamental strategic challenge for all participants in global healthcare systems. Our strategy is intended to help mitigate these impacts as far as possible and leverage our ability to link together our healthcare and funding offerings, but challenges in the system will remain that we will need to continue to navigate.

Our robust approach to managing the key areas of risk that could impact on the financial strength and resilience of the Group ensures that reporting and monitoring mechanisms are in place, including clearly defined risk appetites, so these are managed and prompt actions are taken if needed. We continue to maintain a strong balance sheet, a resilient business model with well managed capital and liquidity positions.

Governmental, legal and regulatory policy risks: 

Changes in governmental, legal and regulatory policy have consistently been one of our top risks given the nature of our businesses and this remains true.

Many of the markets we operate in, and the USA, have held elections in the last 18 months and we are experiencing the effects of these changes in government and the uncertainty this brings as they embed and implement new fiscal policies. Despite ongoing global conflicts, trade protectionism, including the implications of tariffs imposed by the USA, and geopolitical tensions at elevated levels, we have not yet experienced material immediate impacts on our businesses. However, we are monitoring developments, particularly any changes in government funding levels to position ourselves to manage these risks and identify potential opportunities.

We continue to engage governments and regulators in the markets we operate in to understand and influence potential changes to ensure we are able to continue to deliver quality and value for our customers and complement public healthcare systems.

Operational risks: 

The Group continues to be exposed to a wide range of operational risks including transformation execution and clinical risks. In particular, Information Security and Privacy remain key risks for the Group. Our focus on Information Security, Technology, Operational Resilience and Third Party risk management in recent years is supported by significant investment to continue to uplift capability and capacity in this area across the Group. Managing the risks associated with third parties (and further connected parties) is increasingly important as our business grows and their contribution to our overall operational resilience increases. As customer and regulatory expectations rise, we remain committed to improving systems and processes to effectively manage our conduct risk as we strive for operational excellence and prioritising fair treatment of our customers. While progress has been made in these particular areas, investment continues and is necessary to make sure we are as prepared as possible in increasingly challenging environments.

Our approach to risk management: 

We have a well-established process for identifying and managing all business risks, including all types of operational risk such as information security and privacy. Monitoring and managing our risks is key to ensuring that we achieve our strategic objectives in the long-term, meeting the evolving expectations of our customers, people, bondholders and regulators. Internal controls for all key risk areas continue to be a primary focus.

BUPA AROUND THE WORLD

Bupa Asia Pacific

• Bupa Health Insurance Australia, with 4.7m customers, is a leading health insurance provider in Australia and also offers health insurance for overseas workers and visitors.

• Bupa Health Services in Australia is a health provision business, comprising dental, optical, audiology, visa medical assessment services, medical centres and healthcare for the Australian Defence Force and Veterans, and Mental Health centres (Mindplace). By June 2025 three Mindplace centres were operational.

• Bupa Villages and Aged Care Australia cares for around 5,500 residents across 57 homes. It also operates one retirement village in Australia.

• Bupa Villages and Aged Care New Zealand cares for around 5,100 residents across 40 care homes and 36 retirement villages.

• Bupa Hong Kong comprises a health insurance business with around 0.4m customers and a Health Services business operating medical centres providing healthcare services to around 0.8m customers.

Europe and Latin America

• Sanitas Seguros is the second largest health insurance provider in Spain, serving more than 2.5m customers. Sanitas Seguros has opened a branch in Portugal under the Bupa Portugal brand

• Sanitas Dental provides services through 219 centres and third-party networks in Spain.

• Sanitas Hospitales comprises five private hospitals, 27 private medical clinics, 20 advanced rehabilitation centres, a Central Laboratory and a Research Foundation.

• Sanitas Mayores cares for around 6,000 people in 45 care homes, 19 of those with integrated day-care centres, manages three independent day-care centres and offers professional home care services with digital medical support for aged care in Spain.

• LUX MED is a leading private healthcare business in Poland, operating in health funding and provision through 16 hospitals and 285 private medical clinics.

• Bupa Chile is a leading health insurer serving more than 0.5m insurance customers and offering provision services to around 1.8m customers across three hospitals, 33 medical clinics and a laboratory.

• Bupa Türkiye stands at the forefront of integrated healthcare services, end-to-end solutions aligned with its ambitious growth strategy. Bupa Türkiye has over 1.2m[16] customers through its diverse portfolio of subsidiaries spanning health insurance, distribution networks, third-party administration (TPA) and healthcare provision. Bupa Türkiye also leads in oral and dental health services. Its flagship insurance brand, Bupa Acıbadem Sigorta is the Turkey's second largest private health insurer with approximately 7,200 contracted healthcare providers.

• Care Plus is a leading health insurance company in Brazil, with around 0.5m funding customers and 0.1m occupational health customers, concentrated in São Paulo. Care Plus also has nine dental clinics and a vaccination centre.

• Bupa Mexico operates with an integrated healthcare model offering international and local private medical insurance to individuals and corporates in Mexico. It has its own medical provision, Bité Médica hospital, and a TPA called Vitamédica. It provides services to more than 0.4m customers.

• Bupa Global Latin America offers international health insurance and local health insurance products in Latin America to around 0.1m customers. It is headquartered in Miami and has operations in Ecuador, Dominican Republic, Guatemala and Panama. Bupa Global Latin America also has operations in Peru, where we served around 0.1m provision customers in the first half of 2025.

Bupa Global, India and UK

• Bupa UK Insurance is a leading health insurer, with over 4.1m customers across medical insurance, health trusts, dental insurance, subscriptions and cash plans.

• Bupa Global serves around 0.4m IPMI customers and administers medical assistance for individuals, small businesses and corporate customers.

• Niva Bupa is a leading provider of health insurance in India with over 22.2m customers.

• Bupa Dental Care is a leading provider of private dentistry, providing dental services through around 393 centres across the UK and the Republic of Ireland.

• Bupa Care Services cares for around 6,000 residents in 115 care homes and ten Richmond care villages.

• Bupa Health Services comprises 93 health clinics[17], including on-site services, and the Cromwell Hospital.

Other businesses

• We also have an associate health insurance business in Saudi Arabia (Bupa Arabia) and an interest in MyClinic in Saudi Arabia.

Bupa Finance plc

(Company Number 2779134)

Condensed Consolidated Half Year Financial Statements (unaudited)

Six months ended 30 June 2025

Bupa Finance plc

Condensed Consolidated Income Statement

for the six months ended 30 June 2025 (unaudited)

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Bupa Finance plc

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2025 (unaudited)

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Bupa Finance plc

Condensed Consolidated Statement of Financial Position

as at 30 June 2025 (unaudited)

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Bupa Finance plc

Condensed Consolidated Statement of Cash Flows

for the six months ended 30 June 2025 (unaudited)

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Bupa Finance plc

Condensed Consolidated Statement of Changes in Equity

for the six months ended 30 June 2025 (unaudited)

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Notes 1-19 form part of these Condensed Consolidated Financial Statements.

Bupa Finance plc

Notes to the Condensed Consolidated Financial Statements

for the six months ended 30 June 2025 (unaudited)

1 Basis of preparation

1.1 Basis of preparation

Bupa Finance plc (the 'Company'), a company incorporated in England and Wales and domiciled in the United Kingdom, together with its subsidiaries (collectively the 'Group') is an international healthcare business, providing health insurance, treatment in clinics, dental centres and hospitals, and operating care homes. The immediate and ultimate parent of the Company is The British United Provident Association Limited (the 'Parent' or 'Bupa' and together with its subsidiaries, the 'Bupa Group').

The Condensed Consolidated Half Year Financial Statements of the Company as at and for the six months ended 30 June 2025 comprise those of the Company and its subsidiary companies.

The interim financial statements have been prepared in accordance with UK-adopted International Accounting Standard 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2024, which have been prepared in accordance with UK-adopted international accounting standards, in conformity with the requirements of the Companies Act 2006. The interim financial statements have been prepared on the basis of the accounting policies set out in the annual financial statements for the year ended 31 December 2024 updated for the application of new and amended accounting standards as set out in Note 1.4.

The interim financial statements were approved by the Board of Directors of Bupa Finance plc on 6 August 2025.

The financial information contained in these interim financial statements does not constitute statutory accounts of Bupa Finance plc within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2024 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

1.2 Going concern

Following a detailed assessment of the Group's current position and forecast results, along with scenario-based stress testing and reverse stress testing, the Directors have concluded that the Group has adequate resources to operate for at least the next 12 months from the approval of these financial statements and that it is appropriate to prepare the interim financial statements on a going concern basis. This assessment considered forecast and reasonably possible adverse changes to the Group's liquidity, regulatory solvency, access to funding and trading profitability over the next 12 months.

The assessment identified the risks and uncertainties most likely to impact the Group and considered the impact to the Group's businesses under a number of reasonably plausible severe scenarios as well as consideration of contingent liabilities.

Our most severe reasonably possible scenarios considered worsening geopolitical conflicts and the potential knock-on impacts on global growth and economic conditions leading to a global economic recession, and a variety of local scenarios developed by each business unit, with the majority focusing on climate change, stroke of pen and/or affordability pressures. Under these scenarios, although significant short-term reductions in profitability arise, the Group would continue to operate over the next 12 months and would remain within its risk appetites for liquidity and regulatory solvency. Management actions would allow downside impacts to be mitigated, and risk appetites controlled, by reducing expenditure, obtaining additional funding or divesting investments or businesses. Within its liquidity resources, the Group makes use of a £900m revolving credit facility ('RCF') as described in Note 16. The Group expects to remain compliant with the RCF's covenants under stressed scenarios and may further draw down on the RCF in order to meet liquidity needs.

Details of the Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Half Year 2025 Results Announcement. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Review of the Half Year 2025 Results Announcement.

1.3 Accounting estimates and judgements

The preparation of financial statements requires the use of certain accounting estimates and assumptions that affect the reported assets, liabilities, income and expenses. It also requires management to exercise judgement in applying the Group's accounting policies.

The areas involving a higher degree of judgement or complexity, or where estimates are significant to the Condensed Consolidated Financial Statements, are set out below. Changes in these estimates could lead to a material adjustment to the carrying value of the assets and liabilities in the next financial year. Further detail is in the related notes.

1.4 Changes in accounting policies

The interim financial statements have been prepared on the basis of the accounting policies set out in the annual financial statements for the year ended 31 December 2024.

A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.

1.5 Forthcoming financial reporting requirements

The Group does not expect any impact on its financial statements from the initial application of any new accounting standards or changes to accounting standards published during the current reporting period.

1.6 Foreign exchange

The following significant exchange rates applied during the period:

Türkiye is a hyperinflationary economy and IAS 29 Financial Reporting in Hyperinflationary Economies has been applied from June 2022 onwards. As a consequence, the results and balances for the Group's Turkish operations have been adjusted for changes in the general purchasing power of the Turkish lira. In order to make this adjustment the Group refers to the CPI index published by the Turkish Statistical Institute. The value of CPI at 30 June 2025 was 3,131.96 (HY 2024: 2,319.23; FY 2024: 2,684.47) and the movement in CPI for the period ended 30 June 2025 was 447 (HY 2024: 460; FY 2024: 825), an increase of 16.7% (HY 2024: 24.7%; FY 2024: 44.4%).

A loss of £13m (HY 2024: £5m; FY 2024: £16m) arising from the devaluation of net monetary assets has been recognised within net financial expense in the Condensed Consolidated Income Statement. This includes the impact of indexing amounts in the Condensed Consolidated Income Statement for the application of IAS 29, reducing profit before taxation by £15m for the period (HY 2024: £9m; FY 2024: £12m).

For segmental reporting purposes, the net impact of applying hyperinflationary accounting has been excluded from underlying profit and included within realised and unrealised FX gain/loss as this is how the Group measures the performance of the business.

All Turkish lira amounts are translated to the Group's presentation currency of sterling, using the closing exchange rate in effect on 30 June 2025 of 54.62 (HY 2024: 41.38; FY 2024: 44.26). The impact of this adjustment is recorded within other foreign exchange translation differences in the Condensed Consolidated Statement of Comprehensive Income and within the foreign exchange translation reserve in the Condensed Consolidated Statement of Financial Position. The Group recognises the remaining exchange difference arising on consolidation within other foreign exchange translation differences through other comprehensive income in the foreign exchange translation reserve.

2 Operating segments

The Group operates in three Market Units, Bupa Asia Pacific; Europe and Latin America; and Bupa Global, India and UK. Management monitors the operating results of the Market Units separately to assess performance and make decisions about the allocation of resources. Other businesses represents the Group's associate investment, Bupa Arabia. 

A key performance measure of operating segments utilised by the Group is underlying profit. Underlying profit is used to distinguish business performance from other constituents of the IFRS reported profit before taxation not directly related to the trading performance of the business.

Underlying profit

The following items are excluded from underlying profit:

The total underlying profit of the reportable segments is reconciled below to the profit before taxation expense in the Condensed Consolidated Income Statement.