Undergraduate Major Project Research Notes

Undergraduate Major Project Research Notes
Undergraduate Major Project Research Notes
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Undergraduate Major Project Research Notes
1.
Introduction of
BUPA and
comparison
companies
Bupa is an international healthcare group with headquarter in United Kingdom. The company is
serving 32 million customers within 190 countries. The goal of the company is healthier as well as
happier lives and providing range of healthcare services and support to people through the lives. The
international healthcare group is running care homes, dental centers, hospitals and health centers and
provide with workplace health services. The company is making quality healthcare services, focusing
on needs of patients, and accessing in areas of wellness (3).
AXA PPP Healthcare and BCWA Healthcare both are operated in UK. Both the companies are
offering small to medium sized business healthcare with employee health, wellbeing, travel,
international health as well as corporate insurance plans. Both of the competitors of BUPA are UK
private medical insurance providers (1, 2 ).
2. Turnover graph of BUPA, AXA and BCWA Healthcare
Graph 1: Turnover graph of BUPA, AXA and BCWA Healthcare (1, 2, 4)
3.
Strategy The strategy of Bupa is to provide the customers with higher care along with support they required at
each stage of life. ( 9)
4.
Strategic
position
Description
Customers A true champion and provides with outstanding healthcare experiences (12).
People People love work at Bupa and for the customers (9).
Performance There is strong as well as sustainable risk along with capital management. Around 70% of the revenue of the
company is from the healthcare insurance, with rest of the revenue is from health as well as care provision
(14).
5.
Financial values Customers People Performance
LIQUIDITY
RATIO
2013 2014 2015 2016 2017
BUPA 0.96 1.04 0.93 1.01 1.93
AXA PPP 1.28 2.03 2.72 2.76 3.34
BCWA 0.17 0.99 2.83 2.17 1.64
GEARIN
G %
2013 2014 2015 2016 2017
BUPA 48.05 53.17 53.83 43.79 87.29
AXA 7.87 170.63 218.5 185.3 242.34
BCWA 161.21 110.82
ROCE 2013 2014 2015 2016 2017
BUPA 7.43 7,67 5.04 5.93 4.9
AXA 25.38 5.36 6.51 7.48 7.78
BCWA 10.9 16.6 0.31 0.46 0.63
ROSHFU
ND
2013 2014 2015 2016 2017
BUPA 10.61 11.3 6.99 7.99 8.55
AXA PPP 26.3 14.42 20.33 21.04 25.99
BCWA 18.03 23.97 7.34 10.78 13.23
TURNOVER 2013 2014 2015 2016 2017
BUPA 6,558,700 7,050,300 9,828,400 10,67,9000 8,856,600
AXA PPP 1,132,500 1,165,500 1,270,600 1,390,200 1,445,900
BCWA 20,623,000 20,057,000 20,098,900 20,569,907 21,900,590

Undergraduate Major Project Research Notes
Financial results of Bupa:
 Bupa has revenue of growth of 4%
to £11.0bn with its underlying
profit of £700.7m.
 The statutory profit before taxation
is £522.9m which is upto40%
actual exchange rates (AER).
 There is net cash generated from
its operating activities which
results in 13% to £891m (4).
 The capital base of Bupa remains
strong with estimation solvency II
surplus of around £2.1bn
represents with coverage ratio of
204%.
 The coverage ratio is decreased to
165% following completion of
Oasis Dental care purchase in the
year 2017.
 Leverage ratio is down to 22.6%
driven by the foreign exchange
movements (3).
Operating environment
 The company is operated in
diverse markets across world
where healthcare regulations as
well as economic environment are
evolved.
 Its challenging market is Saudi
Arabia due to slow economy which
affects its profit margins ( 4).
 Bupa is consisted of
three types of
customers such as:
Insurance customers of
16.5m, provision
customers of 10.6m
and aged care residents
of 33,100.
 The company has
employee net promoter
score of 30.
 The company is
adopted of clinical
management system to
improve over the
customers (4).
 The performance is
tracked by use of
financial as well as
non-financial metrics
aligned with the
strategic framework.
 Bupa allows
their employees
to take proper
decisions
 The company is
delivering
sustainable
purposes in
future to their
employees
 Provide proper
training to
people so that
they can handle
healthcare data
and information
 People are
delivering
strategic
objectives
regarding the
company’s
purpose and
vision, mission
 Helping people
to live longer
and happier
 The revenue as well as profit
growth of Bupa Health
Insurance is slower of entire
healthcare insurance market
growth.
 The Australian aged care
business is impacted by the
reduction of sector funding.
 Aged care businesses in New
Zealand is continued to
deliver of revenue growth.
 There is strong performance
of health insurance, enhanced
into care pathways and better
healthcare cost to improve
over customer experiences.
 Growth into Bupa Chile
market as well as regulatory
changes which are driven by
higher and inpatient
activities.
 Increasing stake to Bupa
Arabia to 34.25% and then
sold the businesses in
Thailand (3).
6.

Undergraduate Major Project Research Notes
Table 1: Share price of Bupa International Healthcare Group (4)
7.
Table 2: Group revenue (4) 8.
Table 3: Group underlying profit (4)
9.
Table 4: Market unit (4 )
Market unit Australia & New Zealand
United Kingdom Europe & Latin
America
International Markets
Revenue £4,360.6m £2,785.9m £2,474.7m £1,427.8m
Underlying profit £344.4m £194.9m £165.6m £65.9m
Customers
4mInsurance, 1.9mProvision
and 10,800 Aged care
2.4mInsurance,
1.2mProvision and
17,400 Aged care
2.9mInsurance,
6.7mProvision and
4,900 Aged care
7.2mInsurance and
700,000Provision
10.
Companies Strengths Weakness Opportunities Threats
BUPA  BUPA is UK’s
independent
healthcare
organization with
operator of care
homes (12 )
 Healthcare segment
of 70,000
employees (10 )
 Higher economics of
scale as well as
pricing power
 BUPA is
accused of
overcharging for
their work due to
undertaken for
NHS. The
standard price of
BUPA is at least
50% higher than
average of NHS
treatments ( 4)
 There is
rise in cost for
employing
Aging of population
leads to expansion
into care homes
along with home
care market ( 4)
By the year 2031,
one million people
are required of
continuous long
term care, with an
increase of 68%,
such that the
company is
expanded in the
 The healthcare
industry provides
a pressure on cost
as there is increase
in minimum wage,
shortages of the
nurses and also
cares (13 )
 Local authority fee
is increased and
continued to stay
below level of
staff’s cost