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8 on prior experience of the Company. The Company previously offered ship, and other relevant factors. Because claim liabilities include var- are accounted for on the basis consistent with those used in account- patterns, of settlement, valued in accordance with the terms of the related con- contractual requirements, historical utilization trends and payment for life contracts includes reserves for reported claims in the process tuarial principles and assumptions that consider, among other things, where the Company reinsures 95% of both premiums and losses writ- disputed claim obligat
Diaranson, 30 Juni 2021

(e)

statutory
Cash,
is
expensed as incurred.
Cash
(b) Organization
Auditors’ Responsibility
financial
(d) Use of Estimates
The Board of Directors
responsible
had no impaired contract loans.
BUPA Insurance Company:
for
statements
the
tion and Acquisition Costs
Equivalents,
are
and
(f) Investment in Mexican Subsidiary
preparation
Independent
consistent,
of
The Company’s sole shareholder is Bupa Global Limited.
in
Invested
the
all
(1) Organization and Significant Accounting Policies
(g) Premium and Annuity Considerations Recogni-
As required by the Central Bank of Aruba directive II.4.3, Superviso-
reported in the summary statutory statements of admitted assets, li-
information: balance sheet, income statement, accounting and val-
mined on the basis of specific identified cost and recognized in net in-
financial statements are prepared from the audited statutory finan-
based on the underlying audited GAAP equity of Bupa Mexico adjust-
and obtained a license to write specific coverage in the state of Flor-
guros, S.A. de C.V., a 99.99% owned subsidiary, which was incorporat-
ified audit opinion on the statutory basis of accounting on those au-
During 2003, the Company established Bupa Mexico, Compañía de Se-
generally accepted accounting principles. Reading the summary stat-
The statutory financial statements of the Company have been pre-
Assets
comprise the summary statutory statements of admitted assets, lia-
summa-
iary, Controlled, and Affiliated Entities, a replacement of SSAP No. 88.
(GAAP). Prescribed statutory accounting practices include a variety
on securities during 2020 or 2019. Contract loans are stated at their
losses. The Company has not recognized other than temporary losses
unpaid principal balance, less an allowance for loan losses, if any. As
er than temporary, such unrealized losses are recognized as realized

Accounting Practices and Procedures Manual and the Florida Office
ida in July 1973. The Company provides accident and health and life
ry Guidelines and Directives, BUPA Insurance Company is required
preferred stock, and short term investments are typically stated at
is recorded for the difference between the purchase price and the
amortized cost, except where the NAIC designation indicates that a
Actual results could differ from those estimates and such differences
to publish a summary financial statement containing the following
health premium reserves, premium deficiency reserves, liabilities for
In accordance with the requirements of the NAIC SAP, bonds, certain
ted by the National Association of Insurance Commissioners’ (NAIC)
deposit that have a maturity date of one year or less at the date of
accounting principles (SAP), which were not prescribed by insurance
excluded from income and credited or charged directly to unassigned
material
summary statutory financial statements are derived can be readily
cial statements and the reported amounts of revenue and expenses
to the reported amounts of assets and liabilities and the disclosure
which approximates fair value. Interest revenue is recognized when
of and for the years ended December 31, 2020 and 2019, the Company
financial statements do not contain all the disclosures required by U.S.
under the terms of the insurance contract. Recognition of life premium
abilities, and capital and surplus as aggregate life policy reserves. The
dited statutory financial statements in our report dated June 1, 2021.
tality Tables assuming interest of 3.0% to 5.5%. The aggregate reserve
tracts, as well as reserves for claims incurred and unreported based
ulations. The aggregate reserve for life contracts has been calculated
bilities, and capital and surplus as of December 31, 2020 and 2019,
The aggregate reserve for life policies and contracts is actuarially
various life insurance products including interest sensitive whole life,
the summary statutory statements of admitted assets, liabilities, and
for unearned premiums for accident and health contracts represents
ed on July 31, 2003 in Mexico. The investment in this entity is recorded
Auditors’
June 28, 2021
Report
(k) Reinsurance
(j) Income Taxes
on
tax assets as of December 31, 2020.
derived, on the basis described in note 1.
Summary
contract with Lloyds Syndicate #2001, managed by Amlin Underwrit-
procedures consisted principally of comparing the summary statu-
31, 2020 and 2019, the Company had $1,500,000 and $1,700,000, re-
DR), companies under common ownership, which have both coinsur-
11 of SSAP No. 101. In response to the COVID-19 pandemic, the Corona-
tory financial statements with the related information in the audit-
other actuarial assumptions that consider the effects of current devel-
ket participants resulting in a competitive premium for the risk trans-
a component of income tax expense. The admissibility of the Compa-
the Company. Bupa Insurance Limited (BINS) has a coinsurance trea-
2020. The Company entered into a new retrocession contract with Sir-
claims. This transfer of risk is contracted as a fixed premium per mem-
ber explicitly stated in the contract. The contract was bid out to mar-
and economic and societal conditions. Management periodically per-
specified amounts arising from any one occurrence or event. Premi-
forms a review of estimates and assumptions. If management deter-
procedures regarding the audited statutory financial statements af-
and liabilities and their respective tax bases. Deferred tax assets and
by Amlin. BIC has a reinsurance contract with Compañía de Seguros
not guaranteed in excess of the legally computed reserves. Reserves
public limited company, where the Company reinsured 100% of both
and liabilities of a change in tax rates is recognized in surplus in the
taxable income in the years in which those temporary differences are
for substandard policies are computed by applying the appropriate
liabilities are measured using enacted tax rates expected to apply to
was terminated on January 1, 2021. The Company has a reinsurance
between the financial statement carrying amounts of existing assets
as described in the instructions for analysis of increase of reserves.
The tabular interest on funds not involving life contingencies is the
al actions. Many factors affect actuarial calculations of claim liability,
increase in reserves. The tabular cost has been determined by formula
including, but not limited, to current and anticipated incidence rates
contracts. All of these treaties have full transfer of risk for the amounts
the amounts estimated to fund claims that have been reported but not
The liability for unpaid accident and health contract claims, represents
ing for the original policies issued and the terms of the reinsurance
claims is estimated based on the Company’s historical experience and
mined by a formula as described in the instructions for analysis of
in accordance with SSAP No. 101, Income Taxes, a Replacement of
ten by Seguros Bolivar. Assumed reinsurance premiums, commissions,
spectively, of direct insurance in force for which the gross premiums
recognized for the future tax consequences attributable to differences
Bolivar S. A. (Seguros Bolivar), a company incorporated in Colombia,
formula as described in the instructions for the analysis of increase
liabilities is reflected in the current year results. Given that insurance
laws of the State of Florida. Tabular interest has been determined by
are less than the net premium according to the standard valuation
expense reimbursements, and reserves related to reinsured business
summary statutory financial statements are prepared in accordance
Premiums written are ceded on a treaty basis. Health per risk excess
with the basis described in note 1. We did not perform any audit
treaties on its small block of life risks. These treaties were also placed
ums ceded to other companies have been reported as a reduction of
in the open market with full transfer of risk for the amounts specified
provision for the year ended December 31, 2020, or to its net deferred
adjustments based on the portfolio experience that would limit the
in the treaties. There are no additional premiums, allowances, or loss
financial statements have been derived, and evaluating whether the
ed statutory financial statements from which the summary statutory
Sirius after meeting an aggregate deductible on the sum of all such
The amount retained by the Company is up to $400,000 per claimant
the audited statutory financial statements from which they have been
The full risk per claimant in excess of $400,000 is then transferred to
and $600,000 for claims classified as Maternity Complication Losses.
Insurance Company as of and for the years ended December 31, 2020
to the policyholder in a reinsurance transaction. In 2020 and 2019,
ferred. The Company has both coinsurance and yearly renewable term
ter the date of our report on those statutory financial statements.
International Insurance Corporation (Sirius) covering its health risks.
In our opinion, the summary statutory financial statements of BUPA
virus Aid, Relief and Economic Security Act (“CARES Act”) was signed
tional premiums upon death of the insured and returns any portion of
deposit type contracts as of December 31, 2020 and 2019 includes
cy sales ceased in 2012. The amount maintained in the reserves for
tions originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017
and the Company entered a retrocession reinsurance contract with
Axis Re Se, a European public limited company, where the Company
ty with the Company. The coinsurance treaty with Bupa Compañía
the final premium beyond the month of death. Surrender values are
Ecuador S.A., Compañía de Seguros y Reaseguros (Bupa Ecuador),
Tax Act”). Corporate taxpayers may carryback net operating losses
accounting. The Company assumes health risks from affiliates. The
which was not previously allowed under the 2017 Tax Act. The CARES
standards generally accepted in the United States of America. The
income in 2018, 2019 or 2020. The enactment of the CARES Act did
points, these contracts also meet the requirements for reinsurance
Act also eliminates the 80% of taxable income limitations by allowing
de Seguros S.A. (Bupa Guatemala) and Bupa Dominicana S.A. (Bupa

$
Revenue:
benefit
Common stocks
$
Total liabilities
Net income (loss)

556
Net written premiums
9,501
135,955
changes,
Total Admitted Assets

2,369
48,971
Net investment income
10,518
medical
$
Net Underwriting Gain (loss)
$
Remittances and items not allocated
Liabilities and Capital and Surplus
593
1,388
1,814
4,402
inflation,
Total Liabilities and Capital Surplus
Receivable from subsidiaries and affiliates
$

of admitted assets, liabilities, and capital and surplus.
189,450
2,015
1,321
Amounts receivable under reinsurance contracts
560
1,808
(24)
$
seasonality,
322,310 313,728
1,552 (19,594)
(n) Derivative Instruments and Hedging Activities
portion of the anticipated net cash flow related to policyholders’ pre-

member-
Bupa Investments Limited (BIL), an affiliated entity, enters into nonde-
the Company discloses the fair value of bonds held to maturity, which
ious actuarially developed estimates, the Company’s actual medical
are reported at amortized cost on the summary statutory statements
liverable forward contracts on behalf of the Company in order to limit
its exposure to fluctuations in foreign currency exchange rates. These
contracts were entered into to fixed U.S. dollar (USD) amounts for a
for speculative purposes. Fair value of derivatives is estimated using
miums and claims. The Company does not use derivative instruments
20,084 (7,874)
832
215,531
318,174 322,537
115,535 112,411
$ 200,066 196,994
1,974 984
close.
127,984
121,051
13,294
340,120
148,229
27,848
22,058
(7) Subsequent Events
(4) Premium Deficiency
(5) Federal Income Taxes
2020 2019
1,218 1,337
10,518
1,536
1,765
4,521
1,601
17,325 (14,214)
1,754
(6,889)
140,054 118,908
267
304,985 327,941
127,984
28,429
686
4,757 6,493
40,974
125,304
1,696
10,538
340,120 315,902
133,015
1,066
123,969
13,294
3,350
315,902
(6) Commitments and Contingencies
Summary Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus
as components of general and administrative expense.

during 2020 and 2019 were lower than anticipated and this is attribut-
tory financial position, liquidity, or results of operations of the Company.
issued. The Company has determined that there are no items to dis-
can be recovered through carrybacks and limited to 21% of adjust-
arising in the ordinary course of business. While any proceeding or lit-
disposition of these matters will not have a material impact on the statu-
ed to lower than expected cost per service and development. Manage-
premium deficiencies. The change in this reserve is recorded as a compo-
nent of other underwriting deductions. It was determined that no pre-
probable that a loss will be incurred. A premium deficiency loss is rec-
trative expenses, and reserves will exceed existing reserves plus antic-
Deferred tax assets can only be admitted in an amount calculated un-
December 31, 2020 was primarily related to unearned premium re-
unrecognized tax benefits. The summary statutory statements of ad-
mium deficiency reserve was needed as of December 31, 2020 or 2019.
and (b) that can offset existing gross deferred tax liabilities. The valu-
incurred but not yet reported as of December 31, 2020, and 2019.
three years of the balance sheet date after reduction by amounts that
adjusted deferred tax assets that are expected to be realized within
der SSAP No. 101. The amount admitted is equal to the sum of (a)
amount of adjusted gross deferred tax assets after application of (a)
quate to cover the Company’s liability for unpaid claims and for claims
available. As of December 31, 2020 and 2019, the Company had no
in the total valuation allowance was a decrease of $3,075,624 in 2020
2019 was $10,182,884 and $13,258,508, respectively. The net change
loss carrybacks for existing temporary differences that reverse by the
and an increase of $13,258,508 in 2019. The valuation allowance at
serves. At December 31, 2020 the Company had used all federal NOLs
The Company is a party to various claims, legal actions, and complaints
end of the third subsequent calendar year plus, (b) the amount of
mitted assets, liabilities, and capital and surplus as of December 31,
to unrecognized tax benefits, and no such amounts were recognized
igation has an element of uncertainty, management believes that the
ipated future premiums on existing contracts. Anticipated investment
ed statutory capital and surplus at December 31, 2020, and (c) the
The Company evaluates its healthcare contracts to determine if it is
costs and claims expense may be more or less than the Company’s
ation allowance for deferred tax assets as of December 31, 2020 and
federal income taxes paid in prior years that can be recovered through
The Company has evaluated subsequent events through June 28th,
2021, the date at which the financial statements were available to be
of insured events, the incurred claims for prior period insured events
income and overhead expenses are also considered in the calculation of
2020 and 2019 included no amounts for interest or penalties related
previously developed estimates. As a result of change in estimates