CUSTOMER FOCUS DELIVERS STABLE H1 PERFORMANCE IN KEY INSURANCE BUSINESSES DESPITE TOUGHER MARKET CONDITIONS

The British United Provident Association Limited (Bupa): Half year statement for the six months to 30 June 2018 CUSTOMER FOCUS DELIVERS STABLE H1 PERFORMANCE IN KEY INSURANCE BUSINESSES DESPITE TOUGHER MARKET CONDITIONS HIGHLIGHTS o Revenue 1 5.9bn, flat at constant exchange rates (CER) 2 ( HY: 5.9bn); down 3% at actual exchange rates (AER) ( HY: 6.1bn) o Underlying profit 3 before taxation 280.3m, down 13% at CER and down 15% at AER ( HY: 330.9m), mainly due to the divestment of a significant number of care homes in the UK in December and February 2018, and the disposal of Bupa Thailand in July o Statutory profit before taxation 256.6m, up 11% at AER ( HY: 231.3m) o Net cash generated from operating activities 483.9m, down 70.5m on prior year o Solvency II capital coverage ratio 4 of 189% ( FY: 180%) Evelyn Bourke, Group CEO of Bupa, commented: Group revenue was flat and underlying profit fell 13%, both at constant exchange rates (CER). This was mainly due to the sale of parts of our UK care home business in December and February 2018, and the divestment of Bupa Thailand in July. Excluding these divestments revenue rose by 4% and underlying profit was down 4% (CER). Overall, statutory profit increased by 11% at actual exchange rates (AER). Our core insurance businesses performed well despite tougher market conditions in Australia and the UK. Health insurance remains our largest business line and is responsible for the majority of our revenue and profit. A volatile political and uncertain economic environment means that conditions in some of our main markets are likely to remain tough in 2018. In response, we will continue to invest to strengthen and broaden our market-leading positions, extending the services we provide to further improve the experience of our customers, who remain our absolute priority. Market Unit performance 2 o Australia and New Zealand: revenue up 2%; underlying profit up 1% o Europe and Latin America: revenue up 6%; underlying profit down 6%, mainly driven by reserve strengthening in Bupa Chile, over and above local requirements o UK: revenue down 9%; underlying profit down 26%, mainly due to the sale of 132 care homes in December and February 2018 o International Markets: revenue down 2%; underlying profit down 48%, driven by the expected continued profit decline in Bupa Global and the disposal of our business in Thailand, in July. Other operational highlights o In March, we proposed a further increase in our stake in Bupa Arabia from 34.25% to 39.25%, and expect the transaction to be completed shortly o In May, we opened the first phase of Clínica Bupa Santiago in Chile, which when complete, will have a capacity of 460 beds and will be the largest Bupa hospital o In May, we announced that Roger Davis will become non-executive Chairman when Lord Leitch steps down at the end of 2018. We also confirmed the appointment of Clare Thompson as Senior Independent Director (SID) of the Bupa Board, following Lawrence Churchill s, CBE, retirement from the Board o We have applied to the Irish insurance regulator for the authorisation of a new insurance entity to enable Bupa Global, our international health insurance business, to continue its relationships with customers who are resident or based in the European Economic Area (EEA) after the UK leaves the European Union (EU) 1 While revenues from our associate and joint venture businesses are excluded from our reported figures, customer numbers and the appropriate share of profit from these businesses are included in our reported numbers 2 All figures presented are at Constant Exchange Rates (CER) unless otherwise stated. We use CER to compare trading performance in a consistent manner to the prior year. We have therefore retranslated our results using 2018 Average Exchange Rates 3 To derive underlying profit, profit before taxation is adjusted for amortisation and impairment of intangible assets and goodwill arising on business combinations, net property revaluation gains or losses, realised and unrealised foreign exchange gains and losses, gains or losses on return-seeking assets, profits or losses on the sale of businesses and fixed assets, transaction costs on acquisitions and disposals, restructuring costs and other one-off items. Total Group underlying profit includes central expenses and net interest margin not allocated to Market Units 4 The 2018 Solvency II capital coverage ratio is an estimated value 1

o We continue to invest to ensure the privacy and security controls across our businesses meet the needs of our customers, as well as responding to regulatory requirements and the increasing external cybersecurity challenge o We have signed the UK HM Treasury s Women in Finance Charter, a pledge which underlines our commitment to gender balance in our organisation Financial position o Net cash generated from operating activities 483.9m, down 70.5m (13%) on prior year (HY : 554.4m) o Bupa Finance plc s senior debt rating upgraded to A3 (Moody s). Remained A- stable (Fitch). o Leverage ratio 24.5%% (HY 30.2%) as we continue to see good cash repatriations from our main insurance businesses o Solvency II capital coverage is 189% (FY : 180%) Enquiries Media Helen Vaughan-Jones, Mar Soro (Corporate Affairs): +44 (0) 20 3855 0473 Investors Gareth Evans (Treasury): +44 (0) 20 3314 1708 About Bupa Bupa's purpose is helping people live longer, healthier, happier lives. With no shareholders, our customers are our focus. We reinvest profits into providing more and better healthcare for the benefit of current and future customers. We serve 15.5m health insurance customers, provide healthcare to over 14.5m people in our clinics and hospitals and look after over 22,900 aged care residents. We directly employ over 78,000 people, principally in the UK, Australia, Spain, Poland, Chile, New Zealand, Hong Kong, the USA, Brazil, the Middle East and Ireland. We also have associate businesses in Saudi Arabia and India. Health insurance accounts for the majority our business. In some markets we also operate clinics, dental centres, hospitals, and care homes and villages. For more information, visit www.bupa.com. Disclaimer: Cautionary statement concerning forward-looking statements This document may contain certain forward-looking statements. Statements that are not historical facts, including statements about the beliefs and expectations of the British United Provident Association Limited Group ( Bupa ) 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, 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. Other than as required by law, 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. To the fullest extent possible by receipt of, and using, this document, you release Bupa and each of its affiliates, advisers, directors, employees and agents, in all circumstances (other than fraud) from any liability whatsoever and howsoever arising from your use of this document. In addition, no responsibility of liability or duty of care is or will be accepted by Bupa or its respective affiliates, advisers, directors, employees and agents, for updating the document (or any additional information), correcting any inaccuracies in it or providing any additional information to any person. Accordingly, none of Bupa or its affiliates, advisers, directors, employees or agents shall be liable (save in the case of fraud) for any loss (whether direct, indirect or consequential) or damage suffered by any person as a result of relying on any statement in, or omission from, the document. 2

Group CEO s review Group revenue was flat and underlying profit fell 13%, both at constant exchange rates. This was mainly due to the sale of parts of our UK care home business in December and February 2018, and the divestment of Bupa Thailand in July. Excluding these divestments, revenue rose by 4% and underlying profit was down 4% (CER). Overall, statutory profit increased by 11% at actual exchange rates (AER). Our core insurance businesses performed well despite tougher market conditions in Australia and the UK. Health insurance remains the largest business line for Bupa, with the majority of our revenue and profit coming from this part of the business. Customers remain our priority, and we continue to use Net Promoter Score across the business to track how we are improving customer experience. We are responding to pressure on household budgets in Australia by introducing our lowest health insurance premium increase in more than a decade. In the UK, we have enhanced our propositions by adding mental health coverage for employees of corporate customers. As we continue to use technology to improve customer experience, we launched a UK partnership with digital healthcare provider Babylon that gives our corporate customers 24/7 access to virtual health services such as GP consultation. We also launched B Table in the UK and Disruptive in Spain; accelerator programmes that work with start-ups and small businesses to help us develop innovative ways of delivering high quality health and care services. We are committed to protecting the privacy of our customers and employees. We continue to invest to ensure that the privacy and information security controls used across our businesses meet the needs of our customers, as well as responding to new regulatory requirements and the increasing external cybersecurity challenge. Outlook A volatile political and uncertain economic environment means that conditions in some of our main markets are likely to remain tough in 2018. In response, we remain focused on listening to our customers and our people to help us deliver an enhanced experience. MARKET UNIT PERFORMANCE Australia and New Zealand Revenue Underlying profit HY 2018 2,325.2m 154.0m HY (CER) 2,281.1m 151.8m % growth (CER) 2% 1% Conditions in the Australian Private Medical Insurance (PMI) market remain challenging, with the economy and wages growing slower than medical expense inflation. This is affecting health insurance demand, especially among younger people. Against this background, the performance of our Australia and New Zealand Market Unit showed marginal growth, with year-on-year revenue up 2% and profit up 1% (both at CER). We responded to continued pressure on PMI affordability with our lowest annual health insurance premium increase in 16 years. We also made a number of changes with the aim of improving product transparency and reducing out-of-pocket costs for customers. However, a negative response to these changes contributed to higher than expected customer churn in Q2, and we are working to address this. Our health insurance transformation programme continued with the introduction of our new Customer Relationship Management (CRM) system which will enable us to provide a more personalised service for customers. 3

We completed a strategic review of our Health Services business, focusing on dental and optical services to deliver the best possible customer experience and more efficient operating models. This will provide a strong foundation for future growth. We will open new clinics and stores later this year. Our aged care businesses in Australia and New Zealand were affected by expected reductions in government care funding across both countries. Despite this, our aged care business in Australia achieved stable performance. Our average care home occupancy rate is 95%. In New Zealand, we completed the sale of Bupa NZ s Medical Alarms business to focus on care homes and retirement villages, our core business in that country. We also completed the sale of 12 care homes and four retirement villages because they no longer fit our long-term strategy. We are currently developing new villages. Occupancy in Bupa New Zealand is 91%, higher than the national average (88%). Europe and Latin America Revenue Underlying profit HY 2018 1,516.5m 88.2m HY (CER) 1,424.3m 94.0m % growth (CER) 6% 6% decline In Europe and Latin America, revenue rose 6% year-on-year. Although our businesses performed well, underlying profit was down 6%, mainly driven by reserve strengthening in Bupa Chile, over and above local requirements. Excluding the adjustment, profit was up 3%. In Spain, where we operate as Sanitas, we are steadily growing our insurance membership due to successful partnerships with BBVA and Santa Lucia and our focus on customer retention. Our digital proposition, Blua, is proving popular and added 126,000 new customers in the first half of the year. In June, we reached an agreement to acquire another health insurance company Néctar Seguros de Salud (subject to regulatory approval). Sanitas Dental delivered an improved performance thanks to an increase in customer numbers. In the first half of the year, we added 194,000 customers and we announced a plan to expand our dental clinics from 181 to 250 in the next three years. Our provision business benefited from the growing portfolio of customers in our Health Funding business, with over 552,000 patients treated in our hospital and medical clinics a 31% increase on the same period last year. Sanitas Mayores, our Spanish aged care business, is doing well. We launched our Sanitas En Casa Contigo (Sanitas At Home) service, which provides specialist services for the elderly and training for carers at home, supported by a strong digital platform. We launched a pilot in three Spanish cities and are looking to extend to more locations later in the year. On average, occupancy rate is 94%. Our Polish business, LUX MED, delivered robust revenue growth, driven by an increase in corporate customers and growth in the market for customer self-pay products in our hospitals and clinics. We completed several acquisitions, including a chain of dental clinics in Warsaw and an image diagnostics centre in Olsztyn. In Chile, we opened the first phase of Clínica Bupa Santiago a 140m investment which, when complete, will have a capacity of 460 beds and will be the largest Bupa hospital. 4

UK Revenue Underlying profit HY 2018 1,251.5m 62.3m HY 1,369.6m 84.6m % growth 9% decline 26% decline Due to the sale of parts of our UK care home business in December and February 2018, our revenue fell by 9% and underlying profit was down 26% year-on-year. Excluding these divestments revenue was up 5% and underlying profit rose 10% (CER). These gains, which included six months of trading of Oasis Dental Care compared to four months in, were achieved in an environment of low economic growth in which medical cost inflation continues to outstrip price inflation. Our insurance business launched Business Mental Health Advantage, offering the most extensive mental health coverage in the market for employees of corporate customers. Within our aged care business, we completed the sale of 22 care homes to Advinia and opened four new homes. Our Tenterden House care home became the second Bupa home to receive an Outstanding rating from the Care Quality Commission. Our average occupancy rate is 83%. We continue to strengthen our market position in dental care by acquiring practices we have over 470 practices across the UK and Ireland. Most of the former Oasis Dental Care practices have been rebranded to Bupa Dental Care. We are also investing in our health clinics, opening new centres at our Cromwell Hospital and in Glasgow, as well as a partnership clinic at the Kingsbridge private hospital in Belfast. We are trialling a partnership with Waitrose, offering shoppers a range of services such as in-store health assessments. International Markets Revenue Underlying profit HY 2018 785.8m 11.7m HY (CER) 802.7m 22.7m % growth (CER) 2% decline 48% decline Revenue in International Markets declined 2% year-on-year, with underlying profit down by 11m due to a continued profit decline in Bupa Global and the disposal of our business in Thailand, in July. As anticipated, Bupa Global s results continue to be affected by the strategic repositioning we began in this business a number of years ago to focus on selected strategic markets. A number of additional costs have also been incurred as we respond to the changing regulatory and compliance landscape. We are committed to investing in customer services, retaining customers and strengthening the distribution of our products and services across key markets, as well as delivering operational efficiencies. As we work to mitigate the continuing uncertainty surrounding Brexit, we have applied to the Irish insurance regulator (Central Bank of Ireland) for the authorisation of a new insurance entity. This is intended to enable Bupa Global to continue its relationships with customers who are resident or based in the EEA after the UK leaves the EU. We anticipate some cost implications in the short term. In Colombia, we launched our first international private medical insurance (IPMI) product in partnership with Seguros Bolivar, one of the country s leading insurers. Our integration of Care Plus in Brazil continues, including the launch of IPMI products. 5

Hong Kong continued to focus on customer retention in all channels, including our bancassurance distribution partnership. In July, we opened our first Bupa-branded dental clinic as part of our global dental strategy. Quality HealthCare, our provision business in Hong Kong, launched a new mobile app in partnership with online healthcare provider HealthTap, which enables customers to receive an e-ticket to see a GP, make bookings with specialists at our clinics, and view their health records. In March, we proposed a further increase in our stake in Bupa Arabia from 34.25% to 39.25%. This follows an agreement on the acquisition of a portion of Nazer Group s stake in Bupa Arabia. We have submitted formal applications to the relevant Kingdom of Saudi Arabia (KSA) authorities for the customary regulatory approvals and expect the transaction to be completed shortly. We have over 3m customers in Saudi Arabia, and we recently signed an agreement to provide services to Saudi Aramco employees. In India, our associate business Max Bupa, launched its GOActive health insurance plan. This is Max Bupa s first digital product, and includes an integrated health and wellness platform aimed at younger customers. FINANCIAL REVIEW Performance in the first half of 2018 was in line with expectations. Revenue was 5.9bn, flat on prior year (: 5.9bn), while underlying profit declined by 13% to 280.3m (: 320.9m) at CER. Statutory profit increased by 11% to 256.6m (: 231.3m) at AER. These results reflect our strategic framework in action. The decline in underlying profit was largely due to the divestment of a significant number of UK care homes in December and February 2018 and of our insurance operation in Thailand in July. We are committed to delivering strong and sustainable performance even if reshaping our portfolio leads to reduced growth in the short term. On a like-for-like basis, revenue grew 4%, and underlying profit was behind prior year by 4%, including six months of trading of Oasis Dental Care versus four months in. We generated cash from operating activities of 483.9m, down 70.5m on prior year, and strengthened our capital position from the 180% reported at the full year to 189% as at 30 June 2018 ( HY: 160%). Our Bupa Finance plc senior debt rating was upgraded by Moody s to A3 from Baa1 in May 2018. Revenue Insurance revenue trends are broadly unchanged from the position at full year. In Europe and Latin America, Sanitas Seguros maintained its customer and top line growth, while revenue at our UK and Australian businesses was broadly flat as growth was kept in check by pressure on household budgets. In International Markets, revenue was stable, and we are beginning to see improvements in Bupa Global and Hong Kong. Revenue in our aged care business was constant year-on-year, excluding the disposed UK care homes. A full six months of trading following the acquisition of the Spanish Valdeluz properties in March was offset by reduced occupancy across the Group. Provision revenues increased, and overall customer numbers grew by 10% to 9.9 million in the first half, due to the acquisition of Oasis Dental Care in the UK and strong performance in LUX MED and Bupa Chile. Underlying profit Underlying profit represents our trading performance and normalises for several items included in statutory profit to facilitate year-on-year comparability. These items include amortisation and impairment of intangible assets and goodwill arising on business combinations, market movements such as gains or losses from foreign exchange, on return-seeking assets, or property revaluations and other one-off items. 6

Underlying profit decreased by 13% to 280.3m (: 320.9m CER) as strong growth in the UK and stable performance in Australia and New Zealand were more than offset by disposals, reservestrengthening in Chile and persistent challenges in International Markets. Excluding divestments, underlying profit decreased by 4% on a like-for-like basis. Health insurance is our largest line of business and represents the greatest proportion of underlying profit. Our three main insurance businesses in Australia, the UK and Spain have broadly maintained or improved their performance on prior year, continuing to perform well despite difficult trading conditions. The Australian private health insurance market is impacted by pressure on household budgets and a dropoff in overall customer numbers. Despite this, profitability in our Australian business remained flat and its combined operating ratio was stable at 93%. In Europe and Latin America, our Spanish private health insurance business, Sanitas Seguros, showed continued customer growth through a combination of partnerships and good customer retention, and our combined operating ratio was unchanged at 91%. The UK private health insurance market remains difficult, with affordability putting pressure on customer numbers. This decline in the top line was mitigated by improved claims performance compared with the prior year period. In International Markets, Bupa Global s result declined on the previous year. This business unit is still affected by the strategic repositioning we began in this business a number of years ago to focus on selected strategic markets. We are committed to investing in customer services, retaining customers and strengthening the distribution of our products and services across key markets, as well as delivering operational efficiencies. Bupa Insurance Limited, our UK insurance entity, underwrites both domestic and international private medical insurance, covering the business written by both the UK and parts of Bupa Global. At the half year, its combined operating ratio improved on prior year period to 94% (: 98%) as a result of the UK claims performance, as well as foreign exchange movements. In aged care, we saw growth in our Spanish business, Sanitas Mayores, following the Valdeluz acquisitions, although we are experiencing pressure on occupancy rates across all our markets and a reduction in government care funding in Australia and New Zealand. Total underlying profits in our provision businesses were stable, supported by six months of full trading in the Oasis Dental Care business and growing customer numbers in Sanitas Dental. Statutory Profit Statutory profit before taxation was 256.6m (: 231.3m) representing growth of 11% at AER. Although trading profitability has reduced on prior year, there were several non-underlying items that affected the prior year statutory figure. Amortisation and impairment of intangibles and goodwill of 33.8m (: 32.7m) were broadly in line with the prior year. 2018 saw gains on disposal net of transaction costs of 8.0m compared to the 9.1m of costs predominantly associated with the Oasis acquisition, a movement of 17.1m. The period saw positive movements in realised and unrealised foreign exchange gains of 4.8m (: loss of 26.8m), an increase of 31.6m. Property revaluations moved favourably by 43m, reflecting a 0.6m gain in 2018 versus an impairment of 42.4m in. Although the return-seeking asset portfolio showed losses in the first half year of 4.2m, a reversal of 15.1m on the 10.9m gain shown in the prior year period, this does not alter the overall positive statutory profit growth story. 7

Taxation Bupa s effective tax rate for the period was 24.5% (: 27.1%), which is higher than the UK corporation tax rate of 19%. This is mainly due to profits arising in jurisdictions with a higher rate of corporate income tax. The reduction in the effective tax rate compared to was mainly because of non-recurring items such as property impairments. Our Approach to Tax is available on Bupa.com. Cashflow Net cash generated from operating activities fell by 70.5m (13%) to 483.9m (: 554.4m). Although operational cash generation before working capital increased broadly in line with year-on-year statutory profit growth, this was offset by investment in inventory for the construction of our UK care villages and reduced receipts from accommodation bonds in our Australia and New Zealand aged care and village businesses. In Australia, we opened fewer homes than in, while in New Zealand, cash inflows fell following the divestment of several care homes. This impact was partially reduced by improved cash collections elsewhere in the Group. Net cash used in investing activities fell by 735.9m to 289.2m as we made several large one-off investments in. The largest of these were, the acquisition of Oasis Dental Care, the Valdeluz care home purchases and an additional 8% shareholding in Bupa Arabia. In the current year, we have continued to invest in growth and development, finalising the construction of Bupa Clínica Santiago, opening our new UK office in Salford Quays and maintaining our care home portfolios. The reorganisation of our UK care home portfolio, combined with several large developments in, means that we have spent less on the purchase of fixed assets than prior year. We have also received proceeds from the further disposal of 22 care homes in February 2018. As a result of this, and portfolio management decisions, we increased our holdings in financial investments and long-term deposits. Cash inflows from financing activities fell by 788.5m compared to. saw significant financing activity, which has not recurred, including entering a 650m financing facility and issuing a 300m senior unsecured bond, to fund the Oasis and Bupa Arabia acquisitions. Funding We manage our funding prudently to ensure a platform for continued growth. A key element of our funding policy is to target an A-/A3 senior credit rating for Bupa Finance plc, the main issuer of Bupa debt. Our Bupa Finance plc senior debt rating was upgraded by Moody s to A3 from Baa1 in May 2018. The upgrade follows Moody s new cross sector methodology for assigning instrument ratings for insurers. Moody s modified its guidance for rating certain insurance holding company instruments, and now applies narrower notching where there is enhanced regulatory supervision at a group-wide level. Solvency II is one of the regulatory regimes that Moody s considers as providing enhanced group supervision. The Fitch rating was unchanged at A- (stable). At 30 June 2018, we had drawn 210.0m under our 800m revolving credit facility, which is due to mature in August 2022. We focus on managing our leverage in line with our credit rating targets. Leverage at 30 June 2018 was 24.5% (FY : 25.3%). Coverage of financial covenants remains well within the levels required in our bank facilities. Solvency position The Group holds capital to cover its Solvency Capital Requirement (SCR), calculated on a Standard Formula Basis, considering of all our risks, including those related to non-insurance businesses. 8

We use a Group Specific Parameter (GSP), having obtained approval from the Prudential Regulatory Authority (PRA) instead of the Standard Formula insurance risk parameter. This is calculated based on own loss experience and reflects the lower risk resulting from our size, expertise and geographic diversification. The estimated SCR as at 30 June 2018 was stable when compared to year end at 2.1bn ( HY: 2.1bn) and Own Funds were 3.9bn, 0.2bn higher than year end ( HY: 3.4bn). Our business is strongly capital generative due to our profitability as shown over the past six months and this has been only partially offset by exchange rate movements. Our surplus capital was estimated to be 1.8bn, compared to 1.7bn at 31 December ( HY: 1.3bn), representing a solvency coverage ratio of 189% ( HY: 160%, FY: 180%). In March 2018, we signed a sale and purchase agreement to further increase our stake in Bupa Arabia by 5% to 39.25%. This transaction would decrease our 30 June 2018 coverage ratio by approximately 5%. Our financial position under Solvency II differs from that of our statutory accounts. The key items of the reconciliation are: goodwill and intangibles in the IFRS statement of financial position are not recognised as available capital under Solvency II; and subordinated debt is treated as available capital under Solvency II but as a liability in the statement of financial position. Our capital comprises equity exclusive of any non-controlling interests, together with eligible subordinated debt. We have 330m of callable subordinated perpetual guaranteed bonds, a 500m dated hybrid bond which matures in 2023 and a 400m dated hybrid bond which matures in 2026. These bond issues are accounted for as liabilities in the statement of financial position but treated as capital for regulatory and management reporting purposes. We perform an 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 property values continues to be the most sensitive item, with a 10% movement having an 11-percentage point impact on the solvency coverage ratio. Risk sensitivities Solvency Coverage Ratio 189% Interest rate + / - 100bps 188% Credit spreads + 100bps (assuming no credit transition) 187% Equity markets - 20% 189% Property values - 10% 178% Sterling appreciates by 10% 189% Pension risk +10% 188% Group Specific Parameter (GSP) + 0.2% 186% Loss Ratio worsening by 2% 180% Outlook and upcoming changing to accounting standards Bupa will apply IFRS 16 (Operating Leases) from the beginning of 2019. The application of the standard will bring additional assets and liabilities onto our balance sheet which in turn will impact the calculation of our capital position under the standard formula. Following implementation, we anticipate capital coverage continuing to be comfortably above our risk appetite. BUSINESS RISKS The main risks we face are described in the Risks section of the Bupa Annual Report and Accounts. In the period to 30 June 2018 there were no significant changes to the nature of these risks. 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, conduct, and clinical risk. 9

Economic and political conditions in our markets could affect our business. These might include structural shifts (such as political changes, medical inflation, minimum wage increases) and economic volatility. We keep our strategy and processes under review to ensure they are flexible enough to react to changing external conditions. Regulatory focus is generally increasing in the markets in which we operate. As set out in the notes to the half year financial statements, our Australian businesses currently have contingent liabilities arising in the ordinary course of business due to unresolved issues associated with the application of Australian tax law in relation to cross border transactions and operations. The issues are ongoing with uncertain future outcomes and we consider that the positions adopted are in accordance with the tax law and we intend to defend our position with respect to these matters. Also, as we say in the disclosures, we do not consider that the ultimate outcome of any contingent liabilities will have a significant adverse impact on the financial condition of the Group. There is uncertainty surrounding the arrangements for the UK leaving the EU. We are closely monitoring negotiations, especially those surrounding the regulation of financial services, the wider impact on the UK economy, and the UK s future immigration rules for EU nationals. In Europe, our Bupa Global business relies on passporting rights to undertake cross-border activities between the UK and the rest of the EU for the sale of international private medical insurance (IPMI) and travel insurance. Our priority is to minimise the disruption for our IPMI customers in the EEA and to continue to deliver the highest standards of service for them. By monitoring and managing our risks, we seek to ensure that we are meeting the changing expectations of our customers, investors and regulators. We continue to strengthen our risk management processes and capability as we respond to growth in our business and the increasing demands of regulators globally. Internal controls, particularly with regard to information security and privacy, remain a key focus. 10

BUPA AROUND THE WORLD Bupa is organised across four Market Units: Australia and New Zealand Bupa Health Insurance, with four million customers, is a leading health insurance provider in Australia and also offers health insurance for overseas workers and visitors. Bupa Health Services is a health provision business, comprising dental, optical, audiology, medical assessment services, and therapy. Bupa Villages and Aged Care Australia and New Zealand is the largest privately-owned residential aged care provider in Australia, caring for around 6,900 residents across 72 homes. It is also a leading aged care provider in New Zealand, caring for around 3,600 people a year in 49 homes, and also supporting customers in 30 retirement villages and seven rehabilitation sites. Europe and Latin America Sanitas Seguros is the second largest health insurance provider in Spain. Sanitas Hospitales and New Services comprises four private hospitals, 33 private medical clinics and two public-private partnerships in Spain, as well as other health services. Sanitas Dental provides dental insurance services through 181 centres and third-party networks in Spain. Sanitas Mayores cares for around 5,800 people every year in 46 care homes and three day care centres in Spain. LUX MED is the largest private healthcare business in Poland, with seven hospitals, 196 private clinics and one care home. Bupa Chile is a leading health insurer and provider with four hospitals and 39 medical clinics. UK Bupa UK Insurance is the UK s leading health insurer, offering health insurance to 2.2 million people. Bupa Dental Care is the leading provider of private dentistry in the UK, with over two million patients and over 470 practices. Bupa Care Services cares for around 6,600 people in around 135 homes, and seven Richmond villages and 20 Goldsborough Estates retirement and assisted-living properties. Bupa Health Services comprises around 50 wellness centres and health clinics, and the Bupa Cromwell Hospital, a complex care hospital in London providing care for insured, self-pay, NHS and international patients. International Markets Bupa Global serves 850,000 international health insurance (IPMI) customers and administers travel insurance and medical assistance for individuals, small businesses and corporate customers. Bupa Arabia, in which Bupa has a 34.25% stake, is the largest health insurance business in Saudi Arabia, with over 3m customers Bupa Hong Kong is a health insurance specialist in Hong Kong, with over 400,000 customers, and Quality HealthCare is Hong Kong s leading private clinic network in the territory. Max Bupa, with 1.9 m customers, is a leading private health insurer in India in which Bupa holds a 49% stake. Bupa China is our representative office and an integrated medical centre. 11

The British United Provident Association Limited Condensed consolidated half year financial statements (unaudited) Six months ended 30 June 2018 12

Condensed Consolidated Income Statement (unaudited) For six months ended 30 June 2018 For six months ended 30 June For year ended 31 December Note m m m Revenues Gross insurance premiums 4,340.3 4,446.9 8,920.0 Premiums ceded to reinsurers (29.8) (31.5) (63.4) Net insurance premiums earned 4,310.5 4,415.4 8,856.6 Revenues from insurance service contracts 10.9 11.3 22.2 Care, health and other revenues 1,557.2 1,651.8 3,370.0 Total revenues 2 5,878.6 6,078.5 12,248.8 Claims and expenses Insurance claims incurred (3,478.2) (3,588.4) (7,111.5) Reinsurers' share of claims incurred 22.5 22.8 45.4 Net insurance claims incurred (3,455.7) (3,565.6) (7,066.1) Share of post-taxation results of equity accounted investments 8.5 11.4 29.1 Other operating expenses (2,149.9) (2,232.1) (4,484.1) Impairment of goodwill (0.1) - (0.5) Other income and charges 3 2.0 (52.7) (99.3) Total claims and expenses (5,595.2) (5,839.0) (11,620.9) Profit before financial income and expense 283.4 239.5 627.9 Financial income and expense Financial income 4 23.4 38.7 90.3 Financial expense 4 (49.6) (46.9) (97.9) Net impairment loss on financial assets (0.6) - - Net financial expense (26.8) (8.2) (7.6) Profit before taxation expense 256.6 231.3 620.3 Taxation expense 5 (62.8) (62.6) (134.4) Profit for the financial period 193.8 168.7 485.9 Attributable to: Bupa 191.2 166.6 482.0 Non-controlling interests 2.6 2.1 3.9 Profit for the financial period 193.8 168.7 485.9 Notes 1-17 form part of these Condensed Consolidated Financial Statements. 13

Condensed Consolidated Statement of Comprehensive Income (unaudited) For six months ended 30 June 2018 For six months ended 30 June For year ended 31 December m m m Profit for the financial period 193.8 168.7 485.9 Other comprehensive income/(expense) Items that will not be reclassified to the Income Statement Remeasurement gains/(losses) on pension schemes 59.2 (28.8) 94.1 Unrealised gains on revaluation of property 20.9 4.9 233.4 Taxation (expense)/credit on income and expenses recognised directly in other comprehensive income (9.9) 4.1 (64.7) Items that may be reclassified subsequently to the Income Statement Foreign exchange translation differences on goodwill (65.2) 15.0 (13.9) Other foreign exchange translation differences (60.2) 75.7 (10.3) Net gain/(loss) on hedge of net investment in overseas subsidiary companies 17.6 (15.1) (6.6) Change in fair value of underlying derivative of cash flow hedge 4.8 4.2 5.1 Reclassification of foreign exchange translation differences to profit or loss on disposal of subsidiary - - (4.3) Unrealised gains/(losses) on available-for-sale assets - 1.1 0.9 Taxation expense on income and expenses recognised directly in other comprehensive income (0.1) (0.1) (3.3) Total other comprehensive income (32.9) 61.0 230.4 Comprehensive income for the period 160.9 229.7 716.3 Attributable to: Bupa 158.7 228.4 712.9 Non-controlling interests 2.2 1.3 3.4 Comprehensive income for the period 160.9 229.7 716.3 Notes 1-17 form part of these Condensed Consolidated Financial Statements. 14

Condensed Consolidated Statement of Financial Position (unaudited) as at 30 June 2018 At 30 June At 31 December At 30 June 2018 Note m m m Intangible assets 6 4,179.9 4,287.7 4,266.0 Property, plant and equipment 7 3,167.2 3,203.1 2,980.6 Investment property 407.4 399.2 415.3 Equity accounted investments 561.8 552.7 567.3 Post-employment benefit net assets 8 636.6 576.9 458.9 Restricted assets 9 88.4 76.3 71.5 Financial investments 10 2,450.8 2,227.0 2,176.0 Derivative assets 32.5 47.4 50.0 Deferred taxation assets 6.2 6.2 7.2 Assets arising from insurance business 11 1,853.1 1,230.2 1,755.2 Inventories 118.6 103.5 97.8 Trade and other receivables 745.2 737.4 690.6 Cash and cash equivalents 12 1,619.2 1,521.1 1,625.8 Assets held for sale 13 9.6 89.0 547.3 Total assets 15,876.5 15,057.7 15,709.5 Subordinated liabilities 14 (1,306.4) (1,303.2) (1,321.1) Other interest bearing liabilities 14 (1,102.1) (1,170.1) (1,627.2) Post-employment benefit net liabilities 8 (62.2) (67.5) (76.1) Provisions under insurance contracts issued 15 (3,380.5) (2,636.6) (3,379.7) Derivative liabilities (32.1) (19.2) (32.4) Provisions for liabilities and charges (142.7) (131.7) (136.7) Deferred taxation liabilities (309.5) (310.4) (257.7) Trade and other payables (1,829.9) (1,930.0) (1,729.4) Other liabilities under insurance contracts issued (201.7) (116.5) (199.4) Current taxation liabilities (69.6) (73.5) (56.9) Liabilities directly associated with assets held for sale 13 - (10.7) (91.0) Total liabilities (8,436.7) (7,769.4) (8,907.6) Net assets 7,439.8 7,288.3 6,801.9 Equity Property revaluation reserve 708.7 796.1 711.4 Income and expenditure reserve and other reserves 6,214.8 5,882.2 5,373.2 Cash flow hedge reserve 30.7 22.2 21.9 Foreign exchange translation reserve 455.2 557.5 667.4 Equity attributable to Bupa 7,409.4 7,258.0 6,773.9 Equity attributable to non-controlling interests 30.4 30.3 28.0 Total equity 7,439.8 7,288.3 6,801.9 Notes 1-17 form part of these Condensed Consolidated Financial Statements. 15

Condensed Consolidated Statement of Cash Flows (unaudited) For six months ended 30 June 2018 For six months ended 30 June For year ended 31 December Note m m m Cash flow from operating activities Profit before taxation expense 256.6 231.3 620.3 Adjustments for: Net financial expense 26.8 8.2 7.6 Depreciation, amortisation and impairment 162.2 194.0 432.4 Other non-cash items (9.4) 12.4 (26.6) Changes in working capital and provisions: Increase in provisions and other liabilities under insurance contracts issued 880.0 808.4 61.0 Increase in assets under insurance business (636.2) (566.9) (57.3) Change in net pension asset/liability (5.8) (15.2) (19.1) Increase in trade and other receivables, and other assets (32.7) (68.2) (137.2) (Decrease)/increase in trade and other payables, and other liabilities (74.5) 32.5 222.7 Cash generated from operations 567.0 636.5 1,103.8 Income taxation paid (71.0) (70.6) (158.1) Increase in cash held in restricted assets 9 (12.1) (11.5) (16.3) Net cash generated from operating activities 483.9 554.4 929.4 Cash flow from investing activities Acquisition of subsidiaries and other businesses, net of cash acquired 16 (22.7) (616.8) (668.4) Increase in equity accounted investments (0.1) (197.1) (191.4) Acquisition of non-controlling interests in subsidiary companies - - (0.4) Dividends received from associates 11.7 6.4 - Disposal of subsidiaries and other businesses, net of cash disposed of 2.2-23.2 Disposal of equity accounted investments 7.0 - - Purchase of intangible assets 6 (27.8) (43.8) (114.2) Purchase of property, plant and equipment (110.4) (172.1) (356.1) Proceeds from sale of property, plant and equipment 74.7 5.5 374.0 Purchase of investment property (11.8) (14.6) (27.8) Disposal of investment property 12.9 1.9 2.0 Net purchase of financial investments, excluding deposits with credit institutions (229.2) (31.0) (252.2) Net (investment into)/withdrawal from deposits with credit institutions (17.9) 27.6 155.0 Interest received 22.2 8.9 60.8 Net cash used in investing activities (289.2) (1,025.1) (995.5) Cash flow from financing activities Proceeds from issue of interest bearing liabilities and drawdowns on other borrowings 24.6 1,132.3 1,327.2 Repayment of interest bearing liabilities and other borrowings (85.9) (380.3) (1,040.3) Interest paid (39.0) (41.7) (94.6) Receipts from/(payments for) hedging instruments 25.9 5.5 (3.8) Dividends paid to non-controlling interests (1.9) (3.6) (3.7) Net cash (used in)/generated from financing activities (76.3) 712.2 184.8 Net increase in cash and cash equivalents 118.4 241.5 118.7 Cash and cash equivalents at beginning of period 1 1,519.5 1,412.7 1,412.7 Effect of exchange rate changes (19.7) 0.3 (11.4) Cash and cash equivalents at end of period 2 12 1,618.2 1,654.5 1,520.0 1 Opening cash and cash equivalents adjusted to reflect ECL provision for investments less than 3 months on adoption of IFRS 9 ( 0.5m). 2 At 30 June 2018 cash and cash equivalents includes nil of assets held for sale (HY : 28.7m, FY : nil). Notes 1-17 form part of these Condensed Consolidated Financial Statements 16

Condensed Consolidated Statement of Changes in Equity (unaudited) Property revaluation reserve Income and expenditure and other reserves Cash flow hedge reserve Foreign exchange translation reserve m m m m m m m Total attributable to Bupa Non-controlling interests Total equity Balance at 1 January 2018, as previously reported 796.1 5,882.2 22.2 557.5 7,258.0 30.3 7,288.3 Adoption of IFRS 15: Revenue (refer to Note 1.3) - (1.1) - - (1.1) - (1.1) Adoption of IFRS 9: Financial instruments (Refer to Note 1.3) - (6.2) - - (6.2) - (6.2) Balance at 1 January 2018, as restated 796.1 5,874.9 22.2 557.5 7,250.7 30.3 7,281.0 Profit for the financial period - 191.2 - - 191.2 2.6 193.8 Other comprehensive income/(expense) Unrealised profit on revaluation of property 20.9 - - - 20.9-20.9 Realised revaluation profit on disposal of property (100.1) 100.1 - - - - - Remeasurement gain on pension schemes - 59.2 - - 59.2-59.2 Foreign exchange translation differences on goodwill - - - (65.2) (65.2) - (65.2) Other foreign exchange translation differences (8.2) - 3.8 (55.4) (59.8) (0.4) (60.2) Net gain on hedge of net investment in overseas subsidiary companies - - - 17.6 17.6-17.6 Change in fair value of underlying derivative of cash flow hedge Taxation (expense)/credit on income and expense recognised directly in other comprehensive income Other comprehensive income/(expense) for the period, net of taxation - - 4.8-4.8-4.8 - (10.6) (0.1) 0.7 (10.0) - (10.0) (87.4) 148.7 8.5 (102.3) (32.5) (0.4) (32.9) Total comprehensive income for the period (87.4) 339.9 8.5 (102.3) 158.7 2.2 160.9 Acquisition of subsidiary companies attributable to non-controlling interests - - - - - (0.2) (0.2) Dividends paid to non-controlling interests - - - - - (1.9) (1.9) Balance at 30 June 2018 708.7 6,214.8 30.7 455.2 7,409.4 30.4 7,439.8 Notes 1-17 form part of these Condensed Consolidated Financial Statements 17

Condensed Consolidated Statement of Changes in Equity (unaudited) for the year ended 31 December Property revaluation reserve Income and expenditure and other reserves Cash flow hedge reserve Foreign exchange translation reserve m m m m m m m Total attributable to Bupa Non-controlling interests Total equity Balance at 1 January 706.1 5,229.8 14.7 595.3 6,545.9 30.7 6,576.6 Profit for the financial period - 482.0 - - 482.0 3.9 485.9 Other comprehensive income/(expense) Unrealised profit on revaluation of property 233.4 - - - 233.4-233.4 Realised revaluation profit on disposal of property (95.1) 95.1 - - - - - Remeasurement loss on pension schemes - 94.1 - - 94.1-94.1 Unrealised gain on available-for-sale assets - 0.9 - - 0.9-0.9 Foreign exchange translation differences on goodwill - - - (13.9) (13.9) - (13.9) Other foreign exchange translation differences 0.6-2.6 (13.0) (9.8) (0.5) (10.3) Net loss on hedge of net investment in overseas subsidiary companies - - - (6.6) (6.6) - (6.6) Change in fair value of underlying derivative of cash flow hedge - - 5.1-5.1-5.1 Foreign exchange reserve on disposal of subsidiary - - - (4.3) (4.3) - (4.3) Taxation charge on income and expense recognised directly in other comprehensive income (48.9) (18.9) (0.2) - (68.0) - (68.0) Other comprehensive income/(expense) for the year, net of taxation 90.0 171.2 7.5 (37.8) 230.9 (0.5) 230.4 Total comprehensive income/(expense) for the year 90.0 653.2 7.5 (37.8) 712.9 3.4 716.3 Acquisition of subsidiary companies attributable to non-controlling interests - (0.8) - - (0.8) (0.1) (0.9) Dividends paid to non-controlling interests - - - - - (3.7) (3.7) Balance at 31 December 796.1 5,882.2 22.2 557.5 7,258.0 30.3 7,288.3 Notes 1-17 form part of these Condensed Consolidated Financial Statements 18

Condensed Consolidated Statement of Changes in Equity (unaudited) for the six months ended 30 June Property revaluation reserve Income and expenditure and other reserves Cash flow hedge reserve Foreign exchange translation reserve m m m m m m m Total attributable to Bupa Non-controlling interests Total equity Balance at 1 January 706.1 5,229.8 14.7 595.3 6,545.9 30.7 6,576.6 Profit for the financial period - 166.6 - - 166.6 2.1 168.7 Other comprehensive income Unrealised profit on revaluation of property 4.9 - - - 4.9-4.9 Remeasurement loss on pension schemes - (28.8) - - (28.8) - (28.8) Unrealised gain on available-for-sale assets - 1.1 - - 1.1-1.1 Foreign exchange translation differences on goodwill - - - 15.0 15.0-15.0 Other foreign exchange translation differences 1.2-3.1 72.2 76.5 (0.8) 75.7 Net loss on hedge of net investment in overseas subsidiary companies - - - (15.1) (15.1) - (15.1) Change in fair value of underlying derivative of cash flow hedge - - 4.2-4.2-4.2 Taxation (expense)/credit on income and expense recognised directly in other comprehensive income (0.8) 4.9 (0.1) - 4.0-4.0 Other comprehensive income/(expense) for the period, net of taxation 5.3 (22.8) 7.2 72.1 61.8 (0.8) 61.0 Total comprehensive income for the period 5.3 143.8 7.2 72.1 228.4 1.3 229.7 Acquisition of subsidiary companies attributable to non-controlling interests - (0.4) - - (0.4) (0.4) (0.8) Dividends paid to non-controlling interests - - - - - (3.6) (3.6) Balance at 30 June 711.4 5,373.2 21.9 667.4 6,773.9 28.0 6,801.9 Notes 1-17 form part of these Condensed Consolidated Financial Statements 19