PRIVATE medical group Bupa today said group profits remained healthy last year despite suffering in the UK where unemployment drove a 5% slip in customer numbers.

Bupa saw its UK surplus, which also includes US long-term condition specialist Health Dialogue, shrink to £16.8 million from £39.8 million a year earlier on broadly flat revenues of £2.1 billion in the year to December 31.

But overall the group said pre-tax profits - which are all re-invested back into the business - soared 117% to £416.5 million after the firm bounced back from 2008’s credit crunch driven impairments and losses.

On an underlying basis profits grew 4% to £428.2 million as revenues improved 17% to £6.9 billion, helped by acquisitions, organic growth and currency movements.

The healthcare firm’s UK arm provides services including health insurance, home treatment and hospital care.

It said the recessionary climate and rising unemployment had taken its toll on the division in the year, with the slump in customer numbers driven mainly by contracting payrolls.

The cost of claims also increased in the year as medical prices rose, with the cost of cancer treatments particularly affected as a new generation of cancer drugs have seen costs rise 40% over five years.

Bupa said a "significant emphasis has been placed on customer retention" and extending networks to improve services for cataract treatment and physiotherapy.

It also said it had secured contracts with several multinational companies, which will add around 100,000 new customers in 2010.

Bupa bought the Cromwell Hospital in London, which caters for mainly insured, self-pay and international customers, in 2008.

It said organic revenues were flat last year because of fewer international customers visiting the hospital because of fears over swine flu, but it said recent months had shown a positive trend.

The UK Health and Wellbeing division launched a new computer system which it said would help it become more efficient and more responsive to customers.

Bupa’s UK division accounted for 31% of group revenues last year as the firm continues to grow in international markets.

Overall customer numbers rose slightly in 2009 to 10.4 million, as success in attracting new clients offset higher rates of policy lapses due to rising unemployment.

Bupa said it was looking at ways to reduce costs and claims inflation to protect its profitability.

Chief executive Ray King said the company had achieved a "resilient" performance last year despite the economic challenges as it held customer numbers, increased profits and repaid debt.

"The markets in which Bupa operates offer excellent opportunities for long-term growth, driven by customers’ desire to access better healthcare," he said.

"The global trends of ageing populations, rising affluence, the increasing incidence of chronic disease and advances in medical technology will drive demand for our services."

Bupa, which was established in 1947, operates in more than 190 countries and employs nearly 52,000 people.

As a provident, Bupa does not have shareholders and profits are ploughed back into the business.

As well as its domestic UK business, the group also has businesses across Europe, Asia Pacific, Middle East, Africa and Latin America.

Overall group trading has been boosted by increased profits in regions such as Asia Pacific, where the surplus rose 57%.

The firm sold its hospitals to private equity firm Cinven in 2007 for £1.44 billion and pulled out of Ireland in July of the same year.

Bupa’s care home arm comprises 303 homes in the UK - where it looks after over 18,000 residents - and 133 internationally.

Profits in the care home business rose to £133.7 million in 2009 from £131.8 million a year ago.