Private medical giant Bupa recorded strong group profits last year, despite a 5% drop in customer numbers and a sharp decline in sales in UK and North America.

The company reported a 4% rise in its annual underlying pre-tax surplus to £428.2 million for the year ended December 31 2009.

Profits in the firm’s UK division contracted to £16.8 million from £39.8 million the year before on broadly flat revenues of £2.1 billion.

Ray King, Bupa’s chief executive, attributed the sluggish numbers partly to the impact of the recession, with customer numbers falling by 5% due to rising unemployment.

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

King said he expected to see a recovery in UK customer numbers during 2010 and that the firm had already won or extended contracts with a number of multinationals.

“Private medical insurance is very much linked to employment levels on the corporate side and the economy needs to get going significantly for employment levels to pick up,” said King.