Sharechat Logo

Nib's NZ earnings rise 36% in 2017 as OnePath acquisition makes full year contribution

Monday 21st August 2017

Text too small?

Nib Holdings's New Zealand earnings rose 36 percent as the country's second biggest health insurer benefited from a full year's contribution of the OnePath business it bought in 2015.  

The ASX-listed company said underlying operating profit in New Zealand rose to A$23.5 million in the year to June 30 from A$17.3 million in the prior year, helped by a "benign claims environment," it said. The result also includes the full benefit of OnePath health insurance after it bought the medical insurance book of OnePath NZ from ANZ Bank New Zealand for about A$22.5 million in the prior financial year. 

Nib's New Zealand premium revenue rose 15 percent to A$199.3 million while claims eased 0.1 percent to A$120.9 million. the number of policyholders shrank 5.2 percent but group chairman Steve Crane said that was due to a specific corporate account loss "and our NZ business actually made significant progress in building its direct to consumer channel," something it launched in 2013. More than half its sales for the year came through that channel and 70 percent of those sales were completed on line, the company said. 

The New Zealand healthcare industry is subject to "huge medical cost variation with no evidence of better quality care or outcomes," nib said. It noted cost variation is a huge driver of premium inflation and customer dissatisfaction but also "an area of opportunity." Its First Choice network - which will be available to customers from September - is aimed at removing cost uncertainty by offering a network of medical professionals, it said. 

Looking ahead, the insurer said it is anticipating "weak growth and heightened competition" for nib New Zealand but that macroeconomic conditions are favorable. It also signalled it is expecting industry consolidation. 

Nib New Zealand is part of one of Australia's largest health insurers, which today reported a 31 percent gain in net profit to A$120.2 million as total underlying revenue rose 7 percent to $2 billion. 

 

 

 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ 2Q CPI +0.6% on quarter, +1.7% on year
NZ 2Q CPI +0.6% on quarter, +1.7% on year
16th July 2019 Morning Report
Suspect company faces liquidation after director dies
NZ dollar holds gains; focus on domestic inflation data
MARKET CLOSE: NZ shares slip as fears over slowing Chinese growth weigh; AMP slumps
NZ dollar rises after heartening Chinese data
Suspect company faces liquidation after director dies
Foreign investors face maximum penalty for breach after $13M purchase
Napier Port share offer $2.27-$2.60; will raise net $110 million

IRG See IRG research reports