Sharechat Logo

Nib's NZ earnings rise 20% on smaller claims bill, fewer premium paybacks

Monday 19th February 2018

Text too small?

Nib Holdings' New Zealand unit boosted first-half profit as the health insurer paid out fewer claims than a year earlier and had a smaller premium payback bill on its product which reimburses policyholders the difference between premiums received and claims paid. 

Underlying operating earnings rose to A$13.1 million in the six months ended Dec. 31 from A$10.9 million a year earlier, the Sydney-based insurer said in a statement. Revenue shrank 2.5 percent to A$97.5 million due to foreign exchange movements but was up 1.2 percent in kiwi dollar terms as new customer lines made up for the loss of a corporate customer. Claims costs dropped 10 percent to A$58 million on fewer claims and a lower premium payback liability. 

"We've made good progress this year in expanding our direct-to-consumer segment as well as our industry-leading white-label capability, recently welcoming Stuff to our stable of partners such as the New Zealand Automobile Association," NZ chief executive Rob Henin said. "Our performance first half reflects the significant investment we are making in growth opportunities while continuing our focus on delivering value to our customers and achieving impressive operational efficiencies." 

Nib's group net profit slipped 0.3 percent to A$70.9 million on an 8.9 percent gain in revenue to A$8.9 billion, as one-off acquisition costs weighed on the bottom line. The board declared an interim dividend of 9 Australian cents per share. 

The New Zealand division is the Australian insurer's smallest, accounting for 101,151 policyholders, or 12 percent of the group's 816,676 policyholders. That compares to 106,460, or 14 percent of 751,629 policyholders a year earlier. 

Nib's ASX-listed shares rose 1 percent to A$6.495. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZ shares fall as investor uncertainty weighs on exporters; F&P Health, A2 drop
NZ dollar drops below US68c on plan to up bank capital
Noel Leeming fined $200,000 for misleading consumers
Big four banks face stiffer capital requirements from RBNZ
Infratil signals A$50m investment in Canberra Data Centres
Govt provides $2.5 mln to develop Opotiki aquaculture
Labour co-ordinator role may alleviate kiwifruit labour shortage
NZ manufacturing activity chugs along in November
Australia's GWA lobs in $118M bid for Methven
Govt leaves door open for higher emissions price cap

IRG See IRG research reports