Profit drop for nib

Nib says growth in the number of policyholders helped propel its revenue up 8.8% to A$215.5 million in the most recent financial year, although it’s been a tough market to operate in.

Wednesday, October 30th 2019, 9:01PM

The nib group turned in a total group profit of A$149.3 million, after tax.

In New Zealand, customer numbers lifted 7.5%. It now has 213,061 policyholders.

Claims expense was up 10.7% and underlying operating profit down 15.4% to A$19.8 million.

“The earnings and performance of our New Zealand business is consistent with our long-term strategy as we deliver more value to members,” it said in its annual report.

“One of the most exciting initiatives we have underway across the nib Group at the moment, is our population health initiative with Auckland iwi, Ngāti Whātua Ōrākei.

“The first programme of its kind, Ngāti Whātua Ōrākei partnered with us as part of its commitment to improve the health and wellbeing of iwi members by providing access to comprehensive private health insurance.

“Through this partnership, the aim is to target better health outcomes and tackle existing barriers Māori experience in the public system such as cost, choice, waiting times and accessibility which have seen them experience the poorest health outcomes within the New Zealand health system. Based on the success of this programme, we have bold plans to expand to other populations and at-risk communities both in New Zealand and Australia.”

Nib said part of its business strategy was to amplify its investment in growing its New Zealand business.

Managing director Mark Fitzgibbon said market conditions were challenging.

“On the back of actual claims growth, premiums continue to rise while household disposable incomes remain static and competition for discretionary consumer spending is fierce.”

But he said there was more need for insurance than ever.

“In Australia, New Zealand and across the entire OECD healthcare spending generally is expanding at twice the rate of GDP and we’ll need more private funding and delivery to relieve pressure on public financing.”

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