nib makes $27 million profit after 'challenging year'

nib New Zealand says it's pleased with its $26.8 million operating profit for the year ending June 2021 with premium revenue up almost 10% from the last financial year.

Monday, August 23rd 2021, 2:57PM

by Matthew Martin

nib New Zealand chief executive Rob Hennin says the business delivered another good result despite the uncertainties and disruptions caused by Covid-19.

For the 12 months to June 30 nib NZ saw premium revenue lifting 9.8% to $277.8 million and underwriting result of $26.8 million up 3.6% on the same period last year.

“From the onset of the pandemic our key focus has been on the health and wellbeing of our members, travellers and employees, which is why we swiftly enacted our member support package that, to date, totals AU$45 million across the nib group,” Hennin says.

The full-year result includes the full release of the initial $9 million Covid-19 provision, matching the expected claims catch-up for deferred treatment.

“While there was some initial impact on healthcare access, claims have quickly bounced back which means our members have been able to get the healthcare treatment they need,” says Henin.

Premium revenue growth for the period was driven by strong policyholder sales and pricing adjustments. Net policyholders increased 1.6% impacted by the decrease in inbound international students due to travel restrictions.

“Excluding international students, policyholder growth was 5.0% supported by the performance of channels including group, adviser and our white label partner, the New Zealand Automobile Association.

"Since we acquired the business, we’ve grown policyholders by 50%,” says Henin.

Growth in nib’s net promoter score (FY21: 34 vs FY20: 33) reflected nib’s digital transformation progress, with investment in system modernisation improving the member experience.

“We’re big advocates of digital healthcare as it addresses many of the barriers that prevent people from accessing healthcare.

"That’s why we’ve teamed up with digital-first providers like Tend to make it easier for our members to see a GP, coupled with Zoom pharmacy which improves medicines adherence by delivering prescriptions direct to a patient’s home or work,” he says.

Hennin says nib also continues to work with its key partners and members to roll out population health initiatives that deliver significant health and wellness benefits to the community.

“For example, we’re supporting Ngāti Whātua Ōrākei’s Body Warrant of Fitness programme which helps members to access quality healthcare providers and increase their health knowledge and literacy.

"By providing free primary health checks, the programme aims to improve their health outcomes through early detection and diagnosis of any potential disease.

“We’re also actively developing solutions to expand these initiatives to other iwi,” he says.

Tags: Life insurance nib Rob Hennin