Premium income grows at nib

nib New Zealand delivers solid result as more members seek private care.

Monday, February 21st 2022, 5:21PM

nib New Zealand has reported its premium revenues were up in the last six months of 2021 while underwriting results were down on the same time the year before.

In the half year ending December 31, premium revenue was up 11.2% to $151.4 million, meanwhile the underwriting result of $10.2 million reduced 15.5% from $12.1 million the year before.

nib chief executive Rob Hennin said the business had performed well overall with premium revenue lifting thanks to a 4.1% rise in policyholders and premium adjustments to account for claims inflation.

Hennin said more members accessed medical treatment, however, this trend combined with a 12.3% rise in claims inflation, had seen claims expenses increase during the period.

“As public waiting lists continue to grow, exacerbated by the pandemic, we’re seeing more consumers make the shift from public to private to take more responsibility for their own healthcare needs.”

Hennin said: “While it’s great to see our members getting the care they need, we’re also conscious of ensuring claims costs are managed effectively to keep premiums affordable which is why initiatives such as our First Choice Network are so important.”

Hennin also highlighted that nib had put aside extra funds to cover an expected “catch-up” in claims following ongoing Covid-19 lockdowns.

“The pandemic has continued to disrupt healthcare treatment across the country, but we know that most of this treatment is simply postponed, not cancelled entirely. To account for this, we’ve increased our deferred claims liability to $3.5 million to ensure we can meet anticipated future claims,” Hennin said.

Parent company nib holdings limited (ASX: NHF) also announced its Group operating performance for the six months to December 31. Group underlying revenue grew 8.3% to A$1.4 billion, with Group underlying operating profit increasing by 28.5% to A$109.6 million and net profit after tax of A$81.2 million was up 24.7%.

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