nib experiencing extraordinary claims growth
ASX-listed health insurer nib has told the market that its New Zealand operations are weighing on its earnings performance.
Tuesday, November 12th 2024, 4:46PM
In an earnings update, chief executive Mark Fitzgibbons said that “extraordinary growth in New Zealand claims experience is weighing heavily on this year’s group commercial performance, with an expected operating loss in 1H25 of about A$10 million" ($11 million).
Fitzgibbons said this was a trend encountered by all insurers in New Zealand and that conditions were forecast to improve in the second half of the second half of the current financial year, owing to higher pricing and operating cost savings.
"High post-pandemic claims inflation is similarly impacting other private health insurers in New Zealand. We expect conditions in New Zealand to improve in the second half of the year with higher pricing, operating cost savings and claims inflation moderating and for the full-year profitability, albeit weaker than in FY24."
Despite this, nib is expecting stronger earnings across the group, revising its full year profit guidance to an underlying operating profit of A$250 million, up from $235 million.
“Our flagship Australian resident’s health insurance business is growing strongly, with net policyholder growth for the first four months of this year up over 52% on the prior corresponding period,” Fitzgibbon said.
He also said that expectations were that nib’s net margin for the full financial year will be in the order of 6% to 7%, aligned with its target range.
| « What’s the solution to life insurance advice risk anxiety? | Mixed reviews from advisers on FMA regulation » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
