“In great shape” insurer publishes half-year results

“In great shape” insurer publishes half-year results | Insurance Business New Zealand

Life & Health

Group CEO says growth testimony to competitiveness of products and pricing

Life & Health

By
Terry Gangcuangco

Trans-Tasman insurer nib Group has published its financial results for the half year ended December 31, 2023.

Metric

Half year ended Dec. 31, 2023

Same period, 2022 (restated)

Insurance service result

AU$144.9 million

AU$117.7 million

Insurance operating result

AU$147.2 million

AU$120.4 million

Operating profit

AU$128.7 million

AU$112.2 million

Underlying operating profit (UOP)

AU$144.4 million

AU$118.7 million

Profit before income tax

AU$153.5 million

AU$128.2 million

Profit from continuing operations

AU$104.2 million

AU$87.3 million

Profit for the half year

AU$104 million

AU$87.1 million

Profit for the half year attributable to owners of nib

AU$106.4 million

AU$89.2 million

In a release, group chief executive Mark Fitzgibbon said: “The membership and revenue growth across all of our private health insurance businesses are testimony to the competitiveness of nib’s products and pricing, especially at a time of growing cost-of-living pressures.

“At a group level, revenue grew 12.4% to AU$1.7 billion. A few COVID-19 related factors continued to have some influence on profitability, but the underlying business is in great shape.”

According to nib, the UOP for its arhi (Australian residents health insurance) business rose by 27.8%; for iihi (international inbound health insurance), a 58.9% increase; for nib New Zealand, a 33.1% decline in UOP due to a one-off deferred acquisition costs adjustment; for nib Travel, a 35.9% plunge; and nib Thrive’s UOP soared by 1,500%.

In New Zealand, nib NZ CEO Rob Hennin highlighted the positives, commenting: “We have reported a solid first-half result and are positioned well for the full year.

“nib NZ has continued to see strong growth in resident private health insurance policyholders, and we have seen positive contributions from our international student, worker, and traveller insurance business OrbitProtect and life and living insurance business nib nz insurance limited.”

Meanwhile it was announced that nib is paying an interim fully franked dividend of 15 Australian cents per share.