nib Group announces FY2023 half year results

Claims expense came in at $1.1 billion, up nearly 5% which was lower than anticipated.

“Claims are still lower than we’d expected and at some point, volumes will lift,” said Fitzgibbon.

In Australia, nib’s Australian Residents Health Insurance (arhi) business reported premium revenue growth of more than 4% to $1.2 billion. This was mainly due, said the announcement, to policyholder growth and also price increases.

The Group’s New Zealand business delivered “another impressive half,” said the announcement. Underlying operating profit was $16.7 million and policyholder growth was more than 5%. The acquisition of OrbitProtect, a provider of insurance cover for international students, workers and inbound travellers, was also completed.

The private health insurer referred to “good progress” in its Payer to Partner (P2P) strategy.

“We see a future whereby people join nib not just because we offer financial security, but because we provide members and their doctors with deeper insight into personal health risk and management,” said Fitzgibbon.

The announcement said the insurer’s joint venture with Cigna Corporation, called Honeysuckle Health, has resulted in a 16% reduction in unplanned hospital readmissions.

Fitzgibbon said the “lingering” impacts of the pandemic explain the “relatively high” margin at 8.6%. He said nib is taking action to compensate for this higher level of profitability and protect affordability for members including cash rebates, premium deferrals and expanded cover.

“Market and business conditions look favourable for our strategy and we’ve definitely got an appetite to invest across the Group,” he said. “Yet inflation, rising interest rates, and slowing economic growth suggest some level of caution is required.”