nib Group announces FY23 results

nib Group announces FY23 results | Insurance Business Australia

Insurance News

nib Group announces FY23 results

“Flagship” business reports highest sales in years

Insurance News

By
Daniel Wood

nib Group (nib), the Trans-Tasman private health fund and travel insurer, has announced its FY23 results. According to an ASX announcement, Net profit after tax (NPAT) was up more than 40% to $191.8 million. Revenue, said the announcement, was up by nearly 11% to more than $3 billion.

The firm attributed much of the growth to ongoing increases in its Australian private health insurance business and also post-COVID-19 recovery.

“This is another strong commercial result for the company and indicative of growth and progress across the Group,” said Mark Fitzgibbon (pictured above), nib’s managing director. “arhi [Australian Residents Health Insurance] continued its long track record of above system growth and those businesses that were troubled by COVID-19 – international students and travel – are experiencing good recovery.”

Premium revenue was up 6.1% to $2.4 billion, “notwithstanding the impact of nib’s 2023 premium price deferral and member give-back,” said the announcement.

“Net growth was 4.7%, more than double the anticipated industry rate,” said the announcement.

nib’s travel, international students and workers, and New Zealand operations reported “strong growth and profitability.”

New Zealand premiums grow 13.2%

The announcement said “nib NZ delivered UOP of $34.2 million for FY23, up from $22.7 million in FY22.” Premium revenue in New Zealand grew 13.2% to $330.4 million while policyholder growth was more than 3%.

Inbound health insurance claims at “more normal levels”

“In the second half of FY23, we added 17,839 policyholders, compared to a net loss in the same period last year,” said Fitzgibbon, referring to his firm’s International Inbound Health insurance (iihi) offering. “The high claims expense incurred amongst international students during COVID-19 has eased significantly to more normal levels.”

The announcement said iihi’s results were driven by strong demand for international workers, a clearing of visa backlogs and a return to Australian campuses for international students.

nib’s Travel business, “rebounded strongly”, said the announcement, posting a “record result” for UOP of $14.0 million.