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Insurer NIB Holdings Ltd (ASX:NHF) reported a net profit after tax of $82.9 million in the six months to December, down from $103.9 million in the prior corresponding period, with its underlying operating profit (UOP) for the NIB Group also being lower – at $105.8 million, compared to $144.3 million.
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However, the company told investors the latter reading – which included a drop of 26.7% – was not outside market expectations, and reflected NIB’s fall in New Zealand profit due to slow economic growth and high claims inflation which had been seen throughout the industry during the period.
The difference between UOP in HY24 and HY25 needed to be understood in terms of the particularly higher margins seen during the former.
NIB’s total group revenue increased by 7.7%, to $1.8 billion (from $1.7B in 1H24); the company will pay an interim fully franked dividend of 13 cents per share.
“Our Australian Residents Health Insurance (arhi) margins were well above target in 1H24 at 9.7% and have now returned to more sustainable levels in our long-term target range of 6-7%,” Group managing director and CEO Ed Close said, adding he believes the figures showed resilience for the insurer.
“arhi had record, first-half sales growth in 1H25. We are growing our health insurance membership at a time when people are focused on finding value.
“We are ambitious about delivering value for members. We have expanded our Australia-wide medical services ‘Known Gap,’ and our ‘No Gap’ dental network, and continue to invest in our payer-to-partner strategy, automation and digital health experiences.”
NIB shares have been trading at $5.94.
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