NIB flags operating loss after NZ claims growth
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The news: Health insurer NIB Holdings has flagged a first-half operating loss on the back of “extraordinary growth” in New Zealand claims.
The numbers: NIB said it expects operating loss of $10 million in the first half of the current financial year, with extraordinary growth in New Zealand claims experience weighing heavily on the group’s commercial performance.
NIB shares slumped more than 4% to $5.75 in early trading on the ASX.
The context: NIB said high post-pandemic claims inflation is similarly impacting other private health insurers in New Zealand. It expects conditions to improve in the second half with higher pricing, operating cost savings, and claims inflation moderating.
NIB’s profit warning comes just days after the health insurer flagged a strong start for its key Australian business.
The company last week told shareholders at its annual general meeting the domestic Australian Residents Health Insurance (arhi) business achieved its strongest start to the year since FY2008, with net growth of 52.9% in the first four months of the fiscal year.
The source: ASX announcement
