nib New Zealand delivers strong result for FY23
- nib NZ delivered an underwriting result of $36.1 million^ for FY23, up from $25.4 million in FY22
- Underwriting result includes a 12-month contribution of $NZ2.4 million from the life and living business^^
- Net policyholder growth of 3.2%
- nib NZ continued to deliver tailored health programs including cardio, diabetes and weight management
nib New Zealand (nib NZ) delivered an underwriting result of $36.1 million for FY23, up from $25.4 million in FY22. FY23 underwriting results include a 12-month contribution of $2.4 million from the life and living insurance business, compared to a two-month contribution of $NZ0.1 million in FY221.
Net premium revenue grew 15.9% to $360.7 million, driven by total policyholder growth of 3.2% across all businesses. Resident Private Health Insurance policyholder growth was 3.8%. Claims increased 18.5% as a result of growth and claims inflation, with lower claiming rates in the year prior.
Commissions and marketing expenses rose 13.5%, excluding a one-off deferred acquisition cost adjustment. nib NZ continued to invest in technology, and integrate the life and living and OrbitProtect businesses.
nib’s life and living products include life, serious illness, trauma, and income protection insurance. OrbitProtect^^^ contributed $1.1 million profit (before tax) for FY23. OrbitProtect helps provide insurance cover for international students and workers, and inbound travellers visiting New Zealand.
“It’s been a good year again for the New Zealand business, where we have increased the number of policyholders and maintained the value we offer nib members,” said nib NZ Chief Executive Officer, Rob Hennin. “Businesses that were affected by COVID-19, which closed international borders and slowed access to healthcare across the country, are recovering. We’ve added a new business, OrbitProtect, and our life and living business is performing well.”
Mr Hennin said non-financial highlights of the year include nib NZ’s continued work in its population health programmes in partnership with Ngāti Whātua Ōrākei, and health management initiatives that include weight loss, diabetes management and heart health. “Our purpose is to provide value for members and drive towards better health outcomes for members, their families and the communities in which we work,” Mr Hennin said.
nib Chair Tony Ryall said FY24 will bring continued challenges for nib NZ. “Healthcare demand, will continue to grow,” Mr Ryall said. “New Zealand has an ageing population, and consumers expect better health outcomes, sometimes driven by treatment and technology advancements.
The challenge is to meet those demands and excel, delivering value and better healthcare outcomes in everything we do. This is especially demanding in an environment of rising rates and increasing cost pressures. We know nib members face challenges. Delivering value is an important part of what we do.”
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^ All dollar figures referenced are in NZD currency ^^ FY22 figure includes a 2-month contribution of $0.1 million. Life and living (nib nz insurance ltd) was acquired in April 2022 ^^^ OrbitProtect Limited, acquired on 30 November 2022