nib New Zealand delivers solid result as more members seek private care
nib New Zealand (nib) today announced its results for the six months to 31 December 2021 (1H22) with premium revenue up 11.2% to NZD$151.4 million while the underwriting result of NZD$10.2 million reduced 15.5% on the same time last year (1H21: NZD$12.1 million).
nib Chief Executive Officer, Rob Hennin said the business had performed well overall with premium revenue lifting thanks to a 4.1% rise in policyholders and premium adjustments to account for claims inflation.
Mr Hennin said pleasingly more members accessed medical treatment, however, this trend combined with a 12.3% rise in claims inflation had seen claims expenses increase during the period.
“As public waiting lists continue to grow, exacerbated by the pandemic, we’re seeing more consumers make the shift from public to private to take more responsibility for their own healthcare needs,” Mr Hennin said.
“While it’s great to see our members getting the care they need, we’re also conscious of ensuring claims costs are managed effectively to keep premiums affordable which is why initiatives such as our First Choice Network are so important,” he added.
Mr Hennin also highlighted that nib had put aside extra funds to cover an expected “catch-up” in claims following ongoing COVID-19 lockdowns.
“The pandemic has continued to disrupt healthcare treatment across the country, but we know that most of this treatment is simply postponed not cancelled entirely. To account for this, we’ve increased our deferred claims liability to NZD$3.5 million to ensure we can meet anticipated future claims,” Mr Hennin said.
nib’s member satisfaction grew to 36 from 34, demonstrating its success in delivering ongoing improvements in the member journey including a new online help centre and enhancements to the member claim experience.
“We’re always looking for new ways to support our members to make contacting us or making a claim as easy as possible so it’s great to see these changes resonate with our members. We’ve also invested in core systems to refresh legacy platforms and add new functionality to drive further efficiency,” Mr Hennin said.
Mr Hennin also noted that as announced in November 2021, nib will acquire (subject to regulatory approval) Kiwi Insurance Limited (a wholly owned subsidiary of Kiwi Group Holdings Limited) and enter into an exclusive relationship with Kiwibank.
“Aligned with our Payer to Partner (P2P) strategy, the acquisition will allow us to provide health insurance members and Kiwibank customers with a more comprehensive suite of products. We’re expecting to complete the acquisition in 2H22,” he added.
nib New Zealand Chairman, Tony Ryall said the outlook was positive for the Kiwi business as it continued to deliver upon its purpose of your better health.
“We’re focused on our P2P strategy of personalising the member experience by putting in place programmes that equip our members to better manage their health, and in turn, prevent the development of more serious issues in the future,” Mr Ryall said.
“Pleasingly, we’re seeing increased participation in our population health programmes by both iwi and nib members including our bowel screening programme which aims to address the high levels of bowel cancer in New Zealand, and the lack of a robust national screening programme. The free bowel screening kit has already helped members identify and seek treatment earlier than they would have otherwise,” he added.
nib Group 1H22 Result
nib holdings limited (ASX: NHF) today announced its Group operating performance for the six months to 31 December 2021 (1H22). Group underlying revenue grew 8.3% to $1.4 billion, Group underlying operating profit by 28.5% to $109.6 million and net profit after tax of $81.2 million was up 24.7%.
The Board has declared a fully franked interim dividend of 11.0 cents per share (1H21: 10.0 cents per share).
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- Underwriting result excludes one-off acquisition costs NZD$1.3 million. nib New Zealand Underlying Operating Profit for the six months to 31 December 2021 was NZD$9.7 million (AU$9.2 million).
- Net policyholder growth for the 12 months to 31 December 2021.
- New Zealand’s net promoter score increased from 34 for 1H21 to 36 for 1H22.