nib NZ delivers solid 1H23 result
https://www.nib.co.nz/- 1H23 premium revenue rises to $176.4 million from $151.4 million in 1H22
- private health insurance policyholder growth up 5.2%
- nib nz insurance limited (previously Kiwi Insurance Ltd) added $1.4 million to underwriting result in first, full half-year since acquisition
- OrbitProtect (insurance for students, workers and travellers) acquired 30 November 2022
- nib continues community health support programs
We've today announced our result for 1H23 with premium revenue at $176.4 million, from $151.4 million , driven by solid policyholder growth across both its adviser and group channels, and one-off adjustments in the first six months.
“We have had a very solid first half of the year,” said nib New Zealand Chief Executive, Rob Hennin.
“Some of the impacts of the COVID-19 pandemic are still being felt, with lower use of medical services and a slower return to normal on claims. However, policyholder numbers grew overall, which is very pleasing. We have also seen a solid contribution from nib nz insurance, in its first full half-year under nib’s ownership.”
We reported an underlying operating profit of $15.1 million, including a $1.4 million favourable impact from the life and living benefits business. Private health insurance policyholder growth was up 5.2%. Claims rose 5.0%, with slower claims catch up than expected.
Mr Hennin said the life and living insurance products, which were more fully integrated into nib NZ in the half year, provide New Zealanders with financial protection for life, alongside nib’s health insurance suite.
nib NZ completed the acquisition of OrbitProtect, a provider of insurance cover for international students, workers and inbound travellers during 1H23. OrbitProtect, based in Christchurch, further expands nib’s footprint in providing security for travellers, workers and members.
“OrbitProtect and nib nz insurance complement nib’s offering to Kiwis, sitting comfortably alongside our health insurance offering,” Mr Hennin said. “It expands our range of valued benefits for Kiwis, supporting their health and living needs.”
Our aim is to be a health partner to Kiwis, not just a payer of claims. “Our payer to partner (P2P) strategy brings value through health management programmes and community health initiatives, including programmes for our iwi,” he said.
“We have also worked with the nib foundation, with new partners around mental health and wellbeing, including a new program with Clearhead. As a healthcare company, we believe we have an important role to play in supporting our communities,” Mr Hennin said.
Our partnership with Ngāti Whātua Ōrākei, launched in 2018, continues to help improve the health and wellbeing outcomes for the Auckland hapū (subtribe). One of nib’s health management programmes includes a screening service for heart disease and a diabetes management programme that supports members with type 2 diabetes or pre-diabetes. “We hope to help members better understand and manage their health, reducing the risk of disease or its progression,” Mr Hennin said.
During the year, nib conducted its annual State of the Nation Parenting survey, which found parents are concerned about the future for their children, their use of technology and the lasting impacts of isolation after the COVID-19 pandemic shutdowns. nib also continued its sponsorship of Māori community initiatives with IronMāori Toa, in December.
A strong first half performance also underpinned increased spending on IT, innovation and business transformation. “We are building up our systems using best of breed technology. Our P2P strategy relies on a deep understanding of our members and their healthcare needs, using data science and technology,” Mr Hennin said.
nib Chair Tony Ryall said nib expects continued growth across its businesses. However, uncertainties remain over the economic outlook, higher interest rates and lingering impacts from COVID-19, including healthcare treatment and claims volumes.
“We are very assuredly working to deliver value for nib members, across all our businesses,” Mr Ryall said. “We know the pressures that householders face and the impact on families and communities.”
He said nib continues its strong commitment to its communities and managed health programmes. He added more recently, nib has offered support, and the nib foundation has provided funds, to help disaster recovery efforts following January’s flooding event and the ongoing impacts of Cyclone Gabrielle.