nib NZ returns to profitability 1H26

nib NZ returns to profitability 1H26, record support for customers

• Underlying operating profit at $5.5 million, up from a $10.9m loss 1H25 • Record payout of $174.1 million for nib NZ customers’ healthcare claims • Business recovery amidst slow economic growth • Claims inflation stable but at high levels • Re-pricing and expense reduction supporting business sustainability

nib New Zealand announced a return to profitability with underlying operating profit at $5.5 million1 from a loss of $10.9 million in 1H25. Revenue rose to $250.8 million in 1H26, from $218.0 million in 1H25.

In 1H26, nib NZ paid out record claims to members. In the half year, nib NZ reported $174.1 million in incurred claims, up from $159.7 million in the previous corresponding half year, a 9.0% increase.

nib NZ Chief Executive, Skye Daniels, said the 1H26 profit result was achieved in difficult economic conditions amid persistent, high-level claims inflation, but noted nib NZ delivered record levels of healthcare payments to New Zealanders.

“It has been a very challenging environment for the health sector, nationwide,” Mrs Daniels said. “Industry-wide claims inflation is moderating, but at elevated levels. Despite these challenges, nib NZ has paid out$174.1 million in claims, and supported 15,700 members through our proactive health engagement programmes.”

Pricing increases and a strong focus on reducing management expenses, which include some operating and marketing costs, and substantial technology-driven productivity gains, supported the return to profitability. Core technology system upgrades were completed, driving costs in the business lower and helping return service to sustainable levels.

The decision to re-price health insurance premiums during the year was not taken lightly, Mrs Daniels said. “We are very mindful of the stresses that New Zealand householders face,” she said. “We continually strive to deliver value for our customers, while managing claims inflation, which is at historically high levels.

“Utilisation is also high, which shows that New Zealanders value their private health insurance in an environment where public services are stretched.” Utilisation inflation was at 10%, down from 15% in 2H25. “The decisions we made during the half year, including some limited co-payments, should result in a moderation in premium rises in the years ahead,” she said.

Mrs Daniels said claims inflation appears to have stabilised, in part due to hospital services CPI improving in 1H26. However, utilisation remains high, contributing to sustained levels of overall high claims inflation.

“We know value is very important for our customers and their families,” Mrs Daniels said. “We will continue to focus on our costs, bringing those down where we can, and improving our service levels. Return to profitability ensures we can continue to pay claims into the future, for all our NZ families.”