Health insurer nib Holdings Limited has announced strong earnings growth for its New Zealand operations in the first half of fiscal year 2018, with underlying operating profit (UOP) up by 20.2% to $14.2 million. Its premium revenue rose by $1.3 million to $106.4 million.
According to nib, its first-half performance, combined with a positive outlook for the remainder of the fiscal year, has resulted in the upgrading of its consolidated full-year guidance.
nib’s group level UOP was up 1.3% to AU$96.4 million for the six months ending on December 31, 2017, while its group revenue increased 8.6% to just over AU$1 billion compared with the previous corresponding period.
“Every day we help thousands of Kiwis fund their healthcare and provide peace of mind they are covered in their time of need,” nib New Zealand chief executive officer Rob Hennin said.
In the six months ending on December 31, nib paid almost $65 million in benefits to more than 200,000 customers.
“Whether it be life lifesaving cancer treatment, helping customers pay for a GP visit or even everyday preventative health such as visiting a dentist or buying new glasses, nib has been there to help our customers access and pay for their healthcare needs,” Hennin noted.
“Our First Choice network, which we kicked off in September last year, is also proving popular with our customers by providing them with medical services and treatment within a determined price range. This is delivering real value by eliminating unexpected out-of-pocket costs as well as keeping premiums affordable.
“We’ve made good progress this year in expanding our direct-to-consumer segment as well as our industry-leading white label capability, recently welcoming Stuff to our stable of partners such as the New Zealand Automobile Association.”
nib also said it will launch Whitecoat in New Zealand this year, which helps people search, compare and make an appointment with health providers online.
“Just like TripAdvisor revolutionised the travel world, Whitecoat’s mission is to do the same for healthcare and it’s already making a significant impact in Australia. The website puts healthcare information, bookings and payments into the hands of consumers like never before and will be a New Zealand first,” Hennin added.
“It’s a tool which will be available to all New Zealanders, not just nib’s customers, to help them navigate the healthcare industry and help them choose and book a medical provider of their choice.”
nib said it expects consolidated UOP for the full year FY18 to be at least AU$165 million (versus the previous estimate of at least AU$155 million) with statutory profit of at least AU$148 million.
