Health and travel insurer nib Group (nib) has gone in-depth on its financial results for the 2019/2020 financial year, which saw it deliver somewhat mixed results that were significantly impacted by the ongoing COVID-19 pandemic.
In what Steve Crane, nib chairman, described as “tough macroeconomic conditions”, the company posted a 3.4% increase in revenue to AU$2.5 billion (around NZ$2.67 billion). Underwriting operating profit for the fiscal year was AU$150.1 million (around NZ$160.6 million), down on last year’s AU$201.8 million (around NZ$215.9 million).
Volatile equity markets impacted nib’s net investment income, which decreased by 54% down to AU$16.6 million (around NZ$17.8 million), while net profit after tax of AU$89.2 million (around NZ$95.4 million) was a reduction of approximately 40%. The reduction in earnings per share to 19.8 cents was also down 40%, year-on-year.
These figures “would have been higher if not for a number of COVID-related factors, including the fact we deferred our April 01 premium increase for all of our 1.2 million RHI members,” said nib managing director Mark Fitzgibbon, who added that an AU$98.8 million claims provision (around NZ$105.7 million) made by nib as an estimate for treatment that was deferred due to the coronavirus had also affected operating profit.
“With no real end in sight for the pandemic, it appears for this foreseeable future that we need to live and adapt as best we can to the impact of the coronavirus,” Crane added. “I want to assure you that the nib Group is in very strong shape and remains as purpose driven as ever.”