Profit up at Nib amid tough times
HEALTH insurer Nib has upgraded its profit forecast but says the health-insurance market is enduring a tough time because of low wages growth and stiff competition.
Managing director Mark Fitzgibbon says the number of customers in Nib’s Australian residents health insurance business grew only 1.1 per cent in the six months to December.
That compares with growth of 2.1 per cent a year earlier.
But it came as the overall industry grew by only 0.3 per cent, and the Newcastle-based insurer accounted for about 36 per cent of that growth.
“It just highlights what a tough, soft market it is out there but how we continue to punch above our weight,” Mr Fitzgibbon said. “Household incomes aren’t growing, and there’s no shortage of competition in the market place.”
Nib expects its member numbers to rise by almost 3 per cent over the year to June – less than its target of 4 per cent to 5 per cent.
Mr Fitzgibbon said the entire industry growth of about 60,000 policyholders last year was low.
Nib reported a 0.3 per cent dip in net profit for the six months to December, compared with the same period a year earlier, to $70.9 million.
That was due largely to $3.6 million in costs associated with its $155.5 million purchase of GU Health, the group said.
Nib expects net profit of $148 million for the year to June, up from $119.6 million.