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Reporting season analysis: Nib Holdings

Reporting season analysis: Nib Holdings

NIB Holdings (NHF) posts strong growth in market share and gross margins

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By Expert Panel 24.08.2015

REPORTING SEASON: Nib Holdings Limited (NHF)

Brought to you by CommSec

 

Figure 1: Nib Holdings Limited 12 month chart

 

NIB Holdings (NHF) posts strong growth in market share and gross margins

- Aussie based health insurer NIB Holdings Limited (NHF) posted a solid 2015 full year result helped by growth in market share and a 13.4% lift in its overall gross margins.

- NHF achieved a 4.7% growth in its Australian policyholder numbers with 23,100 new policyholders over the year. The revenue from these policies’ increased by 8.8% while net claims only increased by 5%, helping to push its gross margins up by 17.5%.

- Since NHF acquired its New Zealand operations (Tower Health) in late 2012 the company has registered steady growth. New Zealand Policyholder growth hit 5.9% resulting in premium revenue growth of 8.1% to $150.4Million for the year. New Zealand gross margin figures fell as management expenses rose by 1.7% and underwriting costs increased.

- NHF’s International (Inbound) Health Insurance business which includes international students and workers saw policyholder growth increase by 58.5% boosted by a new major contract with the Saudi Arabian Cultural Attaché Office in Canberra. A softening in Australia’s skilled migrant intake (457 visa class) has lead NIB Holdings to look at widening its offering in this space to cover the potential pull back in demand. Furthermore its acquisition of travel insurance provider World Nomads Group (WNG) was completed on 31 July 2015

- NHF will post a final dividend for shareholders of $0.06 on the 9th of October 2015

 

You can see all of CommSec's reporting season analysis by clicking here.

Juliana Roadley, Market Analyst, CommSec

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