In what Steve Crane, nib chairman, described as “tough macroeconomic conditions”, the company posted a 3.4% increase in revenue to $2.5 billion. Underwriting operating profit for the fiscal year was $150.1 million, down on last year’s $201.8 million.
Volatile equity markets impacted nib’s net investment income, which decreased by 54% down to $16.6 million, while net profit after tax of $89.2 million was a reduction of approximately 40%. The reductions 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 a $98.8 million claims provision 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.”
