nib has released its half-year results for the six months to 31 December 2020, and has reported a total group revenue of $1.3 billion - down by 1.1% on the same time last year.
Group claims expenses rose by $1 billion - a rise of 0.9%, and net profit after tax (NPAT) was recorded at $66.2 million - up by 15.9%.
nib managing director and CEO Mark Fitzgibbon says the result is pleasing given the challenges of COVID-19, which has caused difficulties for some areas of the business.
“COVID-19 has had many malign consequences across the nib Group,” Fitzgibbon said.
“It’s caused needed clinical treatment for our members to be delayed, uncertain market conditions and totally disrupted parts of our business such as international workers, students and travel insurance.”
“It’s especially necessitated us supporting members throughout the pandemic with premium relief and membership suspension options and expanded cover for COVID-19 related treatment,” he explained.
“And we’ve leaned into various public health initiatives such as the procurement early in the pandemic of scarce surgical face masks for frontline healthcare workers and financial support for Lifeline. The cost of these combined initiatives totals more than $45 million so far.”
Fitzgibbon says that nib’s membership has grown by over 16,000 core Australian residents, representing a 2.7% increase for the half year and a premium growth of $1.1 billion.
“Of our growth, about 52% of policy sales were to members under the age of 40 with more than 45% of all sales new to private health insurance,” he stated.
“We’re also seeing welcomed improvement in member retention. Our experience helps counter all the negative talk about the value of private health insurance and COVID-19 has clearly raised people’s awareness about the risk of disease and the need for protection.”
nib’s international inbound health insurance (iihi) and travel businesses have been hard hit by COVID-19 and global travel restrictions, with operating income down by 90.8% and a UPO loss of $7.3 million.
“It’s all a bit gloomy at the moment, yet COVID-19 will pass and our travel business is well positioned for recovery and growth when travel restrictions are relaxed or borders re-open,” Fitzgibbon said.
“The hiatus is actually providing us with an opportunity to recalibrate and modernise the business.”
