nib experiencing extraordinary claims growth
In an earnings update, chief executive Mark Fitzgibbon said that “extraordinary growth in New Zealand claims experience is weighing heavily on this year’s group commercial performance, with an expected operating loss in 1H25 of about A$10 million" ($11 million).
Fitzgibbon said this was a trend encountered by all insurers in New Zealand and that conditions were forecast to improve in the second half of the second half of the current financial year, owing to higher pricing and operating cost savings.
"High post-pandemic claims inflation is similarly impacting other private health insurers in New Zealand. We expect conditions in New Zealand to improve in the second half of the year with higher pricing, operating cost savings and claims inflation moderating and for the full-year profitability, albeit weaker than in FY24."
Despite this, nib is expecting stronger earnings across the group, revising its full year profit guidance to an underlying operating profit of A$250 million, up from $235 million.
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