Key Highlights

  • nib Holdings (ASX:NHF) shares fell 8.31% to $6.78 on 24 August 2026, following the release of its FY2026 full-year results.
  • Group underlying operating profit (UOP) increased 9.1% to $260.9 million, while net profit after tax declined 5.9% to $186.9 million.
  • The Board declared a final Dividend of 21.0 cents per share, including a 5-cent special dividend, lifting the full-year dividend to 34.0 cents per share.
  • New Zealand operations delivered a turnaround to $27.5 million UOP from a $2.9 million loss in FY25, while nib Health Services achieved full-year profitability for the first time.

nib Holdings Limited (ASX:NHF) shares declined 8.31%, or $0.62, to $6.78 on 24 August 2026. Recently, the company released results for the financial year ended 30 June 2026. Group Revenue increased 6.2% to $3.8 billion, and underlying operating profit (UOP) rose 9.1% to $260.9 million, up from $239.2 million in FY25.

Despite the growth in underlying profit, net profit after tax declined 5.9% to $186.9 million, compared with $198.6 million in FY25. Profit before tax was largely flat at $258.4 million, down 0.3% on the prior year, while the tax expense increased 13.6% to $73.7 million. Net Investment income declined 27.8% to $57.0 million from $79.0 million in FY25.

Segment Performance Across Australia, International and New Zealand

The Australian residents Health Insurance Business reported record sales and net policyholder growth of 1.9%, though segment UOP declined 9.6% to $187.9 million from $207.8 million in FY25, which the company attributed to elevated risk equalisation Volatility and higher offer cost impacts following clarification of Australian Government Rebate treatment. Insurance revenue for this segment grew 6.4% to $3,012.7 million.

The International health insurance business delivered UOP growth of 15.1% to $35.1 million, with insurance revenue increasing 7.4% to $236.9 million, supported by policyholder growth across the Pacific Australia Labour Mobility scheme, temporary graduates and skilled workers. New Zealand nib recorded a turnaround, with UOP of $27.5 million compared with a loss of $2.9 million in FY25, reflecting pricing and claims recovery actions, though claims Inflation across the New Zealand business remained at 12% for the year.

nib Health Services, nib Thrive and nib Travel Sale

nib Health Services achieved full-year profitability for the first time, reporting UOP of $2.4 million compared with a loss of $5.9 million in FY25. nib Thrive delivered a UOP contribution of $16.3 million, down 3.6% from $16.9 million in FY25, with fee income declining 3.7% to $55.0 million.

During the year, nib concluded its strategic review of nib Travel and announced the sale of both the World Nomads and Australian and New Zealand travel insurance businesses, with completion expected in the first half of FY27. The company expects to receive approximately $97 million in net cash upon completion, of which approximately $24 million has already been used to fund the second-half FY26 Special Dividend of 5 cents per share.

The Board declared a second-half dividend of 21.0 cents per share, inclusive of the 5-cent special dividend, bringing the total FY26 dividend to 34.0 cents per share, up from 29.0 cents per share in FY25. Net Debt reduced to $204.8 million from $276.6 million in FY25, with the gearing ratio declining to 15.2% from 20.1%, supporting an increase in the target dividend Payout Ratio to 65% to 75%.

Conclusion

nib Holdings reported growth in group revenue and underlying operating profit for FY26, supported by gains in its International and New Zealand segments and a return to profitability at nib Health Services, alongside a strengthened Balance Sheet and an increased dividend. However, net profit after tax declined compared with the prior year, and the Australian residents segment recorded a fall in underlying operating profit due to risk equalisation volatility and rebate-related cost impacts. The pending sale of nib Travel is expected to provide additional balance sheet flexibility as the company enters FY27, for which it has guided to further UOP growth excluding the travel business.