Highlights

  • NIB Holdings is an ASX-listed private health insurer with client base in New Zealand and Australia
  • In FY23, the company registered 10.9% YoY growth in revenue to AUD 3.1 billion
  • The Vanguard Group, Inc. has the highest stake in NHF with a shareholding of around 4.99%

NIB Holdings Limited (ASX: NHF) is an ASX-listed firm which offers medical and insurance to New Zealand and Australian residents. Also, the health insurance services provider offers its services to international workers and students in Australia. The New South Wales based company operates through multiple segments including Australian Residents Health Insurance (arhi), International Inbound Health Insurance (iihi), New Zealand (nib NZ), nib Thrive, and nib Travel.

The 3.66 billion market cap firm witnessed a 10.9% YoY increase in revenue to AUD 3.1 billion during the financial year 2023 (FY23). During the stated period, underlying operating profit grew by 11.1% YoY to AUD 263.2 million, net profit after tax increased by 42.8% YoY and dividend grew by 27.3% annually.  

In FY23, arhi business of NHF delivered highest sales and net policyholder growth in over eight years.

Top 10 shareholders of NHF

The top 10 shareholders of NHF have around15.28% shareholding in the firm, while the top four have nearly 9.73% shareholding. The Vanguard Group, Inc. and Vanguard Investments Australia Ltd. Have the maximum stake in the firm with a shareholding of ~4.99% and ~1.73%, respectively.

Recent business update

Through an ASX update dated 13 December 2023, the company shared that it’s director, Jill Watts has acquired 3,154 shares in the firm. Watts Super Fund a/c acquired these shares for AUD 23,497.30 on 8 December 2023.

On 10 November 2023, the company shared a trading update for the four months of FY24, ending on 31 October 2023. During the reported period, the company delivered a 13.2% YoY increase in revenue, excluding Qantas. The period witnessed increase in policyholders and premium revenue from arhi, iihi and New Zealand segments. However, a decline was seen in sales and operating income from nib Travel.

Outlook

The company expects to see continuous growth in its private health insurance business across New Zealand and Australia. In FY24, the company anticipates 3-4% growth in arhi net policyholder and 3-4% growth in New Zealand net residents PHI policyholder base.

Profitability is expected to improve for nib travel and rebound in student policyholders is expected in iihi, along with growth and strength in workers policies.

The company is committed to deliver seamless and personalized digital-first health experience.

Share performance of NHF

Shares of NHF closed 0.4% down at AUD 7.53 apiece on 8 January 2024. With this, NHF’s share price has fallen by 2.08% in the last 12 months and has decreased by 11.72% in the last six months.

The 52-week high of NHF is AUD 8.95, recorded on 21 June 2023, and the 52-week low is AUD 6.74, recorded on 20 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 8 January 2023. The reference data in this report has been partly sourced from REFINITIV.