Image source: Phongphan

Highlights

  • NIB Holdings provides health insurance services across Australia and New Zealand
  • In 1HFY24, group revenue increased by 12.4% and net profit after tax grew by 19.4% YoY to AUD 104 million
  • The Vanguard Group, Inc. has the maximum stake in the firm with a shareholding of ~4.98%

NIB Holdings Limited (ASX: NHF) operates as a provider of health insurance services. Its offerings include health and medical insurance coverage tailored for both Australian and New Zealand residents, as well as health insurance options designed specifically for international students and workers within Australia.

In the first half of the financial year 2024 (1HFY24), insurance revenue of NHF increased by 11.2% YoY to AUD 1,588.9 million, net profit after tax grew by 19.4% YoY to AUD 104 million and group revenue jumped 12.4% YoY. The performance during the six months ended 31 December 2023 was underpinned by growth in revenue and membership across all private health insurance businesses within the firm. 

Top 10 shareholders of NHF

The top 10 shareholders of NHF have around18.87% shareholding in the firm, while the top four have 11.93% of the shareholding. The Vanguard Group, Inc. has the maximum stake in the firm with a shareholding of ~4.98%.

Recent business update

Through an ASX update dated 24 April 2024, the company notified that on 18 April, Mr. Fitzgibbon transferred 20k NFH shares from his direct holding to Fitzy (NSW) Pty Ltd, an indirect holding.

On 5 March 2024, the company informed about a 4.10% average rise in its 2024 health insurance premiums, which came in effect from 1 April 2024. This adjustment projects the resurgence of ancillary and hospital treatment post COVID-19 along with an increase in medical and health treatment expenses.

Outlook

The Australian Residents Health Insurance (arhi) business segment of NHF is expected to deliver net policyholder growth of 3-4% with stable margins in FY24 before returning to 6-7% target.

In New Zealand, in FY24, NHF expects to see 3-4% net policyholder growth for residents’ PHI and stable margins of 7-8%.

The company targets nearly 50k participants by the end of FY25, with system integration finalised by CY24. The focus is on improving profitability through risk pool refreshment and pricing, driven by continued demand for skilled workers and education.

Share performance of NHF

Shares of NHF closed 0.67% higher at AUD 7.510 apiece on 13 May 2024. With this, NHF’s share price has declined by 7.01% in the last one year and has increased by 0.33% in the past six months.

The 52-week high of NHF is AUD 8.95, recorded on 21 June 2023, and the 52-week low is AUD 7.07, recorded on 26 April 2024.

NHF Daily Technical Chart, Source: EODHD/Others

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 13 May 2024. The reference data in this report has been partly sourced from EODHD/Others.