Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Nib NZ reverses Tower Medical’s decline

Nib NZ reverses Tower Medical’s decline by chasing younger insurance customers

By Suze Metherell

Feb. 24 (BusinessDesk) – Nib New Zealand, which acquired Tower Medical Insurance late 2012 to become New Zealand’s second-largest health insurer, says it has halted Tower’s customer losses, achieving modest growth by targeting the under 40s market.

The local arm of the listed Australian insurance company contributed $3.5 million to its parent’s first-half pretax earnings from underwriting in the six months ended Dec. 31.

Sydney-based nib Holdings separately reported interim net profit rose 9.2 percent to A$39.6 million as premium revenue growth jumped 20 percent and said its New Zealand business “is now growing policyholders after six years of steady decline.”

The Australian insurer acquired Tower Medical Insurance in November 2012 for $102 million, and launched nib New Zealand last October. It says policyholders at Tower Medical, since rebranded as nib New Zealand, have grown by 0.1 percent to 79,324, or about 9 percent of the entire nib group, since June 30, after six years of annual declines averaging 4 percent.

The insurer is targeting younger customers, with about 60 percent of direct consumer sales in New Zealand being people under 40 and 50 percent of sales made online.

“We are confident our investment to grow New Zealand private health insurance participation and with that our market share, will be a driver of future and sustainable earnings growth,” Rob Hennin, nib New Zealand chief executive, said in a statement.

The parent confirmed full year operating profit guidance of A$73 million to A$80 million. Earnings per share gained 8.4 percent to 9 Australian cents in the first half.

Its shares rose 1.2 percent to A$2.61 on the ASX and have declined 5.5 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news