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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news