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


Nib New Zealand Earnings Holding Up As Healthcare Treatment Bounces Back

nib New Zealand today announced its results for the six months to 31 December 2020 (1H21) with premium revenue up 7.9% to NZD$136.1 million and underwriting result[1] of NZD$12.3 million broadly in line with same period last year (1H20: NZD$12.6 million).

nib New Zealand Chief Executive Officer, Rob Hennin said overall the result was pleasing with earnings stable as healthcare treatment bounced back following COVID-19 restrictions.

“Despite uncertain market conditions, over the past 12 months we grew New Zealand residents health insurance coverage by 2.8%, adding 3,135 new policies,” Mr Hennin said.

“Our first half result also shows claims increased 7.6% as members head back to their medical professional or seek treatment following first wave of COVID-19 restrictions.

“We know from our claims experience that many of our members either had healthcare treatment delayed or chose to stay away from hospitals during the peak of the pandemic,” he said.

“Its great members are now feeling more confident and getting the necessary healthcare treatment. Recognising some healthcare treatment in FY20 was simply deferred not cancelled during COVID-19, nib set aside a provision meet this expected claims catch-up over the course of FY21. As at 31 December 2020, NZD$6.5 million of the NZD$9.0 million provision has been released,” he added.

nib’s claims costs dipped significantly in May but surged back by September. Furthermore, pre-approval checks for elective surgeries haven’t dropped, indicating demand for healthcare remains strong.

The procedures that have experienced the largest increase following the initial lockdown (relative to pre-pandemic claims activity) were:

  • Neurological: 116% increase
  • Cardio-thoracic surgery: 49% increase
  • Diagnostics: 38% increase
  • Gynaecological: 36% increase

Mr Hennin said nib’s focus has been on supporting members and community during COVID-19.

“To date our nib Group member support package totals more than $45 million, and includes financial hardship premium relief, suspension options, automatic six-month pre-approval extensions and expanded coverage for COVID-19 related treatment at no cost,” he said.

“In addition, together with nib foundation $1 million was donated to support mental health services such as Lifeline Aotearoa and Clearhead, to enable them to accommodate the increased demand they faced.”

Mr Hennin said the health insurer also continues to lead the way in terms of enhancing nib Group’s population health capability with its partnership with Auckland iwi, Ngāti Whātua Ōrākei now providing health insurance to almost 4,200 lives.

“Simply put our partnership is about improving health and wellbeing of Ngāti Whātua Ōrākei members. We’re also currently exploring opportunities to expand this initiative to other iwi,” he said.

nib New Zealand Chairman, Tony Ryall said while the pandemic had increased consumer awareness about the importance of health there was still opportunity to grow acceptance of private health insurance in New Zealand.

“We see a real opportunity to demonstrate the role and capability of private health insurance in helping improve health outcomes and mitigate potentially avoidable or unwarranted healthcare treatment,” Mr Ryall said.

“Our partnerships with organisations such as Ngāti Whātua Ōrākei as well as our joint venture with US healthcare company, Cigna, to create Honeysuckle Health are examples of how we can play a more active role in our members’ better health by using personalised data science and insights to help them live healthier lives,” he added.

nib Group 1H21 Result

nib Group (ASX: NHF) today announced its first half financial year 2021 results to the Australian Securities Exchange (ASX) reporting total Underlying Operating Profit (UOP) of $86.9 million (up 4.4%) and Net Profit After Tax (NPAT) of $66.2 million (up 15.9%) for the six months to 31 December 2020 (1H21).

The Board has declared a fully franked interim dividend of 10.0 cents per share (1H20: 10 cents per share).

[1] nib New Zealand Underlying Operating Profit for the 12 months to 31 December 2020 was NZD$11.7 million (AU$11.0 million).

© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>