Private health insurer NIB Holdings Ltd
(ASX:NHF) has posted a fall in net profit for the year this morning impacted by negative returns on its investment portfolio.
Net profit after tax for the 12 months to June 30 came to $23.8 million down from $26.7 million recorded in fiscal 2008 due to negative full year investment returns on its portfolio of $1.8 million compared to a $7.5 million positive contribution the year before.
However the company reported a pre-tax underlying profit of $40.2 million, up 21.8 per cent on last year and at the top end of previous guidance.
CEO Mark Fitzgibbon says capital management will continue to be a key focus for the business, saying that it is aware of the earnings drag carrying surplus capital can create on the company’s ambitions to deliver return on equity of at least 15 per cent.
NIB declared a final dividend of 4.4 cents a share. NIB Holdings net profits have decreased in the last two years.
