Nib Holdings (ASX:NHF) has downgraded its profit guidance for the 2020 financial year.
The company originally expected underlying operating profit of around $200 million. It has today indicated that is likely to be around $170 million.
The drop is attributed to an increase in claims expense across a number of the Group's underwriting business lines.
nib Managing Director Mark Fitzgibbon says the company has a “pipeline of significant initiatives that will further propel long term growth such as [its] personalisation strategy and joint venture with Cigna, [its] joint venture in China and investment in Maori population health in New Zealand.”
Shares in nib Holdings (ASX:NHF) are trading 12.8 per cent lower at $5.70.