nib Group (ASX:NHF) today reported net profit after tax is at $57.1 million, down 23.1 per cent on the prior corresponding period.
All business segments grew membership and premium revenue in the six months to 31 December 2019 (1H20) lifting Group underlying revenue by 6.4 per cent to $1.3 billion compared to the corresponding period (1H19).
However, higher claims inflation across nib’s insurance businesses as well as timing in the receipt and payment of claims impacted nib’s “unpaid claims” reserves and resulted in a reported Group Underlying Operating Profit (UOP) of $83.2 million, a 27.2 per cent decline compared to 1H19.
nib Managing Director, Mark Fitzgibbon said the first half earnings result was disappointing even after allowing for the claims provisioning effect.
Shares in nib Group (ASX:NHF) closed 2.11 per cent higher at $5.33 on Friday.