nib (ASX:NHF) makes a profit despite Covid-19 sacrifice

Company News

by Lauren Evans

Australian health fund nib holdings (ASX:NHF), delivered a strong year for the period ending 30 Jun 2021, despite the impact of Covid-19 on claims.

The insurance group reached underlying revenue of $2.6 billion, up 2.9 per cent from the prior year.

Net profit after tax reached $160.5 million, up 84.5 per cent from the prior year, further benefiting from net investment income of $51.8 million.

Return on invested capital was 19.1 per cent, similar to pre-pandemic levels.

Managing Director Mark Fitzgibbon said, “Neither FY21 or FY20 can be considered 'normal' given fluctuation in healthcare utilisation and claims experience... We’ve supported our members by postponing premium increases, providing premium waivers and suspension options, expanding cover for Covid-19 related treatment at no additional cost while also giving financial and in-kind support for many public health efforts.

nib expects market conditions for FY22 to remain similar to the past 12 months, with the pandemic having mixed consequences.

Shares in nib holdings (ASX:NHF) are trading 9.6 per cent lower at $7.21.

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