Health insurer NIB's (ASX: NHF) New Zealand subsidiary, nib NZ has agreed to acquire 100 per cent of shares in Kiwi Insurance for $43 million.
Under the transaction, nib NZ will acquire Kiwi Insurance and will also enter an exclusive relationship with Kiwibank, which will see the bank refer its retail customers to nib for their life and living insurance needs.
“In New Zealand, living, life and health insurance are complementary products so often purchased as a package," said managing director Mark Fitzgibbon.
"We‘re responding to this preference with what should be a more integrated and seamless experience for members and customers. And it means more people will benefit from the investment we’re making in more personalised health risk assessment and management."
“While in a regulatory sense we distinguish health and life they are both about meeting the needs of people for personal security. Our personalisation strategy or what we’ve dubbed P2P (Payer to Partner), is taking this to another level by offering greater health security in addition to financial security,”
NIB will fund the transaction through a combination of existing capital and new debt, with the transition expected to take around 12 months. The company said the purchase will not have any material impact on NIB’s FY22 earnings.
Shares in NIB Holdings (ASX:NHF)
are trading 1.1 per cent lower at $7.22.