nib back in profit and recovering

In an announce to the Australian Stock Exchange nib says the New Zealand business achieved a A$3.9 million underlying operating profit in the first six months of its financial year.

This is a A$14 million turnaround compared to the same period last year.

"Pleasingly New Zealand’s recovery continues at pace, with a return to profitability driven by the execution of our
recovery plan and a stabilisation in claims inflation," nib says.

Revenue growth was up 13.5% (in NZD) "driven by significant repricing to address claims inflation, with product mix and policy growth also impacted."

"While repricing has impacted short-term growth and net promoter score (NPS), actions are in place to enhance the customer experience and the broader value proposition.

Its NPS fell from 27 to 2 and was impacted by repricing. The focus is now on customer experience and price competitiveness, it says.

It calls the NPS fall temporary, and actions are now in progress to enhance customer experience and the broader value proposition.

Other positive news is that it reports claims inflation is moderating as healthcare cost pressures ease, with utilisation remaining elevated.