A rise in the number of policy holders has helped bolster health insurer nib New Zealand’s financial results, despite setting aside millions of dollars for delayed healthcare claims.
Figures released by the firm show premium revenue is up 11.2% to $151.4 million while its underwriting result of $10.2 million is reduced 15.5% on the same time last year (1H21: $12.1 million).
The firm’s CEO Rob Hennin says the business performed well overall with premium revenue lifting thanks to a 4.1% rise in policyholders and premium adjustments to account for claims inflation.
Hennin says more members accessed medical treatment during the period, but a 12.3% rise in claims inflation had seen expenses increase.
“As public waiting lists continue to grow, exacerbated by the pandemic, we’re seeing more consumers make the shift from public to private to take more responsibility for their own healthcare needs,” says Hennin.
The health insurer has put aside funds to cover an expected “catch-up” in claims following ongoing Covid-19 lockdowns. It has a deferred claims liability of $3.5 million for anticipated future claims.
Subject to regulatory approval nib is to acquire Kiwi Insurance from State-run KiwiBank, and enter into an exclusive relationship with the bank.
The Government announced last week it is reviewing its ownership of KiwiBank.