nib New Zealand says “unusually high, industry-wide costs and claims inflation and slow economic growth” had an impact on the health insurer’s FY25 half year result.
The company says its revenue was up 12.1% in 1H25 to $218 million from $194.4 million in 1H24, but the business delivered an underlying operating loss of $10.9 million for 1H25, against a profit of $13 million (1H24).
nib New Zealand Chief Executive, Rob Hennin, says in a statement that the half-yearly result reflects the challenging economic environment in New Zealand, with conditions affecting all New Zealanders. Economic growth has been subdued.
The company says costs were driven by “…claims inflation at 17.6% in nib’s New Zealand health business, service costs rose 7.6% and utilisation was up 9.3% in 1H25, over 1H24. Policyholder numbers in the health business remained stable. The factors that affected nib NZ’s result were endemic to the sector.”
Hennin says the company is mindful of household budgets “…but have increased premiums to reflect the impact of higher claims costs. We are ambitious about delivering value to members.”
…During 1H25, nib continued to invest in its core technology, helping advisers, their customers and nib members with easier and faster claims processing and pre-approvals for treatment…
The company says that during 1H25, nib NZ continued to “…invest in its core technology, helping advisers, their customers and nib members with easier and faster claims processing and pre-approvals for treatment.”
nib also expanded its Toi Ora health initiatives and health management programmes, that help members prevent and manage longer-term health problems.
nib NZ will focus on pricing, costs and productivity gains in 2H25, Hennin says.
Outlook
nib NZ Chair, Hanne Janes says around the world, persistent, sustained inflation resulted in high interest rates and considerable cost-of-living pressure on householders.
“Interest rates have started to ease, and we expect overall conditions in the New Zealand market to improve,” she says.
“We know value is crucial for members, now more than ever. In 2H25, we will continue our focus on costs, refocus on innovation and productivity gains, and bring good solutions to health care for members.”
The company notes that in February it announced it will launch nib Ultimate Life and Living insurance, a new product range that includes Life Cover, Trauma Cover and Income Protection Cover.