The NIB share price went up by around 10% today in response to profit guidance for the rest of FY21.
NIB explained that the COVID-19 pandemic impact on market demand and healthcare treatment were profound and are continuing. However, management said that it’s apparent that the core NIB Australian resident health insurance (ARHI) business is performing well.
At 31 March 2021, total ARHI policyholders had grown to 641,804. Claims experience, especially risk equalisation, continues to be lower than expected.
NIB’s group underlying operating profit (UOP) for the nine months to 31 March 2021 was $140.9 million. The provision for deferred and suspended claims during the pandemic for ARHI was $59 million, compared to $70.7 million for the first half of FY21.