nib's New Zealand health insurance business made an underlying operating profit of A$27.5 million in the year to 30 June 2026, after a loss of A$2.9 million the year before, the company said on 24 August.
The Australian-listed insurer says premium increases were the main reason. In its full-year results presentation, New Zealand insurance revenue rose 13.2% to NZ$493.9 million from NZ$436.0 million.
The revenue bridge shows premium increases added 25.5%. Fewer policyholders took off 6.7%, and members moving to cheaper cover took off another 5.5%. By our sums, that roughly nets out to the 13.2% rise.
nib said the rise came from "significant pricing actions to address claims inflation" as it "prioritised margin restoration over volume growth". Its net margin went from a loss of 0.7% to a profit of 6.5%.
New Zealand policyholders fell to 150,933 at 30 June 2026 from 164,630 a year earlier, according to the same presentation.
In its announcement to the ASX, nib said the result "reflects the successful execution of pricing and claims recovery actions taken to restore sustainable profitability".
On claims, nib says overall claims inflation moderated to 12%. Utilisation inflation fell to 4% from 10% in the first half of the year.
That means claims costs are still rising, just more slowly. nib says the change is what supports its view that price rises will ease.
"This is supporting a more sustainable margin base, lower future pricing increases and improved customer outcomes," the announcement said.
nib did not put a number on those lower increases in its written release.
Customer feeling improved late in the year. nib's net promoter score, a measure of customer advocacy, rose from +2 in the first half to +25 in the second half. The company said recovery actions "took effect and customer experience improved". Over the full year, though, its New Zealand score fell to +11, from +30 the year before.
The results also cover a change for anyone who holds nib travel cover. nib has announced the sale of its Australian and New Zealand travel insurance businesses, excluding World Nomads, to Allianz Partners. Both sales are expected to complete in the first half of the 2027 financial year.
nib and Allianz Partners have also signed a long-term agreement for the distribution of nib-branded travel insurance. nib expects about A$97 million in net cash when the travel sales, World Nomads included, complete.
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