Nib New Zealand has attributed “unusually high” claims inflation, rising industry costs and slow economic growth as the key factors behind the health insurer’s half-year underlying loss of almost $11 million.
Nib is NZ’s second largest health insurer, behind Southern Cross Insurance.
Nib NZ reported its half-year financial results for the six months to December 2024 on Monday, revealing an underlying operating loss of $10.9 million.
The health insurer reported a half-year profit of $13 million in the prior corresponding financial period.
Costs were driven by claims inflation, up 17.6% in nib’s New Zealand health business, while service costs rose 7.6% and utilisation were up 9.3%.
Nib NZ’s premium revenue went in the other direction and jumped 12.1% or $23.6 million to $218.0 million in the six months to December 2024.
“We are mindful of household budgets, but have increased premiums to reflect the impact of higher claims costs,” Nib NZ Chief Executive Rob Hennin said on Monday.
Hennin said the challenging economic environment in NZ was reflected in Nib NZ’s “subdued” economic growth during the half-year period.
Nib NZ plans to focus on pricing, costs and productivity gains in the second half of the 2025 financial year.
The insurer’s Group report which was released to the ASX on Monday reported Nib NZ’s policyholder base had declined 0.7% amid challenging trading conditions in the 12 months to December 2024.
This has taken Nib NZ’s current policyholders to 161,663 as of the end of December 2024. Nib’s policyholder base has grown by almost 43,500 over the past three years.
Nib NZ Chair Hanne Janes said as interest rates ease, Nib NZ expects overall conditions in the local market to improve.
“Around the world, persistent, sustained inflation resulted in high interest rates and considerable cost-of-living pressure on householders,” she said.
“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.”
Nib Group Managing Director and CEO Ed Close said in the Group’s results release that the health insurer had taken measures to get the NZ business “back on track” for the second half of the 2025 financial year.
The NZ business was showing signs of recovery and both December and January had been profitable months for Nib NZ, he said.
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