NIB's FY profit falls slightly

Group will continue push into new markets to counter increasing profit pressure in Australia.

NIB Holdings (NHF) will continue to push into new markets and target international workers and students in an attempt to counter claims inflation and increasing profit margin pressure in its domestic resident health insurance arm.

It comes after the group posted a slightly lower full-year net profit of $67.2 million, from $67.6 million in the prior year. The fall came largely on $3.4 million in one-off costs on its acquisition of New Zealand group TOWER Medical Insurance and was in line with market expectations.

Premium revenues added 14.8% to $1.29 billion in the period, from $1.12 billion. 

It will pay a final fully-franked dividend of five cents per share, taking the total dividend for the year to 10 cents – an 8.1% increase from the previous year.

Guidance for the current financial year is set at a consolidated operating profit of between $73 million and $80 million, at the upper end of analyst forecasts for $73 million.

NIB is part of the Uncapped 100.

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