NIB shares experienced a rally in early trading despite the company posting a 7 per cent decrease in underlying operating profit, which fell to $239.2 million for the 2024 fiscal year. This result aligned with previously issued guidance. The health insurer reported that its revenue for the year increased by 7.8 per cent to reach $3.6 billion.
NIB is a health insurer that provides health insurance to approximately 2 million customers. It announced a net profit increase of 9.4 per cent to $198.6 million. The company’s board declared a full-year dividend of 29¢ per share for its shareholders.
Chief Executive Officer Ed Close anticipates a 3 per cent growth in the core Australian residents’ health insurance policyholder segment for the current year. He also projected an underlying net margin ranging from 6 to 7 per cent. However, Close refrained from providing specific earnings guidance for the upcoming financial period. It’s worth noting that health insurers are currently facing increased pressure to enhance their funding contributions to private hospital operators across the country.
