Nib Holdings ((NHF)) will acquire specialist corporate health insurer Grand United Corporate Health for $155.5m. Brokers are positive about the acquisition as it expands coverage in a growing segment, yet nib still faces an uncertain outlook in mainstream private health insurance.
Shares in health insurer nib Holdings went into a trading halt yesterday after revealing plans for a capital raising to fund a $155.5 million acquisition of corporate health insurance provider GU Health.
Health insurer margins are in the spotlight. Brokers interpret commentary from nib Holdings (NHF) as either a glass half full or empty, in terms of the outlook. The company’s update clarified underlying operating profit in FY16 should be in the previously expected range of $125-135m, but comments regarding claims inflation were somewhat open to interpretation.