Premium income is growing at full speed

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nib New Zealand is showing strong results as more members seek private care.

Monday, February 21, 2022, 5:21 p.m.

nib New Zealand reported that its premium income increased in the last six months of 2021, while underwriting results were down from the same period a year earlier.

In the six months ending December 31, premium income increased 11.2% to $151.4 million, while underwriting income of $10.2 million was down 15.5% from compared to $12.1 million the previous year.

nib chief executive Rob Hennin said the business performed well overall with premium income increasing thanks to a 4.1% increase in policyholders and premium adjustments for inflation in claims.

Hennin said more members had access to medical treatment, however, this trend, combined with a 12.3% increase in claims inflation, resulted in higher claims costs during the period.

“As public waiting lists continue to grow, exacerbated by the pandemic, we are seeing more and more consumers shift from public to private to take more responsibility for their own healthcare needs.”

Hennin said: “While it is great to see our members getting the care they need, we are also mindful of ensuring claims costs are managed effectively to keep premiums affordable. is why initiatives such as our First Choice network are so important. »

Hennin also pointed out that nib has set aside additional funds to cover an expected “catch-up” of claims following the ongoing Covid-19 lockdowns.

“The pandemic has continued to disrupt healthcare treatment across the country, but we know most of that treatment is just being postponed, not canceled entirely. To account for this, we have increased our deferred claims liability to $3.5 million to ensure we can meet expected future claims,” Hennin said.

Parent company nib holdings limited (ASX: NHF) also announced its group’s operating performance for the six months ended 31 December. after-tax profit of A$81.2 million increased 24.7%.

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