nib (NHF) investor relations material

Executive summary

• Group underlying operating profit rose 9.1% to AUD 260.9 million, with net profit after tax at AUD 186.9 million, ahead of expectations despite a 5.9% year-over-year decline due to normalization of prior year investment returns and tax effects.

• Revenue increased 6.2% to AUD 3.8 billion, driven by disciplined pricing, productivity gains, and strong contributions from adjacent businesses.

• Operating expense ratio improved to 16.6%, down 110 bps year-over-year, reflecting AUD 61 million in productivity savings and digital/AI initiatives.

• Portfolio simplification advanced with the strategic review and sale of the travel business, expected to complete in 1H FY27 and generate net cash proceeds of approximately AUD 97 million.

• Final dividend of AUD 0.21 per share declared, including a AUD 0.05 special dividend, with the dividend payout ratio target increased to 65%-75%.

Financial highlights

• Group revenue rose 6.2% to AUD 3.8 billion year-over-year.

• UOP excluding travel was AUD 256.1 million, up 10.2% year-over-year.

• Operating expense ratio improved to 16.6%, down 110 bps from FY25.

• Free cash flow improved to AUD 27 million, up from negative AUD 21.7 million in FY25.

• Net tangible assets rose nearly 15% to AUD 341 million; EBITDA leverage reduced to 0.6x.

Outlook and guidance

• FY27 group underlying operating profit guidance: AUD 265–285 million, excluding travel, subject to risk equalization outcomes.

• Targeting sustainable policyholder growth, stable gross margin, and net margin within 6%-7% range in Australian residents.

• Continued productivity gains, digital/AI acceleration, and lower one-off costs expected.

• Proceeds from travel sale to provide further capital management flexibility.

• International and New Zealand segments expected to maintain strong contributions.