nib (NHF) H1 2025 earnings summary

Executive summary

• Group revenue rose 7.7% year-over-year to AUD 1.8 billion, driven by strong policyholder growth in core Australian residents and international inbound health insurance, and premium increases across all segments.

• Underlying operating profit (UOP) was AUD 105.8 million, down 26.7% from the prior year due to normalization of margins and high claims inflation in New Zealand, but ahead of market expectations.

• Net profit after tax fell to AUD 82.9 million, down from AUD 103.9 million in H1 FY24; investment income rose 23.4% to AUD 41.1 million.

• Interim fully franked dividend of AUD 0.13 per share declared, down from 0.15 per share in H1 FY24; EPS at 17.1c.

• Strategic focus on digital innovation, productivity, and expansion in health services and disability support.

Financial highlights

• Group income increased 7.7% year-over-year to AUD 1.8 billion, with arhi net policyholder growth of 3.3% and stable net margins at 7.0%.

• Underlying operating profit at AUD 105.8 million; net profit at AUD 82.9 million.

• Net investment income increased 23.4% to AUD 41.1 million.

• Group operating expense ratio improved to 17.5%, with AHI non-marketing expense ratio reduced to 6.1%.

• ROIC at 13.7%, up 180 bps year-over-year.

Outlook and guidance

• FY25 UOP guidance maintained at AUD 235–250 million, with significant uplift expected in H2 from fewer working days, strong AHI/international performance, and New Zealand recovery.

• AHI net policyholder growth for FY25 expected at ~3%, with margins at the upper end of the 6–7% target range.

• Honeysuckle Health targeted to break even in Q4 FY25, Midnight Health in Q4 FY26.

• One-off and integration costs to remain elevated in H2 FY25 due to Thrive integration and M&A, with reductions expected in FY26.

• Ongoing investment in digital health and NDIS-related services expected to support future growth.