nib (NHF) H1 2025 earnings summary

Executive summary

• Group revenue rose 7.7% year-over-year to AUD 1.8 billion in 1H25, driven by strong policyholder growth in core Australian residents health insurance (arhi) and international inbound health insurance (iihi), with above-system growth and premium increases.

• Underlying operating profit (UOP) was AUD 105.8 million, down 26.7% from 1H24 due to normalization of arhi margins post-COVID and high claims inflation in New Zealand.

• Net profit after tax was AUD 82.9 million, down from AUD 103.9 million in 1H24; 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 cps in 1H24; EPS at 17.1 cents.

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

Financial highlights

• Group UOP at AUD 105.8 million, down from AUD 144.3 million in 1H24.

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

• Group operating expense ratio improved to 17.5%, down 40 bps year-over-year.

• ROIC increased by 180 bps to 13.7%.

• Interim dividend of AUD 0.13 per share, fully franked.

Outlook and guidance

• FY25 Group UOP guidance maintained at AUD 235–250 million.

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

• Significant uplift in UOP expected in 2H25, driven by fewer working days, strong arhi/iihi performance, and New Zealand recovery.

• One-off and integration costs to remain elevated in 2H25 due to Thrive integration and M&A, with reductions expected in FY26.

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