nib (NHF) H1 2026 earnings summary

Executive summary

• Underlying operating profit (UOP) rose 22% to $129.1 million for 1H26, driven by 7.7% revenue growth and strong performance across all segments, with notable strength in international and New Zealand operations.

• Net profit after tax was $82.9 million, meeting expectations, supported by disciplined expense management and productivity gains.

• Customer base expanded to 1.95 million, with strong digital engagement and high NPS scores across segments.

• Portfolio simplification continued with the sale of the World Nomads International travel insurance business for $67.5 million, and ongoing review of Australian and New Zealand travel operations.

Financial highlights

• Group revenue reached $1.9 billion, up 7.7% year-over-year; insurance revenue was $1,843.6 million.

• Operating expense ratio improved by 100bps to 16.5%; non-marketing expense ratio at 5.8%.

• Interim dividend maintained at 13.0 cps, fully franked, consistent with the prior year.

• Return on invested capital (ROIC) increased to 14.7%.

• Net investment income declined due to lower returns from equities compared to 1H25.

Outlook and guidance

• FY26 Group UOP/UAOP expected in the range of $257 million–$267 million, assuming full-year contribution from travel segment.

• Further reductions in the group operating expense ratio anticipated, with ongoing productivity initiatives.

• Australian residents targeting above-system policyholder growth and stable full-year underlying net margin in the 6%-7% range.

• International and New Zealand segments expected to continue strong contributions; Health Services profitability to continue.