nib (NHF) H2 2025 earnings summary

Executive summary

• Group underlying operating profit (UOP) of $239.2M and NPAT of $198.6M, with a fully franked dividend of $0.29 per share, supported by a strong balance sheet and in line with guidance.

• Group revenue rose 7.8% to $3.6B year-over-year, with total persons covered increasing 3.2% to 1,938,545.

• Core Australian residents health insurance (arhi/PHI) business delivered 3.2% net policyholder growth, maintaining net margins within the 6%-7% target range.

• Adjacent businesses contributed $45.3M to UOP; international inbound health insurance UOP up 23%, and New Zealand returned to profitability in 2H25.

• Productivity initiatives delivered $18M in savings, reducing the Group operating expense ratio to 17.7%.

Financial highlights

• Group UOP of $239.2M (down 7.1% year-over-year), NPAT of $198.6M (up 9.4%), and net investment income of $79M (up 28.9%).

• Operating cash inflow was $165.7M, with free cash flow at -$21.7M due to acquisitions and investments.

• Earnings per share increased 7.3% to 41.1 cps.

• Dividend maintained at $0.29 per share, fully franked.

• Group operating expense ratio reduced from 18.2% to 17.7%.

Outlook and guidance

• Positive Group UOP uplift expected in FY26, driven by Australian PHI, NZ returning to full-year profitability, and momentum in adjacent businesses.

• Targeting above-system policyholder growth of ~3% and stable margins in 6%-7% range.

• Ongoing productivity program to further reduce operating expense ratio and capital expenditure.

• Health Services targeting full-year profitability; Thrive focusing on organic growth and efficiency.

• International and adjacent businesses expected to maintain strong contributions.