nib (NHF) H2 2025 earnings summary

Executive summary

• Group underlying operating profit (UOP) was $239.2M, with NPAT up 9.4% to $198.6M, in line with guidance and supported by a strong balance sheet.

• Group revenue rose 7.8% to $3.6B, with total persons covered increasing 3.2% to nearly 2 million.

• Core PHI business delivered 3.2% net policyholder growth, maintaining net margins within the 6%-7% target.

• 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 was $239.2M (down 7.1% YoY), NPAT $198.6M (up 9.4%), and net investment income $79M (up 28.9%).

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

• Fully franked dividend maintained at 29 cps, with payout ratio at 70.6%.

• Earnings per share increased 7.3% to 41.1 cps.

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

Outlook and guidance

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

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

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

• International and adjacent businesses expected to maintain strong contributions.

• New Zealand business on track for full-year profitability with claims recovery plan.