NIB Holdings
NIB Holdings Limited (NHF) is a national provider of private health insurance and related health care activities in Australia. NIB's strategy is to provide innovative, low cost health insurance products. As at 31 Dec 2009 NIB had 393,524 policyholders, provides cover for 776,626 people, and has 18 Retail centres across Australia.
NIB offers insurance in the following areas:
Health Insurance: Health insurance is designed to cover health in all life stages with different prices to match different age ranges of people.
Life Insurance: Life insurance offers a lump sum payment in case of death or being diagnosed with a terminal illness.
Travel Insurance: Travel insurance is designed to cover while traveling overseas. It includes emergency assistance, medical and additional expense, and personal liability cover.
Overseas Student Health Cover: OSHC is health insurance designed for overseas students living and studying in Australia in order to cover visa requirements, medical benefits and hospitalisation.
Strategy
NHFs strategy is to shape the future of private healthcare funding in a way that increases participation, enhances health outcomes and creates enterprise value. NHFs core business of the provision of private health insurance has a strategy of growing market share through the provision of innovative, low cost health insurance products.
Key business initiatives include: Aggressively pursuing growth in the national market for private health insurance and market share, especially within the under 40 segment and outside of NSW; retaining customers through great customer service, nib product design and looking to migrate customers through different products as they age or their life circumstances change; pursue enterprise value adding health fund mergers and acquisitions; actively pursue product innovation aimed at enhancing customer value proposition and increasing our role in the financing of private health care expenditure; modernise and enhance organisational capability, efficiency and performance.
NIB Holdings reported NPAT of $61.53m for the year ended 30 June 2010. The $37.7m increase from the 2009 consolidated profit reflects an improved net underwriting profit, significantly improved investment performance, and lower holding company and other expenses, and the associated tax impact of all these variances. Revenue from ordinary activities were $948.46m, up 14% from last year. Basic and Diluted EPS were 12.4 cents compared to 4.7 cents last year. Net operating cash flow was $66.26m compared to $44.23m last year. The final dividend declared was 5 cents fully franked, taking the full year dividend to 7 cents compared with 7.4 cents last year.
Ethical Update
November 2010
In a recent report by Corporate Monitor, it has been shown that NIB has a low environmental and climate change impact. NIB also has a low bribery exposure and covers all of the core governance elements:
- Separates the roles of chairman and chief executive
- More than 33% of the board are independent non-executives
- Has majority independent audit committee of the Board
- Discloses directors remuneration
Overall, NIB has been shown to be a sustainable and ethical company, however there is little or no evidence of commitment to community or charitable work.
Financial Update
Estimated Dividend Yield: 5.3%
Franking: 100%
PE Ratio: 14.4%
1 Year Performance: -7.0%
3 Year Performance: 9.4%
Last Price (2 November 2010): $1.26
Financial figures are as at 3 November 2010 and are subject to change (Source: Morningstar).
Disclaimer
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