Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (March 2016)
26 slides from Nib's shareholder meeting presentation, Mar 30, 2016
Slide 1: 2011 Annual General Meeting Presentation cover letter
nib holdings limited t 13 14 63 Head Office f 02 4925 1999 22 Honeysuckle Drive Newcastle NSW 2300 e nib@nib.com.au abn 51 125 633 856 w nib.com.au 26 October 2011 The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Subject: 2011 Annual Gene
Slide 2: Annual General Meeting, Wednesday 26 October 2011
oS ey + oer a Qa Cae Qe BD ee rye os MG a «J : HC « Se ‘A es Wednesday 26 October 2011
Slide 3: Steve Crane, Chairman
gu Steve Crane Chairman
Slide 4: nib's Board & Executive
INTRODUCTION nib’s BOARD & EXECUTIVE HAROLD BENTLEY - Independent Non-Executive Director DR ANNETTE CARRUTHERS - Independent Non-Executive Director PHILIP GARDNER - Independent Non-Executive Director CHRISTINE MCLOUGHLIN - Independent Non-Executive Director MARK FITZGIBBON - Managing Direc
Slide 5: Meeting Schedule
MEETING SCHEDULE Chairman’s Address Managing Director’s and Chief Executive Officer’s Address Notice of Meeting Consideration of reports for the financial year ended 30 June 2011. Consideration of the Remuneration Report. Re-election of Independent Non-Executive Director, Mr Harold Bentl
Slide 6: Steve Crane, Chairman
gu Steve Crane Chairman
Slide 7: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 250.0 Total shareholder return for nib S&P/ASX 200 Accumulation Index 200.0 101.5% 150.0 100.0 (19.1%) 50.0 0.0 Nov-07 May-08 Nov-08 May-09 Dec-09 Jun-10 Dec-10 Jun-11 Source: Iress, J.P. Morgan. Share price appreciation plus reinvestment of dividends FY11 again produced a
Slide 8: Net Profit After Tax
NET PROFIT AFTER TAX $65.5 million, up 6.4% on the previous year. 7
Slide 9: Investment Returns
INVESTMENT RETURNS Lower investment return primarily due to the transition of our investment portfolio to being more defensive, with less than 10% of the portfolio invested in shares. A t l return Actual t for f the th first fi t three th months th off FY12 was 1 1.26%. 26% 8
Slide 10: Dividends
DIVIDENDS Ordinary Special nd (cents perr share) 14.0 12 0 12.0 5.0 10.0 8.0 6.0 6 0 Dividen 5.0 4.0 8.0 7.0 2.0 2.1 2.4 0.0 FY08 FY09* FY10 FY11 *Estimated ordinary to special dividend breakdown for FY09 Full year dividend consistent with nib’s dividend policy of paying fully franked ordinary div
Slide 11: Capital Return
CAPITAL RETURN Following shareholder approval at the general meeting held on 5 July 2011 a capital return of approximately $75 million or just over 16 2011, cents per ordinary share held by shareholders on the record date, was distributed on 21 July 2011. This highlights the Board’s commitment t
Slide 12: Dividend Reinvestment Plan (DRP)
DIVIDEND REINVESTMENT PLAN (DRP) Allows shareholders to reinvest the whole or part of their dividend into shares in a company. p y It is ggenerallyy used as a means of ppreserving g capital in a business and typically involves issuing new shares. Due to nib’s surplus capital we have no immediate
Slide 13: Capital Position at 30 June 2011
CAPITAL POSITION AT 30 JUNE 2011 As at 30 September 2011, after payment of the final dividend ($42m) and capital return ($75m), nib had surplus capital above its internal prudential target of $75.5m with no debt. nib ib remains i wellll placed l d tto play l a major j role l iin any ffuture t ii
Slide 14: nib foundation
nib foundation nib foundation remains one of the great legacies of demutualisation. Since 2008, the foundation has provided more than $6 million in funding support to 26 community and charitable organisations that seek k to t improve i the th health h lth and d wellbeing llb i off A Australians.
Slide 15: Changes to the nib Board
CHANGES TO THE nib BOARD MS CHRISTINE McLOUGHLIN Appointed to nib Board in March 2011 2011. MR KEITH LYNCH R ti d ffrom nib Retired ib B Board d iin S September t b 2011 after ft 30 years service i and d Chairman for 10 years. 14
Slide 16: Looking Ahead
LOOKING AHEAD Our FY11 result continues nib’s track record of improvement across most key metrics. metrics The outlook for FY12 remains positive despite uncertainty in the broader economy economy. nib is well positioned to continue to deliver strong shareholder returns. 15
Slide 17: Mark Fitzgibbon, Managing Director
gue Mark Fitzgibbon Managing Director
Slide 18: Group Highlights
GROUP HIGHLIGHTS FY10 FY11 Change Net policyholder growth Health Insurance Business (HIB) 5.9% 6.0% 0.1% Consolidated Premium Revenue $901.4m $1,007.8m 11.8% Net underwriting profit1 $47.1m $61.5m 30.7% Net Investment income $44.5m $32.1m (27.7)% NPAT $61.5m $65.5m 6.4% ROE 16.3% 16.5% 0
Slide 19: Policyholder Growth
POLICYHOLDER GROWTH HEALTH INSURANCE BUSINESS (HIB) ( ) nib Industry 12% holder growth ((%) 11.1 10% nib ib CAGR (FY07 (FY07-FY11) FY11) = 7 7.0% 0% 8% 8.8 (Industry 3.4%) 6% 5.9 6.0 Net policyholder growth (HIB) for first Net policyh 5.2 4% 4.2 4.2 three months of FY12 of 7,933 2% 3.3 2.9 3.2 p
Slide 20: Claims Expense
CLAIMS EXPENSE In FY11, nib’s net claims incurred (including risk equalisation and international business operations) totalled $848.7m, an increase of 10.5% on FY10. Risk equalisation remains an ongoing concern – in FY11 nib nib’s s risk equalisation contribution was $132.7m, up 20.8% on FY10.
Slide 21: Management Expenses
MANAGEMENT EXPENSES FY11 Management Expense Ratio (MER) of 9.7% includes HIB and International Business operations - was within our forecast target of 9 9.5% 5% - 10%. 10% HIB MER of 9.2% (FY10: 9.6%) lowest since listing on ASX. HIB MER result was achieved notwithstandingg the forecast signif
Slide 22: Track Record of Double Digit Underlying Earnings Growth
TRACK RECORD OF DOUBLE DIGIT UNDERLYING EARNINGS GROWTH 70 60 $61.5m 50 $47.1m 40 $40.2m 30 $33.0m 20 $23.7m 10 0 FY07* FY08* FY09 FY10 FY11 * Result was normalised to remove the impact of costs associated with nib’s demutualisation and listing, and “notional” tax 21 21
Slide 23: Market Outlook & Issues
MARKET OUTLOOK & ISSUES System growth (predicted at 3% in FY12) Means testing of 30% private health insurance rebate unlikely Claims utilisation and cost inflation, including Risk Equalisation National Health and Hospital “Reform” Industry consolidation/globalisation Possible sale of Med
Slide 24: Business Strategy
BUSINESS STRATEGY Ongoing organic growth with focus on <40 years of age but with additional investment in: • Corporate market (in conjunction with International Workers Business) • Western Australia • Seniors segment International workers/students global cover Further operational and IT effici
Slide 25: FY12 Business Outlook & Guidance
FY12 BUSINESS OUTLOOK & GUIDANCE Net HIB policyholder growth of 5% - 6% Consolidated net pre pre-tax tax underwriting profit of $65m - $70m Investment return in line with • Regulatory capital (80/20 defensive/growth) - target for portfolio UBS bank bill index plus 1% • Surplus S l capital it l
Slide 26: oer a Qa Cae
oS ey + oer a Qa Cae Qe BD ee rye os MG a «J : HC « Se ‘A es Wednesday 26 October 2011