NIB Holdings Ltd · ASX:NHF
NIB — Macquarie Australia Conference 2020
12 slides from NIB's conference presentation, May 7, 2020
Slide 1: ASX cover letter: Presentation to the Macquarie Australia Conference
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 For personal use only 7 May 2020 Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Presentation to the
Slide 2: Macquarie Australia Conference: COVID-19 & PHI
For personal use only Macquarie Australia Conference COVID-19 & PHI Mark Fitzgibbon Managing Director 7 May 2020
Slide 3: Agenda
agenda For personal use only • COVID-19 membership impact • Supporting our members • Claims experience • Other business • Community health and wellbeing • Capital position • Business strategy • Questions and answers 2
Slide 4: COVID-19 membership impact
COVID-19 membership impact For personal use only Recent sales and lapse unfavourable but manageable Arhi April 20 April 19 Variance Sales 7,684 9,863 -2,179 Lapse (including 10,993 7,935 3,058 suspensions) Lapse (excluding 5,879 7,655 -1,776 suspensions) 3
Slide 5: Various initiatives to redress COVID-19 and retain members
Various initiatives to redress COVID-19 and retain members For personal use only Postponed the general April Actively offered premium Extended product coverage Extended cover to include 2020 premium increase by relief or suspension of at no additional cost to telehealth consultations for six months
Slide 6: Member compensation
member compensation For personal use only Relies upon clearer view about claims savings (June 2020). Effective loss of PHI cover appears to be reducing with easing of restrictions and telehealth. Possible cash refund or member compensation subject to savings. 5
Slide 7: Claims experience
claims experience For personal use only Material decline in Hospital experience Confounding factors: Provisioning for ancillary claims not yet clear - Duration and recovery catchup during April - Possible claims catchup (particularly - COVID-19 claims dental and optical) with some recent uptick in a
Slide 8: Other business
other business For personal use only International Students nib NZ & Workers nib Travel China - Sales slightly down due to - Appears most students/workers - Stop sell of policies in place. - Opportunity to expand value COVID-19 but lapse stable. are in country (for already sold proposition and role
Slide 9: Community health and wellbeing
community health and wellbeing For personal use only • $1.0 million in community grants (including $500,000 to Lifeline). • $500,000 set aside to fund clinical initiatives. • Donation of 100,000 PPE facemasks to frontline health workers. 8
Slide 10: Capital position
capital position For personal use only • Available capital at 31 December 2019 - $69.2 million and current position stronger. • Investments negatively impacted by low market confidence (asset allocation as at 31 March 2020 - Defensive ~87%/Growth ~13%). • FY20 dividend and policy. 9
Slide 11: Business strategy
business strategy For personal use only • COVID-19 an accelerant • Honeysuckle Health • Telehealth • Shift to lower cost settings of care 10
Slide 12: Questions & Answers
For personal use only Answers Questions &