Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (November 2024)
34 slides from Nib's shareholder meeting presentation, Nov 7, 2024
Slide 1: 2024 Annual General Meeting Presentation
7 November 2024 Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 2024 Annual General Meeting Presentation To the Company Announcements Office, Please find attached nib holdings limited’s 2024 Annual General Meeting Presentation. The presentation includes a business update fo
Slide 2: 2024 Annual General Meeting
2024 Annual General Meeting 7 November 2024
Slide 3: Disclaimer
Disclaimer The material in this presentation is a summary of the results of nib holdings limited (nib) for the 12 Whilst the forward-looking statements are based on current views, expectations and beliefs as at the months ended 30 June 2024 and/or its related bodies corporate (together the ‘Group’)
Slide 4: David Gordon, Chairman
David Gordon Chairman This document has been marked with a sensitivity label of Internal Use Only by nib Group.
Slide 5: Welcome to Country
Welcome to Country Cheryl Smith Aboriginal Elder of the Newcastle Aboriginal Community Image: nib Innovate Reconciliation Action Plan artwork 'The Beginning' by Michelle Kerrin, descendant of the Arrernte and Luritja clan groups from the Northern Territory, born and raised on the lands of the Larrak
Slide 6: David Gordon, Chairman
David Gordon Chairman This document has been marked with a sensitivity label of Internal Use Only by nib Group.
Slide 7: nib's board and executive
nib’s board and executive Board David Gordon Chairman and Independent Non-Executive Director Jacqueline Chow Independent Non-Executive Director Anne Loveridge AM Independent Non-Executive Director Jill Watts Independent Non-Executive Director Peter Harmer Independent Non-Executive Director Donal O'D
Slide 8: Items of business
Items of business Item 1 Consideration of Reports Item 2 Remuneration Report Item 3 Re-election of Ms Jacqueline Chow Item 4 Re-election of Mr Peter Harmer Item 5 Approval of Participation in Long-Term Incentive Plan 7
Slide 9: Chairman's presentation
Chairman’s presentation nib
Slide 10: FY24 themes
FY24 themes • FY24 has been a difficult period for our economies, for the 1.6 million+ healthcare sector, as well as for our members. Australian and NZ residents with private health insurance • Whilst not immune to those difficulties, we delivered another strong result. 241,000+ • Our arhi business
Slide 11: FY24 Group highlights
FY24 Group highlights 2.5% arhi net growth arhi Supported by our highest arhi sales ever 241,000+ iihi persons covered, a historic high iihi Launched nib Symptom Checker P2P A first for an Australian private health company Almost 40,000 nib Thrive participants 200,000+ Australians serviced by Midnig
Slide 12: Honeysuckle Health & Midnight Health
Honeysuckle Health & Midnight Health A health services company helping people lead A medtech company offering tailored treatment healthier lives. and prevention. In FY24 provided: • Plays an integral role in nib’s health • 176k+ Telehealth consultations management programs • 126k+ Prescription medic
Slide 13: nib Thrive
nib Thrive • nib Thrive supports almost 40,000 NDIS participants with plan management and support coordination services. • Our DNA is about matching health and allied care providers with members and bringing rigor to payments. • Focus on: • Integration under nib Thrive brand and technology platform.
Slide 14: FY24 commercial highlights
FY24 commercial highlights Group revenue1 Group UOP Net investment income Net profit after tax $3.3b $257.5m $61.7m $181.6m AASB10232 AASB10232 AASB10232 ▲9.6% ▲12.8% ▲9.3% ▲5.9% ▲77.3% ▲2.8% ▲67.4% 3.1 3.4 3.1 3.3 263.2 278.6 145.2 257.5 54.7 61.7 191.1 196.4 108.5 181.6 FY23 FY24 FY23 FY24 FY23 FY
Slide 15: FY24 segment highlights
FY24 segment highlights • Continued above system policyholder growth of 2.5%. arhi • Insurance revenue up 8.5% on prior year. • Increased partnerships to curb out of pocket costs including expanded no gap dental arrangements. • Policyholder numbers at an historic high, growth of 14.1%. iihi • Insura
Slide 16: Senior management team
Senior management team Mark Fitzgibbon Nick Freeman Roslyn Toms Ed Close James Barr Chief Executive Group Chief Group Executive Chief Executive - Chief Executive - Officer & Managing Financial Officer Legal and Chief Risk Australian Residents International Visitors Director Officer Health Insurance
Slide 17: Sustainability
Sustainability • The area where we can have the greatest impact is population health. • We are committed to our vision for reconciliation. • We are focused on meeting evolving ESG standards and reporting requirements. 16
Slide 18: nib foundation
nib foundation nib continued to support the communities in which we work 1,554 28 nib employee charities volunteer hours supported people connected to resources 426k through our Prevention Partnerships Employees volunteering with Ronald McDonald House. Some of our charity partners: 17
Slide 19: Leadership transition
Leadership transition Mark Fitzgibbon Ed Close • MD & CEO, Mark Fitzgibbon, has announced his • Ed joined nib in 2017 and is currently the Chief retirement from 30 November 2024. Executive Officer of nib’s core arhi business. • Mark joined nib in 2002, and led nib’s • Prior to joining nib, Ed held s
Slide 20: Thank you
Thank you nib
Slide 21: Mark Fitzgibbon, CEO & Managing Director
Mark Fitzgibbon Chief Executive Officer & Managing Director This document has been marked with a sensitivity label of Internal Use Only by nib Group.
Slide 22: Our "deterministic" approach to growth
Our “deterministic” approach to growth 3,500 nib 350 Thrive Whitelabel 3,000 NZ life 300 partnerships GU & living 2,500 Health 250 Adoption of retail nib 2,000 200 brokers nib travel NZ 1,500 150 Targeted ASX iihi 1,000 < 40 listing 100 market 500 50 0 0 ($m) FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Slide 23: arhi remains at the heart of our progress
arhi remains at the heart of our progress The "flagship" has led the effort and investment 250% nib CAGR: 5.2% 205.0% 200% and nib has had positive growth every quarter since 2001 150% 100% Industry CAGR: 2.2% 59.9% 50% 0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY
Slide 24: Yet "economies of scope" are real
Yet "economies of scope" are real 300 arhi CAGR: 14.6% 250 Other CAGR1: 25.3% 200 150 100 50 0 (50) ($m) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 arhi UOP Other UOP 1. Other UOP CAGR is calculated based off FY11. Note: Prepared on an AASB1023 basis to
Slide 25: Your better health and wellbeing
Our purpose Your better health and wellbeing • Deliver deep insight and guidance about how you might best achieve personal health and wellbeing goals and manage risk. • Connect you with a wide ecosystem of relevant and high quality products, services, programs and providers. • Render it all accessib
Slide 26: Financial protection and support / Insight and guidance
Financial protection Insight and guidance and support • Health checks and Good Health Plan • Private health insurance • Health score • Travel insurance • Symptom checker & E-triage • Living benefits (life) insurance • Find a provider & program • NDIS plan management • Personalised health content & r
Slide 27: Our Payer to Partner (P2P) thesis
Our Payer to Partner (P2P) thesis Expanded value proposition and service (with differentiation) fuels growth across PHI and our other markets. Elevated health risk management improves health and wellbeing and with that "loss ratios". Honeysuckle Health and Midnight Health support P2P and capture the
Slide 28: Artificial Intelligence (AI) in Group focus
Artificial Intelligence (AI) in Group focus Progress so far Opportunities in scope ~4m interactions via nibby chat bot Employee & Developer productivity - delivering ~$22m in savings Copilots Automation driving ~20% reduction in after call work and ~8% reduction in Knowledge Management (nibGPT) aver
Slide 29: October 24 YTD update (unaudited)
October 24 YTD update (unaudited) 31 Oct 31 Oct • Strongest start to FY25 for arhi % Var 2024 2023 since FY08, with 4-month net arhi Policyholders # 728,901 706,390 ▲3.2% growth up 52.9% vs prior year • Mixed performance across iihi, iihi Policyholders1 # 221,368 199,818 ▲10.8% NZ and Travel New Zea
Slide 30: Key priorities
Key priorities • Bringing P2P to life and proving investment thesis. More value for members. • Managing and “pricing in” claims growth and achieving target margins. • Development, integration and value creation of new businesses (nib Thrive, Honeysuckle Health, Midnight Health). • Risk management es
Slide 31: Reflections
Reflections “The most serious issue confronting nib and other health funds is the burgeoning costs of medical and allied treatments and services. Last financial year benefits paid to members increased by 10.7% compared to growth in contributions of only 6.4%. This is an underlying trend and thereby
Slide 32: Thanks and goodbye
Thanks and goodbye nib
Slide 33: Appendix
Appendix nib
Slide 34: arhi UOP vs other segments – AASB17
arhi UOP vs other segments – AASB17 400 Note: • Difference in UOP compared to AASB1023 mainly due to the timing for recognition of COVID 350 related adjustments (accruals for price increase deferrals and any Deferred Claims Liability). • There is no impact to cash flow and no material impact to capi