Nib Holdings Ltd · ASX:NHF
Nib — FY2025 Earnings Presentation
37 slides from Nib's earnings presentation, Aug 25, 2025
Slide 1: FY2025 Full Year Results
FY2025 Full Year Results 25 August 2025
Slide 2: Acknowledgement of Country
nib acknowledges Aboriginal and Torres Strait Islander peoples as the First Australians and pays respect to Elders past and present across all the lands on which we operate. We acknowledge the rich and meaningful contribution they make to life and culture in Australia, and we aim to be a partner in
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 2025 and/or its related bodies corporate (Group) and an update o
Slide 4: Results overview
Results overview Ed Close Chief Executive Officer & Managing Director
Slide 5: Our purpose, vision and mission
Our purpose, vision and mission. Purpose: Your better health and wellbeing. Vision: nib is a leader in private health insurance, disability support and health services across Australia and New Zealand, reshaping the industry through bold innovation, strategic disruption and trusted partnerships. We
Slide 6: FY25 Highlights
FY25 Highlights ► Strong Group operating performance in line with guidance ► Group UOP $239.2 million within guidance range. ► NPAT $198.6m, and full year dividend of 29.0 cps (fully franked) supported by balance sheet strength. Core arhi business continues to perform, while supporting customers and
Slide 7: Group Performance Highlights
Group Performance Highlights Strong performance across the Group in line with guidance Group revenue1 Group UOP2 Net profit after tax Total persons covered $3.6b $239.2m $198.6m 1,938,545 ▲7.8% ▼7.1% ▲3.2% ▲9.4% 3.3 3.6 257.5 239.2 181.6 198.6 1,878,951 1,938,545 FY24 FY25 FY24 FY25 FY24 FY25 FY24 F
Slide 8: Strong arhi performance
Strong arhi performance arhi fundamentals and growth prospects remain strong ► FY25 delivered best ever sales result (up 13% vs FY24) driven by high-performing, multi-channel distribution capability targeted at high value segments. Continued market outperformance in net policyholder growth (+3.2%).
Slide 9: Delivering on customer and provider expectations
Delivering on customer and provider expectations Focus on enhancing the customer experience and digital-first approach showing up in NPS (+34) ► Prioritising population health ► 121,000+ general health interactions via health and wellbeing programs and telehealth consultations. ► 22,300+ members enr
Slide 10: Solid contribution from non-arhi businesses
Solid contribution from non-arhi businesses Adjacent businesses contributing $45.3m to Group UOP with momentum building International NZ Health Services Travel Thrive ► Over 46,500 PALM ► Recovery plan ► Honeysuckle Health ► Monthly sales in ► Inorganic growth customer lives gaining traction & Midni
Slide 11: Group productivity & efficiency
Group productivity & efficiency Productivity agenda Group Operating Non-marketing Customers per FTE saved $18m Expense ratio down expenses contained to +3.4% up 7.7% in FY251 50bps to 17.7% in an inflationary environment Group-wide simplification Continued momentum in AI and digital-first ► Over 50
Slide 12: Financial results
Financial results Nick Freeman Group Chief Financial Officer
Slide 13: Key Group financial highlights
Key Group financial highlights Financial performance ($m) FY25 FY241 Change ► UOP of $239.2m in line with guidance. Insurance revenue 3,461.4 3,211.6 ▲7.8% ► Continued top line revenue growth with arhi policyholder Other income 169.9 157.7 ▲7.7% growth again above system. Total income 3,631.3 3,369.
Slide 14: Australian residents health insurance
Australian residents health insurance Financial performance ($m) FY25 FY241 Change Strong policyholder growth and operating performance Insurance revenue 2,832.6 2,640.3 ▲7.3% continues in core business. Insurance service costs (2,622.3) (2,419.4) ▲8.4% ► Revenue growth of 7.3% driven by above syste
Slide 15: Claims inflation continuing to moderate
Claims inflation continuing to moderate Managing margins to target while investing in our value Claims inflation continued to moderate1 proposition and healthcare partners 25% 4.9% Incl. NSW bed 20% rate changes 15% 10% 5% 5.9% 5.0% 4.8% 4.5% 0% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 nib net margin
Slide 16: arhi underlying margins in target range
arhi underlying margins in target range FY25 Underlying Net Margin Reported Margins 3.6% 0.8% 0.0% 0.0% 7.3% 6.5% 0.0% 8.2% 0.3% 7.3% (4.7%) LIC reduced in FY25 due to faster processing speeds and lower risk margin (adjusted 1H25) driven by moderating claims inflation, and is now in line with pre-CO
Slide 17: International inbound health insurance
International inbound health insurance Financial performance ($m) FY25 FY24 Change Strong result with UOP growth of 23.0%. Insurance revenue 220.5 192.8 ▲14.4% • Revenue growth driven by repricing to support claims Insurance service costs (185.3) (165.0) ▲12.3% growth in workers, while maintaining c
Slide 18: New Zealand
New Zealand Financial performance ($m) FY25 FY24 Change Pleasing 2H25 recovery in challenging economic conditions and high industry-wide claims inflation. Insurance revenue 401.4 371.2 ▲8.1% Insurance service costs (403.7) (348.8) ▲15.7% • Revenue growth of 8.1% driven by pricing. Resident Incurred
Slide 19: New Zealand
New Zealand Price increases aligning with inflation Cost pressures easing, but utilisation remains elevated & workdays drive strong UOP performance against 1H25 1Q25 2Q25 3Q25 4Q25 1Q26 Hospital Services and CPI inflation better than expected in Avg Iast 12mth price increase1 11% 13% 15% 17% 22% 2H2
Slide 20: nib Travel
nib Travel Financial performance ($m) FY25 FY24 Change Improving momentum in 2H25, supported by distribution Underwriting result 0.6 0.3 ▲100.0% strength and cost discipline. Operating income 88.1 87.0 ▲1.3% • GWP growth accelerated in 2H25 due to change in Acquisition costs (40.5) (34.7) ▲16.7% mix
Slide 21: nib Thrive
nib Thrive Financial performance ($m) FY25 FY24 Change Integration remediation complete and service levels Fee income 57.1 51.3 ▲11.3% restored. Instacare delivering on expectation. Operating expenses (40.2) (36.0) ▲11.7% • Increased fee income driven by Instacare acquisition in Underlying operating
Slide 22: nib Health Services
nib Health Services • nib Health Services has consolidated Honeysuckle Health, Midnight Health and Health Services Profitability ($m)2 Insurance Services (Complementary Insurance1 and nib’s share of ItsMy Group), Illustrative of 100% ownership and will be reported as a combined segment moving forwar
Slide 23: Capital management
Capital management nib Group ($m) FY25 FY24 Change Net tangible assets (NTA)1 297.6 301.9 ▼1.4% • Strong growth in net assets with Group NTA stabilising Leverage ratio (debt/EBITDA)2 0.8x 0.8x n/a following nib Thrive and Health Services acquisitions completed in FY25. Gearing ratio (%) 20.1 20.5 ▼4
Slide 24: Cash flow
Cash flow Consolidated cash flow ($m) FY25 FY241 Change • 1H25 cash flow unusually low due to faster claims Operating cash inflows 3,769.5 3,558.2 ▲5.9% processing, working day impact and timing of tax Operating cash outflows (3,603.8) (3,338.4) ▲7.9% payments. Net cash inflow from operating activit
Slide 25: Outlook
Outlook Ed Close Chief Executive Officer & Managing Director
Slide 26: Our strategy
Our strategy Accelerate growth in core PHI businesses in Australia and New Zealand • Sustain above-system growth through a multi-brand, multi-channel distribution strategy focused on high-value segments • Scale health management strategy to improve customer health outcomes and optimise claims perfor
Slide 27: FY26 outlook
FY26 outlook Positive Group UOP uplift expected, supported by continued strong Australian PHI performance, NZ expected return to full year profitability and solid momentum in adjacent businesses. PHI: ► Australian residents targeting above system policyholder growth of ~3% and stable full year under
Slide 28: Questions & Answers
Questions & Answers
Slide 29: Appendix
Appendix anib
Slide 30: Key trends
Key trends PHI participation rate (AU)1 Student visas lodged (AU)2 Workers visas lodged (AU)2 160,000 80,000 48% 120,000 60,000 46% 44% 80,000 40,000 42% 40,000 20,000 40% 0 0 FY15 FY17 FY19 FY21 FY23 Mar-25 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 J
Slide 31: Policyholder data
Policyholder data nib Group policyholders (#) FY25 FY24 FY23 FY22 FY21 Total persons covered 1,938,545 1,878,951 1,813,773 1,715,081 1,644,887 Australian residents health insurance 1,400,908 1,349,587 1,314,131 1,255,265 1,224,320 International (inbound) health insurance1 248,038 241,668 212,643 181
Slide 32: Insurance contract assets and liabilities and one-offs
Insurance contract assets and liabilities and one-offs Insurance Contract Assets and Liabilities ($m) FY25 FY24 One-offs, M&A and amort of acq intangibles ($m) FY25 FY241 Change Assets for remaining coverage nib Thrive (21.6) (25.0) ▼13.6% 142.9 122.2 (acquisition cash flow assets pre coverage perio
Slide 33: Other PHI information
Other PHI information arhi ($m) FY25 FY24 Change Working Days (#) 1H 2H FY 1H vs 2H Gross deficit 687.9 618.5 ▲11.2% Australia – state weighted2 Calculated deficit (931.6) (855.1) ▲8.9% FY23 127.8 123.6 251.4 +4.2 Risk equalisation levy paid (243.7) (236.6) ▲3.0% FY24 126.7 123.6 250.3 +3.1 Hospital
Slide 34: Other income and expenses
Other income and expenses Other income ($m)1 FY25 FY242 Change Other expenses ($m)1 FY25 FY242 Change arhi 2.9 3.0 ▼3.3% iihi (0.2) (2.8) ▼92.9% iihi 2.1 5.4 ▼61.1% nib NZ 0.0 (0.2) ▼100.0% nib NZ 0.0 0.4 ▼100.0% nib Travel (82.0) (79.2) ▲3.5% nib Travel 88.1 87.0 ▲1.3% nib Thrive (40.2) (36.0) ▲11.
Slide 35: Segment reporting
Segment reporting ($m) arhi iihi NZ Travel Thrive Health Services Other Total Insurance revenue 2,832.6 220.5 401.4 6.9 - - - 3,461.4 Incurred claims (2,319.9) (131.1) (286.9) (2.3) - - - (2,740.2) Other insurance expenses – marketing (131.8) (17.0) (57.7) (2.1) - - - (208.6) Other insurance expense
Slide 36: Investments and finance expense
Investments and finance expense $m FY25 FY242 $m FY25 FY242 Change Defensive1 Net investment income 57.1 42.1 Net finance expense (18.5) (17.3) ▲6.9% Net investment return % 4.8 3.7 Finance costs (16.7) (15.4) ▲8.4% Funds invested 1,156.7 1,162.1 Interest on lease liabilities (1.9) (2.1) ▼9.5% Growt
Slide 37: Glossary
Glossary Term Definition Term Definition 1H Six months ended/ending 31 December of the relevant financial year Liability for remaining coverage is an entity’s obligation to investigate and pay valid 2H Six months ended/ending 30 June of the relevant financial year LRC claims under existing insurance