NIB Holdings Ltd · ASX:NHF
NIB — Macquarie Australia Conference 2017
16 slides from NIB's conference presentation, May 4, 2017
Slide 1: Presentation to Macquarie Australia Conference – May 2017
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 4 May 2017 The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Presenta
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference Mark Fitzgibbon 4 May 2017
Slide 3: The Private Health Insurance Industry
The Private Health Insurance Industry • Australian healthcare spending has topped $160 billion Australia’s health expenditure continues to grow For personal use only (2014/16) • Growth in healthcare spending driven by; wealth effect, ageing, rise of chronic disease, cost of new technology, supply in
Slide 4: Key Business Strategies
Key Business Strategies For personal use only 1. Grow our core Australian Resident Health Insurance (arhi) business at a “sustainable” rate of 4-5% (net policyholder growth) with an emphasis upon segmentation and risk selection. 2. Leverage capabilities and assets within the Group to pursue adjacent
Slide 5: Australian Residents Health Insurance (arhi)
Australian Residents Health Insurance (arhi) We continue to outperform industry policyholder growth Net Policyholder Growth (Cumulative) For personal use only 30% nib Industry 25% 25.3% 20% 15% 14.4% 10% 5% 0% FY12 FY13 FY14 FY15 FY16 1H17 • Our multi-channel distribution strategy has maintained our
Slide 6: Multi-channel strategy
Multi-channel strategy Continuing to expand our distribution reach For personal use only 5
Slide 7: Claims inflation has slowed in recent times
Claims inflation has slowed in recent times • Recent trends indicate claims inflation may have “bottomed” with reversion to more normal trends and seasonality expected for 2H17. For personal use only • FY17 full year drawing rate inflation (nib) expected to be in the order of 2% – 4%. Overall benefi
Slide 8: Australian Residents Health Insurance (arhi): Results to date and outlook
Australian Residents Health Insurance (arhi) Results to date and outlook • arhi continues to deliver strong top line and earnings growth. arhi Premium Revenue ($m) For personal use only • 1H17 UOP result of $73.0 (▲41.2%) due to: 2,000.0 • Successful ongoing execution of multi-channel growth Half Ye
Slide 9: Non-arhi businesses
Non-arhi businesses Contribution to Group UOP continues to grow FY11 UOP For personal use only 7% 93% arhi Adjacent Businesses FY16 UOP 28% 72% arhi Adjacent Businesses 8
Slide 10: International (inbound) health insurance (iihi)
International (inbound) health insurance (iihi) Results to date and outlook International inbound health insurance (iihi) For personal use only • A large contributor to our non-arhi earnings has been our iihi segment (international students and workers), with UOP up 146.3% in 1H17. • Significant inc
Slide 11: New Zealand: Results to date and outlook
New Zealand Results to date and outlook nib New Zealand For personal use only • A meaningful contributor to our non-arhi earnings with UOP up 39.7% to $10.9m in 1H17. • Business continues to perform in line with expectations – investment in brand and growth paying off with DTC gaining traction with
Slide 12: World Nomads Group
World Nomads Group Results to date & outlook • Business performing soundly under nib Policyholder sales (Policies) For personal use only ownership. 305,000 303,938 • 1H17 UOP of $3.1m (▼26.2%) reflects – investment being made to expand 300,000 operations in new markets, 295,461 295,000 – negative im
Slide 13: Potential regulatory reform
Potential regulatory reform Expect any PHI reforms and potential regulatory changes to be a net positive • Redefinition of minimum cover and For personal use only introduction of Gold/Silver/Bronze. • Removal of second tier default benefits. • Further reductions to prostheses prices. • Private patie
Slide 14: Whitecoat
Whitecoat Tackling information asymmetry • Whitecoat currently reaches 250,000 providers (mostly allied) For personal use only and 370,000 patient reviews. • Rapidly expanding to include GPs and medical specialists. • Entered agreement with BUPA and HBF to join platform. Appointment of Cameron Clyne
Slide 15: Our focus
Our focus • Above arhi system growth (target 4-5% pa) through For personal use only distribution strategy, price competitiveness, improved retention and world class customer service. • Grow adjacent non-arhi businesses to create further enterprise value and diversify earnings. • Deeper insights acro
Slide 16: Thank you
For personal use only Thank you