NIB Holdings Ltd · ASX:NHF
NIB — Investor Presentation (July 2023)
15 slides from NIB's investor presentation, Jul 28, 2023
Slide 1: AASB 17 investor briefing presentation (ASX announcement)
28 July 2023 Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 AASB 17 investor briefing presentation nib holdings limited (nib) Group reporting will transition to AASB 17 Insurance Contracts, the new insurance contracts accounting standard from 1 July 2023. The first reporti
Slide 2: AASB 17 investor briefing
For personal use only AASB 17 investor briefing 28 July 2023
Slide 3: Acknowledgement of Country
nib acknowledges Aboriginal and Torres Strait Islander peoples as the First Australians and pays respect to Elders past and present across For personal use only all the lands on which we operate. We acknowledge the rich and meaningful contribution they make to life and culture in Australia, and we a
Slide 4: Disclaimer
Disclaimer The purpose of this document is to convey the key impacts of AASB17 on the financial statements of nib holdings limited ("nib") from 1 July 2023 and not to provide a technical accounting briefing. Refer to nib's FY23 Annual Report (to be lodged with to the ASX on 21 August 2023) for techn
Slide 5: Key messages
Key messages • nib will implement AASB 17, the new insurance contracts accounting standard, from 1 July 2023 for the FY24 Interim and Annual Reports with FY23 comparatives restated. For personal use only • There will be no impact to cash flow and no material impact to capital. • The main impact is t
Slide 6: Summary of accounting impacts of AASB 17
Summary of accounting impacts of AASB 17 nib will implement AASB 17 from 1 July 2023 for the FY24 Interim and Annual Reports with FY23 comparatives restated. Under AASB 1023, the full impact of the 2023 price increase deferral ($35.5m) can For personal use only be recognised in FY23. This is not all
Slide 7: Price increase deferral from Apr to Oct
Price increase deferral from 1 Apr 23 to 1 Oct 23 Please note: amounts are shown as an increase or (decrease). Impacts under AASB 1023 FY23 FY24 Total FY23 & FY24 1. No change to Net Cash Net Cash Cash cashflow ($m) P&L P&L P&L assets flow assets flow flow For personal use only Opening balance for B
Slide 8: Price increase deferral recognition
Price increase deferral recognition • nib deferred its 2023 premium price increase for arhi members by six months from 1 April to 1 October 2023. This deferral was one of a range of measures nib provided as part of its COVID-19 support package. For personal use only • Under AASB 1023, if a price inc
Slide 9: Measurement of insurance liability
Measurement of insurance liability For personal use only Australia – PAA simplified method New Zealand – PAA simplified method • The insurance contracts for Australian health • The insurance contracts for NZ health and NZ insurance and nib Travel are eligible for PAA life and living benefits are eli
Slide 10: Treatment of acquisition costs
Treatment of acquisition costs • Under AASB 17 acquisition costs can be expensed upfront where the PAA method is used and the For personal use only coverage period of each contract is no more than one year. • Currently nib defers recognition of upfront commissions to the balance sheet and amortises
Slide 11: Summary of financial impacts – AASB 17
Summary of financial impacts – AASB 17 • Price increase deferral: FY24 UOP will be lower under AASB 17 vs AASB 1023 as a result of change in revenue treatment of the price increase deferral. This will be offset by higher For personal use only opening equity. Underlying operating • DCL: Any residual
Slide 12: Questions and answers
For personal use only Questions and answers
Slide 13: Appendix
For personal use only Appendix
Slide 14: Restatement of consolidated balance sheet as at 1 July 2022
Restatement of consolidated balance sheet as at 1 July 2022 For personal use only Consolidated balance sheet ($m) Net assets Net assets / Equity as at 30 June 2022 under AASB 1023 734.3 COVID related adjustments: DCL provision 110.2 Difference in price increase deferral timing recognition (1 Apr 22
Slide 15: Glossary
Glossary AASB 17 Insurance Contracts. First applied for annual reporting periods starting on or after 1 January 2023, therefore it will be adopted by AASB 17 nib from 1 July 2023. Replaces AASB 1023 and AASB 1038. For personal use only AASB 1023 AASB 1023 General Insurance Contracts. nib will apply