Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (October 2012)
24 slides from Nib's shareholder meeting presentation, Oct 30, 2012
Slide 1: 2012 Annual General Meeting Presentation cover letter
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 30 October 2012 For personal use only The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Sub
Slide 2: nib 2012 Annual General Meeting
nib 2012 ANNUAL yong GENERAL MEETING TUESDAY 30 OCTOBER
Slide 3: Steve Crane, Chairman
nib 60years young STEV E CRAN CHAIRMAN
Slide 4: Introduction: nib's Board & Executive
INTRODUCTION For personal use only nib’s BOARD & EXECUTIVE • HAROLD BENTLEY – Independent Non-Executive Director • DR ANNETTE CARRUTHERS – Independent Non-Executive Director • PHILIP GARDNER – Independent Non-Executive Director • CHRISTINE McLOUGHLIN – Independent Non-Executive Director • MARK FITZG
Slide 5: Meeting Schedule
MEETING SCHEDULE For personal use only • Chairman’s address • Managing Director’s address • Notice of Meeting • Consideration of Report for the financial year ended 30 June 2012 • Remuneration Report • Re-election of Independent Non-Executive Director, Mr Philip Gardner • Consideration of the resolu
Slide 6: We're Celebrating Being 60 Years Young
WE’RE CELEBRATING BEING 60 YEARS YOUNG For personal use only *Historical images courtesy of The Newcastle Herald and Gail Noakes. 4
Slide 7: Key Performance Metrics: Total Shareholder Return
KEY PERFORMANCE METRICS For personal use only TOTAL SHAREHOLDER RETURN Source: IRESS (as at 29 June 2012) J.P. Morgan . Note: Assumes capital returns and dividends are reinvested at the payout date • nib’s Total Shareholder Return (TSR) for FY12 was 27.6% versus -6.7% for ASX 200 Index. • Since list
Slide 8: Key Performance Metrics: Net Profit After Tax
KEY PERFORMANCE METRICS For personal use only NET PROFIT AFTER TAX • $67.6 million, up 3.3% on FY11 result of $65.5 million. • Earnings per share of 14.8 cents, up from 13.7 cents in FY11. " " *FY08 result was normalised to remove the impact of costs associated with nib’s demutualisation and listing
Slide 9: Capital Management and Capital Position
KEY PERFORMANCE METRICS For personal use only CAPITAL MANAGEMENT AND CAPITAL POSITION • $140 million was returned or used in FY12 through the following capital management initiatives: • $75.4 million Capital Return in July 2011 (equating to 16.07 cents per share); • $23.3 million in special dividend
Slide 10: Key Performance Metrics: Investment Returns
KEY PERFORMANCE METRICS For personal use only INVESTMENT RETURNS • Reduced capital base due to capital management initiatives, resulted in a lower investment income of $25.6 million (FY11: $32.1 million). " • Investment return remained stable at 6.0% (FY11: 6.6%) and was in line with targets for our
Slide 11: Key Performance Metrics: Dividends
KEY PERFORMANCE METRICS For personal use only DIVIDENDS • Full year ordinary dividend of 9.25 cents per share was up 15.6% on the FY11 ordinary dividend of 8 cents per share. This was paid to shareholders on 5 October 2012. • FY11 dividend of 13 cents per share included an 8 cents per share ordinary
Slide 12: nib foundation
nib foundation For personal use only • FY12 was a landmark year for nib’s charitable organisation. • nib foundation reached $10 million in committed funding since its establishment in 2008. • Partnerships established with 15 organisations in FY12. These include: • Starlight Children Foundation’s Liv
Slide 13: FY13 & Beyond
FY13 & BEYOND For personal use only • nib continues to deliver underlying earnings growth, profitability and strong returns for our shareholders. • Ongoing, we like the investment thesis for private health insurance: • Fiscal pressure on Government to continue to fund healthcare at current levels is
Slide 14: Mark Fitzgibbon, Managing Director
eee VIARK FITZGIBBON ee MANAGING DIRECTOR
Slide 15: Group Highlights: Premium Revenue Growth
GROUP HIGHLIGHTS PREMIUM REVENUE GROWTH For personal use only • Consolidated premium revenue increased 11.5% to $1.1 billion in FY12. • Health Insurance Business (HIB) premium revenue up 10.5%: • Net policyholder growth of 4.7% (20,474 net new policyholders) versus industry growth of 3.7%. We have e
Slide 16: Group Highlights: Management Expenses MER
GROUP HIGHLIGHTS For personal use only MANAGEMENT EXPENSES MER Down 0.5% • Group Management Expenses of $103.8m ($24.1m in acquisition costs). • Management Expense Ratio (MER) was down 0.5% to 9.2% reflecting our continued focus on operational efficiency. *FY08 result was normalised to remove the im
Slide 17: Group Highlights: Underlying Earnings Growth
GROUP HIGHLIGHTS For personal use only UNDERLYING EARNINGS GROWTH • Pre-tax underwriting result up 15% to $70.7 million. • Significant growth in broker policyholder sales (22.2% of FY12 sales) has resulted in nib capitalising commissions we pay to brokers, such as iSelect. • This increased our under
Slide 18: New Business Ventures
NEW BUSINESS VENTURES For personal use only INTERNATIONAL WORKERS BUSINESS (IWB) • Pre-tax IWB earnings increased 167.9% to $7.5 million. • Contributing 10.6% of Group pre-tax underwriting earnings. INTERNATIONAL STUDENTS BUSINESS (ISB) • Still in start-up but now provides cover to approximately 4,1
Slide 19: Group Highlights: Earnings Per Share, Return on Equity
GROUP HIGHLIGHTS EARNINGS PER SHARE RETURN ON EQUITY For personal use only • Continued strong profitability, investment • ROE of 21.7% returns and capital management initiatives delivered earnings per share of 14.8 cents up from 13.7 cents FY11. *FY08 result was normalised to remove the impact of co
Slide 20: Other FY12 Highlights
OTHER FY12 HIGHLIGHTS For personal use only • 29% of all new HIB policyholder sales made online. • 45% of HIB policyholder sales outside of NSW/ACT. • HIB policyholder sales to over 55s increased 24.7%. • HIB policyholder sales in Western Australia increased 18.9%. • Corporate sales account gross wr
Slide 21: Market Conditions & Outlook
MARKET CONDITIONS & OUTLOOK For personal use only • Ongoing annual industry growth predicted at 3%. • Changes to Federal Government Rebate including income testing and proposed capping of Government allocation for the Rebate are not expected to have significant impact on future industry growth and p
Slide 22: Business Strategy
BUSINESS STRATEGY For personal use only • Ongoing organic growth with focus on <40 years of age and with additional investment in Corporate market (in conjunction with IWB), Western Australia and over 55 years segment. • Increased investment in online/mobile engagement and functionality. • Focus upo
Slide 23: nib Outlook FY13 & Beyond
nib OUTLOOK FY13 & BEYOND For personal use only • nib will continue to pursue above HIB system growth. • Determination to build international businesses and earnings. • Forecast FY13 consolidated net underwriting profit of $70 million to $75 million. • Investment return in line with regulatory capit
Slide 24: nib 60 years young, 2012 Annual General Meeting
nib 60years young 2012 ANNUAL GE N FERAL ME ETING