NIB Share Price Up On Earnings

What happened to NIB share price?

Australian health and medical insurance giant NIB [ASX:NHF] is up 2.18% on open today after releasing FY18 first half results.

NIB acquired GU Health in October of last year, and has posted a net profit after tax of $70.9 million, down 0.3%, reflecting the costs of the acquisition.

The $3 billion organisation has had an impressive year, seeing roughly a 29% stock price increase since 20 February 2017. This is on top of the dividends paid, which equate to a current yield of 2.89%.

Managing director Mark Fitzgibbon stated:

‘…the first half result was as expected and is on track to deliver improved consolidated earnings for the full year.

More to come in 2018 for NIB?

Fitzgibbons points at a soft domestic insurance market, as well as stagnant household incomes and vibrant market competition as the cause for the margin contractions.

NIB’s subsidiaries had a strong year, with earnings growing up 35.6% to $30 million accounted to the group’s underlying operating profit.

Fitzgibbons remains positive on the outlook for private health and NIB, stating:

No amount of political posturing is going to change the fact that Australians are each year spending somewhere between 5% and 6% more on their healthcare…’

NIB expects underlying operating profit for the full year to be at least $165 million, which is an increase on the previous estimates.


Ryan Dinse                                        

Editor, Money Morning


Jack Cameron,

Junior Analyst, Money Morning

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Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

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