According to a report in The Australian Financial Review (AFR), global insurer Allianz is now the lead contender to acquire NIB Holdings’ travel insurance unit. In May, industry observers told The Australian that Zurich Insurance Group - owner of Cover-More - was the most likely acquirer. Today’s AFR report referred to “people with knowledge of the process who are unauthorised to speak publicly.”
Hollard, according to news reports, has also expressed interest in the acquisition.
NIB, the Australian-based health insurer, operates primarily in Australia and New Zealand. The travel unit has brands including World Nomads Group, Travel Insurance Direct and NIB Travel.
The sale comes as the health insurer refocuses on its core operations. Group CEO Ed Close has stressed the importance of focusing on segments that support sustainable growth. In the first half of FY25, operating profit fell sharply, dropping 26.7% to A$105.8 million partly from softer returns in its Australian health insurance book and losses in New Zealand. NIB’s New Zealand unit recorded a NZ$10.9 million operating loss, as cost pressures and high claims inflation (17.6%) continue to erode margins.
The deal is expected to finalise early next year and could fetch as much as A$200 million.
