nib Group has delivered a stronger first-half result, with underlying operating profit rising 22% to $129.1 million on revenue of $1.9 billion, as the group tightened costs and expanded to its largest customer base on record.
In an ASX release, the private health insurer and health services company with opertaions in Australia and New Zeaaland, said group revenue increased 7.7% to $1.9 billion in 1H26, up from $1.8 billion in 1H25, while net profit after tax was $82.9 million. Statutory earnings per share were 17.0 cents per share. The group’s operating expense ratio fell 100 basis points to 16.5%, a material shift that will be watched closely across the private health insurance sector as insurers face continued scrutiny over affordability and value.
Managing director and CEO Ed Close (pictured) attributed the performance to execution against strategic priorities and ongoing expense discipline in a competitive environment. The group said it now covers 1.95 million people, its largest customer base ever, a data point likely to resonate with brokers and industry observers tracking market share dynamics as health funds compete on price, service and product design.
While top-line growth largely tracked higher insurance revenue — up 7.7% to $1,843.6 million — claims also rose, with incurred claims up 7.9% to $1,479.2 million. In that context, nib’s ability to grow profit appears to have been supported by cost containment and mix, including a slight decline in non-marketing expenses (down 0.2% to $189.4 million) even as marketing costs increased 4.1% to $126.6 million.
One area that tempered the statutory result was investment income, which fell 42% to $23.8 million from $41.0 million in the prior comparative period, helping explain why profit before tax was broadly flat year-on-year at $116.8 million, down 0.3%. nib also reported higher amortisation/impairment of acquisition intangibles, and increased one-offs, M&A and integration costs.
In a sign of balance-sheet and capital confidence, the board declared an interim dividend of 13.0 cents per share, fully franked, unchanged from 1H25, with a dividend reinvestment plan available. The ex-dividend date is 5 March 2026 and the record date is 6 March 2026, with payment scheduled for 8 April 2026.
nib’s Australian residents business again did the heavy lifting, delivering what the group described as a “consistent, high-quality result”, supported by policyholder growth, a “material reduction” in expense ratios and stable net margins within nib’s 6% to 7% target range.
Close said the result was underpinned by the insurer’s distribution approach and investment in growth, adding: “The Australian residents business delivered a solid first half performance, supported by disciplined investment in growth and the continued strength of our multi-channel distribution strategy.”
For the wider industry, the emphasis on expense ratio improvement will land as a strategic signal. With premium pressure, hospital contracting tensions and ongoing debate about the role of private health in easing pressure on the public system, insurers are increasingly being judged not just on headline premium moves, but on operational execution — particularly claims turnaround, service accessibility and the cost to serve members.
nib pointed to a shift to digital self-service, saying most customer interactions now occur digitally.
“Today, 94% of Australian residents health insurance claims are processed within 24 hours," said Close
The company also highlighted its net promoter score outcomes and member value initiatives, including increased “no or known gap” coverage when treated by a medical specialist and health management programs with a strong virtual delivery component.
The group also referenced its approach to the private hospital sector, noting it is developing partnership agreements with major hospital groups aimed at more sustainable outcomes for customers—an area brokers and corporate advisers will continue to watch closely given ongoing disputes and renegotiations across the hospital contracting landscape.
Outside the core Australian residents portfolio, nib’s adjacent business lines delivered their highest first-half UOP since FY19, contributing $30.4 million—up $20.5 million versus 1H25. The group said the uplift was driven by a continued recovery in New Zealand, strong performance in international health insurance, and profitability in Health Services.
“Our international health insurance portfolio delivered strong UOP growth and improved net margin, supported by policyholder growth across Pacific Australia Labour Mobility (PALM) participants, temporary graduates and skilled workers," said Close. He also flagged New Zealand’s return to profitability, pointing to the execution of a recovery plan and stabilisation in claims inflation, while acknowledging repricing had affected short-term growth and NPS.
On technology, nib linked productivity improvements to digital investment and automation, saying AI adoption is supporting both customer outcomes and cost control. The company said its chatbot supports around half of all chat interactions autonomously and that a high proportion of claims are processed via automation, alongside broader staff adoption of its internal AI tooling.
The group reaffirmed full-year FY26 guidance for underlying operating profit of $257 million to $267 million, assuming a full-year UOP contribution from nib Travel. However, nib also noted it is conducting a strategic review of nib Travel, and that statutory reporting treats the business as discontinued operations under AASB 5 due to that ongoing review — an additional moving piece that could affect how analysts interpret statutory versus underlying performance over the remainder of the year.
