nib holdings limited has reported a net profit after tax (NPAT) of $198.6 million for the year ended June 30, 2025, an increase of 9.4% on the $181.6 million recorded the previous year.
Group revenue climbed to $3.6 billion, up from $3.3 billion in FY24.
The insurer’s underlying operating profit (UOP) of $239.2 million was down from $257.5 million a year earlier but remained within the range forecast by the company.
Claims costs rose to $2.7 billion, an increase of 10.2% on FY24.
The group’s operating expense ratio fell to 17.7% from 18.2%, while investment income improved to $79 million, compared with $61.3 million the year prior.
Shareholders will receive a final dividend of 16 cents per share, fully franked, bringing the total dividend for FY25 to 29 cents, unchanged from last year.
Managing director and chief executive officer Ed Close said the FY25 results reflected solid performance from the Australian health insurance operations, which remain the core driver of earnings.
Policyholder growth in the Australian residents’ health insurance (arhi) segment reached 3.2%, above the market average. The business also attracted 52,000 people who were new entrants to private health cover. Insurance revenue for arhi increased 7.3% to $2.8 billion.
UOP from the arhi division fell to $207.8 million from $217.8 million, as margins were steered toward nib’s long-term target range of 6% to 7%. Net margins were reported at 7.3%. Claims expenses rose 8.9% to $2.3 billion, reflecting membership growth and inflation of 4.5%, or 4.9% when including New South Wales’s new hospital bed charges.
nib’s international students and workers unit continued to add to earnings, delivering UOP of $30.5 million, a 23% increase on FY24. Membership grew 2.4%.
Close said the business seeks to provide additional support for workers and students based in Australia and New Zealand under visa requirements.
The company noted that tighter expense control, pricing strategies and digital service improvements are ongoing priorities for the international segment.
In New Zealand, nib posted a UOP loss of $2.9 million, compared with a profit of $19.3 million the prior year. The result followed an industry-wide lift in claims inflation. The local business reported a $10.1 million loss in the first half but returned to profitability in the second half.
Revenue from New Zealand operations increased 8.1% to $401.4 million. The insurer has introduced product adjustments and premium rises, which are expected to take effect progressively.
Outside of health insurance, nib’s other divisions produced a combined UOP of $45.3 million.
nib Travel recorded a 20% increase in second-half UOP and is currently undergoing a strategic review.
nib Thrive, which supports more than 43,000 participants in the National Disability Insurance Scheme, processed $2.5 billion in claims during FY25.
The group’s health services arm, which includes Honeysuckle Health and Midnight Health, generated revenue of $70.2 million, representing growth of more than 50% year on year. More than 121,000 customers accessed digital health, well-being, or telehealth services through these platforms.
Looking ahead, nib said it aims to achieve policyholder growth above the industry average of about 3% and maintain margins in the 6% to 7% range.
The international students and workers business is expected to continue contributing strongly, while the New Zealand business is forecast to return to profitability over the full year.
Close said the group remains focused on affordability and access.
“We’re focused on strengthening the healthcare system by supporting providers and improving affordability and access for our customers,” he said.
Health Services and nib Thrive are expected to deliver further gains in FY26, while a decision on the travel business will follow completion of its strategic review.
The earnings announcement comes at a time when Australian health insurance premiums are under scrutiny.
Recent analysis showed that average price increases for Gold-tier hospital policies reached 13.8% this year, significantly higher than the government’s stated average rise of 3.73%.
Despite higher premiums, consumer sentiment research by Money.com.au found that many Australians still regard health insurance as delivering the greatest value compared with other forms of cover. Extras and hospital policies were ranked highest by survey respondents – ahead of motor, life, and travel insurance.
