NZ Delivers FY22 Strong Top Line Growth

NZ delivers FY22 strong top line growth

• FY22 NZ premium revenue rises 12.4% to $312.6 million
• Private Health Insurance policyholder growth up 5.6%
• nib nz insurance limited (previously Kiwi Insurance Ltd) added $0.1m to underwriting result in FY22 in first 2 months1
• Continuing increased participation in tailored iwi health programs

nib New Zealand (nib) today announced its results for FY22 with premium revenue rising 12.4% to $312.6 million from $278.2 million in FY21.

nib's business reported a 5.6% rise in private health insurance policyholder growth. FY22 underwriting result was down 5.1% at $25.4 million from $26.8 million in FY21.

Pleasingly during the year, and despite continued uncertainties caused by COVID-19, the business made solid top line gains, invested heavily in technology and is integrating the life and living insurance business, Kiwi Insurance Ltd, now nib nz insurance limited. The FY22 result includes a two month contribution from the company.

“We have had continued growth in policyholder numbers as more Kiwis see value in private health insurance,” said nib New Zealand Chief Executive Rob Hennin. “Through the year, we continued to invest in our capability to provide a broader range of valued benefits for New Zealanders to support their health and living needs.

“This includes our launch of nib nz insurance ltd. Our life and living insurance products are already providing Kiwis with financial protection, for life, alongside our health insurance offering.

“We’ve also increased our capability by continuing to spend on technology, bringing our systems up to best of breed. Our strategy is to become not just simply a payer of healthcare services, but a health partner with our members. This relies on a deep understanding of our members and their healthcare needs, using data science and technology.

“Our purpose is your better health and wellbeing. It’s fundamental to our strategy and drives what we do for members, in our co-created Māori partnerships and health programmes, and through our targeted health management programmes provided at no additional cost to our members.”

Net claims incurred rose 7.8% during FY22. Claims inflation remained lower due to the impacts of COVID-19 with members deferring some treatment and clinical providers restricting access to some services during the pandemic.

During the year, nib expanded its Māori population health programmes to more ropū members; introduced a non-PHARMAC Plus option for members, which covers the cost of medicines not funded by PHARMAC; and continued to invest in health management programmes for members.

Mr Hennin said the introduction of non-PHARMAC Plus provides New Zealand members with access to life saving medical treatment not covered by PHARMAC. Without cover, purchasing those drugs could leave members with significant out of pocket costs.

nib’s partnership with Ngāti Whātua Ōrākei, launched in 2018, continues to help improve the health and wellbeing outcomes for the Auckland hapū (tribe), and now includes a screening service for heart disease and a diabetes management programme that supports members with type 2 diabetes or pre-diabetes.

“The aim of our community health programmes is to help members better understand and manage their health, reducing the risk of disease or its progression,” Mr Hennin said. “nib also partnered with Ngati Porou during FY22 to provide health insurance for employees.”

During the year, nib also achieved Rainbow, Accessibility and the SuperDiversity Institute’s CQ Tick, the latter recognising nib’s progress in identifying and improving its cultural awareness and willingness to work with all people, from all backgrounds.

nib’s net promoter score remained steady at 34 in FY22, reflecting our commitment to members in a year marked again by the havoc of COVID-19.

Outlook

nib expects continued policyholder growth and a return to net margin targets of 8-10% over time, although continued investment in systems upgrades will trim margins. “We will continue to work with our strategic partner, Honeysuckle Health, a company that uses data-led insights to manage disease,” Mr Hennin said.

nib Chair Tony Ryall said FY23 will bring further commitment to nib’s community health programmes, particularly nib’s partnership with Ngāti Whātua Ōrākei.

“We are expanding our health management programmes, tailoring them to provide personalised care for members,” he said.

“This year, we celebrate our 10th anniversary, looking back on a decade of providing value-based care for our members, families and their communities.”

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