Nib Holdings Ltd · ASX:NHF

Nib — Merger or Acquisition (November 2012)

12 slides from Nib's merger presentation, Nov 2, 2012

  1. Slide 1: Acquisition of TOWER Medical Insurance (NZ)

    For personal use only Acquisition of TOWER Medical Insurance (NZ) 2 November 2012 1

  2. Slide 2: Transaction highlights

    Transaction highlights For personal use only  nib holdings has agreed to acquire 100% of TOWER Medical Insurance Limited for approximately NZ$102 million (A$80 million) subject to completed accounts  Net assets of approximately NZ$64 million Transaction  Surplus capital of approximately NZ$10 mil

  3. Slide 3: New Zealand economy is showing signs of recovery

    New Zealand economy is showing signs of recovery For personal use only Real GDP growth and PHI penetration Real GDP growth (annual average % change, LHS) Insured persons as a % of total population (RHS) 4.00% 34.0% 3.00% 33.0% 32.0% 2.00% 31.0% 1.00% 30.0% 0.00% New Zealand Treasury forecasts 29.0%

  4. Slide 4: New Zealand private health insurance snapshot

    New Zealand private health insurance snapshot For personal use only New Zealand Australia Premium revenue  NZ$1.1 billion / A$0.8 billion  NZ$21.1 billion / A$16.7 billion Lives covered &  1,349,305 lives covered  10,587,828 lives covered penetration  ~30% of population (declining)  ~47% of po

  5. Slide 5: New Zealand private health insurance snapshot

    New Zealand private health insurance snapshot For personal use only PHI penetration by age segment 70.0% New Zealand Australia 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 90+ 0-4 5–9 10–14 15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65–69 70–74 75–79 80–84 85–89 Source: HFANZ, Statistic

  6. Slide 6: TOWER Medical snapshot

    TOWER Medical Insurance snapshot For personal use only  New Zealand’s 2nd largest health insurer  More than 169,000¹ lives covered  Headquartered in Auckland Key financials  Hospital Cover products launched in 1992; acquired AXA Health in 2000 NZ$ million 2008 2009 2010 2011  Multi channel dist

  7. Slide 7: Why New Zealand health insurance?

    Why New Zealand health insurance? For personal use only Minimal  Almost no government regulation in the market government  Absence of community rating and risk equalisation regulation  Large incumbent in Southern Cross, 60% market share Market structure  With its capabilities and experience, nib

  8. Slide 8: Why TOWER Medical?

    Why TOWER Medical Insurance? For personal use only  New Zealand’s 2nd largest health insurer Provides immediate  ~13% market share, down from ~15% in 2007 scale  More than 169,000 lives covered  Smallest business segment within TOWER Group; has not been a core area of focus Significant  Opportu

  9. Slide 9: Integration and branding approach

    Integration and branding approach For personal use only  Jayne Drinkwater (former nib Chief Operating Officer and Chief Marketing Officer) to be appointed interim CEO New Zealand  Glenn Treadwell (current nib Group Financial Controller) to be appointed interim CFO New Zealand  Both to be based in

  10. Slide 10: Summary

    Summary For personal use only  TOWER Medical Insurance is a sensible acquisition that represents good value • 2nd largest private health insurer with ~13% market share • More than 169,000 lives covered • Leverage nib’s expertise and reinvigorate the business • Emulate the success of Virgin Green in

  11. Slide 11: Questions

    For personal use only 11 QUESTIONS

  12. Slide 12: Acquisition of TOWER Medical Insurance (NZ)

    For personal use only Acquisition of TOWER Medical Insurance (NZ) 2 November 2012 12

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