Nib Holdings Ltd · ASX:NHF
Nib — J.P. Morgan Investment Forums March 2016
17 slides from Nib's conference presentation, Mar 14, 2016
Slide 1: ASX cover letter: Presentation to J.P. Morgan Investment Forums
nib holdings limited t 13 14 63 Head Office f 02 4925 1999 22 Honeysuckle Drive Newcastle NSW 2300 e [email protected] abn 51 125 633 856 w nib.com.au For personal use only 14 March 2016 The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Prese
Slide 2: It's Good to Be Human - J.P. Morgan Investment Forums March 2016
HUMAN IT’S GOOD TO BE For personal use only J.P. MORGAN INVESTMENT FORUMS MARCH 2016 2016 | All figures in this document are represented in Australian dollars unless otherwise stated
Slide 3: Agenda
2 Agenda For personal use only Healthcare in Australia About nib Business Strategy Key performance metrics and outlook
Slide 4: Healthcare in Australia
3 Healthcare in Australia For personal use only Growth in healthcare spending driven by; wealth effect, ageing, rise of chronic disease, cost of new technology, supply induced demand and moral hazard. Components of healthcare spending $154.6b 2014 | Australian 40% Hospitals 18% Medical services 14%
Slide 5: The role of Private Health Insurance (PHI)
4 The role of Private Health Insurance (PHI) For personal use only What PHI does and doesn’t cover Covered Not covered Australian PHI growth drivers: Public & Private Hospital (accommodation, theatre, etc), choice of specialist Increasing wealth and favourable economic circumstances Dissatisfaction
Slide 6: PHI structure in Australia
5 PHI structure in Australia For personal use only There are currently 34 private health insurers operating in Australia. Top five PHI players represent 83% of the polices nationally. For profit insurers make up around 68% of the industry. Direct to Consumer (DTC) accounts for ~85% sales. Policies a
Slide 7: About nib
6 About nib (ASX: NHF) For personal use only FY15 Group premium revenue of $1.63b, operating Other markets2 profit of $81.7m, net profit after tax of $75.3m Travel Insurance Life Insurance More than 1,000 employees in Australia and nib Options - Medical travel (launched in March 2014) New Zealand Re
Slide 8: Multi channel strategy – Continuing to expand our distribution reach
7 Multi channel strategy – Continuing to expand For personal use only our distribution reach
Slide 9: Business Strategy
8 Business Strategy For personal use only Achieve above ‘system’ Grow our International Position and build our Leverage core business growth in the Australian Workers (iwhi) and business in New Zealand as capabilities to pursue adjacent Insurance Resident Health International Students a ‘challenger’
Slide 10: 1H16 nib Group performance metrics
9 1H16 nib For personal use only Group performance metrics Total Group Revenue Operating Profit (statutory) Earnings per share (statutory) 927.1m 59.3m 9.9 15.2% 41.0% 5.3% Net profit after tax Return on Equity* Dividends per share 43.1m 22.9% 5.75 4.7% 1.5% 4.5% * Using average shareholders’ equity
Slide 11: arhi 1H16 key performance metrics and outlook
10 arhi 1H16 key performance For personal use only metrics and outlook Policyholder growth (cumulative policyholder Premium revenue Underlying Operating Profit1 growth from CY07) ($m) ($m) 60.0 nib Industry Half Year (1H) Full Year 80.0 Half Year (1H) Full Year 1,500.0 50.0 70.0 60.0 40.0 1,000.0 50
Slide 12: International inbound health insurance (iihi) 1H16 key performance metrics and outlook
11 International inbound health insurance For personal use only (iihi) 1H16 key performance metrics and outlook Policyholder growth (cumulative policyholder Premium revenue Underlying Operating Profit growth from CY10) ($m) 600.0 Including Saudi students ($m) 8.0 60.0 Half Year (1H) Full Year 15.0 1
Slide 13: nib 1H16 New Zealand key performance metrics and outlook
12 nib 1H16 New Zealand key For personal use only performance metrics and outlook Policyholder growth Premium revenue Underlying Operating Profit 115,000 ($m) ($m) 30.0 Half Year (1H) Full Year Tower 150.0 Half Year (1H) Full Year 12.0 nib nz 10.0 20.0 100.0 8.0 95,000 6.0 % 10.0 50.0 4.0 0.0 2.0 75
Slide 14: World Nomads Group (WNG) 1H16 performance metrics and outlook
13 World Nomads Group (WNG) 1H16 For personal use only performance metrics and outlook WNG Sales (Policies) 1H162 WNG Gross Written Premium by Region WNG Gross Written Premium1 ($m) 2% 2% 80 300,000 5% 7% Australia 295,461 290,378 278,918 United States 60 60.7 56.2 200,000 Europe (ex. UK) 7% 52.7 40
Slide 15: Whitecoat: showcasing the potential of the digital era
14 For personal use only Showcases the potential of the “digital era” to empower customers Whitecoat’s purpose is to help consumers: Make more informed decisions around their health. Choose treatment options and healthcare providers. Connect and transact with providers. Improve engagement with provi
Slide 16: Outlook
15 Outlook For personal use only FY16 outlook remains positive Real healthcare spending will continue to grow circa GDP + 2%1. Expect PHI reforms will be a net positive: – Prosthetic pricing – Risk equalisation – Primary care and MBS Review – New funding devices (e.g. health savings accounts) – Hosp
Slide 17: FY16 Guidance
16 FY16 Guidance For personal use only Guidance maintained with result likely to be at upper end of range ($m) FY16 (GUIDANCE) Statutory operating profit 90–100 One-off transaction and M&A costs 4–5 FY16 consolidated underlying operating profit of $102m – $114m (statutory operating profit of $90m –
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