Nib Holdings Ltd · ASX:NHF
Nib — J.P. Morgan Access Days 2015
19 slides from Nib's conference presentation, Oct 2, 2015
Slide 1: ASX cover letter: Presentation to J.P. Morgan Access Days
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 2 October 2015 The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Pres
Slide 2: J.P. Morgan Access Days 2015
For personal use only J.P. MORGAN ACCESS DAYS 2015 HUMAN IT’S GOOD TO BE October 2015 | All figures in this document are represented in Australian dollars unless otherwise stated
Slide 3: Agenda
2 For personal use only Agenda Healthcare in About nib Our performance Australia Business Key performance Strategy metrics and outlook Appendix
Slide 4: Healthcare in Australia
3 For personal use only Healthcare in Australia Growth in healthcare spending driven by; wealth effect, ageing, rise of chronic disease, cost of new technology, supply induced demand and moral hazard. $147.4b 2013 | Australian healthcare spending ($b) Australian treasury projection 6.0 5.0 Health Ag
Slide 5: The role of Private Health Insurance (PHI)
4 For personal use only The role of Private Health Insurance (PHI) Australian PHI growth drivers: Increasing wealth and favourable economic circumstances Dissatisfaction with public system and rationing Competition and investment in marketing and growth Government “sticks and carrots” What PHI does
Slide 6: PHI structure in Australia
5 For personal use only PHI structure in Australia At 30 June 2014 there were 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. Pol
Slide 7: About nib
6 For personal use only About nib (ASX: NHF) FY15 Group premium revenue of Other markets* $1.63b, operating profit of $81.7m, Travel Insurance net profit after tax of $75.3m Life Insurance nib Options – domestic and international More than 1,000 employees in cosmetic treatment (launched in Australia
Slide 8: Business Strategy
7 For personal use only Business Strategy 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 9: FY15 nib Group performance metrics
8 For personal use only FY15 nib Group performance metrics Premium Revenue Operating Profit Earnings per share 1.6b 81.7m 17.3 c Net profit after tax Return on Equity Dividends per share 75.3m 23.1%
Slide 10: arhi key performance metrics and outlook
9 For personal use only arhi key performance metrics and outlook FY15 Surpassed 1 million customers covered. Annual net policyholder growth of 4.7% versus 2.5% for the industry, with nib accounting for almost 15% of industry growth. Net margin of 5.0%, Above system policyholder growth for nib with f
Slide 11: International and new business
10 For personal use only International and new business FY15 International (Inbound) Health Insurance business Operating profit up 4.0% to $11.8 million Insuring almost 88,000 international students and overseas visitors (up 54.2%) Acquisition of “Complementary” business will continue to make a majo
Slide 12: nib New Zealand key performance metrics and outlook
11 For personal use only nib New Zealand key performance metrics and outlook FY15 Direct-to-consumer account for approximately 50% of all sales Policyholder growth of 5.9% Premium revenue up 8.1% to $150.4 million nib New Zealand profitability to improve in FY16 due to improved scale and growth. Fur
Slide 13: Digital
12 For personal use only Digital We will increase investment in our IT and digital strategy (including Whitecoat), especially recognising the potential of the “digital era” to disrupt the healthcare market and create opportunities. Will help customers make more informed decisions around their genera
Slide 14: FY16 guidance
13 For personal use only FY16 guidance Above system arhi policyholder growth with stable net profit margin. International (inbound) health insurance policyholder growth but profitability may be weaker. nib Options operating loss similar to FY15 ($3.8m) with profitability in FY17. nib NZ policyholder
Slide 15: Appendix
For personal use only Appendix 14
Slide 16: Australian Residents Health Insurance (arhi)
15 For personal use only Australian Residents Health Insurance (arhi) Premium Revenue Operating profit Policyholder growth $m 1,429.5 $m 71.8 6.0% nib Industry 1,314.5 64.6 1,187.3 59.8 59.0 1,095.6 57.0 4.7% 4.7% 4.6% 991.3 3.7% 3.2% 3.1% 3.1% 2.7% 2.5% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14
Slide 17: International (Inbound) Insurance
16 For personal use only International (Inbound) Insurance Premium Revenue Operating profit Policyholder growth* $m 54.9 $m 66.6% 11.8 58.5% 11.3 38.0 8.3 32.0 37.2% 28.2 6.1 29.2% 16.5 1.7 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 * Full International (Inbound) Visitors
Slide 18: nib New Zealand
17 For personal use only nib New Zealand Premium Revenue Operating profit $m 150.4 $m 139.2 7.4 6.4 5.4 71.1 FY13* FY14 FY15 FY13* FY14 FY15 * nib New Zealand acquired November 2012, FY13 represents a 7 month result. Policyholder growth 85,000 84,000 Number of inforce policies 83,000 nib acquires 82
Slide 19: World Nomads Group
18 For personal use only World Nomads Group Summary Founded in 2000 and headquartered in Sydney Normalised EBITDA1 ($m) Specialises in the marketing, sale and distribution of travel insurance policies globally, although Australia accounts for ~70% of GWP $m 10.3 % Provides ancillary insurance servic