Nib Holdings Ltd · ASX:NHF
Nib — ASX CEO Connect Conference 2020
13 slides from Nib's conference presentation, Aug 25, 2020
Slide 1: Presentation to the ASX CEO Connect Conference
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 25 August 2020 Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Presentation to
Slide 2: ASX CEO Connect
For personal use only ASX CEO Connect 25 August 2020
Slide 3: Chief Executive Officer & Managing Director Mark Fitzgibbon
For personal use only Chief Executive Officer & Managing Director Mark Fitzgibbon 2
Slide 4: Supporting our members through COVID-19
Our purpose: your better health Supporting our members through COVID-19 575 For personal use only 6,657 30 day waivers 3 month suspensions 2,233 469 6 month suspensions 60 day waivers - CV19 support package to date more than $45m. - Across the Group, six month premium postponement (arhi and nib NZ)
Slide 5: Supporting our employees and the community through COVID-19
Our purpose: your better health Supporting our employees and the community through COVID-19 For personal use only Donation of 100,000 face masks Food relief to international students Hygiene packs to international students $500,000 to support Lifeline 4
Slide 6: FY20: Group results
FY20: Group results For personal use only $2.5b $150.1m $16.6m total Group revenue Group UOP net investment income up 3.4% down 25.6% down 54.0% Statutory operating profit $118.1 down 36.0% $89.2m 19.8cps 4.0cps NPAT statutory EPS final dividend down 40.3% down 40.0% down from 13.0cps 14.5% 34.8 $57
Slide 7: FY20: Summary observations
FY20: Summary observations For personal use only Business fundamentals remain strong Business silver linings - arhi policyholder growth of 1.9% (accounted for 41.5% of total - Group remains well capitalised with $57.0 million in available industry net growth) with premium revenue ▲2.9% and net capit
Slide 8: Group income statement
Group income statement ($m) FY20 FY19 Change Key drivers of result For personal use only Net premium revenue 2,439.6 2,340.8 ▲4.2% Net claims incurred1 (1,955.3) (1,829.8) ▲6.9% - CV19 impact on claims and pricing. Other underwriting revenue 3.5 3.6 ▼2.8% - Other CV19 impacts especially on nib Trave
Slide 9: Key focus areas
Key focus areas For personal use only Ongoing CV19 response and business adaptation Personalisation business transformation strategy Market growth and share Claims and operating cost efficiency and pricing Regulatory reform and opportunities (eg. risk equalisation) Minimise travel impact and losses
Slide 10: Outlook: arhi
Outlook: arhi For personal use only - Target annual net organic policyholder growth 2% - 3% - Unpredictable claims trajectory given CV19 - Net margin circa 6% - Ever present premium pricing risk - Prudent capital management - Managing health risk and digital health - Opportunistic M&A 9
Slide 11: Outlook
Outlook For personal use only iihi New Zealand nib Travel China Honeysuckle Health - Slow recovery in - Positive market - Slow recovery in - Sell health - Development of market conditions fundamentals market conditions insurance in China data science capability - Positive medium- - Expansion of iwi
Slide 12: August 2020 snapshot
August 2020 snapshot Sales Lapse Net growth Year to 14 August For personal use only 2020 2019 2020 2019 2020 2019 arhi1 17,901 16,415 (10,703) (12,408) 7,198 4,007 iihi1 5,646 14,396 (8,269) (9,307) (2,623) 5,089 NZ2 2,476 6,231 (1,366) (1,610) 1,110 4,621 nib Travel Domestic 198 103,785 Internation
Slide 13: Questions and Answers
For personal use only Questions and Answers 12