Nib net profit up 3% to $67.6mln in the year to June 30

The health insurer Nib has reported a 3% rise in the net profit of $67.6 million in the year to June 30, from $65.5 million in the previous year.

The company’s preferred measure of performance and its underwriting profit stood at $70.7 million. That was up 1.6% from the previous year on a like-for-like basis, said the company’s Managing Director Mark Fitzgibbon.

Dr. Fitzgibbon also said, “Despite the expected impact of the introduction of income testing of the federal government health insurance rebate, the market would keep growing.  He also said, “Increasingly, people don’t want to risk having to rely on the public health system.”

Dr Fitzgibbon stated, “We still see as our core strength our attraction in the under 40s market but we are very determined to grow the market share in the over 55s and corporate segments.” Further he added, “We also expect our international operations more and more important to our future earnings.”

Meanwhile, Dr. Fitzgibbon also stated, “The Company expects to make an underwriting profit in the range of $70 million to $75 million in the 2012-13 financial year.”

The health insurance company declared a fully-franked final dividend of 5 cents a share.

Nib is Australia’s fastest growing health fund that provides affordable health cover to more than 800,000 people nationwide. The company has recently become the first Australian health fund to demutualise and list on the Australian Securities Exchange.