NIB Investors Likely to Focus on Soft Margins in Australia

Dow Jones
Aug 24

2342 GMT - NIB's share price could weaken today, says Citi. That's because NIB's Australian residents health insurance business disappointed in FY26. NIB reported soft margins within its arhi business. NIB guides to a stable annual underlying net margin of 6-7%. It also projects policyholder growth of 1.9%. "We note the moderation in growth and elevated lapse rates of 16.2% could be in part due to its repositioning to higher value silver customers," analyst Nigel Pittaway says. "However, it also likely reflects industry trends and is something nib will need to focus on moving forward." Citi expects the market to place more weight on the arhi disappointment than a recovery in New Zealand, core EPS beat and A$0.05/share special dividend. "We wouldn't be surprised to see the stock trade flat to down today," Citi says.

 

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