NIB upgrades earnings guidance
Stock
NIB Holdings (NHF) $5.59 as at 31/10/2018
Event
Health insurer NIB is holding their AGM today which also came with a healthy ~5% upgrade to guidance for FY19. Now looking for underlying profit of above $190m vs previous guidance of $180m+, the MD Mark Fitzgibbon flagged continued “benign claims environment” contributing to the better outlook. While this is good news, claims are something that NIB can’t really control hence the upgrade is of low quality in our view.
The stock has jumped today on the back of the news, recovering some if its recent slide. Private health cover, particularly in Australia, has seen stagnant levels of growth over the past few years, as wage growth stalls, cost of living pressures rise while low inflation has kept a lid on premium hikes.
NIB Holdings (NHF) Chart
Market Matters Take/Outlook
