NIB Holdings Broker Ratings Updated: 13th November

Morgans – After the Annual General Meeting remarks from nib Holdings, which covered a business update for July to October FY24, Morgans has made some minor positive adjustments to its forecasts. However, these changes are balanced out by a higher assumed discount rate. Setting aside the conclusion of a contract with Qantas Airways (QAN), the group’s revenue for the year to date has risen by about 13% compared to the same period last year, a result that the analyst views as “relatively robust.”

Citi – Citi considers nib Holdings appealing, observing that ARHI is experiencing stronger growth compared to the previous year. Policyholders increased by 1.3% in the four months leading up to the end of October. Additionally, IIHI and the New Zealand operations are demonstrating good momentum. The broker highlighted that claims inflation is on the rise, partly due to some contract renegotiations with hospitals occurring out of the usual cycle. However, it believes that nib Holdings is well-equipped to handle this, especially in the short term.

Morgan Stanley – After the Annual General Meeting commentary, Morgan Stanley observes that the growth of policyholders for Australian Residents Health Insurance (ARHI) is aligning with their guidance. The broker also points out that any potential negative impact on Travel sales and revenue is balanced by an increase in policy numbers. Furthermore, management is anticipating the launch of a new product later in this half of the year.