NIB (ASX:NHF) share price on watch following business update

The NIB Holdings Limited (ASX: NHF) share price will be on watch today following a trading update and full-year outlook. Here's the details.

| More on:
asx share price on watch represented by lady looking through pair of binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The NIB Holdings Limited (ASX: NHF) share price will be on watch this morning. This comes after the company provided investors with a trading update as well as a full-year outlook.

At last week's market wrap, the private health insurer's shares finished at $5.39.

How did NIB perform?

NIB shares could be on the move today as investors weigh up the company's latest trading performance and outlook.

For the 9 months ending 31 March 2021, NIB reported that its business was "performing well" despite the ongoing uncertainty surrounding the COVID-19 pandemic.

The company's core Australian Residents Health Insurance (arhi) business saw an increase in policyholders, recording a total of 641,804, up 3.7% compared to FY20. NIB stated that claims experience, especially risk equalisation, is lower than originally expected.

Consequently, unaudited group underlying operating profit (UOP) for the period is sitting at $140.9 million.

The company's provision for deferred and suspended claims during the pandemic (COVID-19 provision) for arhi came to $59 million. This compares to $70.7 million recorded for the first half of FY21. NIB noted that deferred healthcare treatments during COVID lockdown periods appears to be slower for Q3 than during the first half of FY21. The group stated that forecasting claims experience remains challenging in the current environment.

Nonetheless, according to NIB, its strong arhi performance coupled with the stable trading conditions in New Zealand is offsetting its weaker performing segments. These include the company's international inbound health insurance (iihi) and travel insurance businesses.

NIB is focusing on diverting its investment to a number of projects. It hopes that providing improved health services to members and travellers will lead to continued growth.

The NIB share price will be in focus today after the company advised it is forecasting group UOP to increase to between $200 million and $225 million. In the first half of FY21, the company achieved a UOP of $86.9 million.

NIB revealed it will present its FY21 results to the ASX on 23 August 2021.

About the NIB share price

Over the last 12 months, the NIB share price has gained around 12% but has fallen close to 11% year to date. The company's shares reached a 52-week high of $6.16 at the start of this year, before slightly pulling back.

On valuation metrics, NIB commands a market capitalisation of roughly $2.4 billion, with 457.7 million shares on issue.

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

CSL shares are in the red for 2024. Are they a buy?

Meanwhile, the broader market has extended to new highs this year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Share Market News

Guess which ASX 300 stock is jumping 11% on big news

Big news is giving this stock an even bigger lift on Tuesday. What's happening?

Read more »

Two lab workers fist pump each other.
Healthcare Shares

Guess which ASX 200 healthcare stock is starting the week with a bang on big news!

What is getting investors excited today? Let's find out.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

2 All Ords ASX healthcare shares making BIG moves on quarterly updates

These two ASX healthcare companies are seeing heavy trading on Thursday.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

'Trading at a discount': Why now is the time to buy CSL shares

This investing expert says CSL shares now represent an appealing buying opportunity.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

Here's what could impact CSL shares from the biotech's AGM

The biotech giant's leadership had plenty to say.

Read more »

Man with a sleep apnoea mask on whilst sleeping.
Healthcare Shares

Why this fundie is backing ResMed shares in FY25

There's plenty more upside, this fund says.

Read more »