What's going on with the NIB share price today?

We now know when the private health insurer's long-serving CEO is stepping down.

| More on:
A man looking at his laptop and thinking.

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 is underperforming on Thursday morning.

At the time of writing, the private health insurance provider's shares are trading largely flat.

As a comparison, the ASX 200 index is up 0.65%.

Why is the NIB share price underperforming?

The catalyst for this underperformance has been confirmation that the company's long-serving managing director and CEO is stepping down in a touch over two months.

According to the release, Mark Fitzgibbon will formally resign from the role on 30 November. Mr Fitzgibbon joined NIB in 2002 as its leader and took the company through its demutualisation and listing on the ASX in 2007.

It is worth noting that this isn't brand new information. In July, the company revealed that Fitzgibbon was planning to hand in his resignation in September.

At the time, the company stated:

From modest beginnings in 1952, today nib provides more than 1.6 million Australian and New Zealand residents with private health insurance; it looks after the health and wellbeing needs of more than 200,000 international students and workers; nib is Australia's third-largest travel insurer, a 24-7 global business; and it helps around 40,000 participants in Australia's disability sector. For the last 22 years, Mark has been at the helm of a company that has undergone a remarkable transformation, and that transformation is a great credit to his leadership.

New CEO

Replacing Mark Fitzgibbon will be Ed Close. He is currently chief executive of NIB's core Australian Residents Health Insurance (arhi) business. In this role, Close oversees product development, claims, customer services, and leads NIB's strategic partnerships with brokers and white label partners.

NIB chair, David Gordon, described Ed Close as an "exceptional leader" and "able to bring NIB's strategy to life and deliver continued strong growth."

Should you invest?

Goldman Sachs is feeling positive about NIB and sees value in its share price.

According to a recent note, the broker has a buy rating and $6.60 price target on the company's shares.

Commenting on its buy rating, the broker said:

NHF is a private health insurer with operations across Australian residents health insurance, New Zealand health insurance, International health insurance and Travel. We are Buy-rated on NHF given: 1) It offers defensive exposure to the private health insurance sector 2) The claims environment (utilisation / inflation) has been relatively manageable 3) NHF policyholder growth has been better than industry, 4) Expense buffers available to support margins and 5) Strong approved rate increases.

Should you invest $1,000 in Clearvue Technologies Limited right now?

Before you buy Clearvue Technologies Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Clearvue Technologies Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Beautiful young woman drinking fresh orange juice in kitchen.
Healthcare Shares

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

This stock is having a day to remember on Thursday. But why?

Read more »

A group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.
Healthcare Shares

Trump executive order to hit these 3 ASX pharmaceutical stocks

Donald Trump’s new executive order caused these 3 ASX pharmaceutical stocks to crash on Monday.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Healthcare Shares

Guess which ASX 200 stock is jumping 16% on big news

Let's find out what news is getting investors excited this afternoon.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Healthcare Shares

Why is this ASX 300 stock crashing 18% today?

Investors are rushing to the exits. But why? Let's look into things.

Read more »

Health professional working on his laptop.
Healthcare Shares

Are CSL shares at risk from the Trump tariffs?

How exposed are CSL shares to potential Trump medicinal tariffs?

Read more »

Donor donates blood in medical clinic. Beautiful European woman of 30 years sits in medical chair looking into camera and smiling.
Healthcare Shares

What did CSL have to say at Macquarie's 2025 conference?

Does this business have a healthy growth outlook?

Read more »

smiling health care workers in a medical setting
Healthcare Shares

Sonic Healthcare shares are down more than 40% since 2021. Will its AI initiative be the catalyst for a turnaround?

Could AI spark a recovery for this ASX healthcare stock?

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Why is this ASX All Ords stock jumping 7% today?

This stock is ending the week strongly. Let's find out what is getting investors excited.

Read more »