• Underlying operating profit of $105.8m, above market expectations
• Australian residents health insurance (arhi) segment performs strongly with 3.3% net policyholder growth and margins at top of target range
• Losses in New Zealand business in line with guidance, recovery plan progressing well

nib Holdings Ltd reported strong 1H25 results, with underlying operating profit (UOP) of $105.8m, above market expectations, albeit lower than 1H24 due to abnormally high arhi margins in the prior period and losses in the New Zealand business. Group revenue grew 7.7%, driven by above-system policyholder growth in arhi, assisted by price increases across all segments. The arhi segment delivered a strong result, with 3.3% net policyholder growth and margins at the top of the target range. Claims inflation is reducing, and the company is managing this through pricing, contracting, product design, and expense discipline. The New Zealand business recorded a $10.1m loss, in line with guidance, but the recovery plan is progressing well, with December and January being profitable. The company continues to focus on expense management, with the Group operating expense ratio reducing from 17.9% in 1H24 to 17.5% in 1H25. The company also made progress in scaling its adjacencies, with Midnight Health and Honeysuckle Health losses reducing, and the nib Thrive business delivering UOP growth and margin expansion.

nib expects the New Zealand business to rebound in 2H25 due to repricing and working day impact. The company continues to focus on disciplined growth and ongoing margin recovery through pricing, expense control, and digital-first experiences.