HUNTER-based private health insurer NIB has posted a $2 million net profit drop, a result it partially blamed on higher than forecast claims costs.
Releasing its half-year profit results Monday, the company said its consolidated net profit was $36.29 million, down 5 per cent from $38.31 million in the prior corresponding period.
Nib’s net underwriting result was also down 8.6 per cent, from $42.7 million in the first half of last year to $39.1 million, thanks to higher claims costs and one-off expenses.
The health fund’s premium revenue rose 11 per cent to $633.34 million.
Chief executive officer Mark Fitzgibbon said NIB had upgraded its pre-tax underwriting profit guidance from $75 million to $78 million due to anticipated additional earnings from its newly acquired New Zealand business.
‘‘In terms of top-line performance, we have seen strong revenue growth across the entire business for the six months ended 31 December 2012,’’ Mr Fitzgibbon said in a statement.
The company declared a fully-franked interim dividend of five cents per share, up from 4.25 cents per share in the prior corresponding period.