Shares in nib holdings soared after the health insurer upped its profit guidance.
A short time ago, they were up almost 10% to $6.245.
The company says its underlying operating profit for the financial year to June 2018 will be be $184.0 million and Statutory Operating Profit of $169 million.
nib’s previous guidance was a minimum of $165 million and statutory operating profit at least $148.0 million.
Managing Director Mark Fitzgibbon says a benign claims environment is the main factor behind the revised outlook.
“Our previous guidance was premised upon an arhi net margin towards the upper end of our 5% to 6% target range but we now expect it to be closer to 6.9%, following completion of a one-month hindsight review of claims,” he says.
“Our international students and workers businesses have also exceeded our expectations.”
He says broader economic conditions were also causing slower growth in the volume of medical, dental and other treatment.
Business Insider Emails & Alerts
Site highlights each day to your inbox.