The NIB Holdings Limited (ASX: NHF) share price is down 3% after the healthcare business announced the retirement of its CEO.
NIB is one of the largest private health insurers in Australia.
Mark Fitzgibbon retires
The NIB Managing Director and CEO Mark Fitzgibbon has told the board he’s going to retire on 1 September 2024. He has been in charge of the business since 2002, leading it to become one of the 100 biggest companies on the ASX.
The NIB chair David Gordon said:
Mark has been a tremendous leader at nib and has had an enormous impact on the Australian health sector, making an extraordinary contribution over more than two decades.
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 NIB CEO
NIB’s Gordon announced that Ed Close has been selected to be the new Managing Director and CEO. He’s expected to take up the position formally before the end of 2024.
Ed Close is currently the chief executive of NIB’s core Australian residents’ health insurance business, where he has “driven strong growth”. He oversees product development, claims, customer services, and leads NIB’s strategic partnerships with brokers and white label partners.
Gordon said that Ed Close’s appointment reflects the extensive skills and expertise of NIB’s executive management:
I’m delighted with Ed’s appointment. It is a testament to Mark’s leadership, and team development, that we can appoint Ed with great confidence.
Ed has deep insights into the way nib can continue to help shape the future of healthcare in Australia and he has the support of nib’s senior executive team and the board to achieve that. We look forward to working with him.
Final thoughts on NIB shares
NIB is one of the best operators in the market, but how much will the loss of its long-term leaders affect things? We’ll have to see how things turn out. It could be a long-term opportunity at this level if subscribers keep rising, but growth may slow if households can’t afford to pay for the service amid this high cost of living period.
There are other ASX growth shares I’d rather buy for my own portfolio.
