The NIB Holdings Limited (ASX: NHF) share price is up more than 2% after releasing its FY26 half-year result.
NIB is one of the largest private health insurance providers in Australia.
NIB FY26 half-year result
Here are some of the main financial highlights from the six months to 31 December 2025:
- Group revenue increased 7.7% to $1.9 billion
- Group underlying operating profit increased by 22% to $129.1 million
- Statutory operating profit rose 17.8% to $100.6 million
- Statutory net profit after tax (NPAT) flat at $82.9 million
- Interim dividend per share flat at $0.13
What happened?
The business reported a few positive aspects thanks to the numbers.
NIB’s total people covered increased by 1.9% to 1.947 million.
In the Australian residents health insurance (ARHI) segment, insurance revenue grew 7.1%, thanks to policy growth of 2.2% to 745,153 and pricing changes to “address claims inflation”. Insurance service costs grew 7.3% to $1.4 billion. Underlying operating profit increased 4.3% to $104.3 million. NIB said that its approved pricing for its policies is more than 5%.
In the international health insurance segment, revenue grew 8.8% to $116.8 million, underlying operating profit grew by 23.3% to $15.9 million. Policyholders rose 1.6% to $225,217.
New Zealand insurance revenue increased 11.1% to $217.4 million and underlying operating profit jumped 138.6% to $3.9 million. Policyholders fell by 3.2% to 156,527 after a significant repricing to address claims inflation.
NIB health services revenue grew 84.7% to $13.3 million and underlying operating profit rose 106.3% to $0.2 million.
NIB Thrive (its NDIS business) revenue rose 8.5% to $29.3 million, underlying operating profit grew 4.8% to $8.8 million and statutory operating profit improved 100% to $0.
Outlook for the NIB share price
The company said that its FY26 guidance for group underlying operating profit is for between $257 million to $267 million.
In the ARHI segment, it’s targeting above-system policyholder growth and a stable full-year underlying net margin in the 6% to 7% target range, with pricing “aligned to estimated underlying base claims inflation”.
International health is expected to “continue its ongoing strong contribution” to underlying operating profit.
The New Zealand is continuing to “recover strongly” with a focus on the customer experience and value proposition.
Overall, the company’s underlying financials are going in the right direction. It could be undervalued on a long-term basis and it may be one of the ASX dividend shares to consider, but it’s not one I’m looking to buy for my own portfolio.
