Thu Sep 19 07:00:36 UTC 2024: ## NIB Holdings Reassures Investors Following Share Price Drop

**Sydney, Australia – September 20, 2024** – NIB Holdings Ltd (ASX: NHF), a leading Australian health insurer, has sought to reassure investors following a recent decline in its share price. The company’s shares have dropped nearly 22% over the past month, despite strong FY24 results showing a 9% increase in revenue and a 67% jump in profit.

The ASX’s Aware segment contacted NIB regarding these recent share price movements, prompting a response from the company that aimed to clarify matters. NIB emphasized its consistent message that private health insurance is a capital-light business with solid returns. The company highlighted its focus on policy growth and maintaining a target margin of 6-7%.

In response to questions about earnings guidance, NIB reiterated its long-term focus, noting that it prioritizes policy growth and target margin as key drivers of its share price. While not providing short-term guidance, NIB emphasized its strong FY24 performance, marking its best year since listing in 2007.

Despite some analyst concerns about policy growth, NIB pointed to a record start to FY25 and the recent appointment of its new CEO, Mark Fitzgibbon, as positive factors. The company also acknowledged that media coverage on private hospital contracting may have contributed to short-term volatility in its share price.

NIB’s response to the ASX aimed to assure investors that its internal financial estimates were in line with consensus expectations and that the company is committed to long-term value creation. Notably, NIB reported a 42% increase in net policy growth at the start of the new financial year.

Analysts remain bullish on NIB shares, with Goldman Sachs reiterating its buy rating with a $6.60 price target. The investment bank cited NIB’s defensive position in the private health insurance sector, a manageable claims environment, and policyholder growth exceeding industry averages.

While NIB shares closed 0.17% lower at $5.72 today, the company’s response to the ASX aimed to address investor concerns and reaffirm its commitment to long-term growth.

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