NIB Holdings Result Beats Expectations Where It Counts; FVE Increased to AUD 6.90

NIB Holdings reported a 17% decline in net profit after tax to AUD 134 million for fiscal 2022, with an investment loss of AUD 30 million masking the strong underlying result. Operating profit (pretax before amortisation, investment income, and finance costs) rose 15% to AUD 235 million. The investment loss caused by rising bond yields is unrealised and should reverse as holdings mature. While NPAT was in line with our forecast, ignoring volatile investment income, the underlying performance of each division was pleasingly better than we expected.