Nib flags higher 1H26 non-recurring expenses impacting statutory profit

Nib Holdings Limited expects approximately AUD17 million in non-recurring cash expenses for 1H26, a figure higher than previously forecast during its FY25 results briefing. This increase partly stems from a net cash expense of approximately AUD8 million in 1H26, related to historical adjustments for the Private Health Insurance Australian Government Rebate (AGR) and the NSW Hospital Insurance Levy (HIL). The company clarified its approach for claiming AGR and calculating HIL, following recent clarifications and legal determinations.

In addition to these adjustments, the 1H26 non-recurring cash expenses include restructuring costs tied to a Group-wide productivity program and strategic initiatives, such as the review of nib Travel. The company expects an outcome for the latter in FY26.

A non-cash expense of approximately AUD4.5 million is also projected for 1H26. This relates to the reduction in the value of redundant acquired software within nib Thrive, which will be recognized through the amortisation of acquired intangibles. Despite these non-recurring items, nib's 1H26 Group Underlying Operating Profit (UOP) performance is tracking to expectations, pending the 2Q26 risk equalisation outcome.