NIB shares rally 9% on earnings upgrade

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Shares in health insurer NIB have jumped nine per cent following an annual profit upgrade, thanks to a “benign” claims environment.

NIB has forecast underlying operating profit of about $184 million for the year ending June 30, an 11.5 per cent increase on its previous guidance of $165 million, and the group increased its operating profit guidance by 14.2 per cent to $169 million.

Managing director Mark Fitzgibbon says a benign claims environment, particularly at its flagship Australian residents health insurance business, was the main driver behind the earnings upgrade, which saw the stock jump 51 cents, or 8.9 per cent at 1200 AEST, to a four month high of $6.21.

© AAP 2018

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