The NIB Holdings Ltd (ASX: NHF) share price hit a record high of $7.34 today despite the private health insurance business not revealing any specific news to the market.
On May 13 NIB announced that it has completed the $24.2 million acquisition of QBE Travel, which was the travel insurance business of giant underwriter QBE Insurance Group Ltd (ASX: QBE).
However, the biggest single factor causing investors to bid NIB Holdings shares higher is the surprise federal election win of the Coalition on May 18 2019.
The result could help NIB in the view of investors as a Coalition government is likely to encourage more Australians to take up private health insurance policies via its fiscal policies and by subsidising the public healthcare system, Medicare, less than the Labour Party.
The rate at which private health insurers like NIB and Medibank Private Ltd (ASX: MPL) can raise premiums on an annual basis is also regulated by the government.
For the six months ending December 31 2018 NIB posted a net profit of $74.3 million on revenue of $1.2 billion.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.