The NIB Holdings Ltd (ASX: NHF) share price is edging slightly lower today following the company's latest cash giveback.
At the time of writing, the private health insurance giant's shares are swapping hands at $7.77, down 0.77%.
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NIB returns additional savings to members
Investors are sending NIB shares into negative territory despite the S&P/ASX 200 Index (ASX: XJO) climbing today.
For context, the ASX 200 Index is up 1.11% to 6,794.4 points after Wall Street recorded strong gains overnight.
In its release, NIB advised it is returning an additional $40 million in health insurance claims savings to its members. This brings the total amount of support provided by the business since the start of the pandemic to roughly $145 million.
Last year, the company provided $15 million in a one-off COVID credit, reflecting claims savings made during that year. The credit was applied as a discount to premium payments from September 6 2021.
The latest cash back funds will be deposited into customers' bank accounts by 30 November 2022.
However, the financial package is dependent on the policy and level of cover.
For members with Hospital and Extras combined policies, they will receive on average about $71.
For those with hospital only policies or extras only policies, they'll get approximately $47 or $15, respectively.
NIB managing director, Mark Fitzgibbon commented:
The give back is in recognition of members' reduced ability to access healthcare services during the COVID-19 pandemic.
We saw a significant reduction in hospital and healthcare treatment.
To date, the volume of catch up in claims has been lower and slower than expected, which is why we're able to return a further $40 million to our members.
NIB share price summary
Over the last 12 months, the NIB share price has travelled 15% higher despite the recent market volatility.
In comparison, the benchmark ASX 200 index has fallen by 6% over the same time frame.
Based on today's price, NIB presides a market capitalisation of roughly $3.57 billion.
