nib Group lifts 1H26 profit, keeps dividend steady

nib Group delivered record revenue and profit growth for 1H26, with its interim dividend holding steady at 13 cents per share.

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The NIB Holdings Ltd (ASX: NHF) share price is in focus after the company reported first-half FY26 revenue of $1.9 billion, up 7.7%, and a 22% uplift in underlying operating profit to $129.1 million.

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What did nib Group report?

  • Revenue: $1.9 billion, up 7.7% from 1H25
  • Underlying operating profit (UOP): $129.1 million, up 22%
  • Net profit after tax (NPAT): $82.9 million, in line with 1H25
  • Earnings per share: 17.0 cents
  • Operating expense ratio: 16.5%, down 1 percentage point
  • Interim dividend: 13.0 cents per share, fully franked

What else do investors need to know?

nib's customer base grew to a record 1.95 million people in 1H26, supporting both revenue growth and a sustainable net margin in its core Australian residents business. Adjacent business lines like international health insurance and New Zealand operations contributed strongly, delivering their best first-half results since FY19.

The group's digital transformation is delivering real benefits, with 86% of Australian residents' claims now processed automatically and more than 70% of customers digitally connected. AI tools are helping drive greater productivity and enhance customer service.

What did nib Group management say?

Managing Director and CEO Ed Close said:

Customer experience remains a key focus. This is reflected in strong NPS outcomes and a continued shift to digital self-service, with the majority of customer interactions now occurring digitally. Delivering on customer expectations and providing value throughout the healthcare journey remains a core capability. Today, 94% of Australian residents health insurance claims are processed within 24 hours.

What's next for nib Group?

nib has guided for FY26 underlying operating profit between $257 million and $267 million, with much depending on continued improvements in its travel business and ongoing cost management. The company highlighted ongoing investment in digital experiences and AI to further boost efficiency and deliver better customer outcomes.

A strategic review of the nib Travel business is underway, and the group says its ongoing focus remains on improving health outcomes, customer value, and sustainable growth.

nib Group share price snapshot

Over the past 12 month, the nib Group share price has declined 2%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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