Jefferies sees pending claims, inflation weighing on Australia's NIB

NIB Holdings

20/11/2022 21:06

** Analysts at Jefferies say the extent of catch-up
insurance claims coupled with the impact of rising inflation
will add to an earnings downside for Australia-based health and
medical insurance company NIB Holdings  NHF.AX 
    ** Jefferies cuts NHF's price target to A$7.75 from A$8.25,
retains a 'hold' rating 
    ** Says despite stronger investment performance, reported
claims have been affected by changes in certain provisions set
by the company which has seen adjusted claims increase steadily 
    ** Jefferies says the resumption of travel plus growth in
policies in New Zealand have added to the ongoing buoyancy of
Australian resident insurance  
    ** "We like NHF but are unsure of the ultimate path of
claims and provisioning"- Jefferies said.
    ** One out of 12 analysts rate the stock 'buy', nine 'hold'
and two 'sell'; their median PT is A$7.53- based on Refinitiv
Eikon data 
    ** Stock up 1.6% this year, as of last close
 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))