Macquarie sees 'notable' margin squeeze for Aussie health insurers despite premium hike

NIB Holdings

27/02/2025 04:00

** Macquarie expects "notable" margin squeezes for Australia's health insurance industry in FY26-27 amid rising costs and claims

** Says investors might be "missing" this margin squeeze in their opinion, "implying long positions in this sector should be viewed with caution"

** Adds, "We estimate a 55-60 basis points impact from the levy for Medibank"

** Health insurers nib Holdings NHF.AX, Medibank Private MPL.AX hiked health premiums by an average of 5.79% and 3.99% respectively after the federal government approved premium hike ahead of elections in May

** MPL up as much as 11.2% to record high of A$4.470; NHF soars as much as 7.1% to A$6.800

 (Reporting by Shivangi Lahiri in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com;))