INSURANCE

Nib upgrades profit forecast for 2015-16

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Original article by Tim Binsted
The Australian Financial Review – Page: 22 : 5-Nov-15

Australian-listed private health fund NIB Holdings has advised that its 2015-16 statutory profit is likely to be within the range of $A90m to $A100m. The group had previously forecast a profit of $A85m to $A90m and has attributed the improved forecast to a strong performance in the first quarter. Chairman Steve Crane says NIB gained more than 23,000 additional policyholders in 2014-15, and now provides health insurance for more than one million people.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF HEALTH

Medibank in sights after shock CEO exit

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Original article by Tim Binsted
The Australian Financial Review – Page: 23 & 30 : 22-Oct-15

Some eight per cent of Medibank Private shareholders voted against the health insurer’s remuneration report at its 2015 AGM. Meanwhile, Kieren Chidgey of Deutsche Bank has expressed surprise over the sudden decision of Medibank CEO George Savvides to step down in March 2016. A number of investors have said they should have been consulted about the departure of Savvides, who has been CEO for 14 years.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, DEUTSCHE BANK AG, VGI PARTNERS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Coalition looks to insurance rebate tweak

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 29-Sep-15

The Australian Government may consider changes to the private health insurance rebate. Health Minister Sussan Ley says feedback from consumers shows that the introduction of means-testing for the rebate has resulted in higher out-of-pocket costs and forced some consumers to downgrade their insurance coverage. Income-based means-testing for the 30 per cent rebate was introduced by the former Australian Labor Party government.

CORPORATES
AUSTRALIA. DEPT OF HEALTH, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

Medibank accused of bullying in contract talks

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Original article by Jessica Gardner
The Australian Financial Review – Page: 19 : 17-Jul-15

The Australian Private Hospitals Association (APHA) has criticised Medibank Private over its dealings with private hospital operator Calvary Health Care. Medibank abandoned negotiations over a new contract with Calvary in early July 2015, and the APHA has claimed that the private health insurer used bullying tactics. Medibank has rejected the accusations and says it acted appropriately in its negotiations with Calvary.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CALVARY HEALTH CARE LIMITED, AUSTRALIAN PRIVATE HOSPITALS ASSOCIATION LIMITED, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Professional indemnity premiums likely to rise

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 13-Jul-15

The cost of professional indemnity insurance for Australian small and medium businesses fell by 18 per cent in 2013-14, according to BizCover. Factors such as strong competition in the sector and excess insurance capacity also resulted in premiums falling by an additional two per cent in 2014-15. However, experts note the growing trend for mergers and acquisitions in the global insurance sector, which may put upward pressure on premiums.

CORPORATES
BIZCOVER PTY LTD, MORGAN STANLEY AND COMPANY INCORPORATED, ACE INSURANCE COMPANY, CHUBB CORPORATION, WESFARMERS LIMITED – ASX WES, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, XL GROUP, CATLIN GROUP, BERKSHIRE HATHAWAY INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

nib snares World Nomads

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Original article by Tim Binsted
The Australian Financial Review – Page: 24 : 9-Jul-15

Australian-listed NIB Holdings has expanded into the travel insurance market with a $A95m deal to buy World Nomads Group. NIB MD Mark Fitzgibbon says World Nomads will complement the group’s core private health insurance business. World Nomads specialises in the distribution of travel insurance policies, and boasted normalised EBITDA of $A10m and revenue of $A117m in 2014-15.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, WORLD NOMADS GROUP PTY LTD, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, CITIGROUP PTY LTD, AIRBNB INCORPORATED, TRAVEL INSURANCE DIRECT PTY LTD, SURESAVE TRAVEL INSURANCE, LONELY PLANET PUBLICATIONS PTY LTD, JP MORGAN AUSTRALIA LIMITED, KING AND WOOD MALLESONS

Medibank flexes muscles, axes Calvary

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Original article by Tim Binsted
The Australian Financial Review – Page: 23 : 2-Jul-15

Negotiations between Australian-listed Medibank Private and Calvary Health Care have failed, prompting Medibank to end its contract with the private hospital group. Medibank and ahm members who use Calvary’s hospitals from 1 September 2015 may incur out-of-pocket expenses as a result, although Medibank will continue to pay some of its customers’ costs. Calvary has indicated that it is keen to resume discussions with Medibank.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, CALVARY HEALTH CARE LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

nib leaks customers’ private details

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Original article by Tim Binsted, Paul Smith
The Australian Financial Review – Page: 19 : 23-Jun-15

Listed health insurer nib has apologised to customers after their personal details were inadvertently made available to other customers via its web portal. The insurer has stressed that credit card details were not disclosed, although customers have said that they were able to view information such as the past claims of other customers. Data privacy agencies are expected to investigate the breach of confidentiality.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, PRIVATE HEALTH INSURANCE OMBUDSMAN, AUSTRALIA. OFFICE OF THE AUSTRALIAN INFORMATION COMMISSIONER, PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL, MEDIBANK PRIVATE LIMITED – ASX MPL, INTELLIGENT BUSINESS RESEARCH SERVICES PTY LTD

Insurer’s premiums cast cloud

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Original article by Tim Binsted
The Australian Financial Review – Page: 18 : 1-Jun-15

Morgan Stanley’s Daniel Toohey values Medibank Private shares at $A1.85, compared with the issue price of $A2 for retail investors in the 2014 IPO. Morgan Stanley forecasts that Medibank’s lapse rate will rise from 10 per cent to 15 per cent, while Toohey says the growth of its budget-priced ahm brand may come at the expense of the main brand’s customer base. Medibank’s earnings are also likely to be affected by customers opting to reduce their health insurance coverage in order to save money.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE SECURITIES PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Fortnum drops commissions for life advice

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 18-May-15

Fortnum Financial Advisers will abolish upfront commissions on the sale of life insurance policies from 1 July 2015. Its financial planners will instead use either a fee-for-service or hybrid commission model, and executive chairman Ray Miles says there was widespread support for the change among its advisors. Centrepoint Alliance and AMP are among the other groups that have abolished upfront commissions.

CORPORATES
FORTNUM FINANCIAL ADVISERS PTY LTD, AMP LIMITED – ASX AMP, CENTREPOINT ALLIANCE LIMITED – ASX CAF