Health insurer Nib buys ANZ's health insurance book

Thursday, 15 October 2015

Australian insurer Nib has bought the the medical insurance business of ANZ bank-owned Onepath Life.

Nib established itself in New Zealand in 2012 with the purchase of the Tower medical insurance business.

It paid $24.67 million for Onepath's medical insurance business, leaving the insurer to focus on selling life and disability insurance, largely to ANZ bank customers.

The purchase still needs to be passed by the Reserve Bank, which regulates insurance in New Zealand. A decision is expected before Christmas.

Once the acquisition goes through, Nib expects to see an immediate jump in earnings a share in its New Zealand business.

The deal will bulk up Nib, giving it a total of 200,000 New Zealand health insurance customers, about 15 per cent of the insured market. OnePath Life has about 20,000 medical insurance policies covering 44,000 people.

Nib's managing director Mark Fitzgibbon said in an announcement to the ASX that the company's aim was to grow its presence in New Zealand, especially in the adviser market. The majority of the Onepath policies were sold by insurance advisers.

He promised Onepath policyholders a 'seamless' transition to Nib.

Rob Hennin, the chief executive of Nib's New Zealand business said 70 per cent of Kiwis has no health insurance, so there was considerable growth potential for the company.