Why the NIB (ASX:NHF) share price is heading south today

NIB is making some changes internally.
The post Why the NIB (ASX:NHF) share price is heading south today appeared first on The Motley Fool Australia. –

The NIB Holdings Limited (ASX: NHF) share price is edging lower on Tuesday morning. This comes as the private health insurer announced an update regarding one of its business segments.

At the time of writing, NIB shares are fetching for $6.80, down 1.02%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 0.47% to 7,349.4 points.

What did NIB announce?

According to its release, NIB advised that travel insurance sales to Australian and New Zealand residents will be temporarily paused. This includes all brands as well as white label partners with current underwriting arrangements coming to an end.

NIB confirmed that international sales, which account for 75% of total NIB travel insurance sales are not affected. The pause is also expected to not have a material financial impact on the group.

The halt is scheduled to occur next week on 5 October.

Travellers who purchased travel insurance before this date will not be affected, and coverage will continue as normal.

NIB is currently pursuing new underwriting arrangements to ensure they are cost-effective and support future growth ambitions. However, it’s anyone’s guess where the NIB share price could end up in the coming months.

NIB managing director, Mark Fitzgibbon commented:

Refreshing underwriting agreements on a regular basis helps ensure we deliver optimal and sustainable outcomes both commercially and for our customers. The ending of current arrangements is obviously disruptive but we’ll emerge in better shape as travel and market conditions recover.

COVID-19 and prolonged border closures continues to have an impact on all elements of the travel industry.

We plan to resume selling travel insurance to Australian and New Zealand residents as soon as possible to support our customers.

NIB share price summary

NIB shares have been on the move since this time last year, rocketing 60% over the period. When looking at year-to-date, its shares are up around 15%.

Based on today’s price, NIB commands a market capitalisation of roughly $3.14 billion and has approximately 457.7 million shares outstanding.

The post Why the NIB (ASX:NHF) share price is heading south today appeared first on The Motley Fool Australia.

Should you invest $1,000 in NIB right now?

Before you consider NIB, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NIB wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why this analyst is bullish on the NIB (ASX:NHF) share price
2 small-cap ASX shares with an edge over rivals

NIB (ASX:NHF) share price lower despite ACCC authorisation
Why BHP, NIB, Northern Star, & Redbubble shares are tumbling lower

5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. 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 recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!