NIB pens war chest
The Age
Tuesday February 22, 2011
PRIVATE health insurer NIB will retain a war chest of as much as $75 million for acquisitions, even after handing back the same amount to shareholders in a return of surplus capital.Having failed in a $160 million bid for the mutually owned Geelong Medical & Hospital Benefits Association in December, NIB has opted for a one-off payment of 16 a share as part of a pact with its investors if it could not secure a takeover this financial year.The $75 million capital return is on top of a 4-a-share interim dividend after the country's only ASX-listed health fund delivered a profit of $39 million for the six months to December 31, down 9.5 per cent on the previous corresponding period.The dividend has been doubled from the previous half, reflecting growth in pre-tax profits of nearly $41 million from its health insurance underwriting.NIB shares closed at $1.41, up 8, or 6 per cent.
© 2011 The Age