FINWIRES · TerminalLIVE
FINWIRES

nib's Divestment Strengthens Focus on Core Business, Says Jefferies

By

nib holdings (ASX:NHF) will be able to focus on its core private health insurance business and related growth opportunities after the divestment of its Australian and New Zealand travel insurance business, Jefferies said in a note on Tuesday.

The insurer sold the travel insurance businesses to Allianz Partners for AU$50 million following the conclusion of a strategic review of nib Travel.

The investment firm said it has reset its investment income assumptions based on higher interest rates, positively impacting returns.

Regulatory changes are expected to reduce participation from older customers from 2027, as the government is set to remove the higher Private Health Insurance rebate for people aged 65 and over. This, however, is seen to be offset by a decrease in claims from the older age group, it added.

Jefferies forecasts nib's adjusted EPS to rise by 0.9% in fiscal 2026 and 7.3% in fiscal 2027.

The brokerage maintained a hold rating but raised price target to AU$7.60 from AU$7.15.

Related Articles

Asia

Cosmo Chemical Shares Rise 6% on KRW15.5 Billion EcoPro Supply Deal

Cosmo Chemical (KRX:005420) secured a supply contract for cobalt sulfate, a secondary battery cathode material, from EcoPro (KOSDAQ:086520) subsidiary EcoPro EM, according to a Tuesday Korea Exchange filing.The contract, worth 15.47 billion won, is valid till Dec. 31, 2031.Shares of Cosmo Chemical rose nearly 6% in recent trade.

$KOSDAQ:086520$KRX:005420
Asia

Grasim Industries Earmarks INR31 Billion Capex for Lyocell Capacity Expansion

Grasim Industries (NSE:GRASIM, BOM:500300) has received board approval for Phase II expansion of its Lyocell capacity in Harihar, Karnataka, involving capital expenditure of 30.9 billion Indian rupees, according to a Monday filing with the Indian bourses.The expansion will be executed in two phases, adding a total capacity of 110,000 tonnes per annum (TPA) through two 55,000 TPA lines. The first phase is expected to be completed by mid-2028, followed by the second phase by mid-2030.The Phase II expansion will complement Phase I of its Lyocell plant in Harihar, which is already under construction and is expected to be commissioned by mid-2027, the filing stated.

$BOM:500300$NSE:GRASIM
Asia

SEC Wins KRW4.2 Billion Equipment Supply Order from Hanwha Aerospace

South Korean tech and inspection company SEC (KOSDAQ:081180) won an order from Hanwha Aerospace (KRX:012450) to supply the latter with non-destructive testing equipment, according to a Tuesday filing with the Korea Exchange.The contract, worth 4.2 billion won, is valid till Dec. 31, 2027.Shares of Hanwha Aerospace rose nearly 1% in recent trade.

$KOSDAQ:081180$KRX:012450