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NHF - Macquarie rates the stock as Neutral

PUBLISHED

2021-03-17

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Macquarie puts the spotlight on the deteriorating trend in risk equalisation (RE) which illustrates that older persons are capturing more of the value from private health insurance versus the younger/healthier cohorts.

The government is reviewing the RE framework, expected to complete by early 2022, that should reward insurers for improving the cost structure of the industry.

The broker expects nib Holdings will be one of the largest contributors to the risk equalisation (RE) pool going ahead.

Neutral retained with the target falling to $5.45 from $5.80.

Sector: Insurance.

 

Target price is $5.45.Current Price is $5.59. Difference: ($0.14) - (brackets indicate current price is over target). If NHF meets the Macquarie target it will return approximately -3% (excluding dividends, fees and charges - negative figures indicate an expected loss).