nib has announced today the acquisition of QBE’s travel insurance business (QBE Travel) for a total consideration of up to $25 million in line with its strategy to grow its World Nomads Group (WNG) travel insurance business.
QBE Travel is Australia’s fourth largest travel insurer and has an extensive national network of more than 2,000 travel agents nationally through partnerships such as the Express Ticketing Group and other well-known Australian brands. It also includes a 24-hour emergency assistance service, claims management and medical underwriting capability.
nib Managing Director, Mark Fitzgibbon, said the acquisition builds further momentum within the travel insurance business which aside from this transaction has already seen sales lift by 7% for FY18.
“Since acquiring WNG in mid-2015, we’ve made no secret that we like the fundamentals and growth prospects that underpin the travel insurance market,” Mr Fitzgibbon said.
“Travel insurance is much closer to health insurance than most imagine given more than 60% of travel insurance claims are medically related. And of course, people travelling internationally more and more is a mega-trend. We’re benefiting from this, not only in the Australian market but also in overseas markets which today account for almost half of our sales,” he added.
Mr Fitzgibbon said the QBE Travel business is in great shape and would not only significantly increase WNG’s presence in Australia but also build scale.
“Greater scale is becoming increasingly important as are opportunities to achieve revenue and cost synergies. Being part of the nib Group, allows for example, the WNG business to access nib hospital and provider networks, claims management capability and distribution channels,” he added.
The QBE Travel business will be rebranded to nib Travel Insurance on completion of the acquisition; however, there will be no changes to its high customer service standards. For QBE Travel customers, clients and employees it will be “business as usual”.
nib’s adjacent businesses, which includes travel insurance, international workers and students health insurance and our New Zealand operations, accounted for 30.4% of nib’s Group earnings in FY17.
“Aided by the contribution from QBE Travel, we see a future not too far away, in which these businesses will account for as much as 50% of our earnings,” Mr Fitzgibbon concluded.
Please see a copy of the media release also attached.
Teleconference Briefing
nib’s Chief Financial Officer & Deputy CEO, Michelle McPherson and World Nomads Group Chief Executive Officer, Michael Callaghan will host an teleconference briefing at 10.30am(Sydney time) on 3 August 2018 for investors, analysts and media. Please see details for the teleconference below:
Dial: 1800 059 809 or +61 2 9009 0729
Password: 385196
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