nib’s $32 million Saudi Arabia deal

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NIB chief executive Mark Fitzgibbon.

 

NIB will take over medical and hospital cover for Saudi Arabian nationals in Australia.

The announcement on Friday details a deal with the Saudi Arabian Cultural Attaché Office in Canberra.

It will involve coverage for scholarship students, diplomats and their dependents in Australia.

Under Australian visa requirements these groups are required to have private health insurance.

NIB chief executive Mark Fitzgibbon said the arrangement would make the company the insurer for about 13,000 people in Australia, representing roughly $32 million in premiums. 

That is almost triple the international student premium income last financial year, which tallied $9.2 million. “This new partnership further cements nib’s leading place in the international student market,” Mr Fitzgibbon said. 

Similar partnerships are already in place with nib’s International Students Health Insurance (ishi) business and United Arab Emirates, Qatar and Kuwait.

It made a $1.9 million profit in last financial year, the first since the business was established in 2010.

‘‘Due to enrolment timing and expected seasonal claims experience, the Saudi business is not expected to materially impact nib’s Group operating profit in financial year 2015,’’ the company said in a statement.

‘‘From financial year 2016 and beyond nib is expecting the Saudi relationship to be a material contributor to nib’s ishi business earnings.’’ 

NIB’s financial results for the six months to December will be released on February 23.