Our core earnings driver arhi again led the way, accounting for 89.0% of Group UOP. While UOP of $133.6 million was down 10.6% on FY19, the result includes a $90.4 million COVID-19 claims provision.

In challenging market conditions arhi grew premium revenue to $2.1 billion, an increase of 2.9% delivering a 6.4% net profit margin.

Our diversified and multi-channel distribution strategy helped deliver net policyholder growth of 1.9% compared to 0.4% for the industry.

nib New Zealand delivered a positive operating performance with the business improving revenue and earnings. UOP increased 18.2% to $23.4 million, and includes an $8.4 million COVID-19 deferred claims provision.

Our organic growth strategy continued to yield results with net policyholder growth of 7.4%, with success in growing our corporate group and whitelabel channel, which includes leading brand, the New Zealand Automobile Association.

Our iihi business produced a sound operating performance despite the headwinds caused by COVID-19 travel restrictions.

iihi’s track-record of strong top line growth continued with premium revenue up 11.8% to $123.1 million. Net policyholder growth was 6.3% despite slowing international arrivals, with 200,000 persons now covered.

UOP of $22.2 million was down 36.4% reflecting a conscious effort to enhance member value, with the business still delivering a healthy net margin of 17.1% (FY19: 31.1%), in line with expectations.

Our travel insurance business, nib Travel, was significantly impacted by COVID-19 with the global and domestic leisure travel one of the hardest hit sectors.

As a result the business made a UOP loss of $19.7 million for the year.

In response, focus has been reducing operational expenses with heavy emphasis on right sizing cost base and improving operating efficiency in preparation for any return to travel.