Growing claim numbers hit NIB profits NIB, Australia's only listed health insurer, has blamed a rise in healthcare claims and tough trading conditions for a fall in its full-year net profit. This was impacted by one-off costs relating to a New Zealand acquisition, it said. Its pre-tax underwriting profit was below its guidance of $75 million to $78 million, at $73.8 million. ""Private health insurance is not only having to deal with rising medical utilisation and cost inflation amongst its insured population but naked cost shifting from government to the private sector as well as government policy which is seeking to wind back consumer subsidies,"" he said. He said the company's results were strong despite conditions becoming tougher. ""Claims inflation is showing no signs of abatement, our premium pricing remains constrained by government regulation, recent government policy changes around premium rebates have been unhelpful and competition is intense,"" Mr Fitzgibbon said. The company's Australian residential health insurance business (ARHI) had its profit margins squeezed during the period, due to these reasons. The business's net underwriting profit was down 8.6 per cent to $59 million, it said. ""It's become and will remain more difficult to lift ARHI earnings,"" Mr Fitzgibbon said. The company posted a final dividend of 5 cents per share, to be paid on October 4. NIB revised its expected earnings last month to the lower end of its $75 million to $78 million guidance range. Its premium revenue was up 14.8 per cent for the year to $1.3 billion.