AUL FY2023 Investor Presentation slide image

AUL FY2023 Investor Presentation

Retail highlights Australian Unity Health Limited Private health insurance (PHI) Australian Unity Bank Limited Australian Unity Real Wellbeing • • • • PHI policyholders decreased by 3.6% to 162,294 (2022: 168,317) Overseas visitor cover policyholders increased by 20.9% to 3,915 (2022: 3,238) The Federal Minister for Health and Aged Care approved Australian Unity Health Limited's (AUHL) 2023 Premium Round submission, with an average increase of 3.76%. AUHL deferred this premium increase from 1 April 2023 to 1 November 2023, in light of lower claims experience A further deferral of the 2023 premium increase until 1 April 2024 is announced Experienced some operational systems and technology issues in second half of the year that unfortunately impacted the fund's ability to process members' claims in a timely manner. We apologise to these customers for this negative experience, which has since been remedied and we have now achieved operational improvements The PHI Deferred Claims Liability1 relating to claims deferred due to COVID-19 government restrictions on some private healthcare services was reduced from $71.0m at 30 June 2022 to nil at 30 June 2023, with no remaining expectation of material claims catch-up • • Deferred Claims Liability $m • DCL as at 30 June 2022 71.0 . Unwind of provision during the period (70.2) Movement in other components (0.8) DCL as at 31 June 2023 1 The Deferred Claims Liability was an additional provision held as a result of surgeries and other health services being restricted during COVID-19 Approximately 26,000 customers, with total assets growing by $58.2m to $1,394.4m (2022: $1,336.1m) New lending growth along with increases in Reserve Bank of Australia (RBA) cash rates led to a 11.4% increase in net interest income Average gross loan book of $1,140.7m grew 18.3% compared to PCP. A decline in house prices, higher cost of living inflation and higher cash rate led the increase in Expected Credit Loss provision on loans by $0.7m to $9.1m (2022: $8.4m) Achieved lending growth with $254.1m of loans funded Gross Loan Portfolio increased by $41.9m or 3.8% to $1,156.4m (2022: $1,114.5m) Operated Kookaburra Securitisation Program at $225.0m. This is a self- securitisation structure acting as a contingent liquidity support capability for the bank with 94.9% of notes rated as 'AAA' and currently providing access to the RBA's Term Funding Facility Issuer Credit Rating by S&P Global remained stable at 'BBB+' AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 28
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