According to new reports in the Australian, the NIB Holdings sale Insurance Business reported back in May, seems to be heating with interest from a number of global players including Zurich, Hollard and Allianz. The sale, which could fetch as much as A$200 million, comes as the health insurer refocuses on its core operations following a disappointing earnings season.
The travel unit—which operates under brands including World Nomads Group, Travel Insurance Direct, and NIB Travel—has been on the radar for months after Jarden was appointed in May to undertake a strategic review. Sale documentation has now been issued, with first-round bids expected within the next four to six weeks.
Zurich Insurance Group, already a significant player in Australia’s travel insurance sector through its ownership of Cover-More, is widely seen as the frontrunner. However, industry analysts have raised the prospect of regulatory concerns if the Swiss insurer were to clinch the deal. Zurich currently controls around 24% of the domestic market—second only to Allianz at 25%—while NIB holds 8.4%, according to IBISWorld data.
The Australian travel insurance sector, with an estimated annual revenue of A$1.8 billion, is undergoing significant consolidation as established players seek scale and efficiency amid rising reinsurance costs and heightened claims inflation. While travel volumes are now approaching pre-COVID levels, the sector remains under pressure due to escalating medical expenses and increasing repatriation costs.
NIB’s retreat from the space reflects a broader reallocation of capital. The company recently reported a 25% drop in group profit to A$105.8 million for the first half of FY25, citing subdued margins in its Australian health insurance segment and a swing to loss in its New Zealand operations. The firm’s New Zealand arm reported a NZ$10.9 million deficit, weighed down by claims inflation and operational costs.
Group CEO Ed Close has indicated a more disciplined capital allocation strategy going forward. “We remain focused on segments that offer enduring value,” Mr Close told investors during a recent earnings call, signalling the insurer’s intention to double down on more resilient verticals such as international health and NDIS-linked businesses.
If Zurich is successful in acquiring NIB’s travel assets, it would further entrench its market dominance and extend its reach into direct-to-consumer channels—particularly valuable in a landscape increasingly shaped by embedded insurance and online aggregation.
The insurer has already moved aggressively to strengthen its travel portfolio, having acquired AIG’s Travel Guard business last year. Its Cover-More unit, acquired for A$741 million in 2017, is now one of the best-known travel insurance brands in Australia, with deep partnerships across travel agents, airlines, and health funds, including Medibank.
But competition is stiff. Hollard, which made headlines in 2021 with its A$1 billion purchase of Commonwealth Bank’s general insurance arm, is thought to be in the mix, as is Allianz, which continues to expand its regional footprint following its acquisition of the Royal Automobile Association of South Australia’s general insurance business.
Despite recent performance pressures, NIB’s travel business remains a recognised brand with strong digital infrastructure and consumer trust. While full-year EBITDA prior to the pandemic hovered around A$20 million, first-half FY25 earnings had declined to just A$1.9 million, reflecting ongoing recovery challenges.
Still, the A$200 million price tag appears achievable given the business’s direct distribution capabilities and global footprint. For buyers, the unit presents an opportunity to acquire not just market share, but digital systems and customer relationships that could prove valuable in an increasingly online-first environment.
The prospective deal underscores the rapidly evolving nature of Australia’s travel insurance market. Digital-native entrants, price-sensitive consumers, and embedded distribution models are reshaping how products are sold and consumed. From aggregators to airline partnerships, the battleground is no longer limited to travel agents and call centres.
With Zurich and Allianz commanding nearly half of the market between them, further consolidation could spark regulatory scrutiny from the Australian Competition and Consumer Commission. But it also signals confidence in the long-term rebound of travel—a sector that, while battered by the pandemic, continues to demonstrate resilience.
For NIB, a sale would mark the end of a decade-long journey in travel cover. Having entered the market in the early 2010s and expanded in 2014 through acquisitions, the insurer now appears ready to part ways with a business that no longer aligns with its long-term strategy
Allianz Partners / Allianz Global Assistance
Headquarters: Germany
Parent: Allianz SE
Zurich Insurance Group (Cover-More Group)
Headquarters: Switzerland
Key Brand: Cover-More
AIG Travel (Travel Guard)
Headquarters: United States
Parent: American International Group (AIG)
Headquarters: France
Parent: AXA Group
Generali Global Assistance
Headquarters: Italy
Parent: Assicurazioni Generali
MAPFRE Asistencia (InsureandGo)
Headquarters: Spain
Parent: MAPFRE
CSA Travel Protection (Now part of Generali)
Headquarters: U.S.
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