nib says premium pressure could ease

Health insurer nib has lifted its full year profit guidance and says pressure on premium increases could be easing.

The insurer now forecasts an operating profit of between $113 million and $121 million in 2015/16, up from its previous target of $90 million to $100 million.

The improvement is due to a continuation of lower than expected claims in the three months to March.

"If sustained and coupled with efficiency improvements being pursued by the industry, lower claims inflation clearly has the potential to ease pressure on future premium increases," managing director Mark Fitzgibbon said.

nib last month gained approval from the federal government to lift its premiums by 5.5 per cent.

Its shares were up 50 cents, or 13 per cent, at $4.35 at 1510 AEST.