AUSTRALIAN HEALTH INSURER NIB ACQUIRES IMAN INT'L FOR US$21 MLN

Private Australian health insurer NIB Holdings Ltd (ASX:NHF) has entered the temporary migrant workers market through the acquisition of IMAN International Pty Ltd for A$25 million (US$21.06 million).

NIB managing director Mark Fitzgibbon said IMAN a opened an attractive, high growth and higher margin market segment.

"The acquisition of IMAN provides nib with an ideal platform to enter the temporary migrant workers (health insurance) market," Mr Fitzgibbon said in a statement on Monday.

"We believe the market for overseas workers has outstanding growth potential given the national skill shortage."

IMAN, also known as International Medical Assistance Network, is a specialist provider of health cover for temporary migrant workers in Australia.

Founded in 1981, IMAN is the fourth largest provider of non-general insurance in the market and the largest specialist provider with more than 11,000 policyholders, NIB said in the statement.

The purchase will be funded from existing surplus capital and was expected to be completed by October 1, nib said in its statement.

Mr Fitzgibbon said the acquisition would lift NIB's earnings and keep the company "on track" to maintain double digit underlying earnings growth.

The acquisition was expected to be earnings per share and return on equity accretive immediately, excluding one-off transaction costs, NIB said.

NIB said it expected gross written premia of about $19 million in 2009/10, with net profit after tax about $2.8 million.

Mr Fitzgibbon said NIB had a strong balance sheet and surplus capital, leaving the company in a "good position to continue pursuing acquisition and consolidation opportunities".