Health insurer NIB has posted a 3 per cent rise in profit on an increase in revenue from premiums.
NIB posted a net profit of $67.6 million, on an 11.5 per cent rise in revenue to $1.1 billion.
The insurer says the government's means testing of the private health insurance rebate saw an increase in cash flow late in the financial year, as many health fund members rushed to pre-pay and beat the changes.
NIB's chief executive Mark Fitzgibbon says the 2012 financial year was a competitive one for the health insurance industry.
"We didnât see the level of underlying earnings growth in financial year 2012 we have in recent years, but in the face of fierce competition weâre still punching above our weight, having accounted for almost 10 per cent of total industry growth in FY12," he said.
"We continue to perform well on the back of growing brand awareness, our focus upon the youth market and a strong online and mobile presence." NIB's return on equity increased from 16.5 to 21.7 per cent after it returned money to shareholders through a special dividend and share buyback.
The health insurer has declared a fully-franked 5 cent per share dividend, bring total payments for the financial year to 9.25 cents.
NIB shares were down 1 cent to $1.63 by 2:40pm (AEST).