Nib : responds to ACCC

30 May 2017

The Manager

Company Announcements ASX Limited

20 Bridge Street

Sydney NSW 2000

nib holdings limited Head Office

22 Honeysuckle Drive

Newcastle NSW 2300

abn 51 125 633 856

e nib@nib.com.au

Please find attached nib media release regarding today's announcement by the Australian Competition and Consumer Commission on instituting proceedings in the Federal Court against the health fund in relation to the level of communications to customers regarding changes made to its MediGap Scheme (MediGap) in August 2015.

Yours sincerely

Michelle McPherson

Company Secretary/Chief Financial Officer

nib.com.au

30 May 2017

nib responds to ACCC

nib holdings limited (ASX: nhf)

nib holdings (nib) has been advised by the Australian Competition and Consumer Commission (ACCC) that it intends to institute proceedings in the Federal Court against nib's Australian residents health fund primarily in relation to an alleged failure in August 2015 to communicate to customers limited changes made to its MediGap Scheme.

MediGap is a scheme in which doctors and other in-hospital medical providers can elect to receive a higher level of fee reimbursement subject to there being no "out of pocket" expense for the patient.

nib rejects the position being taken by the ACCC and believes it has acted lawfully and ethically. nib has worked collaboratively with the ACCC throughout its investigation and has already taken steps to redress many ACCC concerns.

nib is committed to acting in the best interests of our customers and will strenuously defend the claims made by the ACCC in the Federal Court. One of objectives behind the limited changes made to MediGap was principally about improved clinical practice. As this matter is now before the Federal Court, we are unable to make any further comment on the allegations.

Media and Investor Relations

External Affairs Manager

Tel: +61 (0)2 4914 1212 Mob: 0402 376 835 (+61 402 376 835)

Email: r.jaeger@nib.com.au