New Zealand’s biggest health insurer paid out a record 3.8 million claims in the latest year, up 16% annually.
Southern Cross Health Society Group’s report for the year to June 30, 2025, said it paid $1.7 billion for those 3.8m claims.
The society has 951,808 members, down 3493 annually.
Southern Cross CEO Nick Astwick wrote: “After nearly nine years of growth, it is heartening to see our membership is stable despite ongoing challenges in the New Zealand economy.”
The group sells health and financial services, including health, travel, pet, and life insurance.
Of the 3.7m claims, there were:
The highest value procedures were
Claims covered 2599 new knees, 2490 new hips and 2004 tonsillectomies in the year.
The annual report told how people staying with the business as they age bring massive benefits.
“Longer tenure leads to more value back to members. Those who’ve been with us for more than 20 years received 96.5 cents back in healthcare costs,” the report said.
The business returned 94c in claims for every dollar paid in premiums.
The ratio rises the longer people are members.
Many New Zealanders were experiencing financial pressure so Southern Cross acknowledged how an increase in premium costs could be challenging.
“The increases are usually due to the type of plan members are on or their age group,” the report said, with the business encouraging those under financial pressure to contact it to talk about plans.
The group recorded a $51.8m deficit, comprising a $56.9m deficit for health insurance offset by a $13.9m net surplus from subsidiary investments, less an $8.8m group accounting consolidation adjustment.
The Southern Cross Health Insurance $56.9m annual deficit in FY25 was a $42.2m improvement on FY24 financial results.
Over many years, the business has struck deals with affiliated providers to supply services to keep costs down. It now has 2500 providers nationally and has added 142 of those in the latest year.
“We were delighted this year to achieve a national price for imaging procedures such as X-rays, mammography, CT scans and MRIs,” Astwick said.
The business has $418.9m in group reserves. That had helped it retain its A+ financial strength rating from Standard and Poor’s (Australia).
Included in group reserves is $617.9m of investments held by Southern Cross Health Insurance ($667.6m in FY24), which returned $43.4m in income in the 2025 financial year.
Astwick earned $1.09m in FY25, up on FY24’s $1.03m.
In June, the Herald reported how Southern Cross Travel Insurance was fined $1.1m after it admitted making misleading statements about discounted premiums.
A Financial Markets Authority investigation found misleading representations about discounts to prospective members.
Anita Hawthorne, interim CEO of the travel insurance business, said in June some communications did not explain that discounts only applied to the base premium.
It had fully remediated affected members.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.