Southern Cross Reports Record $1.8 Billion in Claims Payouts

Southern Cross Medical Care Society has reported a record $1.8 billion in claims paid out to members over the past year, marking a 5.5% increase from the previous year. The figures, revealed in the company's annual report for the 12 months ending June 30, 2026, show that 88 cents of every premium dollar was returned to members in claims.

Nick Astwick, CEO of Southern Cross, highlighted the dual role the company plays in supporting its members and contributing to New Zealand's broader healthcare system. As the largest health insurer and the third-largest funder of healthcare delivery after Health New Zealand and ACC, Southern Cross processed an average of $7.2 million or 15,000 claims daily.

The company's claims cost escalation dropped to 7.1% in FY26, down from 12.2% the previous year, a rate considerably lower than the rest of the health insurance sector. Astwick attributed this reduction to better managing pressure on premiums, which he expects to moderate following significant increases over the past three years.

Looking ahead, Southern Cross plans to introduce new initiatives to help members make healthier choices, aiming to extend their healthspan, the duration of good health. The company reported a group surplus of $146.9 million for the fiscal year ending June 30, recovering from a combined deficit of $140 million in the two prior financial years.