Health insurer Nib will gain cost and technology benefits from its expansion in travel insurance following the $95 million acquisition of product distributor World Nomads Group.

Nib MD Mark Fitzgibbon says World Nomads has about 20% of the Australian travel insurance market, making it the third-largest travel cover provider.

Nib is expanding in New Zealand, the US, Canada and the UK, he told an analysts’ conference after the acquisition was announced to the Australian Securities Exchange last week.

World Nomad’s underwriters include Allianz, XL Catlin, AIG, US insurer Nationwide Insurance and Bupa. It distributes through brands such as World Nomads, direct insurer Travel Insurance Direct and SureSave, sold by travel agents.

It produces bespoke products for Nib, National Seniors Australia, international work adventure specialist CCUSA and the consumer group for older Australians COTA.

It recorded gross written premium of $117 million for the year to June 30 and provides emergency assistance and claims management.

Mr Fitzgibbon says the acquisition is a good strategic fit, enabling the company to expand into a complementary market with attractive growth prospects. 

The sale is expected to take effect next month.