Nib is on track to lift its underwriting profits this financial year and remains confident changes to the private health insurance rebate will not have a major impact on the industry.

Chief executive Mark Fitzgibbon told shareholders at nib’s annual general meeting on Tuesday that the insurer was sticking to its forecast of a $70 million to $75 million underwriting profit for 2012/13.

He also repeated previous assurances that the federal government’s income testing and proposed capping of private health insurance rebates were not expected to have a significant impact on the industry’s profitability and growth.

On the outlook for the industry, he said competition was increasing and that industry consolidation remained possible, with the sale of the government’s Medibank Private “inevitable”.

Chairman Steve Crane also tried to reassure shareholders about the impact of the federal government’s decision to pay only a private health insurance rebate on premium rises in line with inflation.

The premium applied to the rebate will move in line with either the Consumer Price Index or the commercial premium increase, depending on which is less.

“We still like the investment thesis for private health insurance which, in summary, is that the fiscal pressure on all levels of government in Australia to fund healthcare at current levels is unsustainable,” Mr Crane said.

“This, coupled with Australians unwillingness to rely on the public health system means that there is little alternative other than for private health insurance to play a greater role.”

Shares in nib were one cent higher at $1.80 at 1536 AEST.