Medibank Private (MPL) investor relations material

Executive summary

• Achieved strong growth across all business segments, with Medibank brand momentum improving and ahm growing above market, despite heightened competition and cost-of-living pressures.

• Underlying NPAT rose 2.9% to $636.8m, with group operating profit up 6.7% year-over-year, reflecting disciplined growth and increased earnings diversification.

• Customer value initiatives delivered nearly $300 million in value, including $49 million in rewards, and supported 5.3 million patient interactions.

• Strategic focus on five health segments, diversification, and system innovation, including expansion in care at home, primary care, and digital health.

• Productivity savings of $10 million achieved, totaling $132.4 million over a decade.

Financial highlights

• Group operating profit rose 6.7% to $813.5m; underlying NPAT up 2.9% to $636.8m; underlying EPS up 2.9% to 23.1c.

• Group revenue from external customers increased 5.9% to $9,115.2m; gross margin stable at 17%.

• Health Insurance operating profit up 3.8% to $769.8m; Medibank Health segment profit up 31.3% to $100.7m, with strong organic growth and Better Medical contribution.

• Dividend per share increased 6.7% to 19.2c, with an 83.0% payout ratio.

• Net investment income declined 13.9% to $178.9m due to lower RBA cash rates and portfolio returns.

Outlook and guidance

• Targeting disciplined market share growth in resident health insurance, with stable gross margin expected for FY27.

• Non-resident business expected to deliver solid gross profit growth as student portfolio stabilizes and worker/visitor segments expand.

• Medibank Health segment profit projected to grow around 25% in FY27, with a full-year contribution from Better Medical and strong M&A pipeline.

• Expense growth for FY27 expected to be similar to FY26 (around 5.4%), with continued productivity savings targeted.

• Ongoing appetite and financial capacity for further M&A aligned with growth strategy.