Medibank Private (MPL) H1 2025 earnings summary

Executive summary

• Achieved strong half-year results with disciplined growth in both resident and non-resident health insurance, and significant momentum in health services segments.

• Underlying NPAT rose 13.8% to $298.7m, with earnings growth across all business segments and an interim fully franked dividend of 7.8cps, up 8.3%.

• Customer engagement and advocacy improved through expanded value programs, digital initiatives, and increased investment in prevention, primary care, and mental health.

• Announced an additional $160 million COVID Give-Back, bringing total customer support to $1.62 billion.

• Well-capitalised position enables pursuit of growth in insurance, primary/virtual care, and corporate health.

Financial highlights

• Group revenue increased 6.1% year-over-year to $4,270.7m for the half year ended 31 Dec 2024.

• Group operating profit up 12.7% to $360.1m; profit before tax and COVID impacts up 19.3% to $449.4m.

• Health Insurance operating profit up 10.2% to $349.2m; Medibank Health segment profit up 40.8% to $37.6m.

• Net investment income up 37% to $114.5m; underlying EPS up 13.8% to 10.8c.

• Interim fully franked ordinary dividend of 7.8c per share, up 8.3%, with a payout ratio of 71.9% of underlying NPAT.

Outlook and guidance

• Customer give back program expected to be finalised in FY25; all permanent net COVID-19 claims savings to be returned.

• Resident policyholder growth targeted in line with market for 2H25 and market share growth in FY26.

• FY25 resident claims growth per policy unit expected between 2.4% and 2.6%.

• FY25 management expenses expected around $650m, including $10m in productivity savings.

• Medibank Health targeting average organic profit growth of at least 15% per annum between FY24 and FY26, with $150–250m planned for M&A.