Medibank Private (MPL) H1 2025 earnings summary

Executive summary

• Delivered strong half-year results with disciplined growth in both resident and non-resident health insurance, and significant momentum in health services and wellbeing 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 access to health and mental health support.

• Returned $160 million to customers as part of the COVID-19 Give-Back, with total support reaching $1.62 billion.

• Strategic investments of ~$59m over 18 months and continued investment in prevention, primary care, and mental health support future growth.

Financial highlights

• Group revenue increased 6.1% year-over-year to $4,270.7m; group operating profit up 12.7% to $360.1m.

• 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 dividend of 7.8c per share, up 8.3%, with a 71.9% payout ratio.

• Management expense ratio held flat at 7.6%; management expenses up 4.5% to $312.4m.

Outlook and guidance

• Customer give back program expected to be finalised in FY25, with 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.

• Claims per policy unit growth expected at 2.4%-2.6% in FY25; management expenses forecast at ~$650m, including $10m in productivity savings.

• Medibank Health targeting ≥15% average organic profit growth per annum FY24–FY26, with $150m–$250m planned M&A investment.

• Expecting continued policy unit and gross profit growth in non-resident portfolio, subject to visa approvals.