Medibank Private (MPL) H1 2026 earnings summary

Executive summary

• Group operating profit rose 6.0% to AUD 381.7 million, driven by strong growth in health insurance and Medibank Health segments, supported by strategic acquisitions and reinvestment for future growth.

• Medibank Health contributed 13% of group operating profit, with segment profit up 28.5% year-over-year and revenue up 27.5%.

• Acquisition of Better Medical for AUD 163.5 million established one of the largest primary care networks in Australia, adding 61 clinics and enhancing service delivery.

• Customer engagement remains high, with 55% of resident policyholders using health and wellbeing services and Live Better membership up to 13.6%.

• Strategic focus on disciplined growth, digital care expansion, and ongoing M&A, including continued investment in AI and digital health tools.

Financial highlights

• Group revenue from external customers increased 5.5% year-over-year to AUD 4,503.5 million.

• Health Insurance operating profit up 3.5% to AUD 361.5 million; Medibank Health segment profit up 28.5% to AUD 48.3 million.

• Underlying NPAT was stable at AUD 297.8 million, while reported NPAT fell 11% to AUD 302.9 million due to the absence of COVID-19 reserve movements.

• Net investment income declined 17.1% to AUD 94.9 million, impacted by lower RBA cash rates.

• Interim, fully franked dividend increased 6.4% to AUD 0.083 per share, with a payout ratio of 76.8% of underlying NPAT.

Outlook and guidance

• On track to deliver FY26 outlook, with performance in line with expectations and disciplined market share growth targeted.

• Resident claims per policy unit growth expected between 2.6% and 2.9% for the full year.

• Medibank Health organic operating profit growth for FY26 expected to match 1H26, plus AUD 6 million from Better Medical in 2H.

• FY26 expense guidance set at AUD 690–695 million, targeting AUD 10 million in productivity savings.

• Non-recurring cybercrime costs for FY26 expected to be approximately AUD 35 million.