Medibank Private (MPL) H1 2026 earnings summary

Executive summary

• Group operating profit rose 6.0% to $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 segment profit increased 28.5% year-over-year, contributing approximately 13% of group operating profit.

• Customer engagement remains high, with 55% of resident policyholders using health and wellbeing services and over 1 million Live Better rewards members.

• Acquisition of Better Medical for $163.5 million established one of the largest primary care networks in Australia, adding 61 clinics and supporting future growth.

• Interim fully franked dividend increased 6.4% to 8.3 cents per share, with a payout ratio of 76.8% of underlying NPAT.

Financial highlights

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

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

• Net investment income declined 17.1% to $94.9 million, mainly due to lower RBA cash rates.

• Underlying NPAT was stable at $297.8 million, while reported NPAT fell 11.0% to $302.9 million.

• Gross margin for health insurance stable at 16.2%; expense ratio increased 10 basis points to 7.7%.

Outlook and guidance

• Disciplined market share growth targeted in resident health insurance, with industry growth expected to moderate relative to FY25.

• Resident claims per policy unit growth forecasted at 2.6%–2.9% for FY26.

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

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

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