Medibank Private (MPL) H2 2024 earnings summary

Executive summary

• Delivered solid FY 2024 results with disciplined growth in both resident and non-resident health insurance, strong Medibank Health performance, and robust capital position, despite a competitive market and cost-of-living pressures.

• Underlying NPAT rose 14.1% to $570.4m, group operating profit up 7.9%, and fully franked dividend up 13.7% to 16.6cps, with a record $1.46b in COVID-related givebacks.

• Medibank Health segment profit surged 36.7% to $60.4m, driven by organic growth and increased Myhealth investment.

• Strategic investments in primary care, virtual health, and partnerships are accelerating health system transition and supporting long-term growth.

• Nearly half of policyholders engaged in health and well-being services, with significant growth in corporate accounts and over 4 million health interactions delivered.

Financial highlights

• Group revenue increased 4.7% to $8,175.8m; health insurance operating profit up 6.3% to $692.3m; Medibank Health segment profit up 36.7% to $60.4m.

• Underlying NPAT increased 14.1% to $570.4m; statutory NPAT up 59.6% to $492.5m; net investment income up 31.5% to $182.2m.

• Final fully franked ordinary dividend of 9.4cps, total FY dividend up 13.7% to 16.6cps (80.1% payout ratio).

• Group operating profit up 7.9% to $699.8m; profit before tax and COVID impacts up 13% to $822.5m.

• Management expense ratio increased 30bps to 7.8%, reflecting higher commissions and inflation.

Outlook and guidance

• Aiming to grow in line with the market in FY25, with market share growth targeted for FY26; industry growth expected to moderate.

• Claims growth per policy unit expected at 2.7% in FY25, with $10m in targeted productivity savings.

• Medibank Health targeting ≥15% average organic profit growth per annum (FY24–FY26) and $150m–$250m in M&A investment.

• Finalization of COVID-related customer givebacks expected in FY25, with any permanent net claims savings to be returned to customers.