Medibank Private (MPL) H2 2025 earnings summary

Executive summary

• Group operating profit rose 8.9% to $762.4 million, with underlying NPAT up 8.5% to $618.7 million, driven by disciplined growth, claims management, and strategic investments in health, wellbeing, and digital platforms.

• Resident policyholder growth was 1.4%, double last year’s rate, with positive momentum in both Medibank and ahm brands; non-resident policy units grew 3.1%.

• Medibank Health contributed approximately 10% of group operating profit, with segment profit up 27%.

• Ordinary fully franked dividend increased 8.4% to 18.0cps, reflecting continued shareholder value delivery.

• Maintained a strong capital position, supporting ambitions for organic and M&A-driven growth.

Financial highlights

• Health insurance operating profit rose 7.1% to $741.5 million; Medibank Health segment profit increased 27% to $76.7 million.

• Group revenue from external customers increased 5.2% to $8,604.0 million.

• Net investment income up 14.1% to $207.8 million, with strong performance in both growth and defensive portfolios.

• Gross margin improved 50 basis points to 17% in health insurance, with a 20 basis point benefit from higher-margin non-resident policies.

• Management expenses increased 6.5% to $654.9 million, reflecting higher operating costs and digital investment, partially offset by productivity savings.

Outlook and guidance

• Expecting moderating but still buoyant industry growth in FY 2026, with a focus on disciplined market share gains in both resident and non-resident segments.

• Claims per policy unit projected to grow 2.6%-2.9%, with proactive claims management and further investment in customer benefits if claims are lower than expected.

• Targeting low double-digit organic operating profit growth in Medibank Health and aiming to invest at the top end of the $150 million–$250 million M&A target.

• Management expense ratio expected to remain stable or modestly improve, supported by lower inflation and higher revenue growth.