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 strong earnings across all segments.

• Resident policyholder growth was 1.4% (+27,900), double last year’s rate, with non-resident policy units up 3.1% (+10,500); customer advocacy and retention reached multi-year highs.

• Continued investment in health transition, prevention, and mental health, with $50 million committed over five years and expansion of virtual and primary care services.

• Medibank Health contributed approximately 10% of group operating profit, with segment profit up 27.0%.

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

Financial highlights

• Group revenue from external customers increased 5.2% to $8,604.0 million; health insurance operating profit up 7.1% to $741.5 million.

• Medibank Health segment profit surged 27.0% to $76.7 million; Myhealth operating profit up 68.1%.

• 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 17.0% in health insurance; non-resident gross margin up 270 basis points to 36.9%.

• Final fully franked dividend of 10.2 cps, bringing FY25 dividends to 18.0 cps, up 8.4%; payout ratio maintained at 80.1% of underlying NPAT.

Outlook and guidance

• Industry growth expected to moderate in FY26, 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.

• Medibank Health targets low double-digit organic operating profit growth and further M&A to expand scale and capability.

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