Medibank Private (MPL) H2 2026 earnings summary

Executive summary

• Achieved strong growth across all business segments, with Medibank and ahm brands outperforming the market and Medibank Health delivering record results, despite cost-of-living pressures.

• Underlying NPAT rose 2.9% to $636.8m, with group operating profit up 6.7% to $813.5m year-over-year, reflecting disciplined growth and increased earnings diversification.

• Customer advocacy and engagement improved, supported by technology, AI investments, and digital health expansion.

• Delivered $10 million in productivity savings, totaling $132.4 million over a decade.

• Provided nearly $300 million in customer value through Members' Choice, no gap networks, and Live Better rewards.

Financial highlights

• Group revenue from external customers increased 5.9% to $9,115.2m; group operating profit up 6.7% to $813.5m.

• Health Insurance operating profit rose 3.8% to $769.8m; Medibank Health segment profit up 31.3% to $100.7m.

• Underlying EPS increased 2.9% to 23.1c; NPAT attributable to shareholders up 27.5% to $638.7m.

• Dividend per share increased 6.7% to 19.2c, with an 83.0% payout ratio.

• Net investment income declined 13.9% to $178.9m due to lower RBA cash rates and portfolio returns.

Outlook and guidance

• Targeting disciplined market share growth in resident health insurance, with stable gross margin expected for FY27.

• Solid gross profit growth anticipated in non-resident segment as student portfolio stabilizes and worker/visitor growth continues.

• Medibank Health segment profit expected to grow ~25% in FY27, including full-year contribution from Better Medical.

• Expense growth for FY27 expected to be similar to FY26 (~5.4%), with continued investment in marketing and productivity savings.

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