Medibank Private (MPL) H2 2026 earnings summary

Executive summary

• Achieved strong growth across all business segments, with Medibank brand momentum improving and ahm growing 2.4% year-over-year.

• Medibank Health segment profit surged 31.3% to $100.7m, driven by organic growth and the Better Medical acquisition.

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

• Customer advocacy and engagement increased, with 57% of policyholders engaging in health and wellbeing offerings.

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

Financial highlights

• Group operating profit rose 6.7% to $813.5m; underlying NPAT up 2.9% to $636.8m.

• Group revenue from external customers increased 5.9% to $9,115.2m year-over-year.

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

• 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 credit spreads.

Outlook and guidance

• Targeting disciplined market share growth in resident health insurance, focusing on priority segments and direct channels.

• Resident PHI gross margin expected to remain broadly consistent with FY26.

• Non-resident PHI anticipated to deliver solid gross profit growth as student portfolio stabilizes and worker/visitor segments expand.

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

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