Medibank lifts dividend after full-year profit jumps
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The news: Australia’s biggest health insurer Medibank has posted a jump in annual profit on the back of strong growth in the non-resident insurance business.
The numbers: Net profit for the year to 30 June, 2024, rose 59.6% to $492.5 million, helped by an increase in customer sign-ups.
Revenue was up 8.1% to $7.85 billion as health insurance premiums rose 7.6% to $7.62 billion.
The company will pay a dividend of 9.4 cents a share, up from 8.3 cents a year ago.
The context: Medibank said customer sign-ups in the non-resident segment were up 25.1% in the last 12 months driven by students and workers, while customer growth in the local market was subdued at 0.7%.
The number of resident policyholders increased by 14,400 in the year, primarily in the first half. The company’s main health insurance business made an operating profit of $692.3 million, up 6.3%, while Medibank Health earnings rose 36.7% to $60.4 million. Investment income surged 31.5% to $182.2 million.
What they said: “We are currently over reliant on treatment in more expensive acute hospitals, rather than in other more fit for purpose settings," Medibank CEO David Koczkar said.
"The health transition is advanced in other parts of the world, with Australia trailing many countries in the uptake of more contemporary models of care."
The source: ASX announcement
