Highlights

• Underlying net profit after tax rose 2.9% to $636.8 million, while group operating profit increased 6.7% to $813.5 million.

• Total fully franked dividend reached 19.2 cents per share, up 6.7%, including a 10.9 cent final paid 8 October.

• Net resident policyholder growth of 22.1 thousand was led by ahm, which added 13.5 thousand policyholders.

• Medibank Health segment profit jumped 31.3% to $100.7 million, and management guides to about 25% growth in FY27.

Health insurance carried the numbers at Medibank Private Limited (ASX:MPL), but the fastest growth came from its health services arm. For the year to 30 June 2026, Medibank lifted underlying net profit after tax 2.9% to $636.8 million, while Medibank Health segment profit leapt 31.3% to $100.7 million. Shares were trading at A$4.99 on 23 October 2026, up 1.22%.

Profit and Policyholder Growth Outpace Revenue

Group revenue from external customers rose 5.9% to $9,115.2 million, and group operating profit climbed 6.7% to $813.5 million. Health Insurance operating profit grew 3.8% to $769.8 million. Underlying earnings per share rose 2.9% to 23.1 cents.

Not every line moved higher. Net investment income fell 13.9% to $178.9 million. Statutory profit attributable to shareholders still rose 27.5% to $638.7 million, in a year that included $34.9 million of non-recurring costs tied to the 2022 cybercrime event.

Net resident policyholder growth was 22.1 thousand, up 1.1%. ahm added 13.5 thousand policyholders, up 2.4%, and the Medibank brand added 8.6 thousand, up 0.6%. Non-resident policy units fell 2.3% to 346.2 thousand.

The resident acquisition rate rose 10 basis points to 11.6%, but the resident lapse rate also increased, by 40 basis points to 10.5%. Chief executive David Koczkar framed affordability as a present challenge for customers rather than a future one.

Health Services Widen the Footprint

The 31.3% profit lift to $100.7 million at Medibank Health was the fastest-growing profit line in the year. The business expanded its primary care network through the acquisition of Better Medical, which the company said will contribute for a full year in FY27.

The company's 2026 Annual Report, released on 16 September 2026 to mark 50 years since its founding, said more than six million people in Australia use Medibank, ahm or Amplar Health. It reported savings of more than $250 million delivered through Members' Choice and no gap networks, and 5.3 million patient interactions supported by Amplar Health.

Dividend Rises Within the Target Payout Range

The final ordinary dividend of 10.9 cents per share is fully franked. It brings the total FY26 ordinary dividend to 19.2 cents per share, fully franked, up 6.7%. That equals 83.0% of underlying net profit after tax, inside the company's target range of 75% to 85%. The ex-dividend date was 2 September 2026, the record date 3 September 2026 and the payment date 8 October 2026.

FY27 Priorities and Upcoming Dates

Management outlined several expectations for FY27. In resident health insurance, it aims to grow market share in a disciplined way, with improved volume momentum in the Medibank brand. Resident gross margin is expected to be broadly consistent with FY26, subject to the outcome of the 1 April 2027 premium increase. Non-resident health insurance is expected to deliver solid gross profit growth.

Medibank Health is expected to grow segment profit by about 25%, including a full-year contribution from Better Medical. Cybercrime costs are expected to be below $20 million, excluding the effect of any regulatory or litigation outcomes. The company said it has a strong mergers and acquisitions pipeline, along with the appetite and capacity to pursue further opportunities.

Medibank's 2026 annual general meeting is scheduled for 18 November 2026.