Key Highlights

  • Medibank reported underlying net profit after tax of $636.8 million for FY26, up 2.9 per cent, with statutory NPAT up 27.5 per cent to $638.7 million.
  • Group operating profit rose 6.7 per cent to $813.5 million, with Medibank Health segment profit up 31.3 per cent to $100.7 million.
  • The Board determined a fully franked final ordinary Dividend of 10.9 cents per share, taking the full-year dividend to 19.2 cents, up 6.7 per cent.
  • Medibank shares traded at $4.60, down 0.65 per cent on the day, as the S&P/ASX 200 gained 0.29 per cent.

Medibank Private Limited (ASX:MPL) shares slipped to $4.60 on Tuesday, down 0.65 per cent, or 3 cents, even as the S&P/ASX 200 index rose 0.29 per cent to 8,756.90 and the health care sector added 0.57 per cent for the session.

Medibank is one of Australia's largest private health insurers, operating under the Medibank and ahm brands, and also provides health services through its Medibank Health division, which includes Amplar Health and general practice clinics.

Recent Development

For the year ended 30 June 2026, Medibank reported underlying net profit after tax of $636.8 million, up 2.9 per cent on FY25, while statutory net profit after tax attributable to shareholders rose 27.5 per cent to $638.7 million. Group operating profit increased 6.7 per cent to $813.5 million, supported by growth in resident Health Insurance and continued momentum in Medibank Health. Net resident policyholder growth rose 1.1 per cent, with the Medibank brand's growth rate doubling to 0.6 per cent and ahm growing 2.4 per cent. Resident premium Revenue increased 4.5 per cent to $8,267.9 million, while net resident claims expense rose 4.4 per cent. Medibank Health delivered another record result, with segment profit up 31.3 per cent to $100.7 million and revenue up 30.8 per cent to $634.8 million, reflecting a full year of ownership of Amplar Health Home Hospital and a partial-year contribution from Better Medical. Net Investment income fell 13.9 per cent to $178.9 million, reflecting lower income from equities and interest income following a lower average RBA cash rate. The company also incurred non-recurring cybercrime-related costs of $34.9 million, tied to IT security uplift work and regulatory investigations linked to the 2022 cyber incident. The Board determined a fully franked final ordinary dividend of 10.9 cents per share, taking the full-year dividend to 19.2 cents, up 6.7 per cent on FY25, representing an 83.0 per cent Payout Ratio of underlying NPAT.

Catalysts to Watch

Medibank is targeting further Market Share growth in FY27 alongside broadly consistent resident private health insurance gross margins, solid Gross Profit growth in non-resident cover, and around 25 per cent growth in Medibank Health segment profit, including a first full year of Better Medical. Management also pointed to a strong Acquisition pipeline and financial capacity to pursue further deals consistent with its growth strategy.

Risks and Uncertainty

Cost-of-living pressures continue to weigh on the broader health insurance industry, with policyholder growth skewed toward lower product tiers and lapse rates rising across the market. Non-resident policy units fell 2.3 per cent, reflecting tighter migration settings and the natural run-off of cohorts acquired after Australia's borders reopened. Costs tied to the 2022 cybercrime event and associated regulatory investigations also remain a factor, with the company flagging further, though reduced, costs expected in FY27.

The Bottom Line

Medibank's FY26 result showed steady growth in its core insurance Business alongside a record contribution from Medibank Health, even as investment income declined and cybercrime-related costs persisted. The pace of policyholder growth and the scale-up of Medibank Health, including the integration of Better Medical, are likely to remain key areas of focus in FY27.