Company Interview / Medibank Private's healthy profit amid record giveback

Key topics:

Full-year results and dividend announcement for Medibank (ASX:MPL) Growth in non-resident and under-30 policyholder segments Emphasis on investment in healthcare transition and technology Record Covid-19 customer giveback package finalised

Medibank Private (ASX:MPL) has reported a 1.7% increase in full-year profit to just over $500 million, with underlying net profit adjusting for Covid-19 reserves rising 8.5% to just under $619 million. CEO David Koczkar states this performance reflects strong investment in customer value, including reducing out-of-pocket costs and supporting policyholders' health and wellbeing beyond core insurance. Finalisation of the Covid-19 support package saw a record $1.71 billion returned to customers, and shareholders will receive a fully franked final dividend of 10.2 cents per share, totalling $0.18 per share for the year.

Koczkar highlights growth across all business lines, particularly in the non-resident segment, which experienced profit growth of 27% and now contributes 10% of operating earnings. He notes ongoing focus on capturing market share among international students, workers and visitors, supported by government visa policy changes. Strong growth continues in customers under 30, reflecting broader industry trends towards private health insurance uptake despite cost-of-living pressures.

On competition, Koczkar stresses Medibank's low cost base, above-industry payout ratios, and commitment to hospital partnerships and technology investment, such as artificial intelligence and cyber security. He anticipates continued growth and advocates for ongoing innovation and customer-centred investment to sustain future performance.