Medibank profit down 10 pc on investments, insurance revenue up

“Last month this momentum continued with growth of around 5,800 policies. Our customer retention over the past two years is higher than at any point in the decade previously. Despite a challenging backdrop we expect the market to continue to grow,” Mr Koczkar said.

Medibank said fixing issues in prosthesis alone could deliver $900 million back to policyholders and called for an urgent review of ways to improve the health of the medical system.

“The known issues in health can no longer be ignored; our health system is fatigued, and the pace of change is not keeping up with our growing health needs. We are at a critical juncture as we emerge from the pandemic and it’s widely recognised that we all need to move with greater urgency,” Mr Koczar said.

While its underlying business recorded double digit growth, the headline result was lower as a result of market volatility that hit its investments.

“The decreased [investment] income was driven by the significant correction across equity markets within the growth portfolio assets, and a reduction in income from the defensive portfolio including a $26.5 million loss due to widening of credit spreads, compared to a gain of $16.1 million last year,” Medibank said.

It will pay a fully franked final dividend of 7.3¢ a share, up 5.8 per cent compared with the last half of 2021. The total ordinary dividend was up 13.4¢ up 5.5 per cent and representing an 84.8 per cent payout ratio at the top of Medibank’s targeted range of 75 per cent to 85 per cent.

Leave a Reply

Your email address will not be published. Required fields are marked *