Medibank has reported a robust financial performance for the first half of 2025, with underlying net profit after tax up 13.8% to $298.7 million.

The company’s Group operating profit was up 12.7% to $360.1 million, and net investment income was up 37% to $114.5 million, while NPAT attributable to Medibank shareholders dipped 0.8% to $340.3 million.

The company announced an additional $160 million COVID-19 cash give back, raising the total COVID-19 financial support package to $1.62 billion. Underlying net profit after tax (NPAT) increased by 13.8% to $298.7 million, and underlying earnings per share (EPS) also rose by 13.8% to 10.8 cents. A fully franked interim ordinary dividend of 7.8 cents per share was declared, representing a 71.9% payout ratio of underlying NPAT.

Over the first half Medibank recorded a total of $3.3 billion in claims paid, with a net resident policyholder growth of 0.9%, translating to an increase of 18,500 policyholders over the past year. In the non-resident policy unit segment, Medibank saw a growth of 12.6%, with 38,900 additional policy units, primarily driven by the student segment. The company maintained a Health Insurance capital fund prescribed capital amount (PCA) coverage ratio of 1.9x.

Medibank invested approximately $59 million in inorganic growth over the past 18 months to support future growth and Australia’s health transition. Group operating profit increased by 12.7% to $360.1 million, and net investment income rose by 37.0% to $114.5 million. The Medibank Health segment profit increased by 40.8%, with organic operating profit up 13.9%.

CEO David Koczkar highlighted Medibank’s focus on customer value, health system capacity, and mental health investments. “Our focus on our customers and our disciplined approach has delivered this strong result. We have momentum and we are growing as a health company,” he stated.

Medibank launched a virtual psychology clinic and saved customers $14 million through its Members’ Choice Advantage network. The company provided over $67 million in financial support to private hospitals over the past two years, including $5 million in the first half of 2025. A new short stay surgical centre was opened in Melbourne, offering no gap on all treatments for eligible customers.

The company reported a 10.2% increase in Health Insurance operating profit and a 40.8% growth in Medibank Health segment profit. Non-recurring cybercrime costs amounted to $17.2 million, related to IT security and legal costs from a 2022 cybercrime event.

“The community is calling for healthcare to be done differently as concern grows around the cost of living, health system capacity and mental health. And we are investing to help with all three,” said Koczkar. “Being a strong business gives us the capacity to provide more value to our customers, to support health providers and to invest in the health transition that Australia needs.”

Medibank’s growth in both resident and non-resident health insurance markets was noted, with a focus on disciplined growth amid competitive intensity. “The health insurance market remains strong and we are growing in both our resident and non-resident businesses,” Koczkar said. “Net resident policyholders are up 18,500 for the past 12 months. Our growth over this half was more than double what it was this time last year.”

Despite some reductions in visa approvals, the non-resident market remains solid, with policy units up 38,900 in the last year, largely driven by the student segment. “We continue to see the benefits of our disciplined approach to growth amid ongoing competitive intensity in the insurance sector,” Koczkar stated.

Medibank’s outlook includes expectations of continued customer growth and solid gross profit growth in the second half of 2025. “We are a resilient business with a long track record of navigating competitive and economic challenges,” Koczkar said. “As the health system continues to evolve, so are we.”