2024 half year results

Solid result demonstrates our focus on our customers and continued strong growth as a health company

New $215 million COVID customer give back

We’ve delivered a solid result for the first half of the year, which reflects our focus on our customers and disciplined approach to growth. Our Health Insurance business remained resilient in challenging economic times, Medibank Health performed strongly, and we made some substantial steps in our expansion in health.

Today we announced a further $200 million cash back to Medibank customers and given ahm customers another year to use their unused extras limits valued at up to $15 million. It will bring the total amount of customer support we’ve provided to customers since the start of the pandemic to a record $1.37 billion – to date the largest financial give back from any Australian health insurer. In the highly competitive resident market, we’ve been disciplined in choosing how and where we grow and that won’t change. We increased resident policyholders by 3,400, driven by families and those taking out cover for the first time, and grew non-resident policy units by 33,800 in the half and 34% over the last 12 months.

More value

With cost-of-living pressures ongoing, we’ve delivered greater value for our customers.

Customers redeemed more than $10 million in Live Better rewards for looking after their health and wellbeing – including $3 million of savings on premiums or limits top ups.

Our expansive Members’ Choice Advantage network saved customers more than $12 million in out-of-pocket costs in the past 6 months alone, while our no gap program is now the largest in the industry as we’ve continued expanding the procedures covered and the acute and day hospitals where it is available.

We’ve seen a 14% increase in the take up of our Silver health insurance cover among Medibank consumers after launching our new product range focused on prevention and savings in June. We grew our range of diversified insurance products and enhanced features, leading to a 39% increase in the number of existing customers taking out travel, pet, car and home or life and income protection policies, and we’ve continued to work hard to keep our premiums as low as we can, with our average 2.96% increase in 2023 well below headline inflation and significantly under increases in other areas.

Better experiences

We’ve continued to streamline our customers’ experience and seen Service NPS increase for both Medibank and ahm.

Customers are getting to the right expert faster and having their queries resolved through the self-service channels they prefer while our trial connecting customers with team members local to their area is delivering better customer satisfaction scores and has expanded to three areas.

As well, we’ve continued to strengthen our business through our IT security uplift program.

Increased health and wellbeing support

We are engaging more people with our prevention programs – around 57,000 people enrolled in our Live Better Backsmart challenge, while enrolments in our 9 preventative programs are up more than 48% year on year. Our new partnership with Amwell will enable us to deliver virtual prevention programs at scale.

Our Amplar Health team continued to support more of our customers and community with health advice, homecare and virtual care over the past 6 months, including more than 140,000 homecare visits. We also introduced complimentary health checks for our customers to help them get the most out of our health programs, completing 14,000 over the past 6 months.

Investing to grow in health

We increased our investment in primary care through Myhealth (currently a network of 106 GP clinics) and together with Medibank and our Amplar Health business, we have created one of Australia’s largest multi-disciplinary primary care networks.

We’re seeing promising early results from the innovative approach to mental healthcare we’re providing through our iMH partnership with Aurora Healthcare, with the second hospital now open in Sydney.

This week the world-class Orthopaedic Institute at Macquarie University Hospital was officially opened by MQ Health. East Sydney Private Hospital will open two new operating theatres and a new floor in April, and later this year Adeney Private Hospital will welcome its first patients.

We'll continue to lead change to drive the health transition that is underway, , so we can provide our customers with greater value, choice and control in their health, and play our role in ensuring the health system remains sustainable for all.

Delivering for shareholders

Our shareholders will receive a fully franked interim ordinary dividend of 7.2 cents per share.

Key financials

The result reflects resilience in our resident Health Insurance business, continued momentum in our non-resident Health Insurance business, and strong growth in Medibank Health. Group operating profit increased 4.2% to $319.4 million with Medibank Health segment profit up 8.5% to $26.7 million. Group underlying net profit after tax increased 16.3% to $262.5 million.

Further enquiries

For media

Emily Ritchie
Hub Lead, External Affairs
+61 429 642 418
emily.ritchie@medibank.com.au

For investors/analysts

Colette Campbell
Hub Lead, Investor Relations
+61 475 975 770
investor.relations@medibank.com.au