Australia's largest health insurer and leading health solutions provider, Medibank, today announced its 2012/13 financial results, highlighting a strong 14.2 percent increase in operating profit, driven by a 9.4 percent increase in group revenue to $5.86 billion and a focus on cost management.
Medibank's operating profit, combined with solid investment returns (up $101 million), have delivered the company a net profit before tax of $315 million, an increase of 59.9 percent from last year.
Medibank 2012/13 financial performance:
- Group revenue (FY13) $5,860m, (FY12) $5,357m, 9.4% change year-on-year
- Operating profit (FY13) $ 185m, (FY12) $ 162m, 14.2% change year-on-year
- Net investment income (FY13) $ 144m, (FY12) $ 43m, 232.7% change year-on-year
- Net profit before tax (FY13) $ 315m, (FY12) $ 197m, 59.9% change year-on-year
- Net profit after tax (FY13) $ 233m, (FY12) $ 127m, 83.8% change year-on-year
- Return on equity (FY13) 15.4% (FY12) 7.9%, 94.9% change year-on-year
Medibank Managing Director, George Savvides, said the improved results were driven by a number of factors including:
- Continued strategic focus to bring Medibank's Purpose - For Better Health - to life as an integrated health insurance and health solutions company.
- Re-invigorated private health insurance branding and products - leading to membership growth to 3,832,000 members and maintaining number one market position with 29.5 percent share.
- Continued Medibank Health Solutions growth momentum - strong revenue growth and significant new contracts and innovative health services provision.
- Strong cost containment - new multi-year hospital contracts locked in, private health insurance Management Expense Ratio of 9.6 percent.
"The year's result is the outcome of significant focus on delivering sustainable profitable growth in an environment where the private health industry faces increasing challenges," Mr Savvides said.
"We have responded to these by investing in our private health insurance business - launching a new twin brand portfolio of new products, and adding value in member rewards and health support services - which stands us in good stead to further grow our membership in the coming year.
"Member benefits payments grew by 7 percent in the year resulting in a record payout of $4.73 billion, reflecting the growing demand for health services by our members.
"Medibank Health Solutions has continued to grow and reinforce its leadership position in providing innovative health services, with revenue increasing 79 percent to $541 million," said Mr Savvides.
A key element of the Medibank Health Solutions result is the commencement of the four-year $1.4 billion health contract for the Australian Defence Force (Garrison Health), which commenced mid-way through the year.
"Medibank continues to be one of the best recognised brands in Australia and we continue to see strong growth prospects for the year ahead through our integrated operating structure and differentiated services - offering both health insurance and health solutions," said Mr Savvides.
For more information see the 2013 Medibank Annual Report