Medibank has reported an almost 30 per cent increase in net profit after tax to $511.1 million for the 12 months to the end of June 2023.
The company said the result was driven by a 9.8 per cent in the operating product of its private health insurance business. It reported a profit of $650.4 million on the back of $7.148.7 billion in premium revenue, up 4.2 per cent, helped by a 0.6 per cent increase in policyholder growth. The company said it paid our $6 billion in claims.
The company's investment income was $138.6 million compared to a loss of $24.8 million in the previous financial year due to stronger equity markets, higher interest rates and narrowing credit spreads.
“Today we have delivered a solid result. Momentum has returned to our business by focusing on our customers and managing the business well," said CEO David Kockzar.
The company was the victim of a major cybersecurity attack during the reporting period with the confidential details of some of its members published online.
“We have worked really hard to regain the trust of our customers and while there is more to do, pleasingly we are growing again," said Mr Kockzar.
“In what was a very challenging year for our customers and our people, policyholder growth is back on track following the cybercrime event. Health insurance customers have surpassed 4 million for the first time in our 47-year history, and they continue to prioritise their health and wellbeing by using their cover more than in recent years.
“While consumers are paring back their spending in many areas, health is not one. People are still opting for private health insurance in record numbers," said Mr Kockzar.
“We expect further policyholder growth in FY24 in what will continue to be a highly competitive market."
Mr Kockzar said the company expects 1.5-2 per cent resident policyholder growth in the financial year 2024.