Medibank Private Reports 30% Rise in Profit Following Cyberattack

Medibank Private, the Australian private health insurer, has announced a 30% increase in profit, signaling a recovery from last year’s cyberattack. In the 12 months ending June, the company recorded a net profit of AUD 511.1 million, up from AUD 393.3 million during the same period the previous year.

The surge in profit can be attributed to a substantial rise in net investment last year, as well as strong underlying profit growth in Medibank Health and continued capital generation. FactSet analysts had projected that Medibank’s full-year net profit would be AUD 485 million.

Despite the current economic climate, people are still prioritizing their health, as evidenced by the continuing trend of individuals opting for private health insurance in record numbers, according to Chief Executive David Koczkar.

The number of net resident policyholders for Medibank increased by 0.6% in fiscal year 2023. The company reaffirmed its guidance for resident policyholder growth of around 0.5-0.7% for FY 2023.

Directors of Medibank have decided to pay a final dividend of 8.3 Australian cents per share, an increase from 7.3 Australian cents in the previous year.

In FY 2023, Medibank incurred AUD 46.4 million of non-recurring costs associated with the cyberattack. For FY 2024, the company anticipates additional costs of AUD 30 million to AUD 35 million for IT security improvements and expenses related to regulatory investigations and litigation.