Medibank Private Limited reported steady revenue growth and stable profit for FY25, while navigating ongoing cybercrime-related expenses and regulatory scrutiny. The insurer also announced increased dividends and outlined strategic investments in health services and digital transformation.
- 6.4% revenue growth to $8.35 billion
- Net profit after tax up 1.7% to $500.8 million
- Final dividend increased to 10.2 cents per share, fully franked
- Cybercrime-related costs of $39.7 million impacting expenses
- Strategic expansion in health services and digital platforms
Financial Performance Highlights
Medibank Private Limited has released its audited financial results for the year ended 30 June 2025, demonstrating resilience in a challenging environment. The company reported a 6.4% increase in revenue, reaching $8.35 billion, driven by growth in both resident and non-resident health insurance policies. Net profit after tax rose modestly by 1.7% to $500.8 million, reflecting disciplined cost management despite increased expenses related to a significant cybercrime event.
Dividend and Capital Management
In line with its strong financial position, Medibank declared a fully franked final dividend of 10.2 cents per share, payable on 9 October 2025, marking an increase from prior periods. The total dividend payout ratio remains within the company’s target range of 75-85% of underlying net profit after tax. The company maintains a robust capital adequacy position, with regulatory capital ratios comfortably above prescribed minimums, including a temporary $250 million supervisory adjustment related to the cybercrime event.
Operational and Segment Insights
The Health Insurance segment continued to perform strongly, with operating profit up 7.1% to $741.5 million. This was supported by a 1.4% increase in resident policyholders and a 11.6% rise in non-resident policies, particularly in worker segments. Medibank Health, encompassing primary care and virtual health services, saw a 27% increase in operating profit to $76.7 million, reflecting growth in joint ventures and expanded health service offerings.
Cybersecurity and Regulatory Challenges
Medibank continues to address the financial and operational impacts of a cybercrime incident first disclosed in 2022. The company incurred $39.7 million in related costs during FY25, including IT security enhancements and legal expenses. Regulatory investigations and class action lawsuits remain ongoing, with contingent liabilities disclosed but not yet quantified. Medibank is actively defending these proceedings and has strengthened its IT security posture and risk management frameworks.
Strategic Outlook and Innovation
Looking ahead, Medibank is focused on expanding its health and wellbeing services, investing $50 million over five years in mental health initiatives and scaling virtual care platforms. The company aims to leverage its dual-brand strategy to grow market share, particularly in corporate and non-resident segments, while maintaining affordability and customer satisfaction. Digital transformation remains a priority, with increased investment in analytics and customer experience enhancements.
Bottom Line?
Medibank’s FY25 results underscore steady growth and resilience, but ongoing cybercrime and regulatory challenges warrant close investor attention.
Questions in the middle?
- How will ongoing cybercrime investigations and legal actions impact Medibank’s future financials?
- Can Medibank sustain profit growth amid rising operational and cybersecurity costs?
- What strategic moves will Medibank make to capitalize on digital health and mental wellbeing trends?