Medibank Private Ltd. · ASX:MPL
Medibank Private — Investor Presentation (February 2025)
37 slides from Medibank Private's investor presentation, Feb 27, 2025
Slide 1: Half year results 2025
Half 2025 year results Investor presentation 27 February 2025
Slide 2: Important notice
Important notice General & Summary Information The information contained in this presentation is general information about Medibank Private Limited These factors include general economic conditions in Australia, exchange rates, the market (“MPL”) and / or its related bodies corporate (together, “MPL
Slide 3: Acknowledgment of Country
Acknowledgment of Country Medibank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation. We proudly recognise Elders past, present and emerging as the Traditional Owners and Custodians of the lands on which we work and live. We’re committed to supporting sel
Slide 4: Highlights
Highlights David Koczkar Chief Executive Officer
Slide 5: Highlights
Highlights Our customer focus has seen our advocacy continue to improve • Strong NPS and improved lapse, with increased value provided to customers • Returning another $160m to our customers as part of our COVID-19 give back program This strong result reflects our disciplined approach and improving
Slide 6: Continuing to deliver for our customers
Continuing to deliver for our customers Supporting our customers’ whole needs in health Giving back to customers1 Supporting heath needs1 We continue to $160m 889k (+13.8%) prioritise value COVID-19 financial support announced2 Live Better rewards participants and health for $1.62b total support pac
Slide 7: Strong result reflects discipline and improving momentum
Strong result reflects discipline and improving momentum Delivering earnings and dividend growth Net resident Health Insurance Medibank Health Health Insurance policyholder growth operating profit segment profit management expense ratio1 +18.5k (+0.9 ) % $349.2m (+10.2 ) % $37.6m (+40.8 ) % 7.6% (0b
Slide 8: Continued progress on our strategy and vision
Continued progress on our strategy and vision Further strengthening our business Our vision To create the best health and wellbeing for Australia Our segments Insurance Health Resident Non-resident Wellbeing Primary care Specialist and acute care Our brands Our strategic Deliver leading Differentiat
Slide 9: Fundamentals remain strong across resident health
Fundamentals remain strong across resident health We remain disciplined, focused on long-term sustainable growth Current industry state Emerging industry issues and opportunities Resident health insurance segment remains buoyant Insurers and providers facing margin pressure • 2.3% industry growth in
Slide 10: Differentiation of growing importance in non-resident PHI
Differentiation of growing importance in non-resident PHI Migration policy changes play to Medibank’s strengths Current industry state Emerging industry issues and opportunities Strong, albeit lower net migration Improving stability, alongside changing sector dynamics • Migration remains highly impo
Slide 11: Medibank well positioned as health system evolves
Medibank well positioned as health system evolves Addressing changing customer health needs Current industry state Emerging industry issues and opportunities The health system is under pressure Change is needed to sustain the system • Historical underinvestment in prevention vs other OECD countries1
Slide 12: Medibank: a growing and differentiated health company
Medibank: a growing and differentiated health company Empowering our teams to create the best health and wellbeing for Australia Deepening relationships Supporting whole with customers of health needs • Deliver exceptional customer experience • Proactive and personalised • Personalised service via c
Slide 13: Financial results
Financial results Mark Rogers Group Lead – Chief Financial Officer & Group Strategy
Slide 14: Group financial summary
Group financial summary Underlying EPS up 13.8% to 10.8 cps Six months ended 31 Dec ($m) Group operating profit up 12.7% 1H24 1H25 Change • Disciplined approach to growth in resident Health Insurance business Group revenue from external customers 4,024.0 4,270.7 6.1% • Important contribution from no
Slide 15: Health Insurance result
Health Insurance result Disciplined approach to growth supports 40bps improvement in operating margin to 8.5% Revenue up 4.1% to $4,085.7m Six months ended 31 Dec ($m) 1H24 1H25 Change • Total policy unit growth of 1.4% Premium revenue1 3,925.3 4,085.7 4.1% • Resident downgrading stable at 50bps des
Slide 16: Health Insurance – resident policyholders
Health Insurance – resident policyholders Industry remains buoyant – Medibank focused on disciplined growth Six months ended 31 Dec 1H24 1H25 Change Resident health insurance market remains buoyant Policyholders (thousand): • Industry growth3 for the 12 months to 31 December 2024 expected to be only
Slide 17: Health Insurance – resident claims
Health Insurance – resident claims Expect FY25 claims growth per policy unit of 2.4% - 2.6% Resident gross claims up 3.7% Six months ended 31 Dec ($m) 1H24 1H25 Change • Risk equalisation provided a 60bps benefit to net claims growth Claims expense1 (3,205.9) (3,325.6) 3.7% this period (1H24: 20 bps
Slide 18: Health Insurance – portfolio performance
Health Insurance – portfolio performance Strong non-resident performance positively contributes to Fund’s gross margin and gross profit growth Resident Non-resident Total Six months ended 31 Dec ($m) 1H24 1H25 Change 1H24 1H25 Change 1H24 1H25 Change Premium revenue 3,799.5 3,936.2 3.6% 125.8 149.5
Slide 19: Health Insurance – management expenses
Health Insurance – management expenses MER maintained at 7.6% despite inflation impacting expense growth Six months ended 31 Dec ($m) 1H24 1H25 Change Premium revenue 3,925.3 4,085.7 4.1% Management expenses (298.9) (312.4) 4.5% – Depreciation and amortisation (20.8) (22.1) 6.3% – Resident sales com
Slide 20: Medibank Health result
Medibank Health result Segment profit up 40.8% includes organic growth and higher Myhealth contribution Medibank Health (excl. Myhealth) Myhealth2,3 Total Six months ended 31 Dec ($m) 1H24 1H25 Change 1H24 1H25 Change 1H24 1H25 Change Revenue 141.4 158.8 12.3% 69.6 n.m. 141.4 228.4 61.5% Gross profi
Slide 21: Investment portfolio and investment income
Investment portfolio and investment income Net investment income up $30.9m with improvement in growth and defensive portfolios Reported performance2 Underlying performance2 Six months ended 31 Dec ($m) 1H24 1H25 Change 1H24 1H25 Change Net investment income Growth portfolio income 16.2 32.7 101.9% 2
Slide 22: Capital and dividend
Capital and dividend Level of unallocated capital supports M&A aspirations Business continues to be well capitalised Capital ($m) 31 Dec 2024 31 Dec 2023 • Fund PCA coverage ratio maintained at 1.9x Total equity 2,352.2 2,384.8 • Unallocated capital increased $40.8m to $266.3m with strong capital ge
Slide 23: Financial priorities for 2H25
Financial priorities for 2H25 Resident Improving revenue • Increase policyholder growth in a disciplined way momentum • Invest to return Medibank brand to growth health • Leverage portfolio management capabilities to manage downgrading insurance Mitigate inflationary • Our treatment of COVID-19 clai
Slide 24: Conclusion
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Slide 25: Outlook
Outlook Customer promise: any permanent net claims savings due to COVID-19 will be returned to Customer customers value Customer give back program: expect our customer give back program to be finalised in FY25 Updated Resident Industry growth: we anticipate moderating industry growth in FY25 relativ
Slide 26: Delivering customer value and sustainable growth for shareholders
Delivering customer value and sustainable growth for shareholders A strong business with a long-term focus Our Strong foundations in Track record of growth Customer centric strategy strengths: growing market segments while navigating headwinds Disciplined approach to Strong and resilient business Ea
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: Our strategy – growing as a health company
Our strategy – growing as a health company Deliver leading Differentiate our Expand in health experiences insurance business Create personalised and connected Deliver more value, choice, and control Accelerate growth in prevention, customer experiences for customers primary and virtual care and pers
Slide 30: Strong result demonstrates our disciplined approach to growth
Strong result demonstrates our disciplined approach to growth A strong and resilient resident Making progress on our growth Delivering earnings and dividend private health insurance business potential growth for shareholders $38m Underlying Underlying resident health 16.5% Medibank Health 10.8cps se
Slide 31: Milestones scorecard and update
Milestones scorecard and update Deliver leading experiences Differentiate our insurance business Expand in health Customer advocacy Resident policyholder market share Medibank Health FY25 Sept FY24 FY27 aspiration FY24 - FY26 target 1H25 benchmark FY25 Average Organic $31.2m in Targeting average org
Slide 32: Our journey as a health company
Our journey as a health company Expanding our network through new products and services, partnerships and investments Pre-2017 2017 2018 2019 2020 2021 2022 2023 2024 Contracted Launched Suite Partnerships Wellbeing1 of Prevention Programs Primary care2 Minority Investment Majority Investment Specia
Slide 33: Our health investments
Our health investments Target Ownership Investments Description Benefits to Medibank segments interest (%) Myhealth Medical Holdings Pty Ltd 91% • Medibank acquired a non-controlling interest in Myhealth Medical Support preventative health and Group for c. $63m in 2021. Ownership interest increased
Slide 34: Group financial summary – half by half
Group financial summary – half by half Change ($m) 1H24 2H24 1H25 1H25 v 1H24 1H25 v 2H24 Group revenue from external customers 4,024.0 4,151.8 4,270.7 6.1% 2.9% Health Insurance operating profit 317.0 375.3 349.2 10.2% (7.0%) Medibank Health segment profit 26.7 33.7 37.6 40.8% 11.6% Segment operati
Slide 35: Health Insurance resident policyholders – half by half
Health Insurance resident policyholders – half by half Change 1H24 2H24 1H25 1H25 v 1H24 1H25 v 2H24 1 Policyholders (thousand): Opening balance 1,960.9 1,964.3 1,975.3 0.7% 0.6% Acquisitions 103.2 114.2 102.2 (1.0%) (10.5%) Lapses (99.8) (103.2) (94.7) (5.1%) (8.2%) Closing balance 1,964.3 1,975.3
Slide 36: Investment portfolio
Investment portfolio As at 31 December 2024 Target asset Portfolio Spot balance ($m) Average balance Average balance allocation composition ($m) ($m) 1H25 1H24 Australian equities 3.0% 4.1% 109.0 122.9 133.7 International equities 4.0% 5.2% 137.0 123.4 107.6 Property 5.0% 5.3% 139.4 144.5 172.4 Infr
Slide 37: Glossary
Glossary Term Definition Term Definition 1H Six months ended/ending 31 December of the relevant financial year MER Management expense ratio. Calculated as management expenses divided by 2H Six months ended/ending 30 June of the relevant financial year revenue Adult Dependent Reform that allows adult
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