Medibank reports policyholder growth and increased profits in FY24
Medibank reports policyholder growth and increased profits in FY24 | Insurance Business Australia
Life & Health
Medibank reports policyholder growth and increased profits in FY24
Strategic investments and healthcare expansion highlighted
Life & Health
By
Roxanne Libatique
Medibank has released its financial results for the full year 2024, highlighting key developments in its health insurance business, customer growth, and strategic investments aimed at bolstering the Australian healthcare system.
The company reported the addition of over 14,000 resident policyholders during the fiscal year. Although this growth was modest, Medibank said it adhered to a strategic approach focused on sustainable long-term expansion in a competitive market.
The company also noted substantial growth in its non-resident business, with an increase of 69,000 policy units.
Medibank customers’ savings
During the same period, Medibank’s Members’ Choice Advantage network provided customers with an estimated $23 million in savings on out-of-pocket expenses. Additionally, customers redeemed more than $25 million in Live Better rewards, which included $8 million in premium savings.
The company expanded its no-gap program to 35 hospitals and introduced new silver and gold hospital cover options that aim to eliminate both excess and out-of-pocket costs for covered procedures.
Medibank’s health and wellbeing services
Engagement with Medibank’s health and wellbeing services grew, with nearly half of its policyholders now participating. The Live Better rewards program expanded to 823,000 members.
The company continued to invest in primary care, virtual health, and homecare services, delivering over 4 million health interactions through its Amplar Health and Myhealth networks. Medibank’s homecare programs were credited with saving approximately 193,000 hospital bed days.
In line with its focus on providing value through innovative care models, Medibank opened the Orthopaedic Institute at Macquarie University Hospital in February and continued construction on Adeney Private Hospital in Melbourne. As part of its joint venture with Aurora, the company opened a second mental health hospital, with plans to launch a third in Brisbane later this year.
Customer experience improvements were also noted, with Medibank achieving its highest customer advocacy score in four years. The introduction of new digital tools and a trial program connecting customers with local representatives contributed to this improvement, with plans to roll out the program nationally.
Medibank’s full-year 2024 financial performance
For its shareholders, Medibank declared a fully franked final ordinary dividend of 9.4 cents per share, bringing the total fully franked dividend to 16.6 cents per share for the year.
Its group operating profit, excluding the impacts of COVID-19, increased by 7.9% to $699.8 million. This was driven by a 6.3% rise in health insurance operating profit and a 36.7% increase in profit from the Medibank Health segment, reflecting the company’s continued investment in Myhealth and other growth initiatives.
“We are at the forefront of the health transition underway in Australia, working to change the way healthcare is delivered to give people more value, choice, and control and to keep our health system one of the best in the world,” he said.
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