Medibank Private Ltd (ASX: MPL) Share Price and News
Key Statistics
About Medibank Private Ltd
Medibank is a private health insurance company. It was formerly a government entity but was privatised a decade ago and listed on the ASX. It serves over 4 million customers.
Medibank Private Ltd Company History
Started as a government initiative in 1976, it was a response to regulate private health insurance prices. Medibank gradually broadened its scope to offer other forms of insurance too, such as travel, life and pet insurance.
The company listed on the ASX in 2014 as the Abbott government wanted to sell it. The company continued to innovate in the years ahead – most notably entering the in-home healthcare services market by buying Home Support Services (HSS) in 2018. The company was hit with a cyberhack in late 2022 that hit its share price for several months, although its share price gradually recovered.
In FY23, it made a $511.1m profit (up 30%), even in spite of $46.4m non-recurring cybercrime costs and paying out over $6bn in claims. It followed this up with a $262.5m profit in 1HY24, up 16% from 1HY23.
Medibank’s Outlook
Medibank has well and truly recovered from the cyber attack and is recording policyholder growth, particularly amongst those taking out cover for the first time.
It faces a number of risks, however, in the forms of industry competition, the risk of people giving up private health insurance due to cost of living pressures as well as underperformance in its investments.
Is Medibank Private a Good Stock to Buy?
Yes. It is a consistent dividend payer and has a track record of policyholder growth ever since it listed on the ASX.
Our Stock Analysis
Frequently Asked Questions
What is Medibank Private Limited?Medibank, established in 1976 and privatized in 2014, is Australia’s largest health insurer, covering ~4m million Australians. It provides private health insurance policies and integrated healthcare services, aiming to create a healthier future for all Australians.
How did Medibank evolve since its inception?Medibank transitioned from a government-owned entity to a privatized insurer in 2014, listing on the ASX. It expanded its services, introducing the affordable brand ahm, and focused on digital health innovations and sustainable healthcare practices to meet evolving market demands.
What makes Medibank stand out in the health insurance market?Medibank stands out for its strong brand recognition, diverse product offerings, focus on digital innovation, and commitment to sustainability. It offers comprehensive policies under its flagship brand and more affordable options under ahm, tailored to various customer needs.
What were the financial impacts of the 2022 cyber attack on Medibank?The 2022 data breach significantly impacted Medibank, with stolen customer records affecting profits and share prices. The company estimated that it incurred $46.4m in non-recurring cyber costs during FY23 and another $17.6m in 1HY24. This was not enough to stop it recording profit growth in those periods, however.
Is Medibank a good investment choice?Medibank presents an appealing investment opportunity, with consistent dividend payments and a positive outlook from analysts. However, potential investors should consider the challenges in the health insurance sector and Medibank’s ongoing efforts to recover from past setbacks.