Health insurer Medibank Private has posted a 16 per cent jump in first-half profit after higher sales offset continuing costs from a 2022 cyber attack.
A 12 per cent gain in policy sales to non-residents helped underlying net profit after tax to rise to $262.5 million for the six months to December 31. Sales to residents increased by 0.2 per cent.
Statutory net profit after tax skyrocketed by 103 per cent to $343.2 million, however this was due to the adoption of new accounting standards.
Medibank said its improved sales came amid an increase in customers switching funds to offset cost of living pressures. This meant higher costs to acquire customers.
The Medibank brand has regained favour since cyber criminals stole the personal information of thousands of customers. The company said the brand's acquisition rate for resident customers was in-line with the rate before the cyber attack.
Medibank also has the Ahm brand which is targeted at younger people.
While the cyber attack may be forgotten by some, it still shows in Medibank's accounts.
Improvements to IT security cost the business $17.6 million in the first half. Medibank said full-year costs of $30 million to $35 million were expected for IT security, legal and other costs from regulatory investigations and litigation.
"This does not include the impacts of any potential findings or outcomes from regulatory investigations or litigation," the company said.
The good news for customers was Medibank will return $215 million in savings from the COVID-19 pandemic.
Medibank customers will receive at least $50, while Ahm customers will receive another year to use unused extras.
Chief customer officer Milosh Milisavljevic said while pandemic restrictions had eased, claims had been lower than expected.
While insurance remains its major business, Medibank is continuing to grow its smaller health business focused on primary healthcare.
Medibank has invested in service providers such as Amplar Health and the Myhealth GP network. First-half revenue improved 8 per cent to $26.7 million.
Meanwhile former South Australian premier Jay Weatherill will join the board next month. Chair Mike Wilkins welcomed his public policy skills.
Shareholders will receive a fully franked interim dividend of 7.2 cents per share. This is more than the payout of 6.3 cents per share paid about this time in 2023.
The figures didn't satisfied investors on the sharemarket. Medibank shares on the ASX were lower by 5.31 per cent to $3.65 at 11.33am (AEDT).
