Medibank Private (ASX:MPL) share price dips despite 27% profit boost

medibank private asxmpl share price dips despite 27 profit boost

Medibank Private Ltd (ASX: MPL) shares are under pressure today following the release of the insurer’s half-yearly results for FY21.

At the time of writing, the Medibank share price has dipped to $2.83, down 2.08%.

What did Medibank announce today?

The private health insurance provider announced a net profit after tax of $226.4 million for the 6 months ending 31 December 2020 – a 27.3% increase compared to the prior corresponding period (pcp).

The company attributed the increased profit primarily to a net gain of 49,000 policy holders over the period. 17,600 of these new customers signed up for Medibank-branded insurance itself.

“This is the first time we have grown the Medibank brand in any 6-month period since 2013 and this trend has continued into February,” the company said in a media release today.

Medibank’s results stand in stark contrast to the private health insurance industry at large. According to the Australian Prudential Regulatory Authority, industry profitability was down by 2 percentage points on the pcp — driven largely by the COVID-19 pandemic.

The pandemic led many private health insurance providers, including Medibank, to postpone premium increases for 6 months. Medibank stated the postponement cost the company $109 million in revenue…

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