Sydney, Feb 19, 2026, 18:13 (AEDT) — After-hours
- Medibank ended the day off 6.2% following its half-year results release.
- The interim dividend’s up 6.4%, now at 8.3 Australian cents per share, fully franked.
- Premiums climbed in April, putting a spotlight back on member growth and claims expenses.
Shares of Medibank Private Ltd dropped 6.2% on Thursday, closing at A$4.50. The insurer surrendered some of the previous session’s gains as investors digested its half-year results.
Medibank reported that underlying net profit after tax, which excludes investment market swings, edged down 0.3% to A$297.8 million for the six months to Dec. 31. The board, though, bumped up the interim dividend by 6.4% to 8.3 Australian cents per share, fully franked—so it comes with local tax credits. “We’ve delivered on our growth commitments,” Chief Executive David Koczkar said, highlighting stronger momentum in health insurance and the expansion of the group’s health services business.
The numbers drop just as health insurers brace for April’s price reset, after Canberra approved an average 4.41% hike in private health insurance premiums starting April 1. The government also plans to ban “product phoenixing”—a tactic where insurers shutter a product only to relaunch a near-duplicate at a steeper price. Health, Disability and Ageing
Medibank will lift its premiums by an average of 5.10% starting April 1, following the green light from the government. That’s higher than the industry average.
Medibank’s investor presentation showed group operating profit climbing 6% to A$381.7 million. Health Insurance operating profit edged up 3.5% to A$361.5 million; profits in the Medibank Health segment jumped 28.5% to A$48.3 million. Net resident policyholder numbers increased by 38,300 over the year. The company also highlighted its acquisition of Better Medical for A$163.5 million, signaling a deeper move into primary care.
Top-line gains didn’t filter through everywhere. Net investment income slid 17.1% to A$94.9 million. Medibank also pointed to A$15.0 million in one-off cybercrime expenses linked to the 2022 breach—covering security upgrades plus legal and regulatory costs.
That marked a shift from Wednesday. Back then, Australian media had reported gains for health insurers like Medibank and NIB Holdings following the premium approvals.
NIB plans to hike its health insurance premiums by an average of 5.47% starting April 1.
Medibank’s underlying net profit for the first half landed at roughly A$298 million, coming in 2% to 4% shy of forecasts, according to Citi’s Nigel Pittaway. He pointed to softer returns from the private health insurance division and rising expenses.
There’s a risk here: larger premium hikes could draw fresh attention to value for money, nudging cost-conscious customers to switch plans or exit entirely, even as hospital and medical expenses keep rising. Throw in any additional cyber charges or negative regulatory news, and that would drag on sentiment, too.
Now attention turns to broker updates and potential tweaks to FY26 forecasts before Medibank’s interim dividend dates come up. Shares go ex-dividend Feb. 26, with the payout scheduled for March 18.
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