Medibank provides Q1 FY2023 updates and revised FY2023 outlook

On 26 October 2022, Medibank Private Limited announced its Q1 FY2023 update for period ended 30 September 2022. Following the cybercrime incident, the Company has also updated its FY2023 outlook.

Q1 FY2023 Highlights:

1. Net resident policyholder growth for Q3 FY2023 was 14,600. On a rolling 12-month basis, this policyholder growth was of 3.2%, which is above FY23 outlook of ~2.7%.

2. Underlying net claims expense per resident policy unit is below the FY23 outlook of 2.3%.

3. Management expense productivity initiatives is in line with the FY2023 outlook.

4. As at 30 September 2022, MPL’s health insurance capital ratio stood at 13.4%, and unallocated capital was ~AU$150 million.

FY2023 Outlook:

Based on the actions taken by the Company on recent cybercrime incident, noting that it does not have cybercrime insurance, MPL expects that AU$25 million - AU$35 million pre-tax non-recurring costs will impact earnings in the first half of FY2023. These non-recurring costs do not contain additional possible customer as well as other remediation, regulatory or litigation related costs.

Further, the Company said that the cybercrime event continues to grow and currently it cannot forecast with any certainty the impact of any upcoming events on MPL together with the level of any probable customer and other remediation, regulatory or litigation linked costs.

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