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Highlights:
- Medibank will be returning an additional AU$205 million under its COVID-19 financial support package.
- Customers will receive the payment via a cash back and a premium increase deferral.
- Medibank is funding the payments from additional COVID-19 permanent net claims savings.
ASX-listed health insurance provider, Medibank Private Ltd. (ASX:MPL), shared today that it will return an additional AU$205 million to its customers. The company is returning this much of cash as part of COVID-19 permanent net claims savings. The payment is a part of Medibank’s broader COVID-19 financial support package.
With this announcement, Medibank’s COVID-19 customer give back now stands at a record total of AU$682 million. According to Medibank’s management, the company is sticking by its promise to not extract profit out of COVID-19. The company hopes that cash give back will be welcomed by customers as they are already dealing with high inflation, interest rates, fuel prices and home energy costs.
Key highlights from Medibank’s ASX announcement
- Medibank customers will be receiving funds via a cash back, to be deposited directly in their bank accounts.
- The total amount consists of a cash give back and a premium increase deferral.
- Under the cash back, up to AU$145 will be paid for extras only policies. For hospital and extras policies, customers shall be given up to AU$620.
- On average, it means AU$28 for extras only policies and AU$123 for hospital and extras policies.
- The payment is expected to occur automatically in September.
- Medibank and ahm will defer the 2022 premium raise for one more month to 1 November 2022.
- The payments are being funded from Medibank’s additional COVID-19 permanent net claims saving.
Meanwhile, Medibank will continue to monitor claims activity impacted by COVID-19 restrictions.
Where is Medibank’s share price headed?
Medibank holds a market capitalisation of AU$8.73 billion as of date.
On ASX, MPL share price was at AU$3.155 apiece, down 0.473% at 12:54 PM AEST today.
MPL shares have been quite volatile on the ASX. It has gained 1.77% in last five days. In last thirty days, Medibank share price has lost 2.02%. It has lost 8.02% on Year-To-Date basis.
Notably, financial sector featuring the major insurance companies, is down 0.24% at 12:00 PM AEST. MPL’s peer from the health insurance sector, NIB Holdings Limited (ASX:NHF) is also 0.960% down around the same time.
Medibank’s road ahead
As highlighted by Medibank in its presentation at the Macquarie conference in May, its resident policyholders have increased by 2.3% (as of 30 April 2022). In FY22, the company is seeking a 3.1 to 3.3% overall policyholder growth. Medibank claims to be building on telehealth, primary care, short stay, and home care services.
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