Australia's Medibank Private reports 1% net profit drop

Australia’s Medibank Private has reported a net profit of $445 million, down 1% from $449.5 million last year.

Medibank_small
Source: Medibank

Medibank Australia reports its net profit drop was due to lower equity and credit market returns.

Medibank's net investment income has decreased 3.1% to $95.6 million, with stock posts its biggest intraday fall since June 2016.

Operating profit in health insurance jumped 7.7% to $536 million, with a revenue growth of 1.2%.

While there’s been a 1% drop net income, the report shows Medibank's health insurance business seems to be turning around.

Medibank Private chief executive Craig Drummond agrees. Mr Drummond says he’s pleased with the growth progress.

'This result demonstrates that our core health insurance business is back on track and in the coming year we will continue to transform our relationship with our customers and deliver a more personalised and proactive experience.’ Said Mr Drummond.

Health insurance operating profit is reported at $535.6 million up 7.7 %, with a $38 million increase.

Another fall however, with the net investment income falling by 31.4% to $95.6 million, showing lower returns across growth and defensive portfolios.

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