Insights

How does the Medibank (ASX:MPL) earnings result compare to NIB?

It’s been a tale of two health insurance shares on the ASX this week
The post How does the Medibank (ASX:MPL) earnings result compare to NIB? appeared first on The Motley Fool Australia. –

The Medibank Private Ltd (ASX: MPL) earnings result was one to watch this week. The Aussie private health insurer released its full-year results for the year ended 30 June 2021 (FY21) and had an instant share price impact.

The Medibank share price jumped 2% higher on Wednesday morning following the release before closing the day 0.6% higher at $3.57 per share.

As one of the biggest weeks of the August earnings season comes to a close, let’s compare the Medibank result against that of rival insurer, NIB Holdings Limited (ASX: NHF).

How does the Medibank earnings result compare to NIB?

In case you missed it, some of the big takeaways from Medibank’s earnings result on Wednesday were:

Revenue up 1.99% on the prior corresponding period (pcp) to $6.9 billion
Net profit after tax (NPAT) up 39.8% on pcp to $441 million

Earnings per share (EPS) up 39.8% on pcp to 16 cents
Final dividend of 6.9 cents per share, making for a 5.8% increase in the full-year dividend to 12.7 cents per share

It’s worth noting the surge in profits was helped by a 4,900% increase in net investment income throughout the year.

In contrast, the NIB share price sank 6.3% lower on Monday following its half-year earnings update. The Aussie private health insurer reported that revenue was down 2.9% on pcp to $2.6 billion with expense claims up 2.5% on pcp to $2 billion.

NPAT came in 84.5% higher on pcp at $160.5 million, while NIB announced a 14 cents per share final dividend, fully franked.

There’s no doubt that the COVID-19 pandemic continues to weigh on earnings across the ASX but particularly for the Aussie health insurers.

The Medibank earnings result sent the company’s shares soaring while the same can’t be said for NIB. NIB reported significantly weakened international inbound and travel earnings as a result of the COVID-19 pandemic.

The group has also put aside $34 million in provisions to catch up on deferred claims in relation to COVID-19.

The NIB share price has climbed 10% higher in 2021 while Medibank shares are up 16.1% year to date. While shares in both insurers have seen double-digit gains, it does mean that Medibank is outperforming the S&P/ASX 200 Index (ASX: XJO) while NIB is not.

The post How does the Medibank (ASX:MPL) earnings result compare to NIB? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Medibank (ASX:MPL) dividend boost as payout ratio reduced
Medibank (ASX:MPL) share price on watch after 40% jump in profit
Leading brokers name 3 ASX shares to sell today

How did the Medibank (ASX:MPL) share price respond last earnings season?
NIB and Ampol share prices fall, new record for Domino’s. Scott Phillips on Nine’s Late News

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!