Medibank arrests sliding growth

MEDIBANK Private says it is well positioned to eke out market share growth this year after a decade of declines.

Chief executive Craig Drummond says the group, the biggest Australian health insurer, could snap up smaller rivals if Labor won the coming federal election and there was industry consolidation under its policy to cap premium increases.

Speaking at the company’s annual meeting in Melbourne yesterday, Mr Drummond said Medibank was growing policyholder numbers ahead of its aspirations.

In the first four months of the financial year, Medibank gained 8000 members, he said, compared with a loss of 1000 in the same period last year.

“I am pleased to report that we have stabilised our market share, 18 months ahead of our initial milestone,” Mr Drummond said. In 2016, he said he wanted to stabilise market share by the end of 2019.

“The most recent (prudential regulator) data shows that we grew our market share by five basis points in the second half of the financial year,” he said. “We are now targeting modest market share growth in the current financial year.”

Medibank chair Elizabeth Alexander said it was the first time in a decade the group’s market share had grown over a six-month period. Complaints to the industry ombudsman had also fallen, she said.

Medibank shares closed 1¢ lower at $2.74 yesterday. This time last year they were at $3.18.