Medibank Private (ASX:MPL) FY20 outlook

Company News

by Katrina Bullock

Medibank Private (ASX:MPL) has revised its 2020 outlook.

Since its last projection was released to the market on 22 August 2019, it has experienced higher than expected claims which has resulted in a $21 million under provision from the 30 June 2019 claims reserve.

It says that the claims growth per policy unit was 2.4 per cent for the 2019 financial year, compared to the 2 per cent it originally reported.

When combined with the October claims, this indicates a trend and it now expects the increase of claims per policy unit to continue throughout the 2020 financial year. It says the trend has been driven by higher private hospital payments and increased prosthesis costs.

Shares in Medibank Private (ASX:MPL) are trading 9.1 per cent lower at $3.09