Australia’s 2026 premium round may broaden the gap between Medibank and NIB, Morgan Stanley says

NIB Holdings

22/09/2025 24:27

** Australia’s 2026 premium round could widen the gap between health insurers Medibank MPL.AX and NIB NHF.AX ,Morgan Stanley says

     ** Brokerage says govt expects insurers to protect consumer value and support private hospitals, among others

** MPL, which pays out more to customers and returned A$1.7 bln ($1.12 bln) in COVID savings, is better placed to sustain margins into FY26-27 - MS

** Says govt is drafting legislation to address 'product phoenixing', with new product launches requiring ministerial approval; MS says it could lead to more sustainable pricing practices in industry

** Product phoenixing is when an insurer closes an existing product and opens a similar one at a higher price point, circumventing the Premium Round process

** YTD, MPL is up 29% outperformed by NHF's gains of 39.1% as of last close

($1 = 1.5170 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Kim Coghill)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))