MEDIBANK PRIVATE LIMITED (MPL)

The suspension of trading in the securities of Medibank Private Limited will be lifted immediately following the release by MPL of its announcement "˜Medibank cybercrime, business and FY23 outlook update'.

To date, Medibank's IT systems have not been encrypted by ransomware. Normal business operations have been maintained with customers continuing to access health services. Medibank has prioritised preventing further unauthorised entry to our IT network and is continuing to monitor for any further suspicious activity. As a result of the cybercrime event, Medibank is updating the FY23 outlook. Given the uncertain impact of this cybercrime event, Medibank is withdrawing its FY23 outlook for policyholder growth and will provide a further update at the 1H23 results. Underlying net claims expense per resident policy unit continues to track below the FY23 outlook of 2.3%. This has resulted in further permanent net claims savings due to COVID-19 of approximately $62 million and these savings will offset the cost of the deferral of premium increases for Medibank and ahm customers to 16 January 2023. Management expense productivity initiatives continue in line with the FY23 outlook and our expectation for inflation remains unchanged. APRA released the final private health insurance capital standards that will take effect from 1 July 2023, and the company continues to expect the implementation of these standards will not negatively impact our capital position. The company currently estimates $25 million-$35 million pre-tax non-recurring costs will impact earnings in 1H23. These non-recurring costs do not include further potential customer and other remediation, regulatory or litigation related costs.

Medibank provides an update on the cybercrime event. Medibank has received a series of additional files from the criminal. It is too soon to determine the full extent of the customer data that have been stolen. The company is still in the process of analysing what they had received to understand the total number of customers impacted and specifically which information has been stolen. Medibank is assisting the AFP in its ongoing investigation. The company will announce a comprehensive support package and will also defer premium increases for Medibank and ahm customers until 16 January 2023. Medibank continues to work with specialised cyber security firms, the Australian Cyber Security Centre (ACSC) and government stakeholders.

The securities of Medibank Private Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of MPL, pending the release of an announcement regarding the cyber incident announced on 13 October 2022.

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