Medibank Prospectus Details, page-75

You said it yourself not to compare apples with oranges.. And yet, here you are comparing Medibank with the banks..
The key to great investment is called diversification. You could have all of your assets in banks, but you are exposed to the downturn in economy (both domestic and international)..

Medibank is floated with zero debt. Can you tell me how much debt that the banks have?

Plus there is a talk at the moment about Medibank divesting the Complimentary Services unit. If this happens, it would either resulted in special dividend to the shareholders or increasing the warchest for either future acquisitions or bringing additional services for members.

Medibank margin is around 4.9% where as Bupa is around 7%. There is no reason why Medibank can't improve their margin to be similar to Bupa. Agree with madamswer that claim management is one of the biggest area that Medibank can improve on.. A small change to this will certainly deliver a nice profit for the company.