Looking at the basics

- Medibank Private has net assets of $1.29bn (as at 31 December 2014*).

- 40% of its earnings come from investments of which this investment portfolio 75.3% are defensive. Investment Portfolio $1.86bn*

- Net profit after tax likely to be ~ $300m for 2014/15

- Current Market cap is $5.9 bn

- Can not see where the step change growth is from Medibank.
^ Better deals with hospitals - not all value goes to shareholders as shared with industry (risk equalisation).
^ Rationalising products will see lapse of some members
^ Increase premiums they have done, however not competitive in market (intermediaries shifting members)

- I would sell off all non health insurance businesses. Focus solely on health insurance. Improve customers service and claims management.