Ann: Medibank response to APRA announcement, page-2

APRA capital adequacy requirement for MediBank expanded by 250 Million




Debating whether to sell a long-time position in MPL in light of original October data-breach and today's additional capital adequacy requirement.

My rationale is that despite Medibank's announcement that it holds sufficient existing capital to meet this additional requirement, the financial implications are still significant. I am also concerned about the company's capital buffer, which based on its premium revenue, was about 13%, and management was anticipating a reduced capital ratio of 10% to 12% under new APRA capital standards. My main concern is that the additional $250 million capital requirement will likely push this ratio to roughly 16%.

Source: https://www.tipranks.com/stocks/au:mpl