Hyperion: Medibank's long-term earnings uncertain

Hyperion: Medibank's long-term earnings uncertain. Tim Samway, Managing Director of Hyperion Asset Management says he was turned off investing in the Medibank IPO because of the uncertainty of future earnings at the company. Commenting in The Australian Newspaper, Samway says Insurance is a commodity business. It's very price-sensitive, there's a lot of aggregators in this market and it's a product sold on price and therefore it's open to higher levels of competitive pressure, which makes the long-term earnings less certain. Samway also questions the assumption that management will be able to easily guide significant cost reductions saying a lot of it was sold on cost-out and the management have been there a long time, so why are things going to improve now?