Medibank had previously guided it was unlikely to meet prospectus revenue forecast. The Health Insurance business revenues were $60m below prospectus; hence this is a small miss. Health Insurance business (HIB) gross margin rose from 13.5% in 2014 to 14.2% in 2015. The prospectus was for gross margin of 13.6%. The FY15 result was very pleasing in this respect as the GM% is approaching industry best. Management expenses in the HIB declined in absolute terms by $4m over FY14. The Management expenses ratio (MER) declined from 9.1% in 2014 to 8.6% in 2015 – also a very pleasing outcome and in line with our expectation. Read our full summary here: (VIEW LINK)