Medibank Private shares are on a tear

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Medibank Private shares soared after the health insurer released its first annual results with better than expected profits and higher dividends.

The company posted a full year net profit of $291.8 million, beating its own prospectus forecast of $258.2 million.

Medibank group declared an inaugural dividend of 5.3 cents a share, also ahead of forecast which was 4.9 cents.

Its shares have been underperforming with prices below the IPO level when retail investors paid $2 a share and institutions $2.15.

However, a short time ago, investors had bid the shares up almost 11% to $2.22.

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