Government confirms sale of Medibank Private

The Federal Government will go ahead with the multi-billion-dollar sale of the nation's biggest health insurer Medibank Private.

Finance Minister Mathias Cormann has announced the Government-owned company will be sold through an initial public offering in the next financial year, 2014-15.

He says the details are yet to be finalised, but that an independent scoping study has found no evidence that insurance premiums will increase as a result of the privatisation.

Senator Cormann says no one investor will be able to buy more than a 15 per cent share in the insurer, which was valued at more than $4 billion in 2006 but recently estimated at being worth around half that.

Medibank's chairwoman Elizabeth Alexander has welcomed the decision, and moved to assure customers the insurer "remains focused on delivering excellent value and service".

more: Government confirms sale of Medibank Private

The Federal Government will go ahead with the multi-billion-dollar sale of the nation's biggest health insurer Medibank Private.

Finance Minister Mathias Cormann has announced the Government-owned company will be sold through an initial public offering in the next financial year, 2014-15.

He says the details are yet to be finalised, but that an independent scoping study has found no evidence that insurance premiums will increase as a result of the privatisation.

Senator Cormann says no one investor will be able to buy more than a 15 per cent share in the insurer, which was valued at more than $4 billion in 2006 but recently estimated at being worth around half that.

Medibank's chairwoman Elizabeth Alexander has welcomed the decision, and moved to assure customers the insurer "remains focused on delivering excellent value and service".