The Medibank Ltd (ASX: MPL) share price climbed 4% this afternoon despite the private health insurer releasing no specific news to the market since before Christmas 2018.
On December 19 Medibank told investors that the government will permit it to raise premiums by 3.3% from April 1 2019 in what it claimed was the lowest permitted average premium increase in 18 years.
Medibank is another former government-owned business alongside Telstra Corporation Ltd (ASX: TLS) that has been a disappointing performer for investors compared to expectations.
Medibank shares floated at $2.15 in November 2014 yet sell for just $2.70 today, which translates to a rise of 25% over around 4 years and 2 months.
The group has paid a reasonable dividend every six months since listing that shows how it remains a solid bet thanks to its strong competitive position and steadily-increasing demand for healthcare services.
According to Goldman Sachs the stock could face more pressure if Labor wins the upcoming federal election, so investors could see volatility ahead.
