New Medibank Private chief executive officer Craig Drummond has warned that the health insurer had a bad end to 2015-16, which has continued into the new financial year and will drive market share losses.

"While Medibank has paid $5.1 billon in claims this year on behalf of our customers, some challenges remain with the value we offer to our customers," Mr Drummond said in a statement, delivering his first set of results for the company.

Medibank reported a 46.4 per cent rise in net profit to $417.6 million, which was short of analyst forecasts of $426 million, according to Bloomberg

Health insurance giant Medibank has reported a 46.4 per cent rise in net profit to $417.6 million, short of analyst forecasts. Glenn Hunt

Revenue rose 2.4 per cent to $6.2 billion, while the $8.2 billion company declared a final dividend of 6¢ a share.

The stock fell 5.4 per cent to $2.82 in early trading, but remains up 40 per cent in the past year.