Medibank Private’s pet insurance business grew 20% in the year to June 30, in an increasingly competitive market.

The health insurer paid claims of $10.5 million but its annual report does not disclose premium value.

“The pet insurance category is experiencing significant growth with awareness being driven across a number of major brands,” the report says, noting also that rising veterinary costs are continuing to put pressure on premiums.

Medibank also reported 8% growth in travel insurance sales, without giving figures. More than 140,000 health fund members bought travel cover, up 21%.

Medibank Group’s profit leaped 84% to $232.74 million for the year and directors note it is the new Federal Government’s policy to privatise the company.

It paid the Federal Government $450.33 million in dividends during the year, compared with $91.24 million the year before.

Apart from interim and final dividends, the Government received two special dividends of $39.84 million and $300 million.