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Johannesburg - Headline earnings at JSE-listed financial services giant Discovery Holdings [JSE:DSY] rose by 36% to R2.5bn for the year ended June as the company made inroads into key growth markets.
Net inflows for the group were up 23%, to over R41bn.
Chief executive officeer Adrian Gore pointed out that the market remains tough, with instability in global financial markets.
"Given this instability and the prospect of further economic decline, Discovery focused, in both its established and emerging businesses, on ensuring the group remains strongly positioned for continued growth and profitability," he told investors.
A key aspect of this result was the strong inflows into Discovery Invest (up 109% to R6bn) and Discovery Health (18% to R28bn).
"Discovery Invest's performance was exceptional and exceeded expectation, with the company generating its maiden profit in the second half of the financial year," said Gore.
He also pointed to its recent partnership in China following the acquisition of 20% of Ping An Health and Discovery's low-key presence in the US as potential opportunities.
"The joint venture will see Ping An Health deploy Discovery's product innovation and consumer-engaged model to a potential market of 83 million families.
"Given the ability for Discovery to tap into Ping An's brand credibility and distribution footprint, and based on the Chinese government's regulatory support of private healthcare, the opportunity in China is compelling," he told investors.
Investors will have perked up at the mention of the US business, after Discovery was badly burnt in previous years. Discovery has maintained a small US presence, where it rolls out the Vitality wellness insurance programme which is marketed to corporate health clients.
"This approach of strategic partnerships, coupled with US regulatory reforms that place the emphasis on cost management through wellness and prevention, create opportunities for Discovery to deploy Vitality's assets without requiring capital or incurring significant fixed costs."
Shortly after the release of financial results on Thursday, shares were up 37c (1%) to trade at 3 594 cents per share.
- Fin24.com
Net inflows for the group were up 23%, to over R41bn.
Chief executive officeer Adrian Gore pointed out that the market remains tough, with instability in global financial markets.
"Given this instability and the prospect of further economic decline, Discovery focused, in both its established and emerging businesses, on ensuring the group remains strongly positioned for continued growth and profitability," he told investors.
A key aspect of this result was the strong inflows into Discovery Invest (up 109% to R6bn) and Discovery Health (18% to R28bn).
"Discovery Invest's performance was exceptional and exceeded expectation, with the company generating its maiden profit in the second half of the financial year," said Gore.
He also pointed to its recent partnership in China following the acquisition of 20% of Ping An Health and Discovery's low-key presence in the US as potential opportunities.
"The joint venture will see Ping An Health deploy Discovery's product innovation and consumer-engaged model to a potential market of 83 million families.
"Given the ability for Discovery to tap into Ping An's brand credibility and distribution footprint, and based on the Chinese government's regulatory support of private healthcare, the opportunity in China is compelling," he told investors.
Investors will have perked up at the mention of the US business, after Discovery was badly burnt in previous years. Discovery has maintained a small US presence, where it rolls out the Vitality wellness insurance programme which is marketed to corporate health clients.
"This approach of strategic partnerships, coupled with US regulatory reforms that place the emphasis on cost management through wellness and prevention, create opportunities for Discovery to deploy Vitality's assets without requiring capital or incurring significant fixed costs."
Shortly after the release of financial results on Thursday, shares were up 37c (1%) to trade at 3 594 cents per share.
- Fin24.com
