Fin24

Discovery mulls expansion in US

2010-07-13 11:55

Johannesburg - South African insurer Discovery Holdings [JSE:DSY] is mulling expansion in the US market, its head told the Business Day newspaper on Tuesday, to benefit from growing demand for exercise and nutrition programmes.

Discovery quit the US health insurance business two years ago but retained a small wellness programmme business, Vitality.

US employers are increasingly turning to programmes such as weight management and nutritional training to contain costs of medical insurance as part of President Barack Obama's health policy changes.

More than two thirds of Americans are overweight or obese, a cause of many of the most expensive health conditions such as heart disease, diabetes and cancer.

"The US holds real potential... our desire is to work in this competitive market with credible partners. What's happening in around wellness offers substantial potential," the newspaper quoted Discovery chief executive Adrian Gore as saying.

Discovery was not available to comment.

- Reuters