Share

Discovery results reflect behaviour focus

Johannesburg - Discovery's normalised profit from operations for the six months ended December 2013 increased to R2 383m, up 21% from the comparable 2012 period.

New business Annual Premium Income was up 19% to R 5 883m.

“We are pleased with the performance across Discovery’s businesses over the past six months," said Adrian Gore, Group CEO on Thursday.

Discovery Health increased its new business by 15% to R2 623m and operating profit by 13% to R860m.

Membership of Discovery Health Medical Scheme managed by Discovery Health was up 4%, loss ratios declined and lapses and plan downgrades remained low.

Discovery Health Medical Scheme achieved a R1.4bn surplus and solvency reserves of R9.7bn.

Discovery Life experienced earnings growth of 21%, driven by strong new business.

Discovery Invest’s assets under management increased by 35% to R36bn and new business increased by 26% to R652m.

As for Discovery Insure, Gore said during the review period, the company focused on further product innovation, building the distribution capability, service innovation and enhancing the value of the Vitalitydrive model.

In the UK, Discovery’s combined businesses of PruHealth and PruProtect grew their combined profit by 27% to R359m and new business by 35% to R982m with a client base at 774 000 lives.

UK Market

A critical development in the UK market has been the implementation of Discovery-based product integration across PruHealth and PruProtect.

New business at Ping An Health in China is gaining traction has doubled over the period to R138m and is predominantly driven by Group Insurance sales.

For the six months ended December 2013 Discovery's normalised profit from operations was up 21% to R2 383m.

New business API was up 19% to R5 883m and cash generated from operations was R1.3bn.

"The period reflects the increasing relevance of the Discovery [JSE:DSY] business model, especially in the light of the global impact of chronic diseases of lifestyle, the challenge of rising healthcare costs and consumers turning to protection products to mitigate uncertainty.”

Gore said understanding the triggers of behaviour change and designing the appropriate incentives enables Discovery to achieve lower mortality and morbidity rates, better lapse rates and claims experience.

He said Discovery continued its strategy of investing in the further development of the model to ensure that it can be replicated across South African businesses, international markets and adjacent industries.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.05
-0.7%
Rand - Pound
23.98
-0.3%
Rand - Euro
20.55
-0.4%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.7%
Platinum
894.10
-0.3%
Palladium
996.00
-0.6%
Gold
2,193.32
-0.1%
Silver
24.41
-1.0%
Brent Crude
86.09
-0.2%
Top 40
67,889
+0.3%
All Share
74,074
+0.2%
Resource 10
56,132
+0.9%
Industrial 25
103,554
+0.3%
Financial 15
16,492
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders