Johannesburg - Discovery [JSE:DSY] said on Monday it would spend $246m to purchase the 25% stake in Britain's Prudential Health Holdings it did not already hold.
Discovery, which initially got into the UK business through a joint venture with Prudential Assurance Company, said it would partly fund the acquisition through debt.
The UK operation, ranked number four in the private health insurance market, is targeting £1bn of earned premiums and £200m of new business over the next five years.
Discovery's shares were up 3.36% at R103.54 by 13:55, outpacing a 0.62% rise by the JSE's Top-40 index.