Chief executive officer
Founded in 1992, a compelling core purpose has guided Discovery’s rapid growth – to make people healthier and to enhance and protect their lives. Discovery has built a sustainable business that will not only prosper over the long-term, but will benefit all its stakeholders.
With its headquarters in Johannesburg, Discovery has expanded its operations globally and currently serves over seven million clients across South Africa, the United Kingdom, the United States, China and Singapore. It operates under the Discovery Health, Discovery Life, Discovery Insure, Discovery Invest, DiscoveryCard, Vitality, PruHealth, PruProtect, Ping An and AIA Vitality brand names.
Discovery’s ambition is to be the best insurance organisation in the world. It wants to be known for its excellence, financial strength and innovation. In addition, it strives to be a powerful force for social good – whether through the way it does business, the products and services it delivers or through the impact its business has in the broader society. To achieve its ambition, Discovery uses its unique business model to make a tangible difference in people’s lives. In health insurance, integration incentivises healthier behaviour and reduces healthcare costs over the long-term and in life insurance, it creates the ability to offer clients innovative products, introduces dynamic rating factors that reduce costs for consumers and improves actuarial dynamics. By using these powerful financial and behavioural structures that meet people’s needs in sustainable ways, it is able to provide superior returns for shareholders.
Discovery’s framework for sustainable development supports this ambition. This framework focuses on six areas:
The Discovery Fund provides ongoing financial support to 34 community healthcare organisations and projects across South Africa, with many of these organisations and projects situated in remote and rural areas. The Discovery Foundation is investing R150 million to train 300 healthcare specialists in South Africa. The year under review to 30 June 2013 was a pleasing one for Discovery, with solid performance across the group. The year saw growth in:
The year under review saw significant investment (some 12% of earnings) in new business initiatives, a substantial portion of which was in Discovery Insure, which showed pleasing growth and in AIA Vitality, the strategic pan Asian joint venture launched in Singapore.
The South African operations demonstrated strong performance and generally ended the year ahead of expectation.
The performance from PruHealth and PruProtect (Discovery’s United Kingdom operations) was exceptional, with new business growing by 48% to R1.6 billion, resulting in a 57% profit growth to R472 million.
RMI Holdings included R699 million of Discovery’s earnings in its normalised earnings (2012: R579 million).
For an in-depth review of Discovery’s performance, RMI Holdings’ shareholders are referred to www.discovery.co.za.