Group overview

Discovery

Adrian Gore //
Chief executive officer
  Adrian Gore
     

Discovery Logo

The year under review was a seminal one for Discovery – it achieved considerable success in the context of growth, innovation and quality across all areas of its business with all of its businesses performing better than expected.

Discovery expanded into an integrated financial services organisation with over four million clients in South Africa, the United Kingdom, United States of America and China. The products and services include health insurance, life insurance, long-term savings and investments products, short-term insurance, credit card products and wellness benefits.

Discovery believes in a values-based culture that creates opportunities for people to grow and innovate. It embraces diversity and transformation in its business and strives to make primary healthcare accessible to more South Africans. Meeting the needs of customers through continuous innovation of products remains a high priority. Discovery encourages people to make positive lifestyle changes that are needed to address the increasing risk of chronic diseases of lifestyle. Accountable, transparent and ethical business practice is promoted in an effort to build a world-class business that understands its impact on the environment and enhances South Africa’s reputation internationally. Discovery has increased the number of Discovery Foundation recipients to 143 with a financial commitment of R69 million towards their training.

The year under review was a seminal one for Discovery – it achieved considerable success in the context of growth, innovation and quality across all areas of its business with all of its businesses performing better than expected.

• It acquired Standard Life Healthcare, the UK’s fourth largest health insurer and began its integration into PruHealth;

• It revitalised the Vitality business in the United States; and

• It entered the South African short-term insurance market through Discovery Insure.

Discovery’s existing businesses performed well, with a focus on quality that manifested in strong embedded value growth, improved new business margins and positive variance experience. Discovery’s emerging businesses (PruHealth, PruProtect and Discovery Invest) performed better than expected, with all three generating profits.

This translated into a financial performance that exceeded expectation, with new business of R7,5 billion while operating profit increased by 32% to R 2,8 billion. Normalised headline earnings increased by 31% to R2,0 billion. Embedded value increased by 19% to R26,9 billion.

RMI Holdings included R165 million of Discovery’s earnings in its normalised earnings for the four month period.

For an indepth review of Discovery’s performance, RMI Holdings’ shareholders are referred to www.discovery.co.za.

   

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