/ 24 February 2010

Discovery first-half profit up

Discovery Holdings forecast further growth after reporting a rise in first-half profit on Wednesday as consumers continued to buy its health insurance products.

Discovery said headline earnings per share for the six months to end-December rose 53% to 136,4 cents, in line with its forecast of a 45% to 55% rise.

New business climbed 16% to R3,25-billion and profit from operations was up 49% to R1,18-billion.

Discovery has proved more resilient than its peers, which have reported rising policy lapse rates as consumers battle high personal debts due to tough economic conditions as Africa’s biggest economy slowly recovers from a recession. — Reuters