Discovery profit declines 6% as claims and costs increase

Discovery Holdings, owner of South Africa’s largest medical-insurance administrator, said fiscal full-year profit fell 6% as claims and costs rose.

Net income for the 12 months to June 30 dropped to R2.06-billion, from R2.2-billion a year earlier, the Johannesburg-based company said in a statement on Tuesday. Diluted earnings a share excluding one-time items was R4.96, missing the median R5.02 estimate of six analysts surveyed by Bloomberg.

 

Discovery operates in South Africa, the UK and China. In February it boosted its stake in China’s Ping An health insurance unit to 25% from 20% and expanded its wellness-based life-insurance model, called Vitality, into Singapore through a joint venture with AIA Group Ltd in July.

 

The dividend rose 20% to R1.245 a share, Discovery said. Claims gained 33% to R8.9-billion, while costs related to acquisitions, marketing and administration increased 22% to a combined R11.7-billion.

 

Discovery rose 2.6% to R86.46 as of 9:50am in Johannesburg. It is the best performing stock on the five-member FTSE/JSE Life Assurance Index this year, having risen 38% compared with the average return of 13%. – Bloomberg


Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising

Subscribers only

How smuggled gold destined for Dubai or Singapore has links...

Three Malagasy citizens were apprehended at OR Tambo International airport, but now the trail is found to connect to France and Mali

How lottery execs received dubious payments through a private company

The National Lottery Commission is being investigated by the SIU for alleged corruption and maladministration, including suspicious payments made to senior NLC employees between 2016 and 2017

More top stories

No one is above the law, Constitutional Court tells Zuma

The former president has been ordered to obey the Zondo commission’s processes

Healthcare workers’ vaccines will be free

The Covid-19 vaccine has been declared a public good, which means that healthcare workers will not be expected to pay for it

Ms K describes ‘separate and discrete’ SSA command structure to...

Ms K’s and Mr Y’s affidavits and testimony have alleged a picture going back to 2008 of how the former president and his aides worked — and allegedly abused the SSA

RECAP: New allegations of how the former head of the...

Day two of State Security Agency testimony at the Zondo commission birthed more revelations that point to the former head of state and agents breaking the law
Advertising

press releases

Loading latest Press Releases…