Discovery Group records profit, thanks to Discovery Bank

Discovery Group has recorded significant growth across all its divisions, with Discovery Bank’s growth shining through.

Group Chief Executive, Adrian Gore, delivering the financial results for the six-months ended 31 December 2024 on Tuesday, said: “We have emerged from a cycle of significant investment, which focused on creating new avenues for long-term growth, through globalising our capabilities and footprint, and building new ventures, most notably Discovery Bank”.

The Group saw growth in normalised operating profit up 27% to R7.020 million, headline earnings, up 34% to R4.267 million and normalised headline earnings, up 34% to R4.350 million.

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How did Discovery do it?

Gore added that during the six months, Discovery Bank achieved monthly profitability in December and returned its first profit ahead of plan.

“The current strong in-period performance across the Group, shows that we are well-positioned for a phase of scaled organic growth, with focused execution through our newly formed global composite, Vitality, and our domestic business, Discovery South Africa.”

The Group’s embedded value increased to R120 billion and the positive contribution from experience variances over the period reflected the competitive dynamics of the Group’s Shared-value Insurance model.

How Discovery’s divisions performed

The financial results show that Discovery South Africa’s operating profit increased by 27% to R5.520 million as the composite focused on driving quality new business at appropriate margins. New business increased 6%, excluding the prior period take-on of the Sasolmed closed medical scheme.

Discovery Bank delivered a 42% increase in total revenues. “It is well positioned to leverage its scale, data and capabilities to drive growth across the composite,” reads the results.

“The administrator of Discovery Health Medical Scheme and 18 closed medical schemes delivered robust earnings growth, while continuing strategic investments in technology, innovation, artificial intelligence, and personalised healthcare.

“New business increased 9%, excluding the Sasolmed closed medical scheme take-on in the prior period (decreased 31%, including Sasolmed).”

“Discovery Insure delivered an excellent recovery in operating margin and benefited from benign weather conditions.”

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Vitality’s performance

Vitality’s different divisions recorded growth throughout.

Vitality Health in the UK increased its operating profit by 15%, driven by effective pricing strategies and a 16% rise in earned premiums.

Despite a stagnant UK market, Vitality Life’s operating profit grew by 8% to R327 million, supported by a 19% increase in new business API.

“The Vitality Network expanded significantly, with membership growing by 26% to 6.2 million and profits rising by 20%.

“Additionally, Discovery’s share of profits from Ping An Health Insurance in China increased by 23% to R424 million, benefiting from strong equity and bond market performance.

“Despite economic challenges in certain regions, Discovery continues to thrive, leveraging its diverse business model to maintain strong results in both South Africa and international markets.”

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