Discovery expects one profit measure to be up to 15% higher
Discovery’s new-business annual premium income increased 28%
18 March 2024 - 11:11
byJACQUELINE MACKENZIE
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Discovery Building at Sandton, Picture: Freddy Mavunda.
Discovery Group expects normalised profit from operations for the six months ended December to increase between 10% and 15% amid robust profit and new business growth.
New business annual premium income (API) increased 28%, it said on Monday.
Headline earnings per share are expected to be between 3% lower and 2% higher, at between 483.4c and 508.4c compared with the restated IFRS 17 HEPS of 498.4c for the prior year. Normalised HEPS are expected to be between 7% and 12% higher, at between 489c and 511.8c, compared with a restated 457c.
Earnings for the period are reported under IFRS 17 for the first time and the prior period’s results were restated for consistency.
The group said its SA Composite cluster generated robust earnings and new business growth. Discovery Health’s new business was boosted by the successful take-on of the Sasolmed scheme.
“Discovery Bank’s performance was excellent, with strong progress across all metrics. Discovery Life’s individual life business delivered strong earnings growth with improving new business margins, while Group Life declined from the prior period’s exceptional performance,” it said.
Discovery Invest’s revenues and profit benefited from higher market levels, but Discovery Insure’s profit recovery was constrained by two severe weather events.
In its UK Composite unit, VitalityHealth experienced robust new business growth as a result of backlogs within the National Health Service and the resulting increase in demand for private medical insurance. However, there was a concomitant increase in claims due to a change in claim patterns in respect of primary care demand.
VitalityLife’s earnings benefited from higher interest rates and one-off positive variances.
In the Vitality Global business, Vitality Global performed strongly. Ping An Health Insurance’s operating result and new business production exceeded expectation, it said. Vitality Network generated strong revenue and profit growth, with margin expansion. Continued investment was made into Vitality Health International.
Discovery’s share price was up 2% at R135.99 in midmorning trade on Monday on the JSE.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Discovery expects one profit measure to be up to 15% higher
Discovery’s new-business annual premium income increased 28%
Discovery Group expects normalised profit from operations for the six months ended December to increase between 10% and 15% amid robust profit and new business growth.
New business annual premium income (API) increased 28%, it said on Monday.
Headline earnings per share are expected to be between 3% lower and 2% higher, at between 483.4c and 508.4c compared with the restated IFRS 17 HEPS of 498.4c for the prior year. Normalised HEPS are expected to be between 7% and 12% higher, at between 489c and 511.8c, compared with a restated 457c.
Earnings for the period are reported under IFRS 17 for the first time and the prior period’s results were restated for consistency.
The group said its SA Composite cluster generated robust earnings and new business growth. Discovery Health’s new business was boosted by the successful take-on of the Sasolmed scheme.
“Discovery Bank’s performance was excellent, with strong progress across all metrics. Discovery Life’s individual life business delivered strong earnings growth with improving new business margins, while Group Life declined from the prior period’s exceptional performance,” it said.
Discovery Invest’s revenues and profit benefited from higher market levels, but Discovery Insure’s profit recovery was constrained by two severe weather events.
In its UK Composite unit, VitalityHealth experienced robust new business growth as a result of backlogs within the National Health Service and the resulting increase in demand for private medical insurance. However, there was a concomitant increase in claims due to a change in claim patterns in respect of primary care demand.
VitalityLife’s earnings benefited from higher interest rates and one-off positive variances.
In the Vitality Global business, Vitality Global performed strongly. Ping An Health Insurance’s operating result and new business production exceeded expectation, it said. Vitality Network generated strong revenue and profit growth, with margin expansion. Continued investment was made into Vitality Health International.
Discovery’s share price was up 2% at R135.99 in midmorning trade on Monday on the JSE.
MackenzieJ@arena.africa
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