Discovery reports profit slump due to Covid-19
The insurance group has set aside a R3.4bn reserve to cater for future Covid-19-related claims and policy lapses
Insurance group Discovery has reported that profits plummeted in the year to end-June, as it braces for the fallout from Covid-19.
Profit for the year to end-June decreased 97% to R176m, with the group setting aside R3.4bn to cater for future Covid-19-related claims and policy lapses.
Lower interest rates in SA and the UK also had an affect on policy values. There was a R4.8bn pre-tax effect on headline earnings, which fell 94% to R296m.
“The full-year period to end-June 2020 was uniquely complex, with the Covid-19 pandemic creating considerable economic uncertainty, market volatility and societal need, against an already challenging economic backdrop,” the group said.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.