Disovery Life's operating profit climbs by 38%
Excellent performances in life and health branches boost Discovery's profits for the year.
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While other financial and insurance companies are struggling to keep their
head above water in the current economy, it always comes as a pleasant surprise
when a company posts good profit results.
Discovery Insurance did just that when it announced that it had
managed to increase its profits by 8% in the twelve months leading up to June,
with its health and life sectors contributing nicely to this total.
Discovery was particularly pleased with the performance of its Discovery Life
brand which exceeded all expectations. A higher than average number of new
members was reported, while the quality of business was also above standard.
Disovery Life operating profit climbed to nearly R980 million - an increase
of 38%, while the total value of in force business climbed to R7.3 million (an
increase of 22%). Discovery also said that new business increased by a very
satisfactory 45% to a total amount of R1.4 billion.
Another sector of Discovery Life that also performed very well as its health
care brand. Discovery Health now insures 924,725 South African families - up
from 896,143 families compared to a year ago. Overall, this translated to a
growth rate of 3.2%.
Discovery Health posted operational profits of 21% to R891 million.
Considering that many of Discovery's competition sites in the industry reported
poor financial performance in this section, its results are exceptionally good.
Discovery Health Medical Scheme reported solvency capital of over R5 billion
and, if all goes according to plan, should reach its 25% level by December of
this year.
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