Discovery reports R3.4 billion operating profit

By Staff Writer

Discovery Health, South Africa’s biggest health insurer, has posted a R3.4 billion operating profit and said it saw strong new business growth across all its businesses of 24% to R9.3 billion. Normalised headline earnings increased 14% to R2 316 million.


The company said the performance was ‘exceptional’ when viewed against the key metrics of new business growth (10%), the lowest industry lapse rate at 3.9%, high reserve levels and excellent credit rating – all resulting in normalised operating profit up 10% to R1 499 million. It added that the membership was still stable, with 98% of members choosing to remain on the same plan or upgrading their plan.


Discovery’s chief executive officer, Adrian Gore, said: “Our vision is to build a world-leading health insurance capability that enables us to provide best-in-industry products and services to our clients. To achieve this, Discovery Health’s role is to balance the competing needs and objectives of maximising access for members and enhancing the quality of care, while also lowering the costs of healthcare. I believe we are delivering on these objectives as is evident by the fact that Discovery Health options are 10-30% cheaper than market average with richer benefits.”


More beneficiaries, fewer schemes


While South Africa’s biggest health insurer posts profits some of its peers are struggling or even going bust. Discovery’s results come after the Council of Medical Schemes (CMS) issued its annual report for 2011-2012. The CMS said there are now fewer medical schemes than there were before but more beneficiaries. At the end of 2011, there were 97 medical schemes registered in South Africa, compared to 100 schemes at the end of 2010 and 144 in the year 2000.
The reduction in schemes is the result of consolidations, amalgamations and liquidations (voluntary and involuntary). The CMS said the trend is likely to continue but that the medical industry is far from being an oligopoly.


Meanwhile the number of beneficiaries is on the increase. In 2011, the number of principal members increased by 3.3% to 3 730 565 and dependents increased by 2% to 4 795844, resulting in the total number of beneficiaries increasing by 2.5% to a total of 8 526 409.

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)