Guiding consumers since 2009

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 The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Mowana Voucher Special

Price: From R1,099
When: Before 24 December 2019
Where: Johannesburg

Birchwood Hotel Christmas Gift

Price: R959
When: Between 15 December 2019 to 1 January 2020
Where: Johannesburg

Burger & Lobster Lunch in 30 Minutes Special

Price: R99
When: Mondays
Where: Cape Town