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 New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Spur's South African Combo Special

Price: R80
When: Mondays
Where: Nationwide

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal