Liberty CEO David Munro on opportunities for growth, why Discovery is taking it to court

South Africa's leading life insurance company, Liberty Holdings, has reported an impressive 51 percent increase in normalised headline earnings and a 20 percent improvement in the value of new business, reaching R171 million in their recent interim results. In an exclusive interview with CNBC Africa, Liberty CEO David Munro discussed the company's strategic shift towards focusing on the retail sector within the challenging economic landscape. Munro emphasized the importance of redirecting their attention to the South African market, where Liberty has established a strong presence over the past 61 years. By targeting the affluent retail market in South Africa and enhancing their asset management business, Liberty has seen positive results that reflect their commitment to delivering on promises made to clients. Munro highlighted the significance of new business growth in a competitive industry like theirs, where generating cash flows amidst tough market conditions is paramount. While their insurance operations experienced marginal growth, combined with net-clined cash flows, Liberty has witnessed a substantial influx of capital into their overall operations. When questioned about the value proposition of their risk and investment businesses, Munro stressed the equal importance of both sectors in meeting client needs. The risk business plays a crucial role in supporting clients during vulnerable moments, such as loss or illness, while the investment business empowers individuals to save and invest for their future aspirations. Despite the higher margins in the risk business, Munro acknowledged the shrinking nature of the industry and identified investment business as a key growth area. Addressing the legal dispute with competitor Discovery, Munro explained Liberty's decision to introduce a wellness bonus in their lifestyle protector insurance product, aimed at rewarding policyholders for healthy living. Discovery has filed legal action against Liberty to prevent the rollout of this benefit, citing concerns about competition and data ownership. Munro expressed hopes for an amicable resolution but underlined Liberty's commitment to defending the principles of competition and client data ownership. The ongoing clash encapsulates broader issues of market competition and data rights, signaling a pivotal moment in the insurance industry's evolution.