Discovery records substantial FY investment growth


Normalised headline earnings increased from 2.3 billion rand in 2012 to 2.7 billion rand in 2013 while embedded value went up 18 per cent to 35.7 billion rand in 2013.

“The period was notable for its significant investment in growth. Discovery invested 12 per cent of earnings in new growth initiatives over the period: while this exceeded prior years, the investment was based on the strong evidence of the business model’s repeatability and scalability,” the group said in a statement.

“Results exceeded expectation, with strong actuarial dynamics across the group. A focus on financial strength, performance and prudence delivered a strong set of results over the period, which saw new business grow by 15 per cent while return on capital exceeded 20 per cent.”


[DATA DSY:Discovery] reported that investment income increased from 261 million rand in 2012 to 324 million rand in 2013 and profit from operations rose to 3.7 billion rand in 2013 from 3.5 billion rand in 2012.

”The performance of Discovery’s core businesses exceeded expectation. Discovery’s established and emerging businesses, which represent the most sophisticated manifestations of the integrated model, had an excellent period,” said Discovery. 

Net income increased from 19.8 billion rand in 2012 to 24.8 billion rand in 2013 while profit before tax decreased by one per cent to 3.32 billion rand in 2013.

Headline earnings also dropped from 2.1 billion rand in 2012 to two billion rand in 2013 and diluted normalised headline earnings per share went up 19 per cent to 496 cents.

“The full financial year through to end June 2013 was an important one for Discovery. Its business model – the use of behavioural structures to underpin insurance systems – is proving increasingly resilient and responsive,” Discovery said.

“The progress made over the past financial year positions Discovery strongly for continued growth and profitability in the future.”