Home » South African tycoon Adrian Gore’s net worth plunges $34.9 million amid Discovery’s share pullback

South African tycoon Adrian Gore’s net worth plunges $34.9 million amid Discovery’s share pullback

by Omokolade Ajayi
Adrian Gore

South African businessman Adrian Gore has experienced a significant setback in his net worth as the market value of his stake in Sandton-based insurance giant Discovery Limited plummeted by R678.4 million ($34.9 million) over the past 81 days.

This decline follows a $66 million increase in the market value of Gore’s stake merely three months ago.

The decline in Gore’s net worth can be attributed to the recent pullback in Discovery’s shares, as investors on the Johannesburg Stock Exchange (JSE) seized the opportunity to book profits after the company’s share price soared close to R150 ($7.7) on Feb. 28.

Founded in 1992 as a medical insurer, Discovery has grown into one of South Africa’s largest and most diverse global financial services firms.

The company specializes in long- and short-term insurance, asset management, savings, investments, and employee benefits.

Gore, the founder of Discovery, holds a notable 7.48-percent stake in the insurance giant, making him one of the wealthiest investors on the JSE.

Since the surge in Discovery’s shares in late February, the company’s stock price has experienced a total pullback of 9.3 percent.

At the time of reporting, the shares were valued at R135.82 ($6.98).

This pullback has resulted in a decrease of R678.4 million ($34.9 million) in the market value of Gore’s stake, reducing it from R7.29 billion ($375 million) on February 28 to R6.6 billion ($340.12 million) currently.

During the first half of Discovery’s 2023 fiscal year, which ended on Dec. 30, 2022, the company’s headline earnings, the primary profit measure in South Africa, experienced an 11 percent decline from R3.3 billion ($181 million) to R2.94 billion ($161.3 million).

This decline can be attributed to an increase in operating expenses.

Despite the decline in headline earnings, Discovery witnessed growth in its total assets from R271.2 billion ($14.8 billion) to R284.95 billion ($15.6 billion) during the period under review. 

Additionally, shareholders’ equity rose from R53.55 billion ($2.93 billion) to R57.18 billion ($3.13 billion).

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