Discovery Limited, a Sandton-based insurance conglomerate led by South African businessman Adrian Gore, is poised for a remarkable upswing in profits, projecting an increase of up to 35 percent for the fiscal year ending June 2023.
This comes amidst notable macroeconomic turbulence and substantial fluctuations in interest rates within the South African and UK markets.
According to figures disclosed in the group’s recently issued trading statement, the leading insurance group under Adrian Gore anticipates that its normalized headline earnings per share (HEPS) will increase by 30-35 percent, reaching a range of R11.51 to R11.95 per share, compared to the figures reported in its 2022 financial year.
The group attributed this projected double-digit percentage leap in headline earnings to its robust performance at the conclusion of the 2023 fiscal year. This success was mirrored across all three of its business segments: South Africa, the United Kingdom, and Vitality Global.
Despite navigating a challenging and unstable macroeconomic landscape, the group underscored the pivotal role played by the Vitality Shared-Value model in enhancing its performance.
“High levels of engagement in the Vitality Shared-Value model, together with the efficacy of the model, underpinned the group’s performance, despite a challenging and volatile macroeconomic environment,” the company stated.
In a strategic move to tap into the burgeoning market driven by businesses seeking sustainable energy solutions amid an ongoing power crisis, Discovery has introduced a renewable power trading platform.
This platform is slated to commence power supply to consumers starting in 2026. Discovery aims to partner with power developers to establish wind and solar plants that align with aggregated demand.
The group envisions an installed capacity ranging from 400 to 1,000 megawatts (MW) and plans to offer power to consumers at varying price points, with discounts or premiums based on their purchase volumes. Andre Nepgen, head of Discovery Green, elaborated on this initiative.
