South African insurance tycoon Adrian Gore leads Discovery's 38-percent dividend lift as profits surge

Oluwatosin Racheal Alabi -

Key Points

  1. Discovery raised its dividend by 38 percent after a 17-percent increase in operating profit.
  2. Discovery Bank grew its client base by 36 percent, despite a 41-percent drop in profit.
  3. Discovery’s key divisions, like Health, Life, and Invest, showed strong profit growth.

Discovery, one of South Africa's leading financial services firms led by South African insurance tycoon Adrian Gore, declared a 38-percent increase in its dividend for the financial year ending June 2024.

The company announced a final dividend of 152 cents per share, up from 110 cents in the previous year, as part of its strong financial performance. Discovery's normalised operating profit surged by 17 percent, boosting its overall earnings despite the challenges faced by its banking arm, Discovery Bank.

The group’s diverse portfolio, which includes businesses in wellness, healthcare, life assurance, short-term insurance, and banking, contributed to its robust financial performance. Discovery CEO Adrian Gore mentioned that, despite ongoing macroeconomic challenges such as high interest rates, constrained economic growth, and political uncertainties, the company remained focused on delivering strong growth across its key metrics. "Discovery remained focused on earnings, value, cash generation, and capital resilience," said Gore in a statement accompanying the results.

Adrian Gore's vision for Discovery's future

Under the leadership of Adrian Gore, Discovery has maintained its trajectory of growth and innovation. Despite a 41-percent decline in Discovery Bank’s operating profit from the previous year, the bank's client base grew by 36 percent, reaching one million clients well ahead of its projected 2026 target.

The bank also expanded its product offerings by launching a revolving credit facility in December 2023 and home loans in May 2024. According to Gore, these developments position Discovery Bank for long-term growth and greater market penetration.

Beyond banking, Discovery's other segments performed exceptionally well. Discovery Health posted a seven-percent increase in operating profit, while Discovery Life saw a nine-percent growth, driven by improved claims experience and better trends in lapses and premium income. Discovery Invest also contributed to the group’s success, with a 20-percent increase in operating profit and an 11 percent expansion in assets under management.

Strong investment in Discovery's global footprint

Adrian Gore also showcases the importance of Discovery’s international operations, particularly its Vitality model, which now operates in over 40 markets worldwide.

According to Gore, the group has been through an extensive investment phase over the past eight years, focusing on globalising its capabilities and expanding its footprint. "This investment cycle was aimed at creating new avenues for long-term growth, and we are confident that the business is positioned well to capitalise on this investment," Gore said.

Discovery Insure, another key segment, rebounded strongly in the second half of the financial year after being impacted by severe weather conditions earlier in 2024. The company’s diversified strategy, coupled with Gore’s forward-looking leadership, continues to drive Discovery's success across various sectors.