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Key Points
- Discovery Group's full-year headline earnings surged 31.18%, reaching $411.6 million, driven by strong performance in its South African operations.
- Domestic business saw a 19% rise in new business annual premium income, while international arm Vitality Global posted a 57% profit increase.
- Discovery Bank expanded its client base by 36%, exceeding one million clients, while Discovery Invest’s operating profit rose by 20%.
Discovery Group, the South African financial services conglomerate led by Adrian Gore, reported full-year headline earnings of $411.6 million, showcasing its resilience despite the challenging macroeconomic landscape. The Sandton-based company achieved this result amid high interest rates, constrained growth, and political uncertainty.
The group’s headline earnings — a key measure of its profitability — jumped by 31.18 percent, from R5.5 billion ($312.32 million) last year to R7.2 billion ($409.61 million) for the fiscal year ending June 30, 2024, thanks to its South African operations, where normalized profit from operations increased 16 percent to R9.72 billion ($553.01 million).
South African business leads the way
Discovery’s domestic business experienced robust growth, with a 19-percent increase in core new business annual premium income (API). Its international arm, Vitality Global, posted a 57-percent profit surge, while its partner Ping An Health Insurance saw a 14-percent increase in API, contributing R255 million ($12.80 million) to overall earnings.
However, its UK division faced challenges, as Vitality UK reported a 14-percent decline in normalized profit due to higher claims and adjustments to VitalityLife's back book, though new business API increased by 17 percent.
Adrian Gore, CEO of Discovery, emphasized that despite a tough economic environment, the group is well-positioned for sustained growth. “We are now entering a new phase, leveraging our long-term investments to fuel growth through Discovery South Africa and Vitality Limited,” he said.
Discovery's continued growth
Founded in 1992 by Adrian Gore and Barry Swartzberg as a medical insurer, Discovery has grown into one of South Africa's most diversified financial services companies.
Gore, who holds a 12.96-percent stake in the company, reiterated the group’s optimism about its future, projecting medium-term profit growth to exceed its target of inflation plus 10 percent, with no need for additional capital injections.
Discovery Bank, the group’s digital banking division, achieved significant milestones during the year, growing its client base by 36 percent and surpassing one million clients. Discovery Invest also saw a 20 percent rise in operating profit, supported by an 11-percent increase in assets under management.
