Discovery said that due to the uncertain and potentially volatile economic environment caused by the Covid-19 pandemic, it has not declared a final ordinary share dividend (2019: final ordinary share dividend of 114 cents per share).<\/p>\n
The reintroduction of dividends will be considered when appropriate, it said.<\/p>\n
South Africa<\/strong><\/p>\n Discovery said that the SA business demonstrated resilience amid the difficult economic and operating environment.<\/p>\n Excluding new initiatives, combined new business reduced by 4% to R12.28 billion and operating profit increased by 11% to R8.3 billion before the Covid-19 provision (reducing by 3% after).<\/p>\n Discovery Health (DH) delivered a strong financial performance despite the challenging period, it said. Normalised operating profit increased by 5% to R3.19 billion and total revenue grew 8% to R8.37 billion, with non-scheme revenue showing accelerated growth of 23%.<\/p>\n Discovery Health Medical Scheme (DHMS) grew open medical scheme market share to 56.8% in a declining market, Discovery said. “The operating result and solvency were higher than expected as a result of the reduction in health system utilisation during lockdown, which included a 27.5% reduction in hospital admissions at the end of August 2020.”<\/p>\n Discovery said that its bank’s performance ‘was pleasing’, with over 370,000 accounts at end June (489,000 at 13 September) and deposits of R2.4 billion (R3.7 billion at 13 September).<\/p>\n Looking ahead, Discovery said that its ‘Ambition 2023’ remains the strategic focus for the medium-term. The group is well positioned for growth over its planning horizon to 2023, with the capital plan able to fund its new initiatives.<\/p>\n “The businesses within the South African composite have created significant insurgency and the composite is well positioned to continue the SA growth trajectory.”<\/p>\n
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