{"id":621421,"date":"2022-08-31T10:02:15","date_gmt":"2022-08-31T08:02:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=621421"},"modified":"2022-08-31T10:02:15","modified_gmt":"2022-08-31T08:02:15","slug":"discovery-points-to-strong-earnings-amid-normalisation-of-conditions","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/621421\/discovery-points-to-strong-earnings-amid-normalisation-of-conditions\/","title":{"rendered":"Discovery points to strong earnings amid &#8216;normalisation of conditions&#8217;"},"content":{"rendered":"<p>In a trading statement on Wednesday (31 August), insurer Discovery highlighted a strong financial performance for the year ended June 2022, citing the &#8216;normalisation of conditions&#8217; post the Covid pandemic.<\/p>\n<p>The group said that normalised profit from operations is expected to increase by between 43% and 48%, while normalised headline earnings (NHE) are expected to increase by between 65% and 75%, positively impacted by mark-to-market foreign currency gains.<\/p>\n<p>Aside from the easing of the pandemic on its business, Discovery said that the emergence of considerable geo-political polarisation and macro-economic volatility caused by the conflict in Ukraine and supply side constraints, manifested in higher inflation,<br \/>\nincreased interest rates, and currency and market volatility.<\/p>\n<p><strong>Normalised profit from operations (% change)<\/strong><\/p>\n<ul>\n<li>Discovery Health &#8211; 3% to 8%<\/li>\n<li>Discovery Life &#8211; 198% to 203%<\/li>\n<li>Discovery Invest &#8211; 9% to 14%<\/li>\n<li>Discovery Insure Lower by 163% to 168%<\/li>\n<li>SA Composite (excluding new initiatives) &#8211; 38% to 43%<\/li>\n<li>VitalityHealth &#8211; 37% to 42%<\/li>\n<li>VitalityLife &#8211; 2% to 7%<\/li>\n<\/ul>\n<p>Discovery said that its composite performed strongly with normalised operating profit expected to increase by between 38% and 43%, while new business increased by 15%, compared with the previous reporting period.<\/p>\n<p>&#8220;The results were driven by a strong recovery from Discovery Life, and robust performances from Discovery Health and Discovery Invest. Discovery Insure was severely impacted by adverse weather, notably the particularly severe flooding in KwaZulu- Natal, combined with considerable supply-side inflation related to the cost of repairing motor vehicles,&#8221; the group said.<\/p>\n<p>New initiatives progressed well, it said, notably with the strong performance of Discovery Bank and the clear focus on the build-out of Amplify Health, the group&#8217;s joint venture with AIA.<\/p>\n<p>As a result, Discovery said it expects HEPS to be between 70% and 80% higher when it publishes its full-year 2022 financial results on 7 September 2022.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/08\/DiscoverySharePrice.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-621439\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/08\/DiscoverySharePrice.png\" alt=\"\" width=\"700\" height=\"282\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/08\/DiscoverySharePrice.png 700w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/08\/DiscoverySharePrice-300x121.png 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/620029\/discovery-sanlam-and-other-insurers-raided-over-alleged-price-fixing-and-collusion\/\" target=\"_blank\" rel=\"noopener\">Discovery, Sanlam and other insurers raided over alleged price fixing and collusion<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a trading statement on Wednesday (31 August), insurer Discovery highlighted a strong financial performance for the year ended June 2022, citing the &#8216;normalisation of conditions&#8217; post the Covid pandemic.<\/p>\n","protected":false},"author":10,"featured_media":300546,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[4883,26],"class_list":["post-621421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-discovery","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/621421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=621421"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/621421\/revisions"}],"predecessor-version":[{"id":621449,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/621421\/revisions\/621449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/300546"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=621421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=621421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=621421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}