Discovery Holdings Ltd. ( (DCYHF) ) has released its Q4 earnings. Here is a breakdown of the information Discovery Holdings Ltd. presented to its investors.
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Discovery Holdings Ltd., a prominent player in the insurance and financial services sector, is renowned for its innovative approach to health and life insurance, investment, and banking services, primarily in South Africa and the UK. The company leverages its Vitality Shared-value Insurance model to drive customer engagement and health outcomes.
In its latest earnings report for the six months ending December 2024, Discovery Holdings Ltd. reported a robust financial performance, marked by a 27% increase in normalised operating profit to R7,020 million and a 34% rise in headline earnings to R4,267 million. Despite a 12% decline in new business annualised premium income, excluding the Sasolmed scheme, the company showed a 6% growth.
Key financial highlights include a 34% increase in normalised headline earnings and a 32% rise in basic earnings per share. The company’s embedded value grew by 19% to R119,616 million, with a notable improvement in return on equity to 15%. Discovery Bank also made significant strides, achieving a 42% increase in total revenue and reducing its operating loss by 145%.
Discovery Holdings continues to demonstrate resilience in a challenging macroeconomic environment, with strong capital ratios and liquidity positions across its business units. The company remains focused on leveraging its Vitality model and technological advancements to enhance customer engagement and drive growth.
Looking ahead, Discovery Holdings is well-positioned for sustained growth, with expectations of exceeding its medium-term profit growth target of 15% to 20% in 2025. The company has also declared an interim dividend of 87 cents per share, reflecting its strong financial performance and commitment to shareholder returns.