Discovery

JSE-listed integrated financial services and insurance company operating in health, life, short-term insurance, investments, and digital banking across South Africa and the UK.

"Insurers delivered solid operational results, aided by improved mortality profits and the continuation of a strong short-term underwriting cycle, but the impact of lower interest rates is evident in lower sales of high-margin guaranteed annuities, negatively impacting on the value of new business. In addition, movement in the long end of the yield curve has had a negative impact on capital positions and solvency ratios. Discovery is the exception to this, although it is increasingly misleading to categorise this business as a life insurer. The company delivered strong earnings growth from both its South African and international businesses. Particularly encouraging is the continued evidence of strong execution at Discovery Bank. Cash generation and ROE continued to improve, and capital positions remain robust across the group."