Discovery reports profit surge

South African insurer Discovery reported a 74% jump in full-year profit on Wednesday, marking a return to more normal business operations. The company nearly doubled its headline earnings per share and saw its net asset value soar by over 7 billion rands. CEO Adrian Gore spoke to CNBC Africa about the company's performance and future prospects. Gore acknowledged that while the COVID crisis has eased, the operating environment remains complex due to factors like the Ukraine war, inflation rates, and interest rates. Despite these challenges, Discovery has managed to maintain focus and drive growth across its various businesses. The company's performance was fueled by growth in its South African businesses, particularly in the health, insurance, and investment sectors. Gore highlighted the success of Discovery Bank, which exceeded expectations in terms of growth and quality. He reassured stakeholders that the bank remains on track to break even by the end of 2024. In response to concerns about the company's decision not to pay dividends, Gore explained that the move was a strategic one to ensure financial strength amid uncertain economic conditions. He emphasized the importance of prudence and continued investment in growth initiatives. Gore expressed confidence in the efficacy of Discovery's growth plans and reiterated the company's commitment to maximizing shareholder value. Looking ahead, Gore outlined key areas of future growth for Discovery. He identified Discovery Bank as a significant driver of growth, along with the company's established businesses in South Africa. The UK market also holds promise for Discovery, while the company's ventures in China and pan-Asian joint venture with AIA are expected to contribute to growth in the coming years. Despite the challenges posed by COVID and macroeconomic complexities, Discovery is optimistic about its growth potential and remains focused on capitalizing on new business opportunities. Gore emphasized the importance of monitoring the macroeconomic environment and adapting to changes to ensure sustained growth for the company.