Discovery resumes dividend pay-outs

South Africa's largest private health insurer, Discovery, has made a significant financial rebound, reporting a 5% growth in headline per share accompanied by a 10% jump in operating profit. The group has reinstated its dividend payments after a hiatus due to the Covid-19 pandemic. In an exclusive interview with CNBC Africa, Adrian Gore, CEO of Discovery, discussed the company's recent performance and outlined strategic plans for the future. Adrian Gore expressed confidence in Discovery's growth prospects, highlighting the decision to discontinue Vitality investments in the UK due to shrinking margins. Instead, the company is focusing on key growth platforms such as the bank and expanding its presence in South Africa, the UK, and the US. Gore emphasized the importance of maintaining a clear focus on activities that contribute to significant scale potential. Regarding the company's banking venture, Gore shared optimism about reaching break-even by the financial year 2024. He praised the bank's performance, noting that customer acquisition and product usage have exceeded expectations. Gore also hinted at the bank's potential to become a significant player in South Africa's financial landscape. When asked about the possibility of expanding the bank model to other markets, Gore expressed reservations about its feasibility, citing regulatory challenges and the uniqueness of local banking landscapes. He underscored the need for critical mass and scalability to replicate the success of the bank in other regions. Shifting focus to the broader economic landscape in South Africa, Gore acknowledged the challenges posed by fiscal constraints and infrastructure deficiencies. Despite these obstacles, he remained optimistic about the country's potential for change and improvement. Gore stressed the importance of collaborative efforts between businesses and the government to address key issues such as energy, logistics, and corruption, which could positively impact economic growth and investor confidence. In discussing the National Health Insurance (NHI) initiative, Gore emphasized the necessity of private sector collaboration to make the system sustainable. He argued that universal health coverage is unattainable without the involvement of private healthcare providers and additional funding sources. Gore reiterated Discovery's commitment to supporting the NHI while advocating for a flexible approach that allows for private sector participation and innovation. In conclusion, Adrian Gore's insights shed light on Discovery's strategic direction, emphasizing a focus on sustainable growth, collaboration with the private sector, and commitment to improving South Africa's healthcare sector. As the company navigates a rapidly evolving business landscape, its resilience and innovative spirit position it well for future success.