Wrap Text
DSY - Discovery Holdings Limited - Discovery and Ping an group sign
agreement for partnership in Ping an Health Insurance Company
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/007789/06)
ISIN: ZAE000022331
JSE share code: DSY
("Discovery")
DISCOVERY AND PING AN GROUP SIGN AGREEMENT FOR PARTNERSHIP IN PING AN
HEALTH INSURANCE COMPANY
24 August 2010 - Ping An Insurance (Group) Company of China Ltd (hereafter
"Ping An" or "the Group", HKEX: 02318; SSE: 601318) announced today that
South Africa`s largest private health insurer Discovery (JSE: DSY; ISIN:
ZAE000022331) and Ping An signed their agreement to enter into a
partnership in Ping An Health Insurance Company (hereafter "Ping An
Health"), a subsidiary of Ping An, to jointly develop China`s vast health
insurance market.
According to the agreement, Discovery will initially acquire 20% of Ping An
Health. This landmark agreement will not only be a major commercial
milestone for both companies, but also symbolises the deepening and
mutually beneficial economic and business ties that exist between South
Africa and China.
Ping An Health aims to play a key role in developing the emerging Chinese
private health insurance market.
The healthcare environment in China is undergoing a period of
transformational change as the Chinese government pursues a series of
healthcare reforms. While the vast majority of the population will
continue to rely on a Social Health Insurance ("SHI") system, the demand
for private healthcare is growing. This is driven partly by increasing
affluence and more innovative health insurance solutions. The growing
disposable income amongst the 80m-90m middle- and upper-income households
means many consumers can afford top-up cover. There is also increasing
demand for cover for private healthcare facilities, diagnostics and branded
drugs that fall outside the schedule of services covered by SHI.
The Chinese government recognises that individuals may wish to supplement
the coverage they receive through SHI and is actively encouraging private
health insurers to address this need. This partnership is therefore likely
to be a positive driver in the development of China`s health insurance
market.
The benefits to Ping An Health of the strategic partnership between Ping An
Group and Discovery are self-evident.
As an integrated financial services conglomerate with core interests in
insurance, banking, and investment, Ping An provides immediate scale, brand
and distribution. As at 31 December 2009, the consolidated total assets and
total equity of the Group were RMB 935 billion and RMB 91 billion,
respectively. The Group offers financial services including insurance,
banking, investment and wealth management to about 51 million customers and
over two million corporate clients.
Discovery is a world leader in consumer-engaged health insurance and
wellness. Founded in 1992, Discovery , with a market capitalisation of ZAR
20 billion, is South Africa`s largest health insurer, and one of the
world`s leading players in consumer engagement in insurance. Discovery`s
highly differentiated and innovative approach to insurance is underpinned
by its unique science-based wellness programme, Vitality. In the UK,
Discovery has a joint venture with the Prudential Assurance Company in both
health and life insurance (PruHealth, and PruProtect), and has recently
acquired Standard Life Healthcare. In the US, Discovery has a stand-alone
wellness company.
Adrian Gore, Discovery`s Chief Executive Officer, said: "Ping An is an
excellent partner. The Group is a leader in the Chinese insurance market,
providing immediate scale, brand and distribution capability in this
rapidly growing market."
According to Alex Ren, Ping An`s Chief Insurance Officer: "Both Ping An and
Discovery have a vision to fundamentally change the markets in which they
operate, and provide consumers with innovative, benefit-rich products.
Discovery is a global leader in consumer-engaged healthcare, and we are
excited to have them as a partner. Through this cooperation, Discovery will
also be able to share the massive distribution channel and customer base
brought by Ping An."
Ping An selected Discovery as a partner for its health insurance subsidiary
as a result of Discovery`s unique experience in operating in both developed
and developing markets. With over 2.9 million health insurance clients in
South Africa and the United Kingdom, Discovery is today one of the largest
health insurers in the world.
Ping An Health will draw on Discovery`s health product, systems, data and
risk management assets, and will continue to leverage off Ping An Group`s
comprehensive distribution network, scale and local market expertise. Over
the past 18 months, Discovery has worked actively to develop a model that
will enable Ping An Health to benefit from all of Discovery`s specialist
health insurance assets, while also ensuring that these are adapted to
local market conditions. This has included building a team led by members
of its South African executive that will be deployed in Ping An Health.
Ping An Health will innovate in response to major social trends in health
and wellnesss
Ping An Health`s Chairman and CEO, Mr Lu Min, notes that Ping An Health
will use the combined assets of Ping An and Discovery to capitalise on the
significant social trends towards wellness and consumer engagement.
"We believe that with full access to the assets of both Ping An and
Discovery, Ping An Heath is ideally positioned to innovate in response to
these trends with products that consumers both need and want."
For media enquires, please contact:
Cecile Zhang
Ping An Insurance (Group) of China Ltd
Phone: 0086-755-22625815
Email: zhangzijuan928@pingan.com.cn
Duke Malan
Discovery Holdings
Cell: +27 82 375 5707
DukeM@discovery.co.za
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/08/2010 10:56:01 Supplied by www.sharenet.co.za
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