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Trading statement for the financial year ended 30 June 2025
DISCOVERY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/007789/06)
Legal Entity Identifier: 378900245A26169C8132
JSE share code: DSY, DSBP
DSY ISIN: ZAE000022331
DSBP ISIN: ZAE000158564
JSE bond company code: DSYI
("Discovery" or the "Group")
Operational update and trading statement for the financial year ended 30 June 2025
1. Operational update: Strong overall performance
Discovery delivered a strong overall performance for the financial year ended 30 June 2025 (the "reporting
year"):
• Normalised profit from operations is expected to increase by between 26% and 31% compared to 30
June 2024 (the "prior year");
• Headline earnings ("HE") is expected to increase by between 27% and 32%; and
• Normalised headline earnings ("NHE") is expected to increase by between 27% and 32%.
2. Robust performance across all business units
Growth in normalised profit from operations expected for the
Business year ended 30 June 2025
Discovery Life1 increased by 11% to 16%
Discovery Health increased by 4% to 9%
Discovery Invest1 increased by 27% to 32%
Discovery Insure increased by 225% to 230%
Discovery Bank losses reduced by 82% to 87%
Other SA initiatives and central costs spend increased by 90% to 95%
Discovery SA1 increased by 20% to 25%
VitalityHealth increased by 170% to 175%
VitalityLife increased by 67% to 72%
Vitality Network increased by 2% to 7%
Ping An Health Insurance increased by 5% to 10%
Vitality Health International other losses reduced by 23% to 27%
Other initiatives and central costs spend reduced by 50% to 55%
Vitality (Vitality UK & Vitality Global) increased by 67% to 72%
Normalised profit from operations1 increased by 26% to 31%
1. Restated prior year result, as per section 4
3. Key observations
Discovery SA's strong result reflects a compelling contribution from each business in the composite.
• Discovery Bank generated its first profitable period during the second half of the financial year, ahead
of plan, while the acquisition of quality clients accelerated.
• Discovery Health generated solid earnings growth, with further investment into technology, innovation
and AI.
• Discovery Life delivered strong earnings growth mainly driven by an exceptional claims experience.
• Discovery Invest delivered significant profit growth due to an increase in the value of assets under
management and certain one-off benefits.
• Discovery Insure successfully executed pricing and claims management initiatives which, combined with
benign weather conditions, resulted in significant improvement in the claims ratio.
The Vitality composite's result reflects the excellent progress made in restructuring all the global operations into
a focused single business over the last 9 months.
• VitalityHealth's performance was strong, driven by effective pricing actions, a stabilising claims
environment and rigorous claims and expense management.
• VitalityLife delivered strong earnings with excellent new business growth, driven by the effective
execution of the Shared-value Insurance model.
• Ping An Health Insurance performed robustly in the year, following the prior year's exceptional result
that benefited from both a COVID-19 reserve release and a tax gain.
• Vitality Network's result reflects the restructure underway to build greater longer-term scale and value.
4. Prior year earnings restated upwards
• The Group's earnings to 30 June 2024 were restated upwards by 2.5%, as set out in the trading
statement below.
• Discovery's adoption of the IFRS 17 accounting standard results in parts of the economic value of
insurance contracts being held in the Contractual Service Margin ("CSM") and the Insurance Finance
Reserve ("IFR"), a component of shareholder equity. This was formulated on the transition from IFRS 4
to IFRS 17.
• While total economic value is not impacted, there has been a correction in the allocation between the
CSM and IFR for Discovery Life and Invest. On a fully retrospective basis, this resulted in an increase in
the CSM (which is presented gross of tax) of R4.5 billion and a commensurate reduction in the IFR of
R3.3 billion net of tax, on the Statement of Financial Position as at 30 June 2024.
• All other key metrics, including cash flows, regulatory solvency, and embedded value remain unchanged.
• An increase in the CSM represents an additional store of value to be released into future profit.
5. Trading statement
Shareholders and noteholders are advised that, for the reporting year:
• Earnings per share ("EPS") (basic) is expected to increase by between 23% and 28% (to between 1365.7
cents and 1421.2 cents) compared to the restated EPS (basic) of 1110.3 cents (previously reported of
1082.7 cents) for the prior year.
• Headline earnings per share ("HEPS") (basic) is expected to increase by between 27% and 32% (to
between 1418.6 cents and 1474.4 cents) compared to the restated HEPS (basic) of 1117.0 cents
(previously reported of 1089.4 cents) for the prior year.
• Normalised HEPS ("NHEPS") (basic) is expected to increase by between 27% and 32% (to between 1443.0
cents and 1499.8 cents) compared to the restated NHEPS (basic) of 1136.2 cents (previously reported
of 1108.6 cents) for the prior year.
Further details of the above will be available in our annual financial statements for the reporting year to be
released on or about 11 September 2025.
The information contained in this announcement, including any forecast financial information, is the
responsibility of the board of directors of Discovery and has not been reviewed and reported on by Discovery's
joint external auditors.
Sandton
3 September 2025
Equity and Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 03-09-2025 08:55:00
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