Discovery (DSY) H1 2025 earnings summary

Executive summary

• Normalised operating profit rose 27% to over ZAR 7 billion, with headline earnings up 34% to as high as ZAR 4.35 billion compared to the prior period.

• New business declined 12% to ZAR 12.53 billion, but grew 6% excluding the Sasolmed effect.

• Non-insurance revenue grew 14% to just under ZAR 3.2 billion.

• The group restructured into Discovery SA and Vitality Global, both showing strong growth and entering a new phase of consistent, resilient performance.

• Interim ordinary dividend declared at 87 cents per share, up 34% in line with headline earnings growth.

Financial highlights

• Normalised operating profit up 27% year-over-year; headline earnings per share up 34%.

• Embedded value reached ZAR 119.62 billion, with a 19% annualised ROEV.

• Cash conversion ratio at 75%, generating ZAR 8.3 billion from in-force business.

• Financial leverage ratio improved to 18%, trending toward 15%.

• Dividend cover maintained within plan at ≤5x; 30–40% of expected full-year dividend paid at H1.

Outlook and guidance

• Growth corridor targeted at 15–20% per annum, with current period exceeding this at 27%.

• South Africa expected to grow 12.5–17.5%, Vitality Global 20–30% going forward.

• Bank profitability target of ZAR 3 billion by 2029 remains on track.

• Group expects continued strong organic growth, above plan for H1 FY25.

• Annual ordinary dividend to be covered ~5x by normalised headline earnings; interim dividend payout 30–40% of annual total.