’ investment unit was expected to reach R10bn in assets under management next year, CE Adrian Gore said yesterday.
Gore said Discovery Invest, which was established at the end of 2007 and has R6bn in assets, would be profitable once it reached the R10bn mark.
Discovery operates in insurance and wellness markets in SA, the UK and the US .
“The business is relatively new and we think it will be profitable over R10bn,” Gore said. “The intention is to build it quite significantly, quite rapidly.”
The investment subsidiary also holds the Equity Unit Trust, which had R111m in assets, Gore said.
Discovery, which owns the country’s largest health insurer, has proved relatively robust, outperforming its peers amid a global economic downturn. It posted a rise in full-year profit in September thanks to an acceleration in new business.
Gore said he expected the company’s health business to grow strongly over the next six months, while lapses at its life unit were slowing.
He said in the group’s latest annual report that its PruHealth joint venture with UK firm Prudential would continue to develop its competitive position next year through amendments to the product offering, improving the clinical and financial robustness of the Vitality programme, the introduction of lower-cost hospital network plans, and enhanced managed care initiatives.
“To this end, there is considerable focus on the quality of PruHealth and its competitive position. The focus for PruHealth continues to be on increasing sales, growing the in-force book and managing its loss ratio, leading to sustainable profitability,” he said. With Business Day Reporter