|By PR Newswire||
|September 3, 2014 01:12 PM EDT||
JOHANNESBURG, Sept. 3, 2014 /PRNewswire/ -- Discovery Limited Group Chief Executive, Adrian Gore, today presented the Group's annual financial results for the year ended 30 June 2014. Discovery posted normalised profit from operations of USD 477.1 million, a 23% increase from the previous year – a figure driven strongly by new business growth of 15% to USD 1 169.3 million.
Gore commented, "The past financial year marked a period of strong performance for Discovery. There has been intense activity across our primary market in South Africa, our second primary market in the UK as well as our partner markets in China, the US, Singapore, and Australia. More importantly, we have done considerable work in refining the Discovery behaviour-based insurance model, which gears Discovery to address some of today's most critical societal problems in an innovative way."
In a difficult economic environment, Discovery's business model and strategy continue to deliver positive financial results, an aspect which Gore attributes to the responsiveness of the business model to a complex macro-economic environment. He continued to explain that consumers globally are expecting companies to play a socially-progressive role where the bottom line is not the only driving force of a company's actions. Given this increasing trend, insurance companies are well placed to meet this expectation, given their large risk pools and mandate to provide protection for life's uncertainties and risks. Importantly, many of these insurance risks are driven by member behaviour, which can be changed through tools and incentives.
Gore commented, "Discovery's business model is a powerful asset as it enables a composite view of a client's risk behaviour, which can include their nutrition and exercise habits, as well as their driving behaviour. By rewarding better behaviour, the actuarial dynamics improve considerably, resulting in savings across the business. These resultant risk savings are channeled back to the incentives required to deliver the positive behaviour change that ultimately are of equal benefit to our client."
The outcome is excellent member receptivity in all markets: favourable claims and lapse trends across all businesses; volume and revenue uplift for wellness and reward partners across Vitality, DiscoveryCard, and Discovery Insure; and a positive impact on healthcare costs, life expectancy, and road safety.
In Discovery's primary market of South Africa, Discovery Health's performance exceeded expectation with operating profit increasing 10% to USD 177.8 million, after continued efficiencies were passed onto Discovery Health Medical Scheme through a planned scale-related reduction in administration fees. In addition, Discovery Health new business increased 4% to USD 479.4 million; and lives under management for all schemes grew to 2.9 million.
Discovery Life demonstrated exceptional operating profit growth of 23% to USD 248.4 million over the period driven by new business growth of 6% to USD 193.0 million, better-than-expected claims and lapse results, improved renewal efficiencies, and disciplined expense control. Experience variances were positive by USD 54.8 million and the business generated USD 40.5 million in cash over the period, before allowing for the repayment of financial reinsurance.
Gore commented, "Discovery Life's performance further validates the efficacy of the model, and its unique shared value attributes. The model not only creates value for clients as they experience better value for money and policyholder returns, but the insurer benefits from superior actuarial dynamics and higher profit margins. This is the basis for successfully exporting the model to the UK and Asia."
Discovery's savings and investments arm Discovery Invest delivered a better-than-expected set of results with operating profit increasing 50% to USD 31.7 million, driven by the high growth of products sold and strong performance of the market. Assets under management increased to USD 4 billion, with new business API increasing by 30% to USD 133.8 million.
Discovery Insure has been one of the stand-out performers for Discovery over the past year; quickly developing into one of the fastest-growing short-term insurers in South Africa. New business was exceptional with 73% growth to USD 60.6 million and despite this growth, the business has contained the loss ratio and lapse rates. "Discovery's behaviour-based insurance model in short-term insurance is demonstrating the desired linkages between incentives and behaviour change, and creating further unique and innovative big data pathways to protect members and their assets," says Gore.
In partnership with US-based Cambridge Mobile Telematics, Discovery Insure launched a ground-breaking smartphone solution to accurately monitor complex driver behaviour at a granular level, and encourage safer driving in an intuitive, cost effective, and member-friendly way.
In Discovery's second primary market of the United Kingdom, the joint businesses of PruHealth and PruProtect delivered a combined operating profit of USD 60.2 million, up 33% from the previous period; new business growth of 35% to USD 204.1 million; and a combined member base of close to 800,000.
Gore said of the UK business, "The scale and relevance of Discovery's UK businesses reflect our vision to build an exemplar of the SA model and assets, manifesting in the best protection business in the UK. We have done considerable work to further build a strong foundation in the UK in terms of product design, the distribution network across direct and intermediary channels, an investment in the client journey and lastly, building the Vitality brand."
In the partner markets of China, US, Singapore, and Australia where Discovery has joint ventures with leading insurers, the company continued its investment in product development, building out the sales and distribution capabilities and marketing initiatives. Ping An Health entrenched its position as the largest and fastest-growing health insurer in China with an expanded individual product range, an enhanced service to brokers and clients, and leveraging both internal and external distribution channels. This resulted in excellent new business growth of 119% to USD 32.5 million. Gore commented, "We are starting to see the growth of a new product category in China with many members being first-time purchasers of a comprehensive private health insurance product. The work done by Ping An Health over the past year positions the company well to grow this potential market."
In the US and Asia, Discovery invested in further developing the structure of Vitality. In the US, The Vitality Group is increasingly being acknowledged as the top wellness provider. Key developments included product and benefit enhancements, new Vitality partners, the strengthening of The Vitality Group's sales and distribution capability, and superior levels of members' engagement compared to industry.
Concluding with comments on Discovery's youngest partnership, a joint venture with insurance giant AIA in Singapore and Australia, Gore said, "AIA Vitality's early data illustrates the relevance of Discovery's business model to the Asian market where the products have gained instant recognition as being leading risk products, as judged by both the industry and intermediaries."
SOURCE Discovery Limited (DSY)
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 24, 2016 08:45 AM EDT Reads: 865
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 24, 2016 08:30 AM EDT Reads: 1,456
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 24, 2016 08:30 AM EDT Reads: 2,048
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Jul. 24, 2016 08:15 AM EDT Reads: 1,041
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 24, 2016 08:15 AM EDT Reads: 1,111
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 24, 2016 08:15 AM EDT Reads: 1,808
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 24, 2016 08:00 AM EDT Reads: 880
SaaS companies can greatly expand revenue potential by pushing beyond their own borders. The challenge is how to do this without degrading service quality. In his session at 18th Cloud Expo, Adam Rogers, Managing Director at Anexia, discussed how IaaS providers with a global presence and both virtual and dedicated infrastructure can help companies expand their service footprint with low “go-to-market” costs.
Jul. 24, 2016 08:00 AM EDT Reads: 2,273
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Jul. 24, 2016 08:00 AM EDT Reads: 717
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jul. 24, 2016 07:45 AM EDT Reads: 713
The competitive landscape of the global cloud computing market in the healthcare industry is crowded due to the presence of a large number of players. The large number of participants has led to the fragmented nature of the market. Some of the major players operating in the global cloud computing market in the healthcare industry are Cisco Systems Inc., Carestream Health Inc., Carecloud Corp., AGFA Healthcare, IBM Corp., Cleardata Networks, Merge Healthcare Inc., Microsoft Corp., Intel Corp., an...
Jul. 24, 2016 07:30 AM EDT Reads: 756
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 24, 2016 07:15 AM EDT Reads: 1,935
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 24, 2016 07:00 AM EDT Reads: 1,412
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Jul. 24, 2016 07:00 AM EDT Reads: 1,602
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Jul. 24, 2016 05:45 AM EDT Reads: 2,089