Discovery's headquarters in Sandton, Johannesburg. The group reported strong interim results for the six months to December 31, 2025, and said it was also buying its head-office for R4.05bn.
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Discovery delivered robust growth across both its operational composites – Discovery South Africa and the global Vitality composite – in the six months to December 31.
The medical aid, wellness and financial services group was well ahead of its five‑year growth ambitions, with results reflecting its "shared‑value" business model, supported by “disciplined” execution, "strong" actuarial dynamics and the "rapid" deployment of artificial intelligence (AI) across platforms, CEO Adrian Gore said Tuesday.
“Discovery delivered a strong performance. At the same time, we have made big advancements in evolving the Vitality Shared‑value model, with the launch of Vitality AI, which is positioned to deliver demonstrable and quantifiable value. Work done to date enables us to execute with focused precision across each composite,” Gore said in a statement.
Over the period, the group's embedded value increased 17.3% to R135,8 billion, a 17,3% return on embedded value (RoEV), driven by strong operational performance. Total new business API (annual premium income) increased 12%,
Discovery South Africa delivered 19% growth in normalised profit from operations, with every business contributing meaningfully.
Discovery Bank reported normalised operating profit of R75 million, with client numbers increasing 28% to 1,4 million and strong growth in both deposits and advances.
Discovery Health increased operating profit by 5% to R2,1 billion, supported by technology investment, strong membership retention and efficiency gains.
Discovery Life increased operating profit by 15% to R3.1bn, driven by favourable mortality and morbidity experience and a stronger value of new business margin.
Discovery Invest’s assets under management increased 24% to R142bn, supported by strong inflows and market performance.
Discovery Insure’s normalised operating profit grew 34% to R546m, with improved underwriting margins and strong performance from the Vitality Drive programme.
The Vitality composite offshore continued its strong growth trajectory, delivering 41% growth in normalised operating profit and expanding its global footprint.
Gore said the operating environment remained marked by geopolitical tensions, subdued growth in several markets, and persistent global healthcare inflation.
In South Africa, improved private–public collaboration and better terms of trade contributed to a more supportive macro backdrop, with green shoots emerging across capital markets.
In the UK, fiscal pressures continued to strain the NHS and drive increased demand for private health insurance and life insurance for estate‑planning purposes.
Global demographic shifts and the rise of the wellness economy – particularly in the US – continue to reinforce the relevance of the shared‑value model.
Group normalised profit from operations increased 24% to R8,89bn. Normalised headline earnings was up 27% to R5,75bn. An interim dividend of 111 cents per share was declared.
In the Vitality composite, VitalityHealth UK’s operating profit increased 98%. VitalityLife UK’s operating profit increased by 8% and new business API up 36%. Vitality Network delivered underlying profit growth despite foreign exchange effects.
Ping An Health Insurance (PAHI), one of the largest copanies of its kind in China, increased operating profit by 35%, with covered lives exceeding 34 million.
Gore said the integration of AI into Discovery’s platforms is enabling hyper‑personalised engagement at scale, with early initiatives such as Personal Health Pathways (PHP) showing material increases in engagement and improved outcomes.
The group maintained strong capital positions across all regulated entities, supported by robust operating cash flow and the improved financial leverage ratio.
Discovery recently announced its intention to purchase its head office, 1 Discovery Place, Johannesburg, for R4,05bn, funded through pre‑arranged debt. The acquisition would strengthen the group’s long‑term financial position through sustained economic and strategic benefits, said Gore.
“With two focused composites and strong platforms within each, we remain confident in achieving our five‑year ambition for compound growth in normalised profit from operations of between 15% and 20%,” said Gore.
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