For the half year ended Dec. 31, its headline earnings per share (HEPS) profit measure, which strips out exceptional items, is likely to be between 439.2 cents and 464.2 cents, down 7% to 12% from the year earlier period, it said. South Africa, the largest and most advanced insurance market in Africa, is home to firms that account for more than two-thirds of total premiums collected across the continent. But a substantial investment of those premiums in local government bonds, corporate debt and equity makes returns unpredictable, especially currently when the country is being battered by high inflation, low commodity prices and crippling power cuts. Discovery, which is primarily a health insurer with divisions spanning other segments such as life insurance and banking, said barring the impact on HEPS, movements in interest rates would not impact its solvency, liquidity and cash flows. While its peers have reinstated dividend payments after the pandemic, Discovery is the only insurer in South Africa which has continued to funnel its profits into new businesses.
It will post half year earnings on Feb. 23.
(Reporting by Promit Mukherjee; Editing by Kirsten Donovan)
