Discovery delivers strong interim performance as the Shared-value model accelerates growth and AI unlocks a new phase of hyper personalised engagement

Discovery today announced strong financial results for the six months ended 31 December 2025, delivering robust growth across both its operational composites – Discovery South Africa and the global Vitality composite – and advancing well ahead of its five‑year growth ambition. The period reflects the powerful and expanding impact of the Group’s Shared‑value business model, supported by disciplined execution, strong actuarial dynamics and the rapid deployment of artificial intelligence (AI) across platforms.

A resilient performance in a complex global environment

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 United Kingdom, 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 United States – continue to reinforce the relevance of the Shared‑value model.

Despite these challenges, Discovery delivered strong operating performance across all businesses, accelerated client engagement, and generated high‑quality earnings supported by favourable claims experience.

Group highlights:

• Normalised profit from operations increased 24% to R8 891 million
• Headline earnings up 29% to R5 692 million; normalised headline earnings up 27% to R5 745 million
• Embedded value increased to R135.8 billion, a 17.3% RoEV
• Total new business API increased 12%
• Normalised return on equity improved to 17.4%
• Interim dividend of 111 cents per share declared
• Financial leverage ratio (FLR) improved, reducing finance charges and increasing financial flexibility

Advancing the Shared‑value model into a new AI‑enabled phase

Group Chief Executive Adrian Gore said the results reflect Discovery’s momentum in building the next frontier of Shared‑value through the deployment of AI:

“Discovery has delivered a strong performance during this period, consistently moving ahead of our five‑year growth corridor ambition. At the same time, we have made significant advancements in evolving the Vitality Shared‑value model, with the launch of Vitality AI positioned to deliver demonstrable and quantifiable value. Work done to date enables us to execute with focused precision across each composite.”

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. This progression strengthens the competitive advantage of the Shared‑value model globally.

Strong performance across both composites

Discovery South Africa

Discovery South Africa delivered 19% growth in normalised profit from operations, with every business contributing meaningfully. Key highlights include:

• Discovery Bank: Achieved 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: Operating profit grew 5% to R2.1 billion, supported by technology investment, strong membership retention and efficiency gains.
• Discovery Life: Operating profit rose 15% to R3.1 billion, driven by favourable mortality and morbidity experience and a stronger VNB margin.
• Discovery Invest: Assets under management increased 24% to R142 billion, supported by strong inflows and market performance.
• Discovery Insure: Normalised operating profit grew 34% to R546 million, with improved underwriting margins and strong performance from the Vitality Drive programme.

Vitality Global composite

The Vitality composite continued its strong growth trajectory, delivering 41% growth in normalised operating profitand expanding its global footprint:

• VitalityHealth UK operating profit increased 98%
• VitalityLife UK operating profit up 8% and new business API up 36%
• Vitality Network delivered underlying profit growth despite FX effects
• Ping An Health Insurance (PAHI) increased operating profit by 35%, with covered lives exceeding 34 million

Strengthened financial flexibility and strategic investments

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, for R4.05 billion (exclusive of VAT), fully funded through pre‑arranged debt. The acquisition – which includes cancellation of a portion of the existing lease – strengthens the Group’s long‑term financial position through sustained economic and strategic benefits.

Looking ahead

Gore concluded:

“Discovery is well‑positioned for sustained growth as our Shared‑value model scales across markets. 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%.”