Discovery, the South African financial services group founded by businessman Adrian Gore, posted a strong financial performance for the year ended June 30, 2026, with a profit of $828 million, reflecting strong contributions across its businesses despite geopolitical uncertainty, market volatility and constrained economic conditions in several global markets.

The group’s annual profit for the year jumped by 38.29%, from R9.56 billion ($544.81 million) last year to R13.22 billion ($827.92 million) for the fiscal year ending June 30, 2026, thanks to strong contributions from its South African composite and its global Vitality business, both of which saw double-digit profit gains despite sluggish macroeconomic conditions.

Normalised profit from operations increased 17% to R17.75 billion ($1.11 billion), while normalised headline earnings rose 21% to R11.8 billion ($740.04 million). Headline earnings climbed 34% to R12.92 billion ($810.51 million), benefiting partly from the gain recognised following the early termination of the long-term lease after the acquisition of its Johannesburg head office at 1 Discovery Place.

South African businesses drive broad-based growth

Discovery South Africa remained the largest contributor to group earnings, with normalised profit from operations rising 16% to R13.87 billion ($867.95 million). New business annualised premium income increased 8% to R19.53 billion ($1.22 billion) as the group continued integrating its health, protection, wealth and banking operations.

Discovery Health delivered a 9% increase in normalised operating profit to R4.63 billion ($288.8 million), while new business annualised premium income rose 10% to R10.5 billion ($655.14 million) benefiting from continued scalability, cost efficiency and growth in non-scheme revenues.

Discovery Life increased normalised operating profit by 6% to R5.87 billion ($366.48 million). The business maintained strong earnings momentum and generated robust cash flows despite an anticipated R160 million ($9.99 million) reduction in insurance finance income and expense, alongside increased onerousness from policy alteration experience and changes in estimates.

Discovery Invest posted a 9% increase in normalised operating profit to R2.16 billion ($134.94 million), supported by asset growth from capital market gains and positive net flows. Discovery Insure recorded one of the strongest performances among the South African businesses, with normalised operating profit rising 24% to R1.01 billion ($63.12 million). The improvement was driven by margin expansion, outstanding underwriting performance and disciplined claims management.

Discovery Bank also continued its rapid growth trajectory. Normalised operating profit reached R370 million ($23.12 million), representing growth of more than 600% from the previous year, as the bank benefited from increasing scale, improved operating efficiency and stronger customer engagement, increasingly supported by artificial intelligence.

Vitality delivers stronger international performance

Discovery’s Vitality composite increased normalised operating profit by 21% to R3.88 billion ($242.42 million). VitalityHealth was the standout performer, with normalised operating profit jumping 60% to R1.9 billion ($118.68 million, driven by stronger operating margins, disciplined pricing and rigorous claims actions as claims experience improved. New business annualised premium income increased 1% to R2.87 billion ($179.15 million).

VitalityLife also delivered strong growth, with operating profit increasing 23% to R782 million ($48.87 million). New business annualised premium income rose 21% to R3.03 billion ($189.34 million), supported by strong underlying business performance, favourable claims experience and lower cash-flow variances.

Ping An Health Insurance, Discovery’s Chinese health insurance operation, increased normalised operating profit by 9% to R1.32 billion ($82.49 million), supported by strong operational performance and exceptional investment returns. However, new business annualised premium income declined 10% to R2.72 billion ($169.97 million) following changes to its distribution arrangement with Ping An Life.

Vitality Global Markets recorded normalised operating profit of R186 million ($11.62 million), down 29%, largely because of adverse Japanese macroeconomic conditions, including the decline in the Japanese yen and higher Japanese interest rates. Excluding these effects, profits increased 115%, reflecting progress in Vitality Health International’s other businesses.

Discovery accelerates super bank and AI strategy

Discovery is increasingly positioning Discovery Bank as the centre of an integrated ecosystem connecting customers’ financial and health lives. The group said the bank is evolving beyond a standalone banking proposition into the orchestrating layer of its broader South African ecosystem, allowing customers to engage with its health, wealth, protection and banking businesses through a more integrated platform.

Discovery said the strategy is expected to deepen customer engagement, strengthen cross-selling and support growth across its South African businesses as the ecosystem scales.

Artificial intelligence is also becoming increasingly important to the group’s strategy. Discovery said investment in Vitality AI accelerated during the year, with applications expanding across customer engagement, healthcare, underwriting and operational processes.

The group recorded a normalised operating loss of R299 million ($18.68 million) for Vitality AI and related central costs, reflecting accelerated investment in the technology platform.

Discovery’s strong cash generation supports higher dividend

Founded in 1992 by Adrian Gore and Barry Swartzberg as a medical insurer, Discovery has evolved into one of South Africa’s most diversified financial services groups. Gore owns a 6.71% stake. Discovery’s financial position strengthened during the year, with net asset value increasing 26% to R82.66 billion and embedded value rising 13% to R142.92 billion.

The group’s normalised return on equity improved to 16.5% from 15.4% a year earlier, while cash conversion increased to 85% from 80%. The board declared a final gross cash dividend of 273 cents per ordinary share, representing a 36% increase from the 201 cents paid for the previous financial year.

Discovery ended the financial year with a stronger earnings base across its South African franchise and global Vitality operations, while its super bank and AI strategies position the group for further expansion across health, financial services and insurance.

Total assets expanded 16.56% from R327.45 billion ($18.67 billion) to R381.67 billion ($23.92 billion), while retained earnings rose 22.45% from R48.65 billion ($2.78 billion) to R59.57 billion ($3.73 billion), underscoring the group’s financial momentum and positioning it for sustained expansion at home and abroad.