Discovery reports profit slump due to Covid-19

Insurance group Discovery has reported that profits plummeted in the year to end-June, as it braces for the fallout from Covid-19.

Profit for the year to end-June decreased 97% to R176m, with the group setting aside R3.4bn to cater for future Covid-19-related claims and policy lapses.

Lower interest rates in SA and the UK also had an affect on policy values. There was a R4.8bn pre-tax effect on headline earnings, which fell 94% to R296m.

“The full-year period to end-June 2020 was uniquely complex, with the Covid-19 pandemic creating considerable economic uncertainty, market volatility and societal need, against an already challenging economic backdrop,” the group said.