Big changes at Discovery

Discovery plans to merge two of its three separate business composites into a single global composite, Vitality, with uniformity in strategy, product, and technology.

In a SENS announcement released this morning, Discovery explained that the group has been comprised of three business composites: Discovery South Africa, Vitality UK (VUK) and Vitality Global (VG). 

“The Group’s evolution provides the opportunity today to create one global composite, Vitality, comprising VUK and VG, alongside Discovery South Africa,” the company explained.

Therefore, in addition to his current role as CEO of VUK, Neville Koopowitz will elevate to drive this composite as Vitality’s CEO. 

Barry Swartzberg, who has served as the CEO of VG, will work directly with the Group CEO, Adrian Gore, to drive the company’s organic growth. 

“This will focus on delivering the strategic priorities, including the finance and technology strategies, to ensure disciplined and structured scaling,” the company said. 

In accordance with JSE Listings Requirements, Discovery announced that, following a period of internal alignment, the change in Swartzberg’s executive responsibility will take effect today.

Discovery rationalised this decision by explaining that it has built two largely independent, international businesses of scale and significance: one in the UK through VUK and the other in the rest of the world through VG. 

Given the prevailing considerations for each, both businesses have grown organically over many years at a different paces and with different progressions.

Over the past two years, each has also intensified focus on core initiatives, while closing those with marginal benefits, aligning their strategies. 

“Today, the scale of the underlying businesses, the evolving data and its applicability, the focus on a unified product strategy, and the opportunity for uniform and consistent data, IP, and technology have created the opportunity for a single global composite of scale, with significant organic growth potential,” Discovery explained.

In addition, it said the performance of the emerging Vitality Shared-value Insurance Model has been consistent for all businesses within VUK and VG, demonstrating high levels of customer engagement and the strong causal effect of this engagement on mortality and morbidity. 

“A central structure creates the opportunity to more rapidly and effectively deploy and advance the group’s products and solutions in competitive global health and life insurance markets,” it said. 

“Currently, the emerging Vitality 3.0 with hyper-personalised pathways across all markets will significantly enhance the group’s competitive advantage, benefiting the group’s global customers and partners.”

Discovery said it would provide further information about this change when it reports its full-year 2024 financial results on or about 19 September 2024.