Vitality put under one umbrella
Jonathan Broomberg appointed CEO of the division
Discovery has appointed Jonathan Broomberg, the CEO of one of its largest and most profitable divisions, to lead a new business unit that will hold the group’s global Vitality health businesses, the company said on Monday.
Discovery has appointed Jonathan Broomberg, the CEO of one of its largest and most profitable divisions, to lead a new business unit that will hold the group’s global Vitality health businesses, the company said on Monday.
This comes on the back of the considerable growth of Discovery’s Chinese-based Ping An Health and the presence of other opportunities with the group’s insurance partners, according to Discovery.
Vitality, which is now the world’s biggest wellness behavioural programme, has garnered more than 20-million clients across the globe as more insurers team up with Discovery to integrate the model on their platforms.
Vitality contributed R3.6bn to Discovery’s total gross income of R58.8bn for the year ended June.
“We believe the opportunities are significant, given the rapid growth of health insurance in most markets around the world and Discovery’s unique health insurance expertise, assets and shared-value model; combined with our involvement in the pre-eminent health insurance businesses in SA, China and the UK,” said Discovery CEO Adrian Gore.
Broomberg, the long-serving CEO of Discovery Health, will assume the leadership of Vitality Health International (VHI) from January 2020.
The unit will hold the local and international Vitality health insurance businesses under one umbrella.
“VHI will include Discovery’s investments in Ping An Health (China), MyOwn Health (Australia) and our US health-care businesses,” said Broomberg, in response to questions from Business Day.
He added that the new unit represents a “reorganisation and consolidation” of existing resources and will not require any material new investment.
“There will be no change in the current strategy,” says Broomberg, in relation to Discovery’s preferred model of partnering with medical insurance providers in various countries to roll out the Vitality concept.
Broomberg will also act as global head of health insurance, which will include overseeing health regulatory and policy affairs in all countries in which the group is active.
Gore’s decision to shift one of his most senior and trusted executives to drive growth in Vitality’s emerging businesses comes at a time when Discovery’s established businesses, most of which are based locally, are struggling to find momentum on account of the weak economy.
In the year ended June, Discovery’s established businesses grew normalised operating profit by 3%, vs 94% for its three emerging businesses, which are Discovery Insure, Vitality Group and Ping An.
ONE TO WATCH
Despite the much faster growth rates, the emerging businesses only accounted for about 5% of the annual operating profit of the group’s established businesses.
But it’s the Ping An business in China that is the pick of the emerging businesses to watch in the Discovery portfolio, outside Discovery Bank, which launched earlier this year and is still finding its feet.
Ping An’s health insurance app quadrupled the number of users, from 2.8-million at the end of December 2017 to 12-million at the end of June this year.
Dr Ryan Noach, the current deputy CEO of Discovery Health, will take over from Broomberg in January.
Discovery shares closed more than 5% weaker on Monday at R112.
IT’S THE PING AN BUSINESS IN CHINA THAT IS THE PICK OF THE EMERGING BUSINESSES TO WATCH IN THE PORTFOLIO