Discovery reports profit slump due to Covid-19
Insurance group Discovery has reported that profits plummeted in the year to endJune, as it braces for the fallout from Covid19.
Profit for the year to end-June decreased 97% to R176m, with the group setting aside R3.4bn to cater for future Covid-19related claims and policy lapses.
Lower interest rates in SA and the UK also had an effect on policy values.
There was a R4.8bn pretax 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.