Discovery Holdings Limited. JSE: DSY

Discovery shares

Background of Discovery

  • Discovery Holdings is a diversified South Africa-based company offering a range of products in the medical aid, insurance, credit card and investments spheres. With Discovery shares listed for sale under the Financial Services sector of the Johannesburg Stock Exchange (JSE) in 1998, the group specializes in health insurance and wellness, life assurance and short-term insurance.

  • The company was established in 1992 as a small specialist risk insurance company. From this humble history, the group has grown to cover around 5.1 million clients across its various divisions today. Discovery first entered the global market in 2004, when it decided to buy into a partnership with Prudential to open PruHealth in the United Kingdom. In 2009, the group expanded into China with the purchase of 25% of Ping An Health Insurance Company. Since then, the group has expanded significantly into Asia, the UK, the United States and Australia.

  • Operating divisions include Discovery Health, Discovery Life, Discovery Insure, Discovery Invest, Discovery Vitality and Discovery Card. The company currently covers around 5.1 million clients across its various divisions. Main clients are large, medium and small-sized employers for health insurance, and individual clients who buy health or life insurance and investment products. Performance highlights for the group in 2016 included a 16% rise in headline earnings, up to R 4 billion. Market cap stands at R76 billion.

Discovery Shares Growth Driver

  • Over the past several years, the company has invested significant capital in strengthening its insurance, behavioural and technology assets to succeed in the markets in which it operates and build a global business of scale. The concept of shared value insurance has been of particular importance, under Discovery’s Vitality programme. The company is working on building a network of global partnerships under Vitality.

  • In its main market of South Africa, Discovery reached some significant milestones in 2016, with Discovery Health exceeding 3 million clients and Discovery Invest reaching R50 billion worth of investments under management. Discovery Insure and Discovery Life are both showing strong growth in profits and new business, to the benefit of Discovery share price and those who buy the shares.

  • Meanwhile, the UK market has been consolidated and continues to be effectively tapped into with new product offerings and digital innovations. The group’s partners in Asia, North America and Australia are also performing well. Discovery’s overall strength is illustrated in its financial data, which shows that new business grew by 51% in 2016 and shareholders received an average equity return of 18%.

  • In addition to targeting new acquisitions and partnerships, Discovery plans to launch an innovative full services retail bank in the near future, based on considerable successes achieved by Discovery Card.

Discovery Group Investor Tip

  • Discovery has recorded a slowdown in earnings of late, and the live online stocks chart shows that Discovery share price reflects this. The company has however said that investments into new businesses have been muting operating profits, and that this should turn around as the new investments start to reap dividends.

  • As Discovery rapidly expands its offerings and geographical diversity, some analysts are concerned that the group is putting too much onto its plate and that Discovery share price may underperform the market. Historically a very strong stock, Discovery shares may currently be in a period of dwindling, but will still be viewed as a potential long-term buy.

Discovery Major Shareholders

  • Sector

    Health Care

  • Industry

    Medical Equipment & Devices

  • Sub industry

    Life Science Equipment

How to buy Discovery Group Shares

  • Discovery : How to buy Discovery Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Discovery Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Discovery and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Discovery Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Discovery.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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