Slide 1: Unaudited Interim Results
Unaudited Interim Results and cash dividend declaration for the six months ended 31 December 2024
Slide 2: Performance overview
Performance overview Normalised Headline Normalised New Non-insurance profit earnings headline earnings business1 income +27% +34% +34% -12% +14% to R7 020m to R4 267m to R4 350m to R12 534m to R3 181m +6% when excluding Sasolmed in prior period 1 Excluding discontinued products like VitalityInvest,
Slide 3: Key insights from H1 FY2025 performance
Key insights from H1 FY2025 performance The structuring of the group into two composites has been completed, 1 Growth with the Group in a new phase of growth and performing well The growth is consistently strong across the two composites and 2 Consistency within the businesses 3 Resilience The Group
Slide 4: Strong profit performance
Strong profit performance Normalised profit, ZARm Health 2 023 +8% Strong normalised profit growth Life Invest 2 612 904 +15% +46% +27% to R7 020m Insure 401 +1905% IFRS 17 7,000 Bank -145 -57% Other SA1 -275 +216% 6,000 SA 5 520 +27% 5,000 Vitality Health 599 +14% 4,000 Vitality Life 327 +8% 3,000
Slide 5: Strong performance
Strong performance New Non-insurance ZARm business2 income New business growth Robust non-insurance Health 4 714 -31% 646 +9% impacted by Sasolmed income growth Life 1 463 -4% Invest 1 735 +7% +6% Excl Sasolmed in prior period +14% to R3 181m to R12 534m Insure 659 -1% Bank 1 100 +42% 16,000 3,500 -
Slide 6: Entering a new phase of growth
Entering a new phase of growth Unfettered organic growth Big investments in New Scaled organic growth H1 FY25 Expected FY25 40% CAGR 22% CAGR 9% Illustrative ranges Normalised IFRS 4 Above 15-20% 27% 20% profit plan 0% CAGR H1FY25 growth -20% 30% Average 8% Average 15% % spend 20% c5% 5% Within Spen
Slide 7: Well positioned for future growth
Well positioned for future growth Expect continued organic growth Average expected earnings growth ambition p.a. (FY25-FY29) Profitability 30% 20-30% 25% 20% 12.5-17.5% 15% Discovery Group 10% 5% 0% SA Vitality Growth Growth Forward looking information on this slide is for illustration and has not b
Slide 8: Strong ambition in each composite
Strong ambition in each composite Growth ambitions Discovery SA Vitality UK Vitality Network Vitality Health International R400m Bank operating profit growth p.a. >10% c15% >5% Premium growth (GBP) Revenue growth (USD) Premium growth above market R3bn Bank FY29 profit ambition PAHI >RF+5% c50% Prese
Slide 9: The mathematics of growth - actual better than expected
The mathematics of growth - actual better than expected Expect strong profit growth from composites Outperformed against targets in period Expected average growth contribution (FY25-FY29) H1 FY2025 cumulative profit growth contribution 30% 30% + 0% 27% + 6% 25% 15% to 25% 20% 21% 20% 20% + c3% Targe
Slide 10: Consistently strong growth across all businesses
Consistently strong growth across all businesses Ping An Vitality Vitality Vitality Health Health Life Invest Insure Bank Health Life Network Insurance Normalised profit (H1 FY25 Growth) +8% +15% +46% >100% +57% +14% +8% +15% +23% 10
Slide 11: Supportive below the line performance for the six months
Supportive below the line performance for the six months Actual Actual R million H1 2025 H1 2024 % Normalised profit from operations 7 020 5 536 27% Forex gains/(losses) 13 -40 1 DP finance lease impact -44 -59 Finance charges excl. 1DP finance lease -954 -881 Investment income and fair value gains
Slide 12: Solid growth in Group Embedded Value
Solid growth in Group Embedded Value 19% Annualised RoEV c30% of Group (18% excl all economic basis updates) revenue is not covered in EV R119 422m R119 616m Revenue split by covered vs non-covered businesses R110 354m c30% Opening EV Value of new Unwind of risk Non-economic Non-covered Operational
Slide 13: Group well capitalised with robust cash generation
Group well capitalised with robust cash generation Sufficient centre Improving cash FLR decreasing Strongly capitalised liquidity conversion FLR Solvency cover Centre liquidity3, Rm Group cash conversion ratio4 R3.2bn (R1.1bn of which Dec 23 Dec 24 will be used to repay 30% Cover Cover maturing debt
Slide 14: Robust cash generation drives strong cash conversion
Robust cash generation drives strong cash conversion -R3.5bn New business 75% net of external Vitality R8.3bn Life funding Vitality cash Cash Health conversion generated ratio from in-force -R0.8bn R4.0bn Tax Discovery Cash uses (Rbn) Life and Invest 1.1 0.9 0.7 0.6 Discovery 0.5 Health 0.2 Dividend
Slide 15: Increasingly complex environment, with risks mounting on all fronts
Increasingly complex environment, with risks mounting on all fronts The world is growing increasingly complex, with risks mounting on all fronts and optimism fading about the ability of institutions to manage them. Geopolitical tensions, economic instability, and trade wars are fueling uncertainty,
Slide 16: Strong risk governance ensures minimal exposure
Strong risk governance ensures minimal exposure Set of defined risk principles Minimal risk exposure due to geographic diversification 1. Liability matching: Liabilities matched by Only 20% of debt is not fixed, with Limited short-term offshore funding currency, nature and duration exposure to UK in
Slide 17: Group remains resilient to economic uncertainty
Group remains resilient to economic uncertainty Stresses are calibrated to reflect severe but Operating cash flow Headline earnings Group solvency plausible events* Stresses relative to base (base scenario rebased to 100%) Rand Appreciation 110% 110% 110% 25% ZAR appreciation 100% 100% 100% Equity S
Slide 18: Significant status correlations
Significant status correlations Life insurance Health insurance Motor insurance Long-term savings Banking CLR 57% 22% 31% 69% 95% Lower Lower Lower Lower Lower claims claims claims paid-ups credit loss ratio Claims Diamond Blue Bronze Gold Silver Bronze Gold Diamond Blue Silver Bronze Diamond Gold B
Slide 19: Vitality SA experienced considerable engagement
Vitality SA experienced considerable engagement Increase in status Increased Increased travel Increased distribution engagement bookings HealthyFood spend 2.4m 52m 1.1m R3.4bn HealthyFood spend Vitality members Vitality points- earning workouts flights booked 28m HealthyFood baskets % members Bronze
Slide 20: The power of the Vitality Shared-value model in dealing with profound change
The power of the Vitality Shared-value model in dealing with profound change Trends Challenge • Fiscal pressures on public healthcare Health • Ageing populations Rapid medical inflation insurance • Increasing chronicity • Escalating technology costs • Massive and mature industry Life • Capital-inten
Slide 21: H1 FY25 profit growth: Discovery SA
H1 FY25 profit growth: +27% +27% 21
Slide 22: Discovery SA business performance
Excellent performance across all key metrics and achieved monthly operational break-even ahead of target Strong earnings and core new business growth (up 9% excl the new closed scheme Sasolmed in prior period) Discovery Health Discovery Insure Discovery Invest Discovery Bank Discovery CEB Discovery
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Slide 24: Discovery Bank and market trends
Discovery Bank and market trends ANKING T B AL B REN G LO DS Generative AI as the operational backbone Data-centric hyper-personalisation Democratising private banking through the Using behavioural data to dynamically adjust use of Generative AI, and personalising rewards based on real-time health a
Slide 25: Discovery Bank
Discovery Bank Total Total clients accounts Deposits Advances Revenue (NII+NIR) Normalised profit +32% +35% +27% +37% +42% +57% to 1.1m to 2.6m to R21.2bn to R7.8bn to R1.1bn to (R145m) H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2021 2022 2023 2024 2025 2021 2022 2023
Slide 26: Achieved run-rate break-even ahead of target
Achieved run-rate break-even ahead of target New business Operating income − Expenses − acquisition costs = Profit / (loss) before tax NII + NIR (Rm) Normalised operating NBAC per new client2 (R) Profit (loss) before tax (Rm) expenses1 (Rm) 56% CAGR 6% CAGR -3% CAGR 700 600 - 2,000 600 1,800 500 (50
Slide 27: Attributes driving Discovery Bank growth
Attributes driving Discovery Bank growth Daily growth Shift towards Relevance from Revenue driven Growing home Superior credit maintained credit products outside DSY by engagement loans book quality maintained Daily sales per New-to-Bank New business by Engagement per Value of home Credit loss ratio
Slide 28: Shared value in Discovery Bank
Shared value in Discovery Bank NIR per client Total deposits Probability of default 1 – 90 days arrears Credit loss rate NIR by VM status 11x more deposits 89% lower probability of 97% lower arrears rate >95% lower credit loss (indexed to Blue) default rate 800 700 600 500 400 300 200 100 0 Sep-22 J
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Slide 30: Discovery Health
Discovery Health Normalised profit New business Membership Non-scheme growth +8% -31% 3.96m +21% to R2 023m to R4 714m Lives under >412k lives Excluding Sasolmed administration in prior period: +9% H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Aug-18 Apr-23 Oct-19 Mar-19 Feb-22 May-20 Sep-22 Dec-20 Jan-18 Jul-21 Ju
Slide 31: Discovery Health Medical Scheme: continued excellent performance in a complex environment
Discovery Health Medical Scheme: continued excellent performance in a complex environment Membership Customer satisfaction Solvency 57.9% market share Low proportions of members change plans, with more members upgrading than downgrading: R29.4bn projected unaudited reserves 3% 95% no plan changes 31
Slide 32: DHMS’s growing contribution differential enhances market competitiveness into 2025
DHMS’s growing contribution differential enhances market competitiveness into 2025 Weighted average contribution increase (%) Comparison of average contributions 12.8% 12.4% 10.8% 10.2% 9.6% -12.7% 9.3% 9.4% -11.1% -12.3% -14.6% -16.3% -14.4% -13.3% -14.3% Scheme Scheme Scheme Scheme Scheme Scheme 2
Slide 33: Addressing the cost of healthcare
Addressing the cost of healthcare Sustained aging of the Scheme Increased chronicity continues across age groups Age distribution of lives (2008 – 2024) Chronic ratio (2008 – 2024) 100% 2.5% Average age Chronic ratio 2008: 32.3 years 2008: 15.7% 2021: 36.1 years 80% 2021: 30.8% 2.0% 2024: 37.6 years
Slide 34: Engaging members in a personalised program that incentivises healthier habits
Engaging members in a personalised program that incentivises healthier habits and behaviour change 2.08m eligible lives of activated lives are in the 63% chronic, disease prevention or emerging risk cohort 348k Next Best Actions completed since Jan 2025 R7.9m rewards earned Impact of doing Next Best
Slide 35: The private healthcare sector is a strong asset
The private healthcare sector is a strong asset – delivers excellent value for members The private sector has significant scale Members have access to world-class care South African prices compare favourably by international comparison3 838 42k Coronary angioplasty Appendectomy private facilities ho
Slide 36: Bigger issues surrounding medical inflation
Bigger issues surrounding medical inflation High utilisation driving medical inflation 3 key drivers of inflation can be broken down further: 14% 3 1 2 3 12% TARIFFS TECHNOLOGY DEMOGRAPHIC ASPECTS 10% Tariff growth relative to CPI growth (indexed to 2014) New technology and • Open enrolment treatmen
Slide 37: Bigger issues surrounding medical inflation
Bigger issues surrounding medical inflation Longitudinal impact of medical inflation Relative growth rates over last 10 years (indexed to 2014) 280 Management of CPI+6% contribution inflation 260 requires an overall 46% of medical inflation increase is management due to demand-side utilisation appro
Slide 38: Discovery’s position: NHI is not workable without private sector collaboration
Discovery’s position: NHI is not workable without private sector collaboration 38
Slide 39: Discovery Life
Discovery Life
Slide 40: Discovery Life
Discovery Life Strong capital and Maintained leading Normalised profit New business liquidity market share +15% -4% SCR coverage Total liquidity 12 months to Dec 2024 to R2 612m to R1 463m Individual life: Individual life: +12% 0% IFRS 17 183% Competitor market share relative to Discovery Life 59% 1
Slide 41: Robust performance with positive operating variances
Robust performance with positive operating variances Positive operating variances Excellent experience relative to assumptions Discovery Life Ltd EV variances (Rm) Mortality experience by Vitality status relative to expected R468m R261m Total Other Mortality and morbidity Persistency Premium and fee
Slide 42: Robust EV growth and stable VNB margin
Robust EV growth and stable VNB margin Steady VNB margin Growth in Embedded Value VNB margin (%) 20.6% Annualised RoEV* 14.1% excluding economic updates Individual life: Individual life: 1487 R50 028m 30020 5.0% 5.4% (20.0% IRR) (19.7% IRR) 469 -380 2265 3.8% 3.6% R45 948m 25948 239 New Business Exp
Slide 43: Strong cashflow generation
Strong cashflow generation Life and Invest cash significantly ahead of target Cashflow over time (Rm) Cashflow before financing initiatives and dividends to Group (Rm) R11 539m 1,523 -R6 112m Claims 1,093 >60% cash conversion 545 -R2 128m ratio Operational costs Covid -R1 776m impact New business R1
Slide 44: Value generation of business under IFRS
Value generation of business under IFRS 17 Store of value absorbs variances and plays out as earnings during the period ZARm IFRS 17 Life and Invest GMM business stored valued Components of Life segment earnings absorbs variances and basis changes (incl PAA business such as Group Life) = c17% Growth
Slide 45: Discovery Invest
Discovery Invest
Slide 46: Discovery Invest
Discovery Invest Normalised profit New business Assets under administration +46% +7% +15% to R904m to R1 735m to R167bn +19% IFRS 17 Excl once-offs Jan-20 Jan-18 Jan-22 Jan-24 Jan-19 Jan-21 Jan-23 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 2021 2022 2023 2024 2025
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Slide 48: Discovery Insure
Discovery Insure Normalised profit Insurance revenue Gross new business Solvency >100% +10% -1% 198% to R372m to R3 078m to R659m IFRS 17 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Pe
Slide 49: Vitality continues to drive improvement in quality
Vitality continues to drive improvement in quality Disciplined approach to Targeted premium Retaining the Lower severity by Lower loss ratio by underwriting increases right clients status status New business based on Relative average Relative lapse rate by Relative accident severity Relative loss ra
Slide 50: Strong margin recovery from management actions taken
Strong margin recovery from management actions taken 12.1% 2.4% 9.7% 1.3% 0.3% 1.8% 0.5% 1.3% 1.2% 0.6% 2.6% 0.1% FY24 H1 Expected Upfront Underwriting Pricing Selective Claims Behaviour Other FY25 H1 Unexpected FY25 H1 Margin weather selection actions actions lapsation initiatives change external m
Slide 51: Material and consistent decrease in theft over time
Material and consistent decrease in theft over time Decrease in theft Consistent trend by rate over time sum insured Consistent by geography Theft rate Theft rate by sum insured Theft rate by province 4% 6% 5% 3% 0k - 200k 4% Gauteng 4% Motor 2% 200k - 300k 3% Western Cape theft 1% 2% 300k - 500k 2%
Slide 52: Vitality
Successfully actioned significant price increases to mitigate increased PMI utilisation on the back of NHS pressure, with a strong retention of in-force business Strong increase in quality new business in a commoditised and stagnant UK market Strong margin expansion and integrated API growth, demons
Slide 53: A single global composite:
A single global composite: Single Vitality chassis to establish a unified approach to personalisation across markets, enhancing customer engagement and loyalty Inter-operable technology platforms and consistent global enablement to achieve operational efficiencies, improved systems integration, scal
Slide 54: Incentivising behaviour change through hyper-personalised pathways
Incentivising behaviour change through hyper-personalised pathways Causal Elastic Habitual Physical activity has a significant Behavioural dynamics are universal, holding Habits form quickly and easily, yet their impact on mortality across ages and health status true strength lies in their durabilit
Slide 55: Vitality AI is the breakthrough solution for traditional model inefficiencies
Vitality AI is the breakthrough solution for traditional model inefficiencies Dynamic pricing Key value drivers 1. New business Incentivised engagement 2. Selection Enhanced AI recommender 3. Behaviour change VoNB / IRR 4. Selective lapsation Dynamic risk assessment 5. Upsell / cross-sell Data 55
Slide 56: UK
UK 56
Slide 57: Vitality UK
Vitality UK Normalised profit Premium income New business Lives covered +12% +11% +14% +12% +10% +9% +7% to £40.0m to R926m to £610m to R14.1bn to £104.9m to R2.4bn to 1.9m IFRS 17 GBP millions GBP millions GBP millions H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2021 2022 2023 2024
Slide 58: VitalityHealth
VitalityHealth Normalised profit Premium income1 New business Lives covered +15% +14% +16% +15% +3% +2% +6% to £25.9m to R599m to £394m to R9.1bn to £57.3m to R1.3bn to 1.0m IFRS 17 GBP millions GBP millions GBP millions H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2021 2022 2023 2024
Slide 59: Retention resilient despite pricing actions, expect recovery of margins
Retention resilient despite pricing actions, expect recovery of margins Increase in claims Shift towards Pricing actions Selective retention Expect a recovery costs primary care implemented of healthier lives of margins Claims PLPM over time Claim categories PLPM Premiums vs claims Lapse rates vs pr
Slide 60: VitalityLife
VitalityLife Normalised profit* Premium income New business Lives covered +8% +8% +10% +9% +19% +18% +9% to £14.1m to R327m to £217m to R5bn to £47.6m to R1.1bn to 852k lives IFRS 17 GBP millions GBP millions GBP millions H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2021 2022 2023 202
Slide 61: Price optimisation in a commoditised, portal-driven market
Price optimisation in a commoditised, portal-driven market Sophisticated price optimisation and elasticity provides opportunity for Optimiser to compete on portals Portal-driven market Illustrative pricing Optimiser allows us to compete on portals Premium where price plays an important role Up to lo
Slide 62: Exceptional new business growth in a stagnant market
Exceptional new business growth in a stagnant market 39% net growth, despite Establishing solid Growing net new Significant change in a flat market market share business value value VL new business growth VitalityLife market share1 New business net value VL continues to generate strong +19% vs marke
Slide 63: Value generation of business under IFRS
Value generation of business under IFRS 17 Store of value absorbs variances and plays out as earnings during the period GBPm IFRS 17 stored value absorbs variances and basis changes Components of VitalityLife earnings = c3% Growth from Total margins increased by c3% from June 2024 1 £518m at June 24
Slide 64: Strategic vision for Vitality UK
Strategic vision for Vitality UK Underpinned by clear objectives Transforming the UK health Top 3 UK Highest brand Focused and life insurance markets health and life insurer recognition in the market ambition through shared value powered by Vitality AI Renowned for market-leading Changing behaviour
Slide 65: Network
Network 65
Slide 66: Vitality Network
Vitality Network Integrated API by Insurance partners Normalised profit insurance partners Revenue membership +20% +15% +13% +8% +8% +3% +26% to $18.9m to R339m to $909m to R16.3bn to $54.1m to R970m to 6.2m USD millions USD millions USD millions H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
Slide 67: Vitality Network’s key strategic focus areas
Vitality Network’s key strategic focus areas Revenue growth through 1 deepening of existing partnerships and pursuit of new opportunities Strong performance from John Hancock with 29% Substantial growth from SLI with 2 million increase in performance Vitality policies sold fees Profit margin 35% 31%
Slide 68: Positive impact of shared value observed across markets
Positive impact of shared value observed across markets Claims correlations Lapse correlations Member engagement 57% 53% lower lower 6% increase in proportion of off-Blue members 27% market share Blue Bronze Silver Gold Diamond Blue Bronze Silver Gold Diamond 2019 2024 36% 47% lower lower Consistent
Slide 69: Ping An Health Insurance
SSF G2 FR te Bie PING AN HEALTH INSURANCE 69
Slide 70: Ping An Health Insurance
Ping An Health Insurance PAHI’s operating Discovery’s operating PAHI licence PAHI licence results pre-tax result after tax earned premium1 new business1 Lives +62% +57% +27% +23% +16% +13% +10% +6% +11% to RMB906m to R2.3bn to RMB170m to R424m to RMB8.3bn to R20.7bn to RMB1.7bn to R4.4bn to 29.1m PA
Slide 71: Superior operational performance and growth
Superior operational performance and growth Improving operating Significant balance sheet Strong persistency performance growth Reapplication rates (%) Combined ratio (%) Net asset value (RMB millions) 90% 100% 12,000 10,000 85% 90% 8,000 80% 80% 6,000 75% 70% 4,000 70% 60% 2,000 65% 50% 0 2021 2022
Slide 72: Increasing demand for private healthcare drives growth in Commercial Health Insurance
Increasing demand for private healthcare drives growth in Commercial Health Insurance China's aging population calls for a high-quality, multi-levelled, Evolving factors drive further Commercial Health Insurance system private healthcare demand China's population by age band1 (m) Macroeconomic facto
Slide 73: PAHI continues to grow in a competitive market
PAHI continues to grow in a competitive market Profit Market margin share Scale Health insurance rank rank Q1 – Q3 2024 premiums written by specialised health insurers PAHI leads health & wellness service-driven specialised health insurance. 1 2 Through its health ecosystem of “insurance + health se
Slide 74: Strong performance relative to market
Strong performance relative to market Superior operational High growth relative to market Growing market share performance Revenue growth (rebased) PAHI market share (%)1 Net profit margin 10% 5 11.7% 8% 4 2.3x 10.8% 6% 3 higher 10.6% 10.4% 2 4% 9.9% 1 2% 0 0% 2018 2019 2020 2021 2022 2023 2024 2020
Slide 75: VHI
VHI 75
Slide 76: Vitality Health International (Other)
Vitality Health International (Other) 1 Acquisition of WellSpark, from EmblemHealth, a prominent New York health plan administrator Continued progress in sales to US health plans, a 2 key strategic segment, and expansion into significant Medicare Advantage market Strong progress in product and techn
Slide 77: In summary
In summary 77
Slide 78: Key insights from H1 FY2025 performance
Key insights from H1 FY2025 performance Cash Interim Profit % spend on conversion RoE FLR dividend 1 Growth growth 27% New 5% ratio 75% 15% 18% growth 34% Normalised profit growth 2 Health Life Invest Insure Bank VH VL VN PAHI Consistency +8% +15% +46% >100% +57% +14% +8% +15% +23% 1. Liability matc
Slide 79: Strong prospects for growth in the Group’s new lifecycle
Strong prospects for growth in the Group’s new lifecycle Vitality AI next dimension of Strong growth from the Strong growth gives resilience shared-value model composites and optionality Illustrative Group leverage and accumulated excess cash at the centre* 12.5% to 20% to 16% 12,000 17.5% 30% 15% 1
Slide 80: Presentation disclaimer
Presentation disclaimer This presentation contains information extracted from the Discovery Group’s unaudited condensed consolidated interim financial statements for the six months ended 31 December 2024. This results presentation and the unaudited condensed consolidated financial statements have no
Slide 81: Unaudited Interim Results
Unaudited Interim Results and cash dividend declaration for the six months ended 31 December 2024