Discovery Insurance Profits Up

February 17 - Owner of South Africa's largest medical insurance, Discovery Holdings, announced good financial results this week.

The group said that it expects its first half profits to rise as much as 55 percent.

Essentially, this means that Discovery Holdings' shares could increase as much as 4%.

Headline earnings per share would probably increase anything between 45 and 55% in the six month time period up until the end of December, said Discovery.

Earnings per share are expected to be 60 - 70% higher, according to the group.

Discovery Holdings have performed exceptionally well, managing to outperform the competition despite the recession and slow economic conditions.

Discovery lures players with exciting perks, including gym memberships and holidays.

An industry equity trader said about Discovery's report: "These results look better than expected and with local insurers looking up, Discovery is certainly in the right area to benefit from South Africa's improving economy."

Last year, Discovery reports a 34% increase in first half profit to R541 million. This was partially thanks to the sale of life insurance policies.

The group has also seen increased profits through its ongoing partnership with Prudential Plc, the UK insurance giant, through which it offers life and health insurance products.