How we performedLIFE
LIFE
OUR PERFORMANCE IN 2016
New business increased by 5% to R2 347 million and earnings by 14% to R3 373 million for the year under review. Value In Force (VIF) increased by 10.9% using constant economic assumptions. When taking the more conservative risk discount rate assumption into account, driven by an increased beta adjustment at the end of the period, the VIF reduced by 1.6% to R18.9 billion. The Value of New Business (VNB) margin of 8.9% as at the end of June 2016 was achieved as a result of improving the new business mix.
Discovery Life remains well capitalised and generated R2 262 million in cash from the existing book (Individual and Group Life). This was utilised largely to continue funding further growth of the Discovery Life business through new business acquisitions.
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Chief Executive Officer
Chief Executive Officer
We use data on clients’ health, wellness and driving patt erns to assess and dynamically underwrite client risk.
Clients pay far more accurate premiums that reflect the dynamic nature of their risk profiles. These premiums are offered at the lowest price at policy inception, and can be sustained through client engagement in Vitality and health and clinical improvements.
Claims and lapse rates are far lower compared to traditional insurance models, particularly for Vitality-engaged clients who realise the benefits of greater investment in their own health and wellness through Vitality.
2016 STRATEGIC
OBJECTIVES
In our previous report, we outlined strategic objectives in a number of key areas. In this section we report on our progress.
We outlined the need to continue our focus on product innovation, as well as seeking out integration opportunities with other Discovery businesses. In addition, increasing market share and maintaining competitive advantage by developing integrated product offerings to meet clients’ needs, were also key objectives.
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