| Fri 30 Apr 2004, 10:47 | | PRESS RELEASE |
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DISCOVERY HOLDINGS LIMITED - PRESS RELEASE
Discovery Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1999/007789/06)
(Share code: DSY ISIN: ZAE000022331)
("Discovery" or "the company")
PRESS RELEASE
Joint statement
Issued by:
Discovery Holdings, Johannesburg, South Africa and Prudential Plc, London,
United Kingdom
30 April 2004
Discovery and Prudential UK announce joint venture to enter the UK private
medical insurance market
Johannesburg, South Africa: - Discovery and Prudential UK today announced that
they are creating a joint venture that will see the two companies enter the
private medical insurance market in the United Kingdom in the first quarter of
2005.
The company, a 50:50 joint venture, will be known as `Prudential Health". It
combines the unique and complementary strengths of Prudential"s strong brand,
distribution capability and financial strength, with Discovery"s consumer-
engaged healthcare expertise, and product and risk management leadership.
"We launched `The Plan from the Pru" as a simple and straightforward way of
helping people plan for the future and guard against the unexpected things in
life. Introducing a private health insurance offering as part of this philosophy
fits very well and we see this new venture as an excellent opportunity to
energise the UK healthcare market," said Mark Wood, Chief Executive, Prudential
UK and Europe.
"By joining forces with Discovery we gain immediate access to the necessary
underwriting and risk management expertise, systems infrastructure and
administrative capabilities required to develop and deliver what we believe will
be a unique and competitive product into the UK market."
Adrian Gore, CEO of Discovery, is equally positive about the prospects for the
venture. "While the UK healthcare system offers a comprehensive National Health
Service (NHS), more and more UK consumers are choosing to purchase insurance to
access treatment in private hospitals. However, the annual contribution
increases for private medical insurance have continuously outstripped the retail
price index, with very little consumer engagement in the benefits."
Prudential Health will be a separate insurance company with a shareholding
structure that sees Discovery Holdings and Prudential Plc each own 50%. It aims
to achieve significant market share over the next decade.
About the UK private medical insurance market:
Currently 6,7 million people (approximately 11% of the population) are covered
through private medical insurance products in the UK
The market currently generate in excess of GBP2.2 billion in annual premium
income
Datamonitor research indicates that this number will rise to 8 million lives
covered by 2006
Over the past ten years, contributions to private medical insurance products
have increased at a rate more than double the Retail Price Index.
Ends
About Prudential Plc
- Established in 1848, Prudential is a major financial services group with
operations in the UK and Europe, the United States and Asia.
- As at 31 December 2003, it had GBP168 billion of funds under management.
Worldwide, it has over 22,000 employees and over 16 million customers.
- In 2003, Prudential reported total insurance and investment sales of GBP31.5
billion (Euro 44.7 billion), an increase of 11% at constant exchange rates over
the previous year.
- In the UK, Prudential is a leading life and pensions provider with 7 million
customers.
More about Discovery
- Discovery has over 1.6 million clients and has achieved a compound annual
growth rate covered lives in excess of 50% per annum organic growth over the
last ten years.
- Discovery"s approach to consumer-engaged healthcare in South Africa has a
consistent track record of producing the lowest premium increases in the market.
Its US subsidiary, Destiny Health, was ranked as one of the top three leaders in
consumer-driven healthcare in the US by independent researchers and has recently
partnered with Guardian Life Insurance Company of North America and Tufts Health
Plan.
- Discovery"s Vitality programme has pioneered the integration of health and
wellness related events, moving away from insurance that only pays for sickness
and focusing instead on prevention and a healthier lifestyle. Over 1 million
members are on the Vitality programme in South Africa.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rosemary Renton
Corporate Communication Consultants (Pty) Ltd
TEL: 27 11 783 8926
FAX: 27 11 783 7608
Email: rosemaryr@corpcom.co.za
ON BEHALF OF:
Adrian Gore, CEO Discovery
TEL: 27 11 529 2800
ON BEHALF OF PRUDENTIAL UK AND EUROPE
James Murray / Anthony Frost
Tel: 44 207 150 3001
Date: 30/04/2004 10:25:07 AM Produced by the JSE SENS Department
