| Mon 4 Oct 2004, 12:51 | | News Release From Discovery |
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Discovery Holdings Limited - News Release From Discovery
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number : 1999/007789/06)
ISIN : ZAE000022331
Share Code : DSY
NEWS RELEASE FROM DISCOVERY
4 October 2004
Discovery`s UK health venture kicks off three months ahead of schedule
PruHealth, the UK private medical insurance (PMI) joint venture between
Discovery Health and the Prudential, has had its launch brought forward to today
(4 October 2004), a full three months ahead of schedule.
The quicker-than-expected completion of the building of infrastructure, product
development and product design and the granting of a licence to operate by the
Financial Services Authority (FSA), has allowed PruHealth to launch a full three
months ahead of schedule.
PruHealth will for the first time take the concept of consumer driven healthcare
to the UK market. The concept has driven Discovery Health`s considerable growth
in the South African market over the last decade, making the Discovery Health
Medical Scheme the largest open medical scheme, with over 1.6 million members.
PruHealth will be offering excellent incentives for members. Members who make an
effort to improve their health will receive up to 100% of their unused premium
in the first year off the cost of the following year`s cover. Even those who do
nothing to improve their health will get 25% of their unused premium back.
The Vitality concept, which underpins the Discovery Health offering, will take
centre stage with PruHealth. Vitality points will be earned for a range of
activities, such as going to the gym, going for screenings, improving health
education and reducing smoking.
PruHealth has already signed up as partners Cannons Health & Fitness Club and
Holmes Place, two of the leading gym networks in the UK. Members will gain a
subsidy of up to 60% on gym membership.
PruHealth members can also earn Vitality points through other Vitality partners,
including BUPA Wellness and the Diagnostic Clinic, which offer health
assessments; HCA, a large private hospital group in London, which offers health
screenings for members; and Active Europe, an online sports registration service
whereby members can enter marathons, cycle races and other sporting events.
The consumer-driven healthcare concept has also been successful in key US
regional markets, under the banner of Discovery`s US subsidiary, Destiny Health.
Almost 40 000 members in the Chicago land area are now benefiting from medical
cover that rewards measures to improve their health, with more than 2000 joining
per month.
Now that concept is ready to take the UK market by storm. Currently 6.7 million
Britons are members of private medical schemes or 11% of the total population.
Existing private schemes in the UK make no allowances for members` attempts to
adopt a more healthy lifestyle, nor are claims histories taken into account in
calculating premium increases. Over the past ten years the average premium in
the UK has more than doubled.
Research carried out by TNS in the UK on behalf of PruHealth found that 69% of
people who pay for their own medical insurance would be interested in a scheme
that offered lower premiums as a result of measures taken to improve their
health. 60% of those whose health insurance is paid for by an employer said they
would like their PMI provider to take more interest in their health and
wellbeing, while 47% said they would join a gym if doing so led to lower
premiums.
`PruHealth is a fairer and more progressive approach to private medical
insurance which will open up cover to a broader range of people and business,`
said Catherine McGrath, PruHealth chief executive.
Discovery CEO Adrian Gore said: `We are excited to be entering the UK market and
believe our product structures will make a significant impact in terms of
providing UK consumers with health care cover that takes account of their health
management.`
PruHealth`s offerings will be sold direct to the consumer or through independent
financial advisers to small and medium enterprises.
(Ends)
Background Information on PruHealth:
PruHealth is a 50:50 joint venture between Prudential UK and Discovery Holdings
of South Africa. The venture was announced to the South African market in April
2004 and the two companies announce their entry into the UK private medical
insurance market today (4 October).
The company has bases in London and Johannesburg. Back office support is being
provided in South Africa. PruHealth is headed by Catherine McGrath, who until
recently ran Pru`s direct-to-consumer operation. The management board is
chaired by Adrian Gore (CEO of Discovery) consisting of Roger Ramsden (Marketing
Director of Pru UK) and Tim Tookey (Finance Director of Pru UK), Shaun Matisonn
(Discovery) and Sir Andrew Foster (ex COO of the NHS).
PruHealth will energise the UK PMI market with a more progressive and more
enlightened approach to private healthcare. Its philosophy is to reward people
who make efforts to lead a healthy life with low premiums. Policyholders will be
able to reduce the cost of their health insurance in a variety of ways such as
annual health assessments, joining a gym or giving up smoking.
(Ends)
Issued by:
Beachhead Media & Investor Relations
Lynette Lambert:
011 214 2406 / 084 580 2402 / lynette@bmsa.co.za
Patrick Lawlor:
011 214 2410 / 082 459 6709 / patrick@bmsa.co.za
Sheri Fine: 011 214 2414 / sheri@bmsa.co.za
On behalf of:
Discovery Health
Enquiries:
Adrian Gore, CEO, Discovery,
(011) 529 2800
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
