| Fri 28 Oct 2005, 13:51 | | Discovery - News release from Discovery |
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Discovery - News release from Discovery
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
("Discovery")
NEWS RELEASE FROM DISCOVERY
28 October 2005
Discovery hits 100,000 milestone in low income market, announces joint venture
with black-owned brokerage
Discovery Health this week achieved two important milestones as part of its
initiative to market its products to a wider spectrum of South Africans: It
signed on its 100,000th KeyCare member and has entered into a joint venture with
a black-owned brokerage firm.
The 100,000th member makes KeyCare, which was launched in 2003, the largest
lower income offering in the medical scheme market to address the needs of the
employed but uninsured market.
The joint venture is with PFM Financial Services (PFM), a firm of black
financial intermediaries. PFM markets and distribute Discovery"s product range
nationally to a market that has historically not enjoyed access to financial
products or sound financial advice.
Discovery ambassador, Lucas Radebe, attended the announcement of these
milestones and was on hand to congratulate the 100,000th KeyCare member.
KeyCare"s growth represents an important milestone in Discovery"s drive to
deliver private healthcare coverage to more South Africans.
People in this segment have been identified by the entire healthcare sector as
an important growth market. It is estimated that there are 7-million South
Africans in this category who are currently uncovered.
Discovery"s Penny Thlabi says: "We are thrilled with the success of KeyCare. In
two years it has grown into the largest offering in its environment, at least
five times larger than its nearest competitor.
"We should not underestimate the challenges of growing the number of KeyCare
members in this market - notably in increasing the awareness of the benefits of
medical aid - but, given the universe of potential members, this is an excellent
springboard for future growth."
KeyCare members will also soon be able to access a dedicated network of
healthcare practitioners, administered by Discovery Health, that will include
GPs, dentists, optometrists and pharmacists. The new network is expected to be
operational early in 2006. Currently Discovery Health uses networks managed by
outside service providers to provide medical services to KeyCare members.
Discovery believes that through its new network of independent practitioners it
will be able to provide better service for members, and more efficient
interactions with the general practitioners that serve them. Discovery intends
only to provide these services for Discovery Health members, and will not
compete for the business of other medical schemes in this market.
The joint venture is with PFM, a black financial services firm that has a unique
proven marketing and distribution model and covers most of South Africa,
particularly the rural areas.
PFM has a network of branches in the following areas:
Limpopo: Thohoyandou, Louis Trichardt, Giyani, Tzaneen, Polokwane, Mokopane,
Burgersfort, Groblersdal.
Mpumalanga: Nelspruit, Hazyview, Ermelo, Middelburg.
KwaZulu-Natal: Newcastle, Vryheid, Pietermaritzburg, Richards Bay, Durban,
Ladysmith.
Gauteng: Johannesburg, Pretoria.
Free State: Bloemfontein, Bethlehem.
North-West: Mmabatho, Rustenburg, Vryburg.
Eastern Cape: East London, Umtata, Port Elizabeth.
The plan is to build a presence in the Northern Cape, Secunda and Cape Town in
2006.
"This model sets PFM Financial Services apart from its competitors and we
believe it will become a leader in the healthcare distribution market," says
Discovery group marketing director Neville Koopowitz. "It has an extensive
presence throughout the country, and is well placed to help Discovery fulfil its
goal of increasing access to financial products and medical schemes among all
communities."
"Discovery Health is a market leader across all segments of the medical scheme
market, and Discovery Life is now the fastest growing life company in South
Africa," says Koopowitz. "Our products have grown in no small way thanks to our
relationship with established intermediaries."
Koopowitz says that through PFM, Discovery can build a similar relationship with
emerging black intermediaries. "PFM will aid in increasing access to medical
schemes in a market that has traditionally not been covered."
Johannesburg
28 October 2005
Date: 28/10/2005 01:51:04 PM Produced by the JSE SENS Department
