Hilton Tarrant
4 minute read
18 Sep 2020
3:34 pm

Is Discovery’s R3.4bn Covid-19 provision enough?

Hilton Tarrant

In mid-June, it warned that it would book an approximate R3.3 billion charge as a reserve for “the potential claims and lapse impact of Covid-19 that are projected to emerge in future periods”.

Image: Moneyweb

Prior to the release of Discovery’s full-year financial results to end-June, the market already had a solid indication of what to expect. In mid-June, it warned that it would book an approximate R3.3 billion charge as a reserve for “the potential claims and lapse impact of Covid-19 that are projected to emerge in future periods”. The final provision is R3.442 billion, with nearly 60% of this comprised of the reserve in the Discovery Life (insurance) book. Two further charges have been booked in the UK health (R713 million) and life (R569 million) insurance businesses with a small R181 million charge...