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DISCOVERY sees an upgrade to Positive due to a better fundamental star...
The general evaluation of DISCOVERY (ZA), a company active in the Life Insurance industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date December 28, 2021, the closing price was ZAR 142.91 and its p...
- Warwick Bam
Discovery | ESG | Time to refresh the Board
We rank Discovery's corporate governance as ‘adequate' with a score of 2.84 out of 5. In our FY'19 ESG analysis and proxy voting recommendations we focus on: - The balance of power on Discovery's Board considering the unusually high executive representation and low non-executive independence. - The potential disconnect between executive remuneration and shareholder returns.
1 director sold
A director at Discovery Limited sold 10,000 shares at 123.147ZAR and the significance rating of the trade was 56/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clea...
- David Talpert
- Harry Botha
- Warwick Bam
Avior Financials | Nedbank CPF update | Bank lazy deposits | JSE | SNT...
In this week's Avior Financials note: Nedbank's Commercial Property Finance presentation showed that Nedbank's book is suitably diversified to withstand challenging economic conditions. Management expects credit impairment charges to increase to within the CIB target range (15bps to 45bps) while aggregate Stage 3 (default) exposure increases. The trends are in line with our expectations (credit loss ratio H2 '19f: 15bps, H1 '20f: 20bps). Capitec recently conducted a survey and found that 86%...
- Warwick Bam
Discovery | Opportunity knocks
The valuation of Discovery's (DSY) life insurance business is a point of contestation for investors. Persistent policy alterations and lapse assumption changes have reduced DSY Life's embedded value by R5.3bn (12.3% of the average EV balance) since FY'08. A rise in mortality claims in H1'19 reduced DSY Life's profits by 13% y/y. Despite DSY reporting the largest absolute discounted future profits at R58bn (SLM: R41bn), representing 28% of the SA listed market at 31 Dec ‘18 (SLM: 20%), the ...
- Warwick Bam
SA Insurance | Under pressure
The South African economy remains in its longest downward cycle since 1945, entering its 67th month of a weakening cycle in Jun ‘19. Annualising the Unemployment Insurance Fund (UIF) payments in Q2'19 implies a 33% y/y rise in terminations in CY'19f. While insurers have broadly reported persistency experience within model assumptions up to Q1'19, the severity of South Africa's economic pressures have intensified in Q2'19 as policy reform has not followed the elections casting doubt on the ba...
- Warwick Bam
Discovery | Deeper investment cycle
We believe Discovery (DSY) is evolving into a capital light fintech platform based off user engagement and Vitality data. A deeper investment cycle has reduced DSY's H1'19a normalised operating profit by 10% (R390m in additional costs). We expect continued investment into the DSY Bank and UK Invest platform to reduce FY'19f operating profit by c.9% (c.R767m) However, DSY is trading at its three-year average forward P/E of 15x. Excluding the organic development of loss-making new initiatives, DSY...
- Warwick Bam
Discovery | Innovating an ecosystem of optionality
Discovery's Vitality network is forming a global ecosystem for innovation. DSY are creating optionality for multiple shared value initiatives by investing c.R500m in the centralised platform, Vitality ONE. With c.70% of costs fixed, we expect the marginal return on capital for Vitality Group to continue increasing as it gains scale. Globally, Vitality adds +200k members monthly, records 1k activities a minute and develops c.18 products a year for its partners. We expect profitability from Vi...
- Please Change Name Brandan Holmes
Discovery Limited: New issuer - strong franchise and profitability
FINANCIAL INSTITUTIONS CREDIT OPINION 15 December 2017 Update RATINGS Discovery Limited Domicile South Africa Long Term Rating Ba1 , Possible Downgrade Type LT Issuer Rating - Dom Curr Outlook Rating(s) Under Review Please see the ratings section  at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Branda
- Please Change Name Brandan Holmes
Moody's assigns Aa3.za issuer rating to Discovery Limited
Rating Action: Moody's assigns Aa3.za issuer rating to Discovery Limited. Global Credit Research- 20 Oct 2017. London, 20 October 2017-- Moody's Investors Service, has assigned Ba1 global scale and Aa3.za national scale Long-Term Issuer ratings to Discovery Limited.
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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