Discovery continues its growth in Asia

On Wednesday, the share price of Discovery Holdings Ltd rocketed up 6.63% closing at a new all-time high following an announcement of a joint venture with Chinese AIA group, a well-established leader in the Asian life insurance market.

The motivation behind the joint venture is to establish the vitality programme in the Asia-Pacific region, with Singapore being the first market planned for the roll out. This venture will also offer protection for products designed to deliver better health and lower premium rates for AIA’s customers.

This will add to Discovery’s existing footprint in Asia following the 2010 joint venture with Ping An Health, China's second-biggest life insurer by premiums. Discovery has managed to grow new business in Ping An Health by 6% (R223 million) with its “lives under management” number rising to 636,123. In February 2012, Discovery received regulatory approval to increase its stake from 20% to 25% in Ping An Health.

China's population of more than 1.35 billion, and the authorities' determination to push forward healthcare reform, has attracted a steady stream of foreign insurers and banks to the country. When we consider this new development as well as past performance, Discovery appears well positioned to aid the development of the health insurance market in the region.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.