Business Insider's reporting that Discovery Vitality’s profits increased by 13-times over to 603-million rand, because Vitality members failed to use their perks.
Business Insider Associate Editor Phillip De Wet explains how the major profit made this year was a strange once-off occurrence.
Discovery has something called Discovery card that was actually operated by FNB, that card is now moving into the Discovery Bank. So Discovery Vitality through a transaction selling off its interest in that card, made about a R500 million profit so a great deal of this massive profit was from that once off piece of accounting.— Phillip De Wet, Business Insider Associate Editor
What we saw was a broad set of accounts specific to vitality but it does not go into the detail of how exactly this profit was made.— Phillip De Wet, Business Insider Associate Editor
Click on the link below to hear more from De Wet...
This article first appeared on 702 : [LISTEN] How Discovery Vitality made R603m profit from unused member perks