Insurance group Discovery will use the bulk of a R5bn rights issue to grow its UK life insurance business in its bid to become the leader in a market it has vowed to shake up. CEO Adrian Gore said R3bn of the capital to be raised would be used in its UK VitalityLife business and as much as R2bn would be used to fund what he called “adjacent markets” in SA. Mr Gore would not be drawn on what this meant but said more information would be made available on March 10, when the details of the rights offer would be finalised. The funding would be for “an expansion of what we are doing in a slightly different space”, Mr Gore said of Discovery’s plans in SA. Justin Floor comments.
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