Discovery Limited (PDI.AX) Earnings Call Transcript & Summary

Good morning, and welcome. It is always a wonderful pleasure and an honor, frankly, for me to present our results. The results this morning are for the full year to 30 June 2026 of our group Discovery. At the outset, it's been a really tremendous year, and I want to just thank our team, all of the Discovery people, Vitality people globally. It's been a remarkable year with a huge amount of work, and I hope that comes through clearly in the presentation at the scale of what you've achieved. So thank you for that. Let me start by being clear, it has been a strong year. This is, in fact, the second year of our 5-year cycle from 2025 to 2029 inclusive. It's been a strong year financially. You can see normalized profit up 17%, normalized headline earnings up 21%. But I think, hopefully, more importantly, you'll see the strategies embedded in the group and the 2 composites I think, are quite unique and powerful and that are rolling out just in a few weeks' time. I hope you'll see that through the presentation. Just to make the point, we have followed, I think, a very coherent strategy in a very disciplined way based on our purpose of making people healthy and enhancing their lives, and that is, in fact, intensified across the group through our model. We have navigated carefully in an environment, a macro environment of considerable complexity, 2 really disruptive forces, AI, which I think you'll see is kind of ubiquitous throughout the group, and you can see that clearly and kind of macro geopolitical rupture, creating some volatility that makes -- that creates complexity, but I think we've navigated that well. We've interpreted the trends that affect our industry, I think, appropriately and evolved our business model in the appropriate way, as you can see, manifesting in two business composites, Discovery South Africa and Vitality globally, both are focused in the markets in the right way, and I hope I make that clear to you. And then finally, manifesting in a financial framework and the capital allocation methodology, we believe is rational and appropriate given where the organization is at. The results have many different dimensions to them. I'd like to show you 3 slices in a sense of what we've done over the year. The first is financial results and the framework, an organization that's growing strongly, generating cash, deleveraging, but building at the same time platforms for future growth. Secondly, a focus on our Vitality shared value business model, make it more effective, focusing on efficacy, its relevance, but making sure critically, we can manage and demonstrate the effect on customers, which we call Alpha -- shareholders we call Alpha, customers, which we call EX, and I'll talk about that later, and the societal effect of the model. There's been considerable performance, development and the ability to demonstrate very clearly. And then finally, I'd like to take you through the business strategies, the 2 composites, Discovery and Vitality and illustrate carefully how both are focused carefully in the markets with the right strategy. Let me start with the financial results. You will have seen them at a high level. Just to make the point, we have, I think, a very disciplined financial framework and rational capital allocation process, where the business -- where the group is at this point in time is a high rate of growth, a high intrinsic rate of growth. So focus is on growth. Cash generation through a high conversion rate and then a clear rational approach to allocating capital between dividends to shareholders, leverage and of course, investment in new initiatives. And finally, the result coming out of it is return on equity. Our focus is, of course, on growth and on cash conversion. And you can see in the slide, the framework that we gave, the intention that we try to achieve over this 5-year cycle, a growth corridor of 15% to 20%, a cash conversion ratio of 60% to 70%, a careful focus on new initiatives, not spending more than 5% on new initiatives, leverage in the 10% to 20% range. And importantly, dividend cover, it's been a 5x cover, bringing that down over time and an ROE going from 15% climbing up higher over the period. The period under review, I think, has been remarkably strong. I mean, firstly, just to talk to the actual macro environment. I made the point AI, you'll see is ubiquitous across the organization. But the actual macro environment has been very complex, but one that I think we've managed well. There are a few themes and many, many moving parts. But to make the point primarily, the rand depreciating created some pressure on our earnings because, of course, we report in rands and our earnings in foreign currency come down. The effect of that is kind of a 2% reduction. I'll talk more to that. The effect of long-term interest rates in South Africa coming down with inflation coming down has kind of -- has meant an appreciation of the present value of assets of store value. You'll see that coming through. We had a reduction in the yen that affected our global business, and I'll take you through that later. But generally, something I think we manage well. We've run our organization according to distinct risk principles. I think that played out very well. And I think we've managed the volatility well. The group is resilient. And I think different parts of the group as they play out, illustrate that within reason, despite volatility, the earnings growth is in line with what we expected to achieve. So not a simple environment, but one that I think we've managed well. So I get to the operating profit. First, you can see the operating profit grew 17%, to just over ZAR 17.75 billion. I think that's a very strong growth. You can see graphically over the last number of years, just how quickly the organization has grown. And again, to make the point, we're in the second year of this 5-year cycle. I think we are very pleased with how the organization has performed. It's the first time, I think it is a milestone that the operating profit has exceeded USD 1 billion, which is an important milestone, I think quite symbolic in a sense. If you look at the actual detail on the slide, it kind of illustrates the 2 composites, Discovery South Africa growing at 16% in the high end of the range. Vitality growing at 21%. It would have been 26% on a like-for-like currency basis, but very happy with that performance. The 2 together create the 17% growth of the group. If you cast your eye over the actual slide, you can see the South African composite performed remarkably well. Our big businesses, Discovery Health, Life and Invest, all performing strongly. Excellent performance from Insure. You'll see that later in the presentation. The bank really turning strongly to profitability and exceeding our expectation, giving the 16% growth in total. Globally, the global business is broken up into the U.K., Ping An and Vitality Global Markets, and that now brings all of our focus outside of the U.K. into one business and outside of Ping An. You can see the U.K. performed remarkably well. And really, you'll see in the presentation just how the model, the Vitality shared value model has played out in that regard. Ping An also performed well. Again, the currency effect of all of these Vitality Global Markets is a very important business. The yen depreciation over the period affected the contract asset in Sumitomo Life. And given the size of the earnings, it did have the effect on earnings, but you'll see how we are dealing with that going forward. Bringing it all together, you can see how the earnings has played out. We're investing considerably in Vitality AI and excited about what it can do, and that's an important part of our strategy going forward. So that is kind of a breakdown of the operating profit. You'll see the detail in the presentation. On the new business side, new business of the insurance businesses grew by 6% of the noninsurance businesses, we look at total income growing by 10%. It's kind of a tale of a number of different cities. You can see South Africa, robust growth of 8%. The big business is growing, I think, very competently. You'll see that in the presentation. Vitality U.K. had an exceptional period, 14% up. Ping An Health coming down 6%. If you followed us at the interim period, we explained one of the big developments at the interim period was that Ping An Health lost the use of the Ping An Life distribution channel, which is, in fact, half of its channel at that point in time. We were expecting a bigger hit than 6%, but the team has done a remarkable job in terms of diversifying both product and distribution channels, and we're very happy with that result. On the noninsurance income, you can see bank grew by 31%. Health insurance products, Flexicare gap cover grew 30%, which I think is remarkable. And Vitality Global Markets hit by the yen, declining 10%. You'll see the detail a bit later in the presentation. The quality of the group, I think, is demonstrated well in the embedded value. Now just bear in mind, the embedded value does not cover many of the uncovered businesses, the bank, our global businesses, et cetera. But I think it provides a very good illustration of how the group is progressing. The return on embedded value, 14.1%, the total growth in EV to -- just under ZAR 143 billion, as you can see. But if you look at the actual components of the embedded value, I think it's very pleasing. The VNB grew by 31%. The unwind of the discount rate, very strong noneconomic experience variances of a positive nature added over ZAR 2 billion, up 33% from the period, illustrating the quality of the group and illustrating we are performing ahead of actual assumptions. And then interestingly, the profit from noncovered businesses from the bank and the other issues coming through very strongly. So the actual capital value and the equity value of these businesses is not in the EV, but you can see the profit comes through into shareholder value. And what's interesting observation is, in fact, the profit is actually higher in quantum than the VNB. So it's actually adding more to the embedded value. And I think that's an important dynamic. You can see that it creates an operational EV up to ZAR 146 billion. The effect of lower rates of interest added ZAR 6.3 billion to the embedded value, but the Forex effect nearly kind of took out ZAR 4.8 billion. You bring it all down, you get to the 14.1%. I think it's a good growth rate, but I think it illustrates the quality of how the group is evolving. The other important measure is just cash generation. The operational cash flow was excellent over the period, up 26% to just ZAR 11.3 billion. You can see that in the left-hand chart, that very, very strong growth. Importantly, you can see the cash conversion ratio far ahead of our expectation. We had a cash conversion ratio in the 60% to 70% area in our corridor around what we set out to achieve. You can see the cash conversion at 85%. You can see the ZAR 11.3 billion. We used that cash to pay dividends, finance costs. We repaid additional debt, leaving us with ZAR 3.6 billion of net cash flow over the period. The manifestation in terms of the group's capital position is very, very favorable. We're in a very strong capital position that makes us resilient. It gives us optionality, and I think that's important. You can see the strong cash conversion. You can see that all of our entities are well capitalized. And you can see the leverage is coming down nicely on a like-for-like basis, leverage came down to 12.8% in the very low part of the range. We acquired our head office, and we did that by raising debt and acquiring the assets. So if you count that debt, it adds -- it takes the leverage up to 15.4% even with that with the reduction. And bear in mind, the lease obligations was kind of the same risk anyway. So on a like-for-like basis, the 12.8%, I think, is important. But even if you add in the building, it does not do anything dramatic to the leverage ratio, again, very much in line with where we'd like to be. The effect of all of this can be seen on the face of the income statement, I'm going to make just a few basic comments about how the gearing works because I think as a group grows at an intellectual level, we'd like to see the bottom line grow faster because the finance costs are hopefully stable or going down. And you see the effect of that operating profit up 17%. You can see the finance costs have come down on account of 2 things. One is a lower cost of financing. I think our team did a great job in optimizing the debt structure. But in addition, we reduced debt. We've paid down, I think, ZAR 3 billion of debt over the last year. So you see that coming through. The other is just the accounting treatment of the lease termination kind of there's an asymmetry between the asset use of the building asset and the actual obligation of the lease. That throws out a once-off release of ZAR 1.463 billion, as you can see. And then the sale of our CMT asset, partial sale added a further ZAR 211 million. When you bring it all together, you can see profit before tax up 35% as opposed to the 17% profit from operations. The effective tax rate is slightly down, bringing profit after tax up 38%. When you add all the headline earnings adjusted, you get headline earnings up 34%. When you make the adjustments to normalized headline earnings, for example, taking off that once-off lease termination, normalized headline earnings up 21%. So really, I think the recon is really the normalized profit from operations up 17% and normalized headline earnings up 21%, as I said at the outset of the presentation. Given the scale of the group, given the cash generation and the strength of the group, we have made the decision to drop the dividend cover from [ 5x down to 4.5x]. And therefore, the dividend payable is simply a mathematical derivation of that. Total earnings divided by 4.5, minus the interim dividend, that throws out a dividend of ZAR 2.73 per share, final dividend, which is a 36% growth. And the full year dividend adding interim is ZAR 384 -- total dividend is ZAR 3.84 per share, a 33% growth. If you add it together, you'll find it's a total of a 4.5x dividend cover. So we're very pleased that the dividend growth illustrates the strength of the group and the strength of the cash generation of the group. So in summary, from the financial results, as I said at the outset, I think the model we're using is absolutely appropriate given where the group is at. The priority is on growth and cash conversion and then a very rational allocation of capital. You can see in the table kind of the targets we set just transposing that model into a vertical table. You can see the targets that we set in the 5-year plan. FY '25, I think we performed remarkably well, a lot faster growth than we expected. But you can see all the other metrics in '25 very much in line and directionally correct in FY '26, an excellent performance. The profit inside almost midrange of the target. Cash conversion dramatically better, spend on new lower, FLR coming down quite substantially, dividend cover now coming down, the return on equity jumping by just over a percentage point to 16.5%. That will come up over time as the bank obviously generates profitability, but it was mitigated by the IFRS 17 release of profits from the life companies. If you look at where we're heading, the group is strong. We really have increasing confidence that by the end of 2029, we should be at the middle to the upper end of our earnings range around the growth corridor and confident of that and the cash generation, giving us, we think, strong optionality. So a strong set of financial results, we are very pleased with. I want to talk a bit about the business model, if I can. It's a fundamental issue. It's core to our purpose, but it's fundamental around what we're doing, our competitive advantage and our ability to add value to all stakeholders that we serve. Fundamentally, we're trying to get to a point where the business model is repeatable, scalable, understandable, but measurable in the distinct areas kind of to shareholders, the Alpha that we started speaking about last year at the last results presentation, but also understanding how to fit customers, lifespan and health span, the EX, actuarial concept of life expectancy and then society, the societal effect. We need to understand that and measure it and demonstrate and report on it. And I think that's very important. But I thought maybe just as a slight digression, if I can, I wanted to just explain at a high level, at a macro level, kind of our belief in the relevance of the business model and what we are doing and what our industry can do at scale. Just understand the complexity of the funding of health care at a global level. There are some fundamental things taking place. The first is just depopulation. Fertility rates around the world have come down dramatically. And therefore, all countries are depopulating. In fact, the only country to my understanding that is not the only countries are such are in Africa and the U.S. with immigration. But those countries are depopulating. And you see that on the left-hand side with the aging of population. The proportion of people above 65 is climbing. And this projection works in 5, 10, 15 years. It's actually not that far out into the future. By the end of our planning cycle, we're kind of in some of these scenarios. So it actually is very important. So firstly, aging of populations. The effect of that on the second chart is that as people get older, chronicity creeps in and that the health care costs tend to rise. And you can see that dramatic increase in healthcare cost based on age, that's kind of an actuarial derivation. But crudely, just a heuristic, people over 65 consume 3.5x the healthcare people under 65. Now the problem is to the third piece of it is that the dependency ratio, the working age people to pensioners is going down. Health care systems are funded by the tax base by workers funding the entire health care system. You get to a point here where if you have the same number of pensioners to working population, that tax burden becomes very, very hard to bear. And so you get kind of this multiplication of difficulty. And then the final point to make, well known in health economics is the Baumol's cost disease. The economist Baumol spotted very clearly that health care costs tend to rise always above CPI. Typically, CPI is 3% to 5% because in healthcare, unlike other industries, technology doesn't bring cost down. We've never seen efficiency in healthcare. That may change with AI. But until now, what technology does, and that's excellent, it creates things, more things that healthcare can do, but it adds cost to the system. And so you have a commodity that's inflating above inflation. When you cross multiply these things, you find that in 5 years, 10 years, 15 years, the actual health care burden on the tax base becomes incredible. The effect that cumulatively by 2030 in these countries is 13% to 25%. By 2035, 30% to 57%. And by 2040, you said 50% to doubling. It's quite remarkable. So the effect of -- the combined effect of aging populations with the cost of healthcare creates an unassailable or an incredibly difficult indexing problem. It turns out one of the only ways we can affect that is to make people healthier. When you do the analysis, it turns out that compressing morbidity is the most powerful thing. Lengthening lifespans on its own is not as helpful. We need to lengthen lifespan, but health span at the same time. And that's exactly what we are doing and trying to do at a systemic level. The health insurance industry, the life insurance industries have such considerable scale. They'll become more relevant over time. Health insurance is likely to grow when you do the analysis. But importantly, these are industries that are completely aligned to customers. When customers are healthier, they do better. And so at scale, these are industries that cover billions of people. The ability to do that to bring down costs and make people healthier is real. On the right-hand side of the chart, you will have seen this analysis from me many, many times, but the causal effect of behavior change is so dramatic on lifespan and health span that it's an easy payback. It's one of the only things that can bring down this burden. So expect these kind of forces to accelerate and expect our industry, hopefully, to metamorphosize over time. We are focusing hard on trying to make that transformation where we are to an industry that is not just transactional but making people healthier. And that talks to the micro focus of our group on our model. And as I said before, shareholders, customers, society, how the value chain has played out, the Vitality model has evolved from kind of a simple Vitality structure attached to an institutional business to a complex structure now with Google, we're working on hyper-personalization, understanding the value chain completely from pricing, behavior change, optimize retention to sharing incentives in the right way and a hyper-personalized way that gets behavior change and the right form of economics. You should be able to measure these things in 3 distinct issues. Alpha, the excess returns that shareholders get through the effectiveness of the model. EX, the added lifespan and health span that individual customers get by engaging in the model. And thirdly, SX, society, the positive societal impact arising from compressing morbidity. And those things should be completely and totally measurable. What is exciting is in this particular year, I think the ability to illustrate Alpha, EX and SX has been remarkable. It's been a remarkable period to illustrate how powerful the model has worked. We began publishing the Alpha coefficient last year. And you can see across the screen all of our different businesses in the 25 year that continued in 2026 and in fact, in many cases, got stronger. So in the case of the U.K., you can see the internal rate of return on new business up to risk-free plus nearly 10% operating margin up to 19.2% (sic) [ 9.2% ] in VitalityHealth. Insure, the margin really came up to nearly 15%. In our Discovery Life and Invest businesses, slightly down on last year. There's a business mix change, but still excellent return. In the Discovery Health Medical Scheme, the Alpha really is the cost of health care. It's not a for-profit entity. We'll measure that at the end of this year going into the 2027 year, but our expectation is not very different from 18 -- close to 18% cost per benefit, per unit of benefit difference to the average in the market. And then you'll see in the bank, the mathematics we believe will bring the cost-to-income ratio down very, very quickly. It's just broken even and made a profit. So this is an early time, but the mathematics are very clear. But the point to be made here is you can see throughout the group, the effect of the model of better pricing, of better behavior change of selective lapsation, positive selective lapsation and then volume scaling it in terms of excellent new business and scale of the group. Importantly, at the individual level, to individuals, we are making effect on the individual's life, how they live the health spend, the lifespan, how they drive, how they manage money, that's important. But you can see it in a combined effect in the excess claim savings that were achieved across the group. In fact, over this financial year, ZAR 2.2 billion of excess claim savings came through. You can see the distribution of it on the slide. It's quite remarkable. I think Discovery Life over ZAR 1 billion in the U.K. combined, nearly ZAR 0.75 billion. Insure excess claim savings or the claim savings, the area of claims savings nearly ZAR 0.5 billion. And I made the point about the bank and the Discovery Health Medical Scheme. It's a remarkable performance. And I think that's a theme that came through over the entire construct of the year. So the EX is very much intact and this is evidence strongly the effect we're having on individual customers, and that gets back to our purpose. From a societal perspective, we measure very carefully and report accurately in our ESG reporting exactly the effect we have on people, what we are seeing over the year, 54 million lives affected through us and our partners. We measured 725 million healthy activities and our actuarial analysis illustrated that we saved over 5 million life years, which is quite remarkable. We gave back ZAR 17 billion in value through the shared value model, so through premium reductions, cash backs, paybacks, benefits, et cetera. It's a remarkable kind of illustration of shared value. What is important to point out, it's interesting, it may be coincidental, but I think a wonderful illustration of the balance of the model. The operating profit of the group was ZAR 17 billion. The shared value given to customers was ZAR 17 billion. So to an extent, kind of the 2 stakeholders, shareholders versus customers and the quality of value. And I think that's very powerfully important. So the model really is getting considerable traction, and you now see it evidenced in the results under review. We continue to evolve the model. I think the step into sleep and making sleep a critical component of this next generation of Vitality has been incredibly successful. Using all of our data, we understood the causality effects of better sleep, 7% lower hospital claims, 24% reduction in mortality. The way the team has rolled out the sleep benefit and will be rolled out globally has been absolutely, I think, tremendous. You can see from the graph, the take-up of sleep has been faster than any other benefit we've rolled out, far faster than Active Rewards, which has been probably one of the most successful things I think we've done in terms of changing behavior. Sleep has been even faster than that and will, over time, architect into exactly the same form. Already 16% of our members have reported improved sleeping habits. And I think that's, of course, incredible. So the model is getting considerable traction, and I think we now have the ability to evidence it in exactly how it plays out in the various constituencies. I want to turn to the businesses and give you an inkling on the business strategy. I'll make comments hopefully at a high level on the different businesses, but give you an insight as to where we're going. The 2 composites, I think, are incredibly well positioned. There are 2 distinct derivations of the Vitality shared value model that are going to play out. We've worked hard over the years to build them, and they get continued attention and focus. In the case of Discovery South Africa, the power of the idea of the super bank strategy, the Super Bank is really forming and will be launched in October, and that's a big step, a second phase, I think, in the evolution of Discovery Bank. And then Vitality AI, we launched this in London with Google late in the calendar year, so kind of towards the end of H1. And we're now launching in New York in 2 weeks' time, just considerable more intensity around Vitality AI, getting it to partners and getting it to prospective partners. So these are 2 very, very important derivations of the Vitality shared value model that we hope will take us into a very, very different space. But let me talk to each of the composites. Firstly, Discovery South Africa had a tremendous period, earnings up 16%. I made the point, and you will have seen that our kind of our corridor of intended earnings is 12.5% to 17.5% growth. At 16%, we're in the upper end of that. I think a very, very good performance. The businesses are all remarkably strong. The strategy over this 5-year cycle is 3 pieces. One, scale the bank to excellence and leadership. Two, make sure all of our Discovery businesses are growing and are leaders in the category; and Three, the super bank strategy, pull all of this into an integrated architecture on the face of the bank. That's what we set out to do. I think the progress in this period has been absolutely tremendous. The bank itself has performed ahead of expectation. You can see on the face of the slide, very strong growth. Total clients up 26%, deposits up, gross advances up 40%, revenue up 31%, as you can see, considerable growth in revenue and profit now flipping very strongly and that kind of growth in profit mathematically, we expect to continue. If you look at the different dimensions of the bank, growth, quality, efficiency, all, I think, are exceptionally good and really talk to the hypothesis behind the bank, shared value, digital, full-service bank and then ultimately integration, which talks to the superbank strategy. If you look at growth, daily sales continue to climb, that's over 1,500 per day. You can see the quality of the advances book, the home loan book fully 80% or 90% of it is prime plus or super prime, which I think is obviously important. The credit loss ratio stays low. Very interesting on the servicing side, the use of AI technology has been tremendous in this period. You can see the kind of servicing load, the second graph from the left was fully voice call in January 2025. You can see now that AI has taken over more than 50% of it. It's quite remarkable. And other bits of technology in-app calling, which is where we're moving with the bank has taken up a lot of it and voice call is now a small piece of it. It allows us now to grow the client base significantly while keeping kind of the call volume flat, again talking to efficiency and importantly, quality of service to our clients. Effectively, the bank is a very complicated business, extremely complicated. But the profitability actually, as we've showed before, is arithmetically quite easy to calculate. It's client growth, number of clients times the profit per client. The profit per client is revenue per client, less expenses per client, less impairments per client. That effectively gives us the profitability. The important point is I think that the 3 issues here, shared value, which gets a better level of impairments, better growth, better behavior, better revenue people come through. The full services nature means that people are buying a lot from the bank driving NIR and NII. And then of course, the digital nature of the bank, giving a kind of a fixed cost base that now is largely fixed with some variability, but remarkably efficient. And you can see that in how the expenses are coming down as we grow. So you get the strong growth flat revenue, flat impairments per client, reducing expenses. That creates a mathematically geared effect, as you can see in how the profit has turned around and it has given us confidence that we can achieve the ZAR 3 billion profit target before acquisition costs by 2029. That is the ambition and how we are progressing, we feel increasingly comfortable that, in fact, is achievable. So to an extent, I would put it to you that the bank kind of is finished its first phase of evolution, now profitable. Client receptivity is quite remarkable. We thought to show you this, the Ask Afrika survey came out, I think, a few days ago. Again, we ranked #1 in banking, #2 in private banking, which is quite remarkable. But if you look at NPS scores compared to others, dramatically better. So the bank from a profitability perspective, from a dynamics perspective, is performing, I think, incredibly well. The client receptivity is remarkable. So it's in a very strong position. Thank you. It's in a very, very strong position, as I think you can see. The way forward is really the case for the Super Bank because just bear in mind, it's an amazing statistic, nearly 70% of people joining the bank now are not Discovery members. They have no Discovery products whatsoever. So the opportunity to bring them into the bank to get them to engage in the bank, but of course, to get them to buy other Discovery products because they all work together so well is incredibly strong. In the middle of the chart, you can see in fact that if you superimpose the bank client base over the rest of Discovery, it's actually quite a small footprint. So there's millions of members in the Discovery base that are not members of the bank. And so from both sides, the potential to grow is quite significant. We know on the right-hand side of the chart that as people integrate our products, to integrate faster and more. So intellectually, the potential for growth is quite remarkable in terms of the bank. But from a structural perspective, and this is the opportunity. The bank in and of itself is now loaded with functionality. All of our businesses of scale are on exactly the same architecture, the Vitality shared value model that fit onto the face of the bank. We have considerable data and AI capabilities across the entire group of all of our customers. So it provides a unique opportunity to create this platform that is different, a super bank that is different, a bank that is really not a transactional instrument, but an integrated control layer for customers' entire economic life, orchestrating financial needs, health needs, ecosystem needs and converting verified behavior change into real value that the clients feel. And what you will see rolling out in October, conceptually, I'm showing to you the actual products will come out is really, I think, advancement on 3 fronts, value to customers on 3 fronts. One is kind of managing the functionality as the bank grows its functionality and the ecosystems grow, you get kind of this ability to access the ecosystem from health to fitness, to travel, to fuel, to food, et cetera, and that's what you will see. So kind of a cross-section of those, which creates considerable functionality, access management capabilities for customers on the face of the mobile. The second is kind of the bank is forming the rails of the group. To an extent when you analyze the power of the bank, security, anti-fraud payment systems is actually the tool for all of the products. So going forward over time, whatever product you buy from Discovery, whether you're a bank account holder or not, we'll be using the rails of the bank, and that gives us the ability to offer you dramatically more value. And then finally, and I think very exciting is that we can exponentially drive shared value. What we're doing at the moment is on the vertical of the right-hand side is really the traditional Vitality shared value model, Vitality Drive, Health, Money, people get discounts and incentives and rewards, and that's great. But bring them together in a much more concerted way, much more consistent way, easier to understand and more powerful. But critically now, bringing the different products on to the face of the bank creates portfolio value. And so you bring the 2 together, you get kind of an exponential effect on shared value. And you will see, hopefully, in October, I think, significant enhancement to the benefits and the structures of the bank that drive that shared value. So it really is forming into a very, very powerful composite. The year has been a busy one building this. The bank team has done a remarkable job as have all of the businesses getting ready for this, and you will see that play out in October. I want to make some comments on the South African businesses that performed well in a very strong position. Discovery Health had, I think, a remarkable period despite its scale, new business up 10%, normalized profit up 9%. You can see non-scheme lives up 22%. I showed you the growth of new business earlier, massive membership kind of under administration. What is interesting, and I do want to commend the Discovery Health team is the complexity of managing the health care for nearly 4 million people is quite remarkable. Just bear in mind, the medical scheme population is largely static given regulation, given minimum prices, et cetera. While the country is growing and getting younger, the medical scheme population is not. And so you have kind of a microcosm of that situation I showed you earlier about depopulation, aging. All of that is taking place inside the medical scheme space. But it is manageable, as I said before, by focusing on compressing morbidity. And that is exactly what the Discovery Health team is doing. So if you look on the left-hand side of the chart, it is quite remarkable. Over 10 years, you can see the increasing chronicity inside the base that we cover. So before, the number of people with chronic aliments was much smaller. Today, fully 33% of the members we cover have 1, 2 or 3 or more chronic conditions. The cancer prevalence has gone up 120%. The Discovery Health Medical Scheme has 46% higher cancer prevalence than the other schemes combined. It's quite remarkable. The fact is it's the de facto standard. If you're sick, you go to be covered by the Discovery Health Medical Scheme. And that's a good thing. That's what we do. But you can see the scale of the problem. The way it's being managed is through all of the tools that we've spoken about, the Vitality shared value model, Personal Health Pathways. And you can see from the data of the Discovery Health published the effect of it bringing mortality down by nearly 6% over the past 10 years, dramatically better life expectancy for people living with cancer, up 7 years over the last 5 years, better survival rates. So across the board, much better results coming out. And then a critical thing, the ability to keep filling up the scheme with new members. So there's a natural lapse progression just to keep the scheme stable requires 280,000 to 300,000 new lives a year. So the ability to continue to do that and to have the power of innovation and distribution channels, you can see that. And in fact, in this period under review was, in fact, a record period over 310,000, 320,000 members joined the Discovery Health Medical Scheme. When you remove this complexity and you look kind of above the water at the medical scheme, it just is calm and strong. It remains incredibly powerful, 57%, 58% market share bigger than the combined sum of all the others. Customer satisfaction, you can see very little buy-ups and buy-downs. People stay very, very stable, less than 2% of people actually buying down. So people staying what they have, the lapse rates remain very much in control. Solvency levels above -- significantly above 25% over 35%, ZAR 33 billion of reserves sitting in the scheme. So you can see that while there's considerable complexity on managing health care of the individuals, the effect of all of the tools being used from distribution, managed care population management, Vitality, personal health pathways is having a remarkable effect on the stability of the system. So very well positioned going forward. Let me turn to Discovery Life. I think the primary thing to call out, I think robust operating profit growth, up 6%. The primary callout is the remarkable mortality and morbidity experience that drove growth, that drove cash generation. You can see the cash generation has been climbing significantly, but really a strong increase in growth, 67% cash conversion to over just under ZAR 3.9 billion of cash. New business, up 1% in total, but that was somewhat affected by automatic contribution increases, inflation coming down, bringing that effect down. If you strip out the effect of inflation, it will be a 9% increase in new business. We should do more of that, but we still, I think, are above the 30% market share, but we must focus on that very carefully. Value of new business up 43%, driven primarily by lower rates of interest. If you look at the actual buildup to embedded value, you can see, I think, the quality of the business. The first piece on the left-hand side showing total experience variances up to ZAR 1.2 billion, as you can see, total noneconomic experience is up ZAR 800 million. You can see the mortality and morbidity scale on the left-hand side, and you see policy alterations bringing it down. The policy alterations is a very important issue for us to manage. We have taken a number of steps over the year. Those are now built into the systems, and we expect that policy negative to come down quite significantly over the next 18 months. We hope the mortality profit continues. So we are feeling optimistic about how the progression of the experience variances is likely to play out. You can see the improved VNB margin. If you go to the right-hand side, the embedded value growth of just under 23%. Without the effect of interest rates, up 12% and I think a very good progression, positive experience variances, good VNB and the unwind of the discount rate, giving you that ZAR 63 billion of embedded value. Finally, in Discovery Life -- sorry, very important. We did want to show you just the effect of mortality. It's quite a remarkable I felt analysis, just showing you where that mortality experience is performing so well. How Vitality works is as people engage, we expect lower mortality, and that's in the expectation. But what this chart shows on the left-hand side, it's a busy chart, but let me just show you what it means is essentially year-by-year in the different states. What you will see if you cast your eye to the right-hand side of the chart of that first graph, you can actually see as people engage, mortality comes down. But in fact, year-by-year, that improvement has got better and better and better. And that's what's driving that excess mortality gain. Bear in mind that people in Silver, Gold and Diamond are quite substantial. 40% of the base is engaged in silver, gold and diamond. So when you see that excellent progression of engagement and the cause of effect on mortality, you see that coming through the mortality gain. And the other piece of analysis, I think is absolutely wonderful and important socially is it's a more powerful effect for the over 50-year olds. So over 50 olds had a better effect on mortality. And you can see on the extreme right-hand side, the 35% of those 50 olds that are engaged created 90% of their gain. So it's a remarkable result. And some of the dogma, I think we have to deal with. People often think I'm now over 50 over 60, I've got chronic illness, I smoke my whole life, I'm not fit. It's too late for me. That is not the true. The data shows clearly that when you're older and sicker doing these things, it has even a bigger effect on your relative mortality. So you see it coming through at the individual level or making a real difference to individuals, but a composite level in Discovery Life, you can see it coming through. I think that's important. To end up on Discovery Life, just to make the point about the technical issues with IFRS 17, you can see the growth in the store of value driven primarily by lower long-term rates of interest of the store of value, the CSM, the risk adjustment and the IFR growing significantly by 66% to just under ZAR 40 billion, as you can see. We've opted for OCI treatment. So we tried our best to kind of minimize economic volatility out of our P&L. So this comes through the IFR doesn't come through the P&L. I think that's right. Else you get this massive bloating and reductions as interest rates move up and down. I think it's done that well. There are some distortions. The lower -- the lower inflation creates a negative that will come through in an IFE charge in this year, which we'll manage carefully. But you can see how the development of the store value has happened, and you can see the components of Life segment earnings on the right-hand side. I think a very, very good performance. Discovery Invest, I'll be very clear and very quick. I think it's been an excellent year, very linear performance and excellent performance. Gross flows really net flows growing strongly, new business up 13%, assets under management crossing ZAR 200 billion. Operating profit growing 9% really effective the previous period, had a few once-offs from asset liability management that created some one-off profits. If you took that out, the growth would have been 22%, which I think is kind of in line with what you would expect with growth in assets of that scale. So a very good performance. I'm very happy with that. Discovery Insure had a great year. Normalized profit up 24%. The call out is just the operating margin growing to nearly 15% and really an incredible performance from a loss ratio perspective. You can see gross new business up 2%. We need that to be higher. We need to grow off this base, but there's been a very strong focus on quality of new business over the last 2 years, and I think that's the right thing to do.But it really is a fantastic evidencing of how the model works. It demonstrates it clearly. On the left-hand side, there's a focus on the pricing of how the model works, and I think the value proposition is very special. So fully 90% of our clients coming in are of superior risk profile. Once they come in and they engage, you can see the loss ratios come down with increasing status, so they drive better claims and come down. And then you get the selective lapsation effect. People who are engaged doing better tend to stay and those who aren't tend to leave. So over time, you get this mathematical issue of seeing the book with the right clients, the book getting better, losing the right clients, keeping the right clients and you get this kind of effect on the loss ratio. The fact is we're in a good underwriting cycle, I think most of the property and casualty short-term insurers will publish good results. But I think if you look at that actual progression of the loss ratio, you can see that kind of linear effect. It wasn't a great year from a weather perspective. We had the floods in Cape Town, et cetera. And effectively, that did affect the numbers. But directionally, you can see the loss ratio has come down 30% over the last number of years to under 50%. I think an excellent performance in and of itself, but I think a great evidencing of how the Vitality shared value model is playing out in the context of Insure. So let me end on the Discovery South Africa composite. I think a great performance. The business is well positioned. The primary strategy, which rolls out in the year is really the real evolution of the Super Bank strategy, and you'll see that playing out across a number of dimensions. Let me turn to the global business Vitality. A very, very important year. This is a seminal time for our globalizing of our capabilities. 18 months ago, we brought it all under one business and the business is focused in 3 areas. There are 3 distinct strategies based on those 3 areas: Number one, Vitality U.K., make it excellent, make it a leader in life and health insurance in the U.K. and make it a center of excellence for all of our expansions. So all of the IP hubs, the technology, the R&D is taking place. It takes place throughout the group, but it's centered in the U.K. for the globalization of that IP. Secondly, scale our global markets through partnerships and equity stake we build all of our different pieces together. Vitality U.S., which is quite a small component in the structure now is in the central management and the entire management is done on a regional basis. And then finally, Ping An Health, drive it to scale, continue to drive its expansion through products and distribution. It's an exceptional company to keep the growth going. You can see the earnings at 21% was in the low side of the corridor, affected in rands by the currency on a like-for-like basis, I made the point, 26%. So not far off the kind of midpoint of what we would have expected. Vitality U.K. had a tremendous year. It is really performing remarkably well. The team has done an unbelievable job. And again, I think it really is evidencing of the Vitality shared value model. At a composite level, normalized operating profit growing 52%, as you can see. But the scale of the business is big, covering over 2 million lives in the U.K. It is a substantial player in the U.K. market. But if we turn to the 2 businesses within it, I think you can see the dynamics. The call out in Vitality Health is really the profit, up 65% to just under GBP 84 million. New business was up 4%. It's a complex market. There's kind of -- there's 2 opposing forces, a very complex NHS that creates demand for private health insurance. On the other side, an environment of inflation and lack of affordability, low economic growth that makes affordability a problem. So you have these 2 issues kind of in a sense, kind of coalescing. We are focused very much on making sure we price life insure the business properly. Lives covered, we just under [ 1.1 million. ] But if you look at the dynamics, and you saw this, I think, at the interims, a fantastic performance and really, again, the same value chain that is driving the alpha, pricing power and being very careful about the ability to actually get premium yields despite the fact that claims have been going up significantly given more usage of private medical insurance and broader categorization of what is covered. You can see the strong correlation and cause with it as people engage in Vitality, claims come down. Same effect on lapsation. We are keeping better lives and losing the less engaged and then the effect on margin up to 9.2% above the 7.5% margin guidance we've given out there. I hope we can keep that margin and keep it sustainable. We wouldn't do it at the expense of growth, but we are feeling confident about sustainability of profit in Vitality Health. Vitality Life had an exceptional period. The call out there is the new business growth of 25%, as you can see, and the quality of the new business. The normalized profit being released through IFRS 17 with a strong growth of 27%, covering over 1 million lives in the U.K. Again, I'm making the same. I sound like a broken record, but the kind of repetitive -- the repeatability of the model and how it plays out just in different ways comes through in the year-end review. So this is a complex commoditized market using the dynamic pricing of the Vitality shared value model lets us be price competitive, but keep profitability where it should be. And so you see that in the period under review or over the last few years, the number of advisers selling for Vitality Life has grown by 77%. Market share has grown to just under 16% despite a very, very competitive suite of companies we compete with. You can see again the same correlation causal effect on claims as people engage in Vitality. And then the value of new business on the right-hand side has climbed by 67%. It's a remarkable performance, and I think hard won by the team. You can see on the second graph on the right, the profitability per policy has stayed at kind of where it is. So it's kind of flat in the black. So even with the growth, we're keeping the profitability there. So the pricing models of how the team are using the shared value model has been exceptionally effective. It's really the volume that's driving expenses down to the policy driving up this value of new business as you see it coming in. And then you see the -- again, the IFRS 17 buildup of the store of value, a strong growth of 11%, driven really by the incredible value of new business coming through, in fact, exceeding the release to earnings, and therefore, you get the strong growth in store value. We did not get the -- of course, the interest rates have not -- long-term rates have not come down. So that is not a factor in this regard. Let me turn to Vitality Global Markets, and I made the point now that we brought all of them -- all of our businesses and focus into one that's managed now regionally, which I think is very, very powerful. This is a considerable opportunity for us, we believe. It's not simple. We set a target of getting to $80 million to $100 million of earnings by 2029. We remain confident of it, but it's lumpy and not linear. There's a lot of activity taking place in the business. If you look at the first plate, I made a point about the yen, the yen depreciation. We have a large contract asset inside Sumitomo Life. It's a fantastic partnership of real value. But in Japan, interest rates went up and the yen went down, the effect on that asset came through the P&L. So without that effect, we would have seen considerable growth in Vitality Global Markets. But the number is small. You can see. We've got to grow significantly to get to that $80 million to $100 million of profit. But there's considerable activity, and we remain confident we can do that. Revenue came down again, the effect of currency, but our partners are growing at 10%, lives growing up 16% to just under 10 million. There are 4 strategies, and I outlined them at the last presentation. I want to just take you through them. And they are getting, I think, more intense with more activity as we go forward. The first is deepening the proposition of Vitality AI. I made the point we launched in London. We have 2 weeks from the launch in New York on intensifying its capability. We are focusing a lot on our existing partnership. A lot of work has taken place with our key partners to scale in. We are pursuing new opportunities in Europe, the Middle East and other markets. And we are focusing now hard on the U.S. We made the point at previous announcement was a small business. We hope to bring it to profitability in 2027. We're on track to do that, but we made a further acquisition, and we're pushing hard in the U.K. and have confidence in the U.S. and have confidence about what we can achieve. Let me give you some insight. Firstly, I'm not going to go into too much detail on this, but Vitality AI being launched in time in the U.S. is, I think, a considerable step forward. It really takes the work we've done with Google and Gemini into a personal health pathway that is significantly comprehensive from kind of wellness, physical activity through to disease management. It is incredibly complex with very low rates of error. We are very confident about the type of personalization. It gives rise to a set of statuses from blue through to diamond, as we always say, but now a [indiscernible] Scientific, a real proper proxy legally in every respect for how people manage their health care regardless of the state of health. We now have a global network of partners, incentives and reward partners linked to our status. And critically, and this is the proposition. There are different ways because of the model of paying for life insurance, dynamic pricing and for health insurance, flexing contributions in a careful way. And we can demonstrate on the back of this, again, the alpha, ex, sx ability to offer this. And that launch in the U.S. will be to health plans, and that's very, very important to our business. And globally, all of these assets, of course, are rolled out globally, important step we're taking. The second is working on our existing partners and finding new partners in growth. There's been a frenetic amount of activity in that regard. You can see our partners are growing over time. John Hancock continues to grow. Sumitomo Life grew by 10%. AIA came down by 10%. In Thailand, there was a reduction in new business. There was a flurry of health policies sold in the previous period due to a change in regulation. We expect that to grow. You can see strong growth of our smaller partners. The U.S. has grown nicely by 22% and Amplify now has actually grown and getting some traction inside AIA. So across the board, I think really, really good activity. We're working hard on new partners with a strong pipeline building up. There are 2 opportunities now that are kind of in finalization. One has come through is our acquisition of Icario, but others hopefully will follow. The U.S. is, for us, very exciting. We've been very, very careful in the U.S. market, focusing firstly on employers with the Vitality model, then selling to health plans. We have made careful targeted acquisitions. WellSpark, we did in November '24. Ramp did in March '26. We absorbed them, I think, very nicely. They bring both client base and they bring specific capabilities to add into our personal health pathway capability. Icario is a fantastic company we are proud to have acquired. We acquired it for $47 million, literally closing the acquisition in the last number of weeks. Icario is a company that focuses on government business, so Medicare Advantage, Medicaid. It brings a whole range of assets that can be used, driving us into that market, as you can see in the middle of the chart, that creates a much, much greater addressable market for us, $130 billion of fees in that market that we can be a leader and we need to work hard to do that. On the other hand, it brings some substantial clients and capabilities into our existing markets. So on both sides, we think it offers great capability. You can see what's happening in the U.S. By the end of 2026, in this reporting period, we covered 3.6 million lives, had revenue of about $40 million. Going in now after all of these changes, total lives covered over 18 million with revenue of $120 million or $115 million. So the U.S. has really got a lot more scale. We have got another partner in HealthEquity, the largest health savings account player in the U.S. and are working very hard with them. So a lot is taking place in the U.S. market and excited by that potential. I think this has been a seminal period for the U.S. as part of our growth strategy going forward. Let me turn to Ping An Health and just end off there. I think the performance of Ping An Health has been absolutely tremendous. You can see the growth, really strong operating results pretax, up 31% to RMB 3.3 billion of profitability. Our 25% share after tax, up 14% to over RMB 545 million, considerable scale of the business. I made the point about new business reversing. I'll touch on that in a moment. This is a big business, covering over 35 million lives. You can see the size of the balance sheet, over RMB 15 billion. The business is highly cash generative and solvent. It's paid a dividend to Discovery at 25% or over ZAR 0.5 billion. So I think a fantastic performance in the case of Ping An Health. Just to repeat at the half year, at the end of the calendar year, Ping An Health lost the use of the Ping An Life distribution channel. We're very concerned about the effect of new business. The team has worked incredibly hard and quickly diversified products. So in the past, e-sheng Bao, which was really the mainstream product being sold through the Ping An Life channel. We diversified into other high-value products, specific segment, specific special disease products that have done remarkably well. And you can see from the chart, different distribution channels that are already growing strongly. So the effect on sales was a lot less, and new business was a lot less than we thought. And I think excitingly, HuoLiGo, which is Vitality Go now is a focus of the company to attach that to their product. So directionally, the business model is kind of getting into China in the right way. The work done by the Ping An Health team has been remarkable. And to call out Ping An Group, they've been remarkably supportive over this period of this change, which could have been very, very significant and hasn't been. I think that's important. And then to make the point, we remain bullish about the opportunity in China. It is a lower growth environment than it was, but all of the directional issues, regulation, et cetera, is about promoting private health insurance. When you look at kind of the dynamics on the ground, growing medical costs, all the pressures I mentioned before, all those directions point to a growing private health insurance market. Ping An is growing its market share now covers more than 10% strong premium growth, as you can see, it's a significant company with nearly RMB 20 billion of premium. So I think an amazing, amazing performance. So let me summarize and end there on the Vitality Global business, a frenetic year of considerable activity. We remain confident about its ability to meet its profit targets. A lot to be done, not simple, not linear, but very, very exciting. Next big step in New York in 2 weeks' time, and we'll see how that receptivity plays out. So let me summarize before I hand over to questions. I think an excellent year. We are inside or ahead of our growth corridor that we set, cash conversion ratio better than expected. I think a very rational use and allocation of capital and normalized ROE coming up nicely. I hope the clarity around the strategy, the Super Bank and Vitality is clear manifesting, I think, in strong composite businesses that are differentiated, purpose-built, close to our values and have considerable growth potential going forward. That is my presentation. I've been joined by all of our key executives here who will take questions. We are here in the room and online. Deon Viljoen, our CFO, with me; David Danilowitz, our Head of Strategy and of Investor Relations here as well. So David, I'm going to hand over to you, I think, to take questions, if I can. David, to you.

Great, thank you very much. [Operator Instructions] I'm going to start off with the first question, which comes from Senamile from SBG. Thank you so much. I'll read the question. The question is for Hylton. Well done on a very strong year for the bank. What are the key milestones investors should monitor between the current profitability level and the longer-term earnings ambition for the Bank?

Thanks for the question. The -- I think we've been pretty explicit in terms of the FY '29 ambition of 2 million clients and ZAR 3 billion of operating profit before new business acquisition costs. So I think those remain the kind of the key metrics and through the interim period as well. So through the period now, we're at approximately 1.6 million clients. I think that we -- and that remains probably the key kind of lead indicator as we move towards the ambition. But the growth in new business -- profit before new business acquisition costs increased by ZAR 497 million this year. So it was about ZAR 100 million ahead of the sort of the ZAR 400 million annual profit progression that we've been targeting and resulted in a profit of ZAR 865 million kind of getting towards the ZAR 1 billion profit before new business acquisition costs, bearing in mind that the Bank is incurring a significant new business strain as we grow and the kind of the rate of growth et cetera. So those remain, I think, the kind of the 2 key indicators, the milestones that we will continue to track. And then obviously, I think the kind of the product and super bank platform rollout that Adrian spoke to and that later this year, I think will start to emerge strongly and will be a key kind of entry point into Phase 2 of the Bank. So those will probably be the kind of the 3 areas that we'll be focusing on.

Great. Thanks, Hylton. Senamile has another question. This is for Neville on Vitality Health. I'll read the question to Neville. How sustainable are the Vitality Health margin gains? And what is the normalized margin outlook?

Thanks for the question, David. I think as Adrian said, the shared value model has been significant and very, very profitable from a margin perspective. Our guidance, as you know, has been a 7.5% margin. The market is, as Adrian said, is quite challenged at the moment from an economic perspective. But there's no reason to believe that we won't be able to deliver the market guidance of our 7.5%. And hopefully, we could outperform this. Very importantly, it gives us options in terms of profit growth versus lives and revenue growth. And we're going to use those opportunities from a strategic perspective to see how we can grow the business on a sustainable basis.

Great. Thank you, Neville. The next question is for Riaan on Discovery Life. It comes from Thapelo from Investec. Riaan, the question is, solvency for the Life business is down to 1.7x. What drove that? And what is your target for this?

The SCR coverage reduced to 1.7x, and I think it's still significantly above our risk appetite levels is the first point to make. The key reasons for this slight reduction in the solvency margin were lower yields in South Africa as well as optimizing our cost of reinsurance. So I think in short, we've got significant headroom in both our current solvency as well as liquidity positions, and they are both way above our risk appetite levels.

Thank you. Moving on Thapelo, had a follow-up as well. This is for [ Andy ]. The question is, how should we think about the financial leverage move from here? Do you want to take it closer to 10% at the bottom of the target range or close to the midpoint being more appropriate?

Question. I think 2 or 3 points to make on this. The first is that you will -- naturally, you'll see a drift downwards, hopefully, in the financial leverage ratio if nothing else changes because the equity should grow in the group. So you're naturally going to see a decline in the leverage ratio. The second point to make is that we'll continue to optimize the use of debt and the cost of that debt as we have done very successfully in the past year. So that could be just managing the cost of different facilities or the use of debt for other purposes. I think the third point to make is that it's really building on Adrian's point around the whole financial framework of the group, giving us the improved cash generation, the growth in the business and the group, giving us increased financial flexibility. And you'll see as and when opportunities arise, that gives us the freedom to use debt to execute on opportunities. And they may well arise in the future. I mean the best example in the last 12 months is the opportunity it gave us to execute on the Discovery Place building purchase. And you can see with that, we're still hovering around the middle of the range. So I think that's really the best way to think of it.

Great. Thank you. A question from Jaco Visser from Citywire. This question is for Deon. This is a question around Discovery Invest. The question is, what exactly does the 81% of linked assets invested in Discovery Funds represent? And how much further can that penetration realistically rise?

Thank you, David, and thanks for the question. Good morning, everybody. Of the unit-linked assets under management on our platform of -- the total platform, we have about ZAR 180 billion of assets on the platform. The 81% represents the assets that are actually under management in our own funds. The remainder will be with external asset managers. And we've always sort of reflected that kind of level of penetration. We're quite comfortable at that level because ultimately, it's driven by the needs of individual clients. So it's largely driven by that balance.

Excellent. The next question back to Hylton comes from Michael Christelis from UBS. Hylton, the question is, -- the Bank has been successful in bringing a large number of new Discovery customers. To what extent have you been successful in selling other Discovery products to these customers?

Yes. Thanks, David, and thanks, Michael. I think we're just starting that process, and we're seeing excellent traction early on. The time period to the first, second, third Discovery product for new to bank and new to group clients is about 1/3 of what we're observing in other product entry points into the group. So the kind of the adoption and take-up of the next Discovery product for bank clients where bank is the entry point is significantly quicker. We really are only starting that process now. And I think that is -- that's very much the focus and the potential and opportunity in the Super Bank strategy. Bear in mind that 70% of new-to-bank clients are completely new to the group as well. So about 1,000 clients joining the Bank every day are only bank clients. And so that is obviously the real opportunity in terms of the new business strategy and integration for the rest of the South African group.

Thank you. Michael has a follow-up. And in fact, it aligns with a question from Warwick from RMB Morgan Stanley. So from Michael and Warwick, I'll bring it together. What is the medium-term outlook for mortality profits in South Africa given strong variances seen across the sector? To what extent do you expect these to normalize over time? Warwick's alignment to that question, I think, really very similar. So Riaan, over to you for the mortality question.

It's a great question. So I think as Adrian has outlined in the slides, the past period has seen a significantly lower claims experience at engaged lives, much stronger correlation compared to what we've seen in the past. And we've also seen that older ages, specifically above age 50, had significantly better experience in the individual life book. So I think this link between better experience at engaged lives, the dynamics of a shared value model playing out and also seeing better experience at older ages is very encouraging considering the aging of an in-force book. So we're quite optimistic about future trends given these observations. There's obviously some short-term volatility that we need to account for, but these trends are emerging incredibly strongly.

Over to Neville. It's a follow-up from Warwick from RMB Morgan Stanley. How should we think about the shape of the Vitality AI and Vitality Global Central costs for the next 2 years? You mentioned increasing the intensity of expansion, especially in the U.S. Do costs accelerate? Or was FY '26 a peak spend period?

Thanks, Warwick, for the question. I think very importantly, there is going to be continued spend in the Vitality AI capabilities as well as the capabilities across the business. We are very, very confident, however, that these capabilities are going to result in us closing partnership deals over a period of time that will be significant from a revenue generation perspective with high margins. I think it's important to understand that it is a long sales cycle. But our current partnerships that we have got in place through AIA, John Hancock, Sumitomo Life have been going for more than 10 years. So the ability to actually lock in partners for a long period of time with our capabilities is significant. So in essence, we are building a significant capability for growth. As Adrian mentioned, this could be lumpy, but we are very, very confident that we'll be able to implement these partners at a marginal cost from a relatively fixed cost base. But in the near term, there will be additional expenses related to Vitality AI as we continue to evolve the very powerful proposition that is resonating exceptionally well across the globe.

Next question comes from Harry Botha. This is for Andy. Harry Botha from Bank of America Securities. Other than dividends, how should we think about excess capital allocation going forward given the U.S. growth strategy? Does the Bank require further capital from the group?

Thanks again, David, and thanks, Harry, for the question. I think -- so just to answer your question, the Bank doesn't really require any material capital from the group for its development from this point onwards. You can see it's very cash generative and the profit signature has turned now. So that's not going to be, in any way, a drain on the group's capital resources. I think we'll just really stick to the framework that we've outlined for you quite clearly, which is this financial flexibility gives us 3 areas. We can manage the levels of debt, we can manage the level of the dividend, and we can keep our powder dry for future development growth opportunities. So I think that's really where we'll be focusing.

Great. Thank you, Andy. Harry has a follow-on question related to Ping An Health. We're going to move over to David Ferreira. David, the question is, in Ping An Health, can underlying earnings offset the normalization of exceptional investment gains going forward?

Thank you very much for the question, Harry, and greetings from Shanghai. So the simple answer is that while there's clearly uncertainty around investment returns going forward, yes, base case, we do expect that net profit after tax will equal or will exceed these fiscal year '26 levels in future fiscal years.

Great, David. Thanks for joining. And in fact, we'll come back to you. A question from Baron regarding Ping An Health. The question is, what is your financial year '27 outlook for new business growth after the distribution changes that impacted this current year?