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Discovery - Get Healthy To Boost the Economy

Vestact recommends that local investors in JSE portfolios own Discovery shares. The Sandton-based group has a loyal customer base in health insurance, life insurance and financial services, in South Africa, the UK and China. Its deep technology skills are reflected in the overarching global Vitality database, which is also sold to other global insurers.

In news out overnight, Discovery has shared the results of an academic study on the relationship between economic growth and exercise. Unsurprisingly, they reveal significant benefits to the economy and life expectancy when physical activity levels increase.

They estimate that for South Africa alone, GDP would rise by R7 billion a year if people walked for 15 minutes more a day, did a slow one kilometre jog or took 1 500 extra steps. The economic improvement arises from lower mortality rates (more people alive and contributing to the economy), reduced absenteeism, and lower presenteeism (higher productivity at work) as a result of better mental health.

They estimate that life expectancy could increase by at least 2.5 years, on average, for a person aged 40 years in this scenario. The good news is that the awareness of the benefits of even a little exercise is spreading. Discovery has done a lot in this country to promote exercise to gather Vitality points. In the process, it has also built itself a very profitable business.

More detail on the study here on the Discovery website: Global study shows how fitter SA bodies could lead to a fitter SA economy with potential growth of R7 billion a year.


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