Longer Wait for Dividends Sinks South Africa Insurer’s Stock
- Discovery says pandemic uncertainty and economic risks remain
- China’s Ping An Health to get South African insurer’s funding
Residents wait in line to register at a Discovery Ltd. mass vaccination site in Johannesburg, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Discovery Ltd.’s shares slid the most since the height of the pandemic last year after the South African insurer said it will withhold dividends and contribute additional capital for its investment in China’s Ping An Health Insurance.
The Johannesburg-based company said Thursday it will refrain from returning money to shareholders after not paying a dividend since the global health emergency. It blamed “the uncertain and potentially volatile economic environment caused by the Covid-19 pandemic.”