Outsurance has delivered higher full-year earnings, supported by good organic growth, a favourable claims environment and higher investment income.
In addition to increasing the annual dividend payout by 36.2% to 237.6c per share, the group declared a special dividend of 33.1c attributed to a combination of factors including proceeds received from the sale of Youi’s interest in Blue Zebra Insurance and the ongoing monetisation of noncore assets.
Normalised earnings for the year ended June were up 33.7% to R4.728bn. Normalised earnings per share were up 32.8% at 306.2c.
Operating profit increased 25.7% to R6.047bn driven by the improved profitability delivered by all operating units, with the exception of Outsurance Ireland, and notwithstanding the effect of a larger share-based payment expense linked to the 68.7% increase in the Outsurance Group share price over the 2025 financial year, it said.
Property and casualty gross written premium increased 16.8% to R38.78bn, driven by the stronger organic growth recorded by Youi Direct and the Outsurance SA operating segments as well as premium inflation.
The claims ratio improved from 56.8% in the prior year to 53.6%, driven by favourable natural perils experience and disciplined underwriting.
Outsurance Ireland delivered a satisfactory performance in line with the business plan and gained good traction in the Irish market, generating R269m gross written premium in its first full year of operations. Its operating losses for the year widened to R448m from R218m in the prior year when the company launched in May 2024.
The 2025 and 2026 financial years are expected to incur the largest start-up losses on the journey to achieve break-even which is expected by the 2029 financial year, the group said.
Outsurance Life grew operating profit by 65.9% to R438m driven by reduced expenses, good new business momentum in the direct and funeral segments, coupled with the effect of favourable yield movements.
The group’s focus will remain on executing on its growth strategy. Its increasing geographical diversification strengthens its risk profile, while the substantial runway for organic growth in its chosen markets allows for a resilient growth outlook, the group said.
The group has operations in SA, Australia and Ireland.
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