OUTsurance Group Limited, a growing property and casualty insurance group, operating across South Africa Australia and Ireland, today reported a robust performance in its annual results for the year ended 30 June 2024.
OGL holds a 92.3% interest in subsidiary OUTsurance Holdings Limited (OHL), the owner of the various insurance interests. Earnings reflect the first-time adoption of IFRS 17, which resulted in a significant change in the accounting policies of the Group, and in particular, the measurement approach for the Life insurance operation.
OGL Financial Highlights:
• Normalised earnings up 20.3% to R3,536 million.
• Final dividend of R113.2 cents per share resulting in a full year dividend of 174.4 cents or a 29.4% increase on the prior year. The higher dividend is supported by a strong earnings outcome for the OHL Group, resumption of dividend payments by OUTsurance Life, and less uncertainty in the reinsurance markets.
• Special dividend of 40.0 cents per share; supported by surplus funds held in RMI Treasury Co.
• During September 2024, OGL increased its stake in OHL from 90.5% to 92.3%.
Marthinus Visser, Chief Executive Officer, OUTsurance Holdings, said:
“The 2024 financial year was a period of strategic consolidation for the Group, following five years of significant actions which are now paying off. During this time, we invested in new product and channel initiatives, prepared for the launch of OUTsurance Ireland, and transitioned to a listed Group. The year was marked by strong revenue growth and robust profitability. Despite higher natural perils claims in Australia, earnings benefitted from favourable underlying claims performance, cost efficiency and a significant increase in investment income.
We have simplified our strategy and optimised capital utilisation by focusing on organic growth in our existing three geographies. With a more favourable economic outlook in South Africa, we are confident about the growth potential in our South African customer base, which could reverse the absence of real growth in the South African insurance market over the last decade.
We are excited about the growth prospects of Youi, supported by a stable Australian economy, relatively low market share, growth momentum, and a large insurance market. OUTsurance Ireland’s long-term growth and diversification potential is a key strategic lever for the Group. As we enter 2025, we are well positioned to deliver organic growth, coupled with geographical diversification.”
OHL Financial Highlights
• Property and Casualty gross written premium increased by 20.5% to R33,179 million, driven by elevated premium inflation and good new business performance delivered by the Youi and OUTsurance SA operations.
• Property and Casualty delivered 30.4% new business premium growth attributed to good operational execution in the core direct channels as well as elevated premium inflation.
• Operating profit increased by 15.5% to R4,811 million, primarily attributed to robust profitability from all operating units.
• Total Investment income increased by 40.8% to R1,536 million, benefitting from the higher interest rate environment.
• Normalised earnings increased by 15.7% to R3,830 million, supported by a good operational performance and investment income results.
• Normalised ROE improved to 30.7% from 29.8% in the comparable period.
• OUTsurance Holdings remains well capitalised with a solvency multiple of 2.3 compared to a target of 1.5.