OUTsurance posts strong financial results driven by consistent, strategy led organic growth

OUTsurance Holdings Limited (OHL), 92.8% owned by OUTsurance Group Limited (OGL) delivered a satisfactory financial and strong operational performance for the six months ending 31 December 2025.

Despite the impact of significantly higher retained natural perils losses emanating from more storm events in Australia, the results were underpinned by good organic premium growth, cost efficiency and an excellent claims performance delivered by OUTsurance South Africa.

Due to weather patterns, OHL’s results can be volatile over short measurement periods. The value of OHLs’ geographic earnings diversification was again demonstrated in the composition of its interim results.

OHL’s focus on a simple organic growth strategy has enabled a healthy translation of revenue growth to cash earnings momentum as reflected in the increasing dividend pay-out ratio.

OUTsurance Ireland, launched in May 2024, continued with its incremental scale-up strategy and is showing satisfactory progress.

OGL financial highlights for the six months ending 31 December 2025:
• Normalised earnings increased by 7.7% to R2,324 million.
• Normalised return on equity increased to 32.3% from 30.8%.
• Interim ordinary dividend of 120.7 cents per share which is a 36.2% increase on the prior year.
• Interim special dividend of 30.3 cents per share representing the net surplus arising from RMI Treasury Company’s asset monetisation strategy.

OHL operational and financial highlights for the six months ending 31 December 2025:
• Property and Casualty gross written premium, excluding BZI, increased by 17.4% to R20,107 million. Measured on a constant currency basis, this growth measure increases to 20.3. OUTsurance SA and Youi delivered good organic growth whilst premium inflation continued to normalise from prior year highs. Youi’s translated premium growth rate was negatively impacted by the strengthening Rand against the Australian dollar. OUTsurance Ireland continues to complement the Group’s growth profile.
• The OHL claims ratio increased from 53.0% in the prior year to 58.6%. The increase was attributed to the material increase in retained natural perils claims which represented 12.4% of net earned premium compared to the 6.5% in the comparative six months. Excluding natural perils, OUTsurance SA and Youi’s working loss ratios (excluding natural perils) improved on account of pricing discipline and claims cost control.
• The normalised cost-to-income ratio improved from 32.7% to 27.5% and is attributed to the large structural reduction in the share-based payments expense and overall cost efficiency gains across the Group.
• OUTsurance Ireland’s normalised loss increased to R263 million from R218 million in the comparative six months. OUTsurance Ireland’s monthly loss profile is expected to reduce over the second half of the financial year in line with the forecast break-even profile.
• The impact of the lower yield environment on investment income was offset by the strong performance in the equity market and increase in the size of insurance liabilities.
• OUTsurance Life delivered strong new business growth and expense efficiency. The extraordinary reduction in the yield curve placed significant strain on the operating result for the six months.
• Normalised earnings were 12.6% higher at R2,499 million.
• Normalised ROE improved to 38.9% from 34.9%.
• OHL remains well capitalised with a solvency multiple of 2.0 times compared to a target of 1.5 times.

Marthinus Visser, Chief Executive Officer, OUTsurance Group, said:

“We are pleased with the progress made towards delivering on our organic growth opportunities in South Africa, Australia and Ireland. This approach to growth is expected to continue to serve the Group well in years to come and allows for a resilient and geographically diverse growth outlook”.

Our simplified business model has unlocked valuable cost efficiency gains across all operating segments. Cost leadership is a core competitive advantage which enables resilient profitability and top line to bottom line conversion.

We remain upbeat about the Group’s organic growth prospects given our low market share in key markets and strong growth momentum. We look forward to continually enhance our leading customer proposition underpinned by delivery of competitive prices, awesome service and unparallelled customer trust”.