OUTsurance’s South African operations have boosted earnings growth for the year ended June 2026 after high weather-related claims in Australia and losses in Ireland.
The insurer reported an 18.5% increase in normalised earnings to R5.6-billion. This allowed the group to reward shareholders with a dividend of R1.70 a share, taking the full-year ordinary dividend up 22.7% to R2.91 per share compared to the previous year.
Strong local performance drives growth
The South African property and casualty insurance business emerged as the largest contributor to the growth with normalised earnings rising 43.3% to R4.2-billion.
OUTsurance attributed the improvement to lower claims and cost-to-income ratios, stronger underwriting margins and a substantial reduction in share-based payment expenses following the completion of its Employee Share Option Scheme in September.
READ: OUTsurance CFO Jan Hofmeyr dumps group for greener pastures
“The Conditional Share Plan, which replaced the ESOP, is significantly less geared to share price movements and will result in a more stable earnings base going forward,” the group said.
Youi, OUTsurance Australian business, saw a higher claims volume due to higher natural disasters and this led to a decrease in earnings by 6.7% to R2.1-billion. The group’s overall claims ratio increased to 54.9% from 53.6% in the previous year, while the natural perils claim ratio increased to 9.1% from 7.5%.
Irish expansion and asset disposal
The group’s Irish operations also remained in investment mode, with losses widening to R466-million from R402-million a year earlier as the business continued to build scale in the Irish motor and home insurance markets.
However, the group said monthly operating losses had begun to decline as the business moved beyond its peak loss period.
The insurer has also entered into an agreement to dispose of its investment in Polar Star, one of the remaining non-core assets held within RMI Treasury Company.
Looking ahead, OUTsurance said it entered the 2027 financial year with strong brands, growing geographic diversification and opportunities for organic growth, although economic uncertainty remained a factor.
- OUTsurance's South African operations led to an 18.5% increase in normalised earnings to R5.6-billion for the year ended June 2026.
- The South African property and casualty insurance business saw a 43.3% rise in normalised earnings to R4.2-billion, driven by lower claims and cost-to-income ratios.
- The Australian business, Youi, experienced a 6.7% decrease in earnings to R2.1-billion due to higher claims from natural disasters.
- Losses from the Irish operations widened to R466-million from R402-million as the business continued to expand in the motor and home insurance markets.
- OUTsurance increased its full-year ordinary dividend by 22.7% to R2.91 per share and agreed to dispose of its investment in Polar Star.
OUTsurance's
OUTsurance attributed the improvement to lower claims and cost-to-income ratios, stronger underwriting margins and a substantial reduction in share-based payment expenses following the completion of its Employee
READ: OUTsurance CFO Jan Hofmeyr dumps group for greener pastures
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Youi, OUTsurance Australian business, saw a higher claims volume due to higher natural disasters and this led to a decrease in earnings by 6.7% to R2.1-billion.
However, the group said monthly operating losses had begun to decline as the business moved beyond its peak loss period.
