Outsurance has reported a strong performance, lifting its ordinary dividend 29% and declaring a special dividend of 40c per share.
The group, which operates in SA, Australia and Ireland, reported a 30.3% rise in normalised earnings to R3.5bn for the year to end-June.
Normalised earnings per share (EPS) were up 10.2% to 230.6c, the group said on Tuesday.
A final cash dividend of 113.2c per share was declared and a special dividend of 40c, payable out of income reserves.
Profit for the year rose to R4.49bn from R3.4bn a year ago.
The results were supported by a good operational performance and investment income results.
The improved earnings outcome for the year was achieved notwithstanding higher natural perils claims at Youi, the large increase in the share-based payments expense for the year and the start-up-loss incurred by Outsurance Ireland.
Outsurance Ireland, which launched in May, incurred R180m in start-up losses for the year. The company was following a measured approach to the launch phase and was performing in line with expectations, it said.
Gross written premium grew by a strong 20.5% driven by elevated inflation and good new business performance delivered by the Youi and Outsurance SA operations.
The claims ratio increase from 54.3% to 56.8% was attributed to the higher natural perils claims incurred by Youi and its increasing contribution to the shape of the group’s claims ratio. Outsurance SA delivered improved claims ratios on the back of pricing discipline and continued improvement in claims experience in the Outsurance Broker book.
Insurance revenue increased to R31.9bn from R26.8bn before and net investment income rose to R1.63bn from R1.2bn.
Annualised new business increased by 30.4% from a higher base achieved in 2023. The company said this outcome was delivered through “excellent operational execution and higher premium inflation in our core direct channels”.
The group said that in 2025 it intended to organically scale up Outsurance Ireland and grow Youi’s share of the Australian direct personal lines market. It also planned to profitably grow the Outsurance broker tied-agency channel.
“From [an SA] perspective, we enter the 2025 financial year with renewed optimism concerning the prospects of economic progress in the country underpinned by the government of national unity,” said CEO Marthinus Visser.
“A more vibrant economy that grows the middle class could reverse the absence of real growth in the insurance market over the last decade. We are excited about the organic growth prospects of Youi supported by a stable Australian economy, low current market share, growth momentum and a growing insurance market,” he said.
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