Insurance major OUTsurance CEO Marthinus Visser says while AI is critical in getting efficiencies there are human traits that technology cannot replace, with the group not slowing down in employing more agents for its call centres.
The group, worth more than R110bn, employed nearly 1,000 more call centre personnel in the year ended June.
“The technology is getting better and better but the personal touch still matters. Many people think AI is going to replace thousands of jobs. We are not quite there yet. We think it can make some roles more efficient, but not necessarily replace jobs,” Visser said.
“Interestingly, we have digital products but once a transaction becomes more complex or a client is in distress, they always prefer to engage other human beings. For example, our roadside assistance exists in the app and clients can just click and help is dispatched. But the take up is very low. People prefer to speak to someone who will tell them help is on the way.”
The group’s share price surged 7% on Monday after the company declared a special divided after reporting higher full-year earnings for the year ended June.
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.
Visser said the company does not have plans to launch a share repurchase programme, opting for dividends as a means of returning cash to shareholders.
“That is obviously something we will look at when we feel like that share is undervalued. But at the moment, we are comfortable,” he said.
“The group is well capitalised. We don’t have any long-term gearing in the group and the company produces so much cash and capital that we fund our own growth in Australia, Ireland and SA from our funds. That’s a good position to be in.”
OUTsurance is one of SA’s best corporate stories of the past two decades.
A report earlier this year by Boston Consulting Group (BCG) identified OUTsurance as SA’s leading company when it comes to total shareholder returns in the past five years.
The BCG’s 2025 Value Creators report said OUTsurance leads with 38% five-year total shareholder returns, making it one of the “high-flyers” in the world. Other companies that have delivered superior returns include Harmony Gold and Gold Fields among the top local performers. Pepkor, Discovery, FirstRand, Sanlam, Kumba, Naspers and MTN complete the top 10.
OUTsurance’s normalised earnings for the year ended June were up 33.7% to R4.728bn. Normalised earnings per share rose 32.8% at 306.2c.
Main Takeaways:
- AI and Human Touch: While AI enhances efficiency, OUTsurance continues hiring agents for call centers as customers prefer human interaction, especially in complex or distressing situations.
- Strong Financial Performance: OUTsurance's share price rose 7% after reporting higher full-year earnings and declaring a special dividend of 33.1c per share.
- Dividend Focus: No share repurchase plans; dividends remain the preferred method of returning cash to shareholders.
- Record Growth: OUTsurance's normalised earnings increased 33.7%, with a 25.7% jump in operating profit and a 16.8% rise in property and casualty premiums.
- International Expansion: OUTsurance Ireland saw good market traction, though operating losses widened as the business focuses on long-term growth.
- Life Insurance Growth: OUTsurance Life's operating profit rose 65.9%, driven by new business and favourable yield movements.
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 previous 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 previous 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.
Update: September 15 2025
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