OUTsurance Shares Surge After Generous Dividend Announcements

OUTsurance Group Limited (OGL), which is listed on the JSE, achieved an impressive 33.7% rise in normalised earnings for the year ending 30 June 2025. This growth resulted in a full-year dividend of 237.6 cents per share, marking a 36.2% increase compared to the prior year.

Additionally, shareholders will receive a special dividend of 33.1 cents per share. Following this news, OUTsurance Group’s share price jumped over 7.41% to R77.67 by around 11 am.

The company’s strong results can be attributed to various factors, including revenue generated from the sale of Youi’s interest in Blue Zebra Insurance (BZI) and ongoing divestiture of non-core assets.

Operational highlights

During the review period, the group’s property and casualty gross written premium increased by 16.8% to R38 782 million, supported by robust organic growth from Youi Direct and OUTsurance SA, coupled with premium inflation.

However, gross written premium growth faced hurdles in rand terms due to the rand’s appreciation against the Australian dollar throughout the 2025 financial year. Furthermore, the gross written premium from Youi’s broker channel book (BZI), which is currently winding down, also saw a decline.

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The claims ratio improved from 56.8% last year to 53.6%, aided by favorable experiences with natural perils and disciplined underwriting practices.

OGL operates in South Africa, Australia, and Ireland, holding a 92.3% stake in OUTsurance Holdings Limited (OHL), which encompasses the group’s various insurance operations.

Segmental performance

OGL highlighted that its geographical diversification enhances its risk profile, while the “substantial runway” for organic growth in its selected markets offers a promising growth outlook.

In the reported year, OHL’s operational profit rose by 25.7% to R6 047 million, driven by improved profitability across all operating units except for OUTsurance Ireland. This growth occurred despite incurring a larger share-based payment expense due to a 68.7% increase in the OGL share price during the 2025 financial year.

OUTsurance Ireland performed satisfactorily according to its business plan, making progress in the Irish market with R269 million in gross written premiums during its first full operational year. However, operating losses increased to R448 million, up from R218 million the prior year when the company launched in May 2024.

The group expects the 2025 and 2026 financial years to experience the highest start-up losses as it aims to reach break-even by the 2029 financial year. As the business nears profitability, it anticipates a reduction in the burdensome loss balance.

OUTsurance Life

OUTsurance Life reported a 65.9% rise in operating profit to R438 million, driven by reduced expenses and growth in new business within the Direct and Funeral segments, along with favorable yield movements.

Normalised investment income increased by 49.1% to R2 290 million, while normalised earnings grew by 29.6% to R4 962 million. The normalised return on equity (ROE) also improved to 36.4%, compared to 30.7% in the previous year.

OHL remains well-capitalised, boasting a solvency multiple of 2.3 times.

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