OUTsurance rides SA growth to profit gain

OUTsurance Group has demonstrated the defensive power of its multinational footprint, reporting a 7.7% increase in normalised earnings to R2 324 million for the six months ended 31 December 2025.

Despite navigating a “volatile weather period” in Australia that saw natural peril claims nearly double, the group’s South African operations delivered a stellar performance, enabling a massive 36.2% increase in the interim dividend to 120.7 cents per share.

Geographic diversity cushions Australian storms

The group’s subsidiary, OUTsurance Holdings, saw its normalised earnings grow by 12.6% to R2 499 million, highlighting the benefits of a diverse earnings base. In South Africa, OUTsurance SA was the primary engine of growth, with normalised earnings jumping 68.9% to R1 980 million.

This local strength was vital in offsetting a challenging half-year for the Youi Group in Australia. Youi’s normalised earnings fell by 43.3% to R679 million as higher storm frequency and catastrophe events hit the region. The group’s overall claims ratio for Property and Casualty (P&C) insurance rose to 58.6%, up from 53% in the previous period, primarily because retained natural peril claims surged to 12.4% of net earned premium.

Efficiency gains and special dividends

Beyond the underwriting results, OUTsurance achieved significant structural improvements in its cost base. The normalised cost-to-income ratio in the P&C business improved from 32.7% to 27.5%. This was largely driven by a reduction in share-based payment expenses after the group replaced its old share option scheme with a Conditional Share Plan, which is less sensitive to share price movements.

Reflecting its robust capital position and the “ongoing monetisation of non-core assets”, the board declared a special dividend of 30.3 cents per share in addition to the interim payout. Total dividends for the period amounted to 151 cents per share, a 70.4% increase over the comparable period.

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Leadership transition and orderly succession

As part of a planned 24-month process to manage independent board tenure, OUTsurance announced that long-standing chair Herman Bosman and lead independent director Kubandiran Pillay will step down at the November 2026 annual general meeting.

The board has appointed Venessa Naidoo to succeed Bosman as chair of both the OUTsurance and OUTsurance Holdings boards. Naidoo, a seasoned financial executive and entrepreneur, currently chairs the Board Audit Committee and will take up her new role the day after the 2026 AGM.

The road ahead: Ireland and beyond

While the group continues to expand, OUTsurance Ireland reported an increased normalised loss of R263 million. However, management remains optimistic, noting that the loss profile is expected to improve in the second half of the financial year as the operation moves toward its forecast break-even.

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