OUTsurance, a short-term insurer, has reported strong earnings growth for the financial year ended June 2023.
- The earnings growth was boosted significantly by its Australian operations, which helped to offset the impact of power cuts, higher claims inflation, vehicle theft, and reinsurance costs.
- The insurer achieved a 21.1% increase in gross written premiums to R28.5 billion during the period, driven by organic growth, higher premium inflation, and a weaker local currency.
- The group delivered new business premium growth of 17.2% for the 2023 financial period.
- Growth was primarily driven by new initiatives, including OUTsurance Brokers, OUTsurance Life’s entry into the funeral market, and Youi’s underwriting partnership with Blue Zebra Insurance.
- Operating profit in the business grew by 41.7% to R4.073 billion, supported by premium growth and a decline in the net claims ratio.
- Normalized earnings grew by 39.8% to R3.238 billion, resulting in an improvement in normalized return on equity.
- The earnings of OUTsurance’s Australian business, Youi, significantly contributed to the overall earnings growth.
- OUTsurance posted a full-year dividend of 134.8 cents per share, double the dividend declared in the previous period.
- The group aims to enter the short-term insurance market in the Republic of Ireland within the first half of the 2024 calendar year, subject to approval by the Central Bank of Ireland.