OUTsurance Holdings Limited (OHL), the 92.7%-held subsidiary of OUTsurance Group Limited (OGL), expects normalised earnings to jump 41% to 47% for the six months ended December 31, 2024, rising from R1.55 billion a year earlier.
In a voluntary trading update released on Thursday, the group credited the more robust results due to significantly lower natural perils claims at its Australian insurance company Youi and OUTsurance SA units compared to the prior period.
Strong premium growth across operating segments, driven by inflation and organic gains, also boosted results, though a stronger rand against the Australian dollar slightly curbed the consolidated premium rise. Higher investment income and a solid showing from OUTsurance Life, aided by favourable yield movements, added to the uplift.
However, a 43.3% spike in OGL’s share price over the period triggered a sharp rise in costs for the South African Employee Share Option Scheme, set to transition to a less volatile plan by September 2025. The launch of OUTsurance Ireland in May 2024 brought start-up losses of R158 million to R161m, up 267% to 273% from R59m, as expected.
By subsidiary, OUTsurance SA’s short-term operations forecast normalised earnings of R1.1bn to R1.2bn, up 24% to 30%. Youi anticipates a 112% to 118% leap to R1.18bn; while OUTsurance Life expects R140m to R144m, doubling from R70m.
Shares in OGL closed 2.51% higher at R70.34 on the JSE on Thursday.
OGL said it expects to release its results on March 14, 2025.
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