OUTsurance Group (OUT) H1 2026 earnings summary

Executive summary

• Normalised earnings rose 7.7% to R2,324 million for the six months ended 31 December 2025, with strong South African performance offsetting weather-related volatility in Australia and start-up losses in Ireland.

• Diluted normalised EPS increased by 8.1% to 149.8 cents, and the ordinary dividend per share grew by 36.2% to 120.7 cents, with a special dividend of 30.3 cents declared.

• OUTsurance SA delivered robust profitability and efficiency, aided by cost efficiencies and the maturing broker channel, while Youi Group faced higher claims from natural perils.

• OUTsurance Ireland scaled as planned, with losses peaking and expected to decline as the business matures.

• OUTsurance Life saw strong new business growth but was negatively impacted by lower yield curves.

Financial highlights

• Group normalised ROE reached 32.3%, and OHL Group's normalised ROE was 38.9%.

• Gross written premium (excluding BZI) increased by 17.4% to R20,107 million; annualised new business premium written rose 24.2% to R6,053 million.

• OUTsurance SA normalised operating profit surged 78.2% to R2,347 million, with cost-to-income ratio improving to 21.9%.

• Youi Group GWP (excl. BZI) up 20.8% in Rand, but operating profit fell 44.9% due to severe weather claims.

• OUTsurance Life operating profit grew 5.9% to R196 million; value of new business up 61.9%, VNB margin improved to 25%.

Outlook and guidance

• Focus remains on organic growth, cost efficiency, and risk selection to drive resilience and conversion from top line to bottom line.

• OUTsurance Ireland is expected to reduce monthly losses in H2 2026, progressing toward break-even by April 2029.

• Motor premium inflation is expected to stabilise, with home premium inflation picking up in Australia due to recent natural perils.

• Favourable reinsurance renewal terms anticipated due to softer market conditions and low reinsurance recoveries.

• The Group remains optimistic about growth prospects due to low market share in key markets and strong momentum.