OUTsurance Group (OUT) H2 2024 earnings summary

Executive summary

• Achieved strong organic growth across core markets, with Group gross written premium (GWP) up 20.5% year-over-year to R33.2 billion, and annualised new business premium up 30.4%.

• Normalised earnings rose 20.3% to R3.54 billion, with normalised ROE at 26.2%.

• OUTsurance SA and Youi delivered robust operating profit growth, while OUTsurance Ireland launched in April 2024 and is scaling as planned.

Financial highlights

• Group operating profit increased 8.5% to R4.43 billion, with P&C net earned premium up 21.6%.

• OUTsurance SA operating profit grew 17.2% to R2.68 billion; Youi operating profit up 6.2% to R1.97 billion.

• OUTsurance Life operating profit surged 82.1% to R264 million, driven by strong funeral segment growth.

• Ordinary dividend per share increased 29.4% to 174.4 cents; special dividend of 40.0 cents declared.

Outlook and guidance

• Group expects continued organic growth, focusing on execution in core markets to translate top-line to bottom-line growth.

• Premium inflation expected to moderate and interest rates to gradually decline in 2025.

• OUTsurance Ireland seen as a key long-term growth and diversification lever.

• Strategic focus includes systems modernisation, cost efficiency, and scaling profitable channels.