OUTsurance Group's earnings surge 52.9%, boosted by reduced claims

OUTsurance Group Limited (JSE:OUTE) reported a 52.9% increase in normalised earnings for the six months ended December 31, 2024, reaching R2.158 billion. Diluted normalised earnings per share rose 53.0% to 138.6 cents, and the company declared an ordinary dividend per share of 88.6 cents, up 44.8%. The group's normalised return on equity reached 30.8%. The pleasing increase in earnings was driven by significantly less natural peril claims incurred by Youi and OUTsurance SA, coupled with strong organic premium growth and higher investment income. OUTsurance Ireland incurred R218 million in normalised start-up losses, in line with expectations. Gross written premium grew 17.4%, and annualised new business increased by 17.9%. The claims ratio improved from 59.1% to 53.0%. The group anticipates favorable terms in upcoming reinsurance renewals.