OUTsurance Group expects strong earnings growth in 2025

OUTsurance Group Limited (OGL) anticipates a strong financial year, with normalised earnings per share (NEPS) projected to increase by 30% to 36%, ranging from 299.8 cents to 313.6 cents for the year ended June 30, 2025. Headline earnings per share (HEPS) are expected to grow by 26% to 32%, reaching 290.3 cents to 304.1 cents, while earnings per share (EPS) are set to rise by 12% to 18%, from 297.4 cents to 313.3 cents. This positive outlook is primarily attributed to OHL's strong operational performance.

OHL, 92.8%-held by OGL, benefited from good organic premium growth, favourable weather conditions, lower natural perils claims, higher investment income, and reduced reinsurance costs. Notable contributions came from OUTsurance SA, with a projected earnings increase of 29% to 35%, and Youi Group, expecting 42% to 48% growth. OUTsurance Life is set for a 63% to 69% increase.

The company also noted a material increase in the cost of the South African Employee Share Option Scheme (ESOP) due to a 68.7% rise in OGL's share price. OUTsurance Ireland incurred significantly higher start-up losses in its first full operating year post-launch, though it delivered a satisfactory performance. Youi discontinued its broker distribution channel and sold its equity stake in Blue Zebra Insurance Proprietary Limited on June 30, 2025, to focus on its core direct channel.