OUTsurance group reports strong earnings, dividend growth

OGL reported a substantial increase in normalized earnings, rising 33.7% to R4,728m. This strong performance translated into a full-year ordinary dividend of 237.6 cents per share, marking a 36.2% increase from the prior year, alongside a special dividend of 33.1 cents per share. The dividend payout ratio for the year was 77.6%.

OUTsurance Holdings Limited (OHL), the group's subsidiary, saw gross written premium grow by 16.8% to R38,782m, supported by stronger organic growth from Youi Direct and OUTsurance SA. The claims ratio improved to 53.6% from 56.8% in the prior year, attributed to favorable natural perils experience and disciplined underwriting. OHL's operating profit increased by 25.7% to R6,047m, contributing to a 29.6% rise in normalized earnings to R4,962m.

OUTsurance Life also delivered strong results, with operating profit growing by 65.9% to R438m, benefiting from reduced expenses and strong new business momentum. Overall, OHL maintains a healthy capital position with a solvency multiple of 2.3 times.