OUTsurance Group reported an 18.5% increase in normalised earnings at the holding company level for the year ended June 30, 2026, reaching ZAR 5.6 billion, as strong performance in South Africa more than offset a decline at its Australian unit, Youi.
Normalised earnings per share rose 18.3% to 362.2 cents, while normalised earnings at the OHL level grew 20.9% to ZAR 6.0 billion. Normalised return on equity improved to 40.4% from 36.4%, comfortably above the group's stated target range of 30% to 35%.
Property and casualty operating profit surged 30.3% to ZAR 7.407 billion, supported by gross written premium growth of 15.7% to ZAR 40.8 billion excluding the BZI run-off book. The group noted a 10-year compound annual growth rate for P&C operations of 11.0%, with a five-year CAGR of 15.4%.
OUTsurance South Africa was the standout segment, with normalised operating profit climbing 62.4% to ZAR 5.09 billion. OUTsurance Personal operating profit grew 14.4% to ZAR 4.29 billion, while OUTsurance Business profit surged 49.8% to ZAR 1.04 billion. The normalised combined ratio for the South African business improved sharply to 65.2% from 77.7%, driven by a claims ratio decline to 41.9% from 44.6%. Gross written premium in South Africa rose 7.4% to ZAR 14.3 billion, or 7.7% excluding the run-off HOC book.
At Youi Group, the picture was mixed. Gross written premium excluding BZI increased 18.5% in rand terms to ZAR 25.7 billion, equivalent to 21.3% in Australian dollar terms, with Youi Direct's growth at 21.2% in AUD. However, operating profit declined 6.5% to ZAR 2.8 billion. Youi's claims ratio widened to 58.8% from 55.2%, and net retained natural perils losses as a percentage of net premium rose to 11.7% from 9.8%. Youi's CTP segment posted an operating loss of ZAR 328 million, up from ZAR 126 million. Investment income contributed 19.1% of Youi's operating profit.
"Elevated frequency and severity of natural peril events in Australia caused more volatile earnings for Youi compared to the more stable OUTsurance SA," CEO Marthinus Visser said. He added: "If you scale too fast, you just amplify your pricing errors."
OUTsurance Ireland recorded gross written premium of €41 million, more than tripling the prior year's €14 million, though it posted an operating loss of ZAR 489 million. The group stated it targets monthly break-even in Ireland around fiscal year 2029.
Dividend output increased, with an ordinary dividend of 291.5 cents per share, up 22.7%, representing an 80.5% payout ratio. A special dividend of 117.8 cents per share was declared. Total dividends paid by OHL came to ZAR 4.9 billion, comprising ZAR 3.7 billion in ordinary and ZAR 1.1 billion in special dividends.
Share-based payment expenses in South African operations fell sharply from ZAR 1.5 billion in FY2025 to ZAR 235 million in FY2026, or ZAR 212 million on an indicative full ESOP-to-CSP conversion basis. Appetite for new venture losses was set at 10% of full-year operating profit, with FY2026 coming in at 9.8%.
On capital, OHL Group's SCR ratio stood at 2.2 times pre-dividend, against a target of 1.5 times. Shares closed the regular session at $28.64, down 0.59%.
In macroeconomic context, South Africa's CPI inflation rose to 4.0% in June from 3.0% a year earlier, while the SARB repo rate declined to 7.00% from 7.25%. In Australia, the RBA cash rate held steady at 4.35% as inflation rose to 3.4% from 2.2%.
