OUTsurance Group Limited (JSE: OUT) reported an 18.5% increase in normalised earnings for the year ended June 30, 2026, reaching R5.6 billion at the parent company level, driven primarily by a sharp expansion in its South African operations.
Normalised earnings per share rose 18.3% to 362.2 cents, with diluted normalised EPS climbing 18.5% to 360.8 cents. The group also declared a special dividend of 117.8 cents per share, in addition to raising its ordinary dividend 22.7% to 291.5 cents per share. Normalised return on equity at the group level surged to 38.3%, exceeding the company's target range of 30–35%; at the holding company level, ROE came in at 40.4%.
South Africa remained the engine of growth. The South African business delivered a normalised operating profit of R5.1 billion, up 62.4%, contributing R4.2 billion to the group's earnings buildup. Within that segment, the personal line grew operating profit 14.4% to R4.3 billion, with a cost-to-income ratio of 18.1% and gross written premium rising 6.0%. The business segment saw operating profit more than double, jumping 49.8% to R1.0 billion, supported by a combined ratio improvement from 78.5% to 69.9%.
Property and casualty operating profit at the group level rose 30.3% to R7.4 billion. Excluding the broker channel, gross written premium grew 15.7% to R40.8 billion and net earned premium increased 18.7% to R36.9 billion. The normalised insurance cost-to-income ratio improved to 27.3% from 31.5% a year earlier. However, net retained natural perils losses as a share of premium rose to 11.7% from 7.5% in the prior year.
In Australia, Youi Group reported gross written premium excluding the BZI broker channel of R25.7 billion, up 18.5% or 21.3% in Australian dollar terms. Operating profit declined 6.5% to R2.8 billion, weighed by a claims ratio deterioration from 58.5% to 62.2%. The compulsory third-party book posted a widened operating loss of R328 million versus R126 million a year earlier. The BZI broker channel contributed R347 million in operating profit before its final policies expired on June 30, 2026.
OUTsurance Ireland continued to post losses characteristic of its expected J-curve, recording an operating loss of R489 million in FY2026 and contributing R(466) million to normalised earnings. Gross written premium reached €41 million (R801 million), up from €14 million previously, with break-even projected around the 2029 financial year.
OUTsurance Life reported operating profit of R407 million, down 7.1%, contributing R280 million to normalised earnings. Value of new business written surged 41.5% to R457 million with a VNB margin of 23.7%, up from 22.1%. The contractual service margin under IFRS 17 rose 19.7% to R2.0 billion.
Total normalised investment income at the holding company declined 17.6% to R1.9 billion. The group's solvency position remained robust, with the OHL group SCR ratio at 2.2 times, above its 1.5-times target. Share-based payment expense fell sharply from R1.5 billion in FY2025 to R235 million in FY2026 following the transition from ESOP to a conditional share plan.
OUTsurance Group Limited now holds 92.83% of OUTsurance Holdings Limited, with employees holding 7.17% directly.
