In its financial results for the year ended 30 June 2025, the group said that OUTsurance Ireland saw a strong performance in line with its business plan and gained good traction in the Irish market.
The Irish business generated R269 million gross written premium in its first full year of operations.
However, the operating losses for the year increased to R448 million compared to the operating losses of R218 million incurred in the prior year, with the Irish business launching in May 2024.
“The 2025 and 2026 financial years are expected to incur the largest start-up losses on the journey to achieve break-even, which is expected by the 2029 financial year,” said the group.
The group noted that the operating loss and net claims expense are skewed by the requirement to account for an onerous loss.
The onerous loss allowance is required by IFRS accounting standards due to the sub-scale nature of the business.
“As the business scales to break even, the onerous loss balance will decrease,” it said.
Despite the Irish business seeing a loss, OUTsurance Holdings Limited (OHL), which the group 90% owns and houses the group’s business, saw a strong performance.
Property and Casualty gross written premium increased by 16.8% to R38.8 billion.
This was due to the stronger organic growth recorded by Australian-based Youi Direct and the OUTsurance SA operating segments, as well as premium inflation.
Notably, gross written premium growth was negatively impacted by the appreciation of the Rand against the Australian Dollar during the financial year.
The group’s claims ratio improved from 56.8% in the prior year to 53.6%, driven by favourable natural perils experience and disciplined underwriting.
OHL saw operating profit increase by 25.7% to R6 billion, which was partly driven by the improved profitability delivered by all operating units, except OUTsurance Ireland.
OUTsurance Life grew its operating profit by 65.9% to R438 million, driven by reduced expenses and good new business momentum in the Direct and Funeral segments.
