Business

One of South Africa’s largest insurers pushing hard into Ireland

Luke Fraser

 ·27 Aug 2025

OUTsurance Holdings Limited (OHL) is expecting a significant rise in earnings despite the group recording a large increase in start-up losses at OUTsuruance Ireland. 

OHL said that it delivered a pleasing operating and financial performance for the financial year ended 30 June 2025. 

In a trading statement, the group said its earnings per share will likely be 12% to 18% higher, between 297.4 and 313.3 cents. 

The group’s headline earnings per share are also set to increase 26% to 32% to 290.3 to 304.1 cents per share. 

The earnings rise comes despite significantly higher start-up normalised losses at OUTsurance Ireland, which are set to increase between 120% and 126% from the R120 million seen in the 2024 financial year. 

The results represent the first full-year operating results post the launch in May 2024. 

Nevertheless, the group said OUTsurance Ireland has delivered satisfactory performance that aligns with the business plan.

“The operating loss and net claims expense are skewed by the requirement of IFRS 17 to account for an onerous loss due to the sub-scale nature of this start-up business,” said the group. 

“As the business scales, the onerous loss balance will decrease” 

Looking at the whole group, the normalised earnings growth was influenced by the organic premium growth delivered by the major operating segments

This is attributed to new business growth and in-force premium inflation. 

Compared to the prior year, favourable weather and lower natural peril claims were incurred across the OHL Group. 

A favourable trend in working claims was observed by OUTsurance SA. South Africa’s short-term insurance recorded a roughly 30% rise in normalised earnings from R2 billion a year ago. 

OUTsurance Life also saw a between 63% to 69% rise in normalised earnings from the  R210 million last year amid favourable yield movements. 

Although Australian-based Youi’s retained loss from Cyclone Alfred is estimated at A$5.1 million, the group still recorded a 42% 48% increase in normalised earnings from the prior year’s R1.6 billion. 

“Youi discontinued its participation in the broker distribution channel in partnership with its associate, Blue Zebra Insurance Proprietary Limited (BZI),” said the group. 

“This exit allows Youi to focus on its core direct distribution channel. With effect from 1 July 2025, Youi no longer writes new business in the broker channel.”

“The in-force book is expected to be substantially run-off by 30 June 2026. The OHL Group’s equity stake in BZI was sold on 30 June 2025.”