OUTsurance sets sights on Ireland – as Australia delivers huge earnings boost
OUTsurance hopes to expand its operations to Ireland, as its Australian business is expected to see over 200% growth in earnings.
In a voluntary trading statement for the full year ended 30 June 2023, the group said that its earnings base for the year was mainly impacted by the performance of OUTsurance Holdings Limited (OHL), the group’s 90% held subsidiary that owns OUTsurance South Africa and Youi Australia.
It added that its expansion into the Republic of Ireland presents an opportunity for diversified long-term growth.
Should its authorisation process be successful, it expects to enter the Irish market in the second half of the 2024 financial year.
Financials
In terms of the group’s performance, a significant increase in Youi’s earnings was deemed a positive.
“This positive outcome is attributed to strong premium growth, a material decrease in natural perils claims incurred following more favourable weather exposure and higher investment income attributed to the rising interest rate environment,” the group said.
Below are the group’s expected earning expectations for its operations:
| FY 30 June 2022 | FY 30 June 2023 expected | |
| OHL (group consolidated) | R2 316 million | 35% to 45% |
| OUTsurance (SA short-term) | R1 743 million | 0% to 10% |
| OUTsurance Life | R100 million | 5% to 15% |
| Youi Group | R413 million | 220% to 250% |
However, the group said it is considering restructuring OUTvest as it has been deemed a sub-scale business – this includes the possible disposal of the business.
It said that the restructuring would not impact its client investments.
When looking only at continuing operations, the earnings per share and headline earnings per share are both expected to grow by between 95% to 105%.
However, when factoring in discontinued operations, headline earnings per share are only expected to grow by 5% and 15%, whilst earnings per share are expected to decline by 80% to 90%.
The R4.7 billion sale of Hastings and the sale of R15.2 billion of its shares in Discovery and Momentum influenced the results for the year ended 30 June 2022 – significantly impacting the comparison.
Below are the results from continuing operations solely and combined (continuing and discontinued) operations:
| Continuing operations | FY 30 June 2022 | Expected increase | FY 30 June 2023 |
| Normalised earnings per share | 115.8 cents | 55% to 65% | 179.5 to 191.1 cents |
| Headline earnings per share | 95.0 cents | 95% to 105% | 185.3 to 194.8 cents |
| Earnings per share | 94.1 cents | 95% to 105% | 183.5 to 192.9 |
| Combined operations | FY 30 June 2022 | Expected increase | FY 30 June 2023 |
| Normalised earnings per share | 192.8 cents | (10%) to 0% | 173.5 to 192.8 |
| Headline earnings per share | 169.7 cents | 5% to 15% | 178.2 to 195.2 |
| Earnings per share | 1 463.2 cents | (90%) to (80%) | 146.3 to 292.6 |
The group’s official financial results for the period will be released on SENS on Friday, 15 September.
Read: New tax rules for emigrating South Africans – what you need to know
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