OUTsurance Group's shares hit a record high on Tuesday, 17 September 2024, after South Africa's third-largest insurer by value reported a 20% jump in profit and declared a special dividend.
Source: TAL
The insurer said its normalised earnings per share (NEPS) for the year ended 30 June rose to R3.54bn ($201.1m) from R2.94bn previously.
OUTsurance declared a final dividend of 113.2 cents per share and a special dividend of 40 cents per share, bringing the final payout for the year to 214.4 cents per share, an increase of 49.6% from last year.
Shares in OUTsurance were up 9% at 1205 GMT, reaching their highest level since it listed in 2022.
OUTsurance said the special dividend was from surplus funds which were held by Rand Merchant Investment Holdings Limited, its former parent company.
The property and casualty insurance specialist recorded a 20.5% rise in gross written premiums at its Australian and South African operations.
The South African business' earnings grew by 17.4% compared to the previous year, on the back of improved claims ratios.
Its Youi unit in Australia reported a 12.8% increase in normalised earnings, despite severe weather conditions which led to high natural disaster claims.
The group's claims ratio increased from 54.3% to 56.8%, mainly due to the Australian impact.
Meanwhile, OUTsurance Ireland, which launched in May 2024, incurred R180m in start-up losses for the year.
"We are flagging a five-year timeline on Ireland breaking even, similar to what we did with Australia, because it takes time to build a trusted brand," OUTsurance chief executive officer Marthinus Visser told a conference call.
