Outsurance Group Limited · JSE:OUT

Outsurance — FY2025 Earnings Presentation

46 slides from Outsurance's earnings presentation, Sep 14, 2025

  1. Slide 1: Audited Financial Results for the year ended 30 June 2025

    OUTsurance Group Limited AUDITED FINANCIAL RESULTS for the year ended 30 June 2025

  2. Slide 2: Agenda

    AGENDA Operational Financial Outlook and Supplementary review review strategic focus information areas MARTHINUS VISSER JAN HOFMEYR MARTHINUS VISSER

  3. Slide 3: Operational review

    Operational review

  4. Slide 4: Macroeconomic trends

    Macroeconomic trends Inflation and interest rate environment impacting operational performance CPI Inflation Interest rates Exchange rates 8.25% 20.15 9.1% 8.25% 19.77 18.79 7.25% 7.4% 16.91 17.15 18.19 17.56 17.75 6.1% 6.0% 6.1% 4.75% 5.1% 4.35% 15.80 4.9% 4.10% 15.28 5.4% 3.85% 3.50% 3.8% 3.75% 12

  5. Slide 5: Overview of key operational themes

    Overview of key operational themes OUTsurance SA and OUTsurance Life OUTsurance SA OUTsurance SA OUTsurance Personal Business Life Operating environment Operating environment Operating environment • Premium inflation continued to support • OUTsurance Brokers delivered encouraging • Strong operationa

  6. Slide 6: Overview of key operational themes: Youi

    Overview of key operational themes Youi Youi Youi Youi Personal Business CTP Operating environment Operating environment Operating environment • Encouraging unit growth delivered in the • Strong GWP growth driven by an increasing Direct channel aided by a high, but • Slower growth rate linked to pri

  7. Slide 7: OUTsurance Ireland

    OUTsurance Ireland OUTsurance Ireland Personal • OUTsurance Ireland delivered against the business plan targets for the year. • The startup is gaining traction as a new challenger insurance brand in the Irish market. • OUTsurance Ireland recorded R269 million of GWP for its first full year of tradin

  8. Slide 8: P&C new business premium performance

    P&C new business premium performance Inflation and good organic growth drives double digit growth in new business premium P&C annualised new business premium written (R’million) • Annualised new business premium written accelerated by 17.1% +17.1% despite the negative offset of the stronger Rand. •

  9. Slide 9: P&C gross written premium performance

    P&C gross written premium performance Inflation and good organic growth drives double digit growth in gross written premium P&C gross written premium (R’million) 14 362 14 468 14 558 15 632 16 904 19 920 22 734 27 559 33 200 38 782 10-year CAGR = 12.3% 5-year CAGR = 18.1% +16.8% • The Group’s P&C GW

  10. Slide 10: Operating profit performance

    Operating profit performance Robust operating profit achieved at OUTsurance SA and Youi P&C operating profit (R’million) • The 28.3% growth in operating profit was driven by strong 2 532 3 147 3 507 3 131 3 248 3 357 2 726 4 086 4 433 5 686 organic growth, a favourable claims backdrop, cost discipli

  11. Slide 11: Natural perils exposure

    Natural perils exposure Favourable natural perils experience drives robust operating profit Claims ratio analysis Net retained natural perils losses as % of net premium 52.3% 44.6% 61.6% 58.5% 19.6% 0.1% 12.6% 11.2% 5.9% 4.0% 13.1% 13.2% 12.4% 12.6% 12.2% 11.2% 9.5% 9.7% 8.5% 9.8% 9.1% 9.0% 48.9% 48

  12. Slide 12: Earnings profile of impact of growth initiatives

    Earnings profile of impact of growth initiatives Reduced earnings strain from new initiatives and ramping up investment in OUTsurance Ireland Operating losses generated by growth initiatives as % of operating profit from mature business units (R’million) • Appetite for new venture losses is set at 1

  13. Slide 13: Financial review

    Financial review

  14. Slide 14: Financial review: themes impacting financial performance

    Financial review Themes impacting our financial performance Premium growth Good organic growth momentum and higher-for-longer premium inflation Claims Favourable natural perils experience and improvement in Youi’s prior year reserve runoff Reinsurance Lower reinsurance expense following improved ter

  15. Slide 15: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividend and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  16. Slide 16: Impact of share price growth on share-based payments expense

    Impact of share price growth on the share-based payments expense incurred by the South African operation • The final vintage of the legacy ESOP instruments vests in September 2025. Beyond FY2024 FY2025 this date all LTIP vintages used in the South African and Group LTIP schemes will be converted to

  17. Slide 17: OGL Group consolidated results overview

    OGL Group consolidated results overview Key performance outcomes R’ million 2025 2024 % change • The earnings growth differential between the normalised Normalised earnings 4 728 3 536 33.7% earnings outcomes of OGL and OHL is attributed to: Normalised ROE 33.0% 26.2% − A substantial increase in ass

  18. Slide 18: OHL Group consolidated results overview

    OHL Group consolidated results overview OHL Group normalised earnings (R’ million) OHL Group normalised ROE (%) 2 779 2 316 3 310 3 830 4 962 36.4% 2 156 30.7% 29.8% 1 469 251 1 258 3 208 25.6% 74 632 2 541 357 22.0% 2 108 1 896 1 885 (56) (180) (402) Jun 2021 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Jun

  19. Slide 19: Operational performance – Property and Casualty

    Operational performance – Property and Casualty P&C key performance outcomes R’ million 2025 2024 % change Gross written premium 38 782 33 200 16.8% (7.9%) Net earned premium 34 147 28 841 18.4% Annualised new business premium written 11 779 10 055 17.1% Normalised operating profit1 5 686 4 433 28.3

  20. Slide 20: Contribution of investment income to operating profit

    Contribution of investment income to operating profit Proportional contribution of investment income generated on insurance liabilities OUTsurance SA Youi P&C Group1 • Investment income represented a lower proportion of operating income due to the significant increase in underwriting profits coupled

  21. Slide 21: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividend and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  22. Slide 22: OUTsurance SA

    OUTsurance SA OUTsurance SA key financial outcomes R’ million 2025 2024 % change • The strong premium growth is attributed to strong business volume generation and elevated Gross written premium 13 353 12 174 9.7% premium inflation. Net earned premium 13 149 11 963 9.9% • The claims ratio benefitted

  23. Slide 23: OUTsurance SA Personal

    OUTsurance SA Personal Gross written Operating profit Combined ratio premium +32.9% 71.4% 64.6% • Excluding the HOC book (in run-off), OUTsurance 3 751 + 9.4% Personal grew gross written premium by 11.1% which 10 335 was supported by elevated premium inflation and solid 20.4% unit growth. 9 451 18.8

  24. Slide 24: OUTsurance SA Business

    OUTsurance SA Business Gross written premium Operating profit Combined ratio • OUTsurance SA Business delivered 10.8% GWP growth. The growth is attributed to organic expansion in the OUTsurance 2 723 3 018 445 697 85.0% 78.5% Broker channel and premium inflation. +56.6% • Both the Direct and OUTsura

  25. Slide 25: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividend and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  26. Slide 26: Youi BZI Broker channel exit

    Youi BZI Broker channel exit FY 2025 7% 14% • With effect 1 July 2025, Youi ceased writing new business in Gross written Operating the BZI Broker channel. The in-force book is expected to be premium profit substantially runoff by 30 June 2026. contribution by contribution channel by channel • The di

  27. Slide 27: Youi Group

    Youi Group Youi Group key financial outcomes R’million 2025 2024 % change • GWP accelerated by 19.7% in Rand and 25.1% in AUD. • The strong premium growth is attributed to the Direct book where Youi Gross written premium 25 160 21 018 19.7% delivered good organic growth overlaid with elevated premiu

  28. Slide 28: Youi Group

    Youi Group Gross written premium Operating profit Combined ratio 21 018 25 160 1 973 3 000 91.2% 88.4% • Measured in AUD, gross and net earned premiums grew by + 19.7% 25.1% and 29.5%, respectively. 1 530 • Excluding the BZI book, the Direct channel grew GWP by 1 167 +52.1% 31.0% in AUD and 25.0% in

  29. Slide 29: Youi Personal

    Youi Personal Gross written premium Operating profit Combined ratio (GWP) • In AUD, gross and net earned premiums grew by 23.8% and 25.1%, respectively. The growth + 18.4% + 55.6% 89.9% 85.9% differential was positively impacted by lower reinsurance premiums. • Good organic growth in the Direct chan

  30. Slide 30: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividend and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  31. Slide 31: OUTsurance Ireland

    OUTsurance Ireland OUTsurance Ireland key financial outcomes • OUTsurance Ireland continued to gain traction in H2 of the financial year. R’ million 2025 2024 % change • OUTsurance Ireland generated GWP of R269 million in its Gross written premium 269 8 >100% maiden year of operation. Net earned pre

  32. Slide 32: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividend and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  33. Slide 33: OUTsurance Life

    OUTsurance Life OUTsurance Life key financial outcomes R’ million 2025 2024 % change Accounting measures • The increase in OUTsurance Life’s operating profit was driven by favourable new business Operating profit 438 264 65.9% performance and reduced expenses in the Life Direct segment. A reduction

  34. Slide 34: Financial review

    Financial review PART 1 PART 2 PART 3 PART 4 PART 5 PART 6 OGL and OHL OUTsurance Youi Group OUTsurance OUTsurance Dividends and consolidated SA results results Ireland results Life results capital position results OUTsurance Group Limited Financial Results 2025

  35. Slide 35: Capital position and dividends

    Capital position and dividends Strong solvency positions and demonstrated capital efficiency OGL ordinary and special dividends declared per share (cents) 350 76.1% 77.6% 80.0% 71.8% SCR ratio (pre-dividend) 2025 2024 Target 70.0% 300 56.6% 33.1 60.0% OHL Group 2.3 2.3 1.5 250 •50.0% Final ordinary

  36. Slide 36: Outlook & strategic focus areas

    Outlook & strategic focus areas

  37. Slide 37: Group outlook and strategic focus

    Group outlook and strategic focus The Group is well positioned to deliver on our strategic objectives The OUTsurance Group is well positioned for sustained premium growth • Despite the prospect of lower premium inflation, we still have a large runway for organic growth in our core markets, courtesy

  38. Slide 38: Group outlook and strategic focus

    Group outlook and strategic focus The Group is well positioned to deliver on our strategic objectives Interest rates expected to moderate impacting investment income • Mitigated by the fact that investment income is a relatively small component of earnings as well as the organic growth of size of in

  39. Slide 39: Forward-looking statement disclaimer

    Forward-looking statement disclaimer This presentation contains statements about the OUTsurance Group that are or may be forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements are

  40. Slide 40: Thank you

    Thank you Contact: InvestorRelations@out.co.za group.outsurance.co.za

  41. Slide 41: Supplementary information

    Supplementary information

  42. Slide 42: Group structure

    Group structure Operating insurance entities OUTsurance 7.25% OUTsurance Insurance (SA) 100% employees OUTsurance Life (SA) 100% OUTsurance Ireland Group (Ireland) 100% OUTsurance Youi Group (Australia) 94.4% Holdings Limited 92.75% Registered holding Operating administrative entities company OUTsur

  43. Slide 43: Normalised earnings reconciliation – OGL and OHL

    Normalised earnings reconciliation – OGL and OHL R’ million OGL 2025 OGL 2024 % change OHL 2025 OHL 2024 %change Earnings attributable to ordinary shareholders 4 707 4 061 15.9% 5 151 3 888 32.5% Profit on sale of investments in associates (153) (40) (116) (44) Impairment of investments in associate

  44. Slide 44: Sources of normalised earnings

    Sources of normalised earnings Buildup of normalised earnings by entity as attributed to the OHL and overall OGL Group R’ million 2025 2024 % change OUTsurance SA 2 928 2 212 32.4% Youi Group 2 290 1 574 45.5% OUTsurance Life 349 210 66.2% OUTsurance Ireland (402) (180) >(100%) Administration servic

  45. Slide 45: Total normalised investment income

    Total normalised investment income Net income earned on insurance liabilities vs investment income on share capital 628 1 049 654 778 40 51 149 189 1 536 2 290 • The total normalised investment income earned by OHL is 49.1% higher owing to 267 sustained higher interest rates, improved equity returns

  46. Slide 46: Path towards RMI Treasury Company monetisation

    Path towards RMI Treasury Company monetisation RMI Treasury - monetisation progress 3 000 30 2 900 ( 100) ( 30) ( 325) ( 291) 2 000 ( 264) ( 20) ( 159) ( 160) ( 231) 900 ( 550) OUTsurance Group Limited Financial Results 2025

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