Outsurance Group Limited · JSE:OUT
Outsurance — H1 FY2025 Earnings Presentation
43 slides from Outsurance's earnings presentation, March 2025
Slide 1: Unaudited Interim Financial Results
OUTsurance Group Limited UNAUDITED INTERIM FINANCIAL RESULTS for the six months ended 31 December 2024
Slide 2: Agenda
Agenda Operational review Marthinus Visser Financial review Jan Hofmeyr Outlook and strategic focus areas Marthinus Visser
Slide 3: Operational review
o Operational review
Slide 4: Macroeconomic trends
Macroeconomic trends Inflation and interest rate environment impacting operational performance CPI Inflation Interest rates Exchange rates 20.10 8.25% 19.40 7.75% 8.2% 17.95 18.13 7.00% 17.68 7.8% 18.58 17.97 5.9% 17.37 7.2% 5.5% 5.1% 4.35% 16.00 4.35% 4.6% 3.75% 14.70 3.50% 4.1% 3.10% 4.00% 12.19 3
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 still elevated but starting • The rate of new business acquisition • Strong operati
Slide 6: Overview of key operational themes
Overview of key operational themes Youi Youi Youi Youi Personal Business CTP Operating environment Operating environment Operating environment • Premium inflation still elevated but starting • Slower growth rate linked to pricing • Strong GWP growth underpinned by to moderate. Unit growth improving
Slide 7: Youi broker channel – strategic review
Youi broker channel – strategic review • Youi commenced a strategic review of its participation in the broker distribution channel where it currently underwrites Car, Home and Commercial insurance products in partnership with its associate, BZI. Youi’s BZI Broker book is largely represented by Perso
Slide 8: OUTsurance Ireland
OUTsurance Ireland OUTsurance Ireland Personal • OUTsurance Ireland officially launched in May 2024 and offers Car and Home insurance direct to the Irish market. • The start-up operation delivered pleasing new business volumes to date, tracking in line with the business plan. • GWP of R80 million re
Slide 9: 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 17.9% despite the negative impact of the stronger Rand on the mat
Slide 10: 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) 7 041 7 298 7 404 7 738 8 214 9 832 11 213 13 153 16 110 18 916 10-year CAGR = 11.8% +17.4% 5-year CAGR = 18.2% 80 12 212 • P&C Gross Writ
Slide 11: Operating profit performance
Operating profit performance Robust operating profit achieved at OUTsurance SA and Youi P&C operating profit (R’million) • P&C operating profit growth of 60.9% was primarily attributed to the favourable weather experience in South Africa and Australia. 1 256 1 500 1 647 1 550 1 439 1 762 1 160 2 032
Slide 12: Natural perils exposure
Natural perils exposure Favourable natural perils experience drives record operating profit Net retained natural perils losses as % of net earned premium Claims ratio analysis 52.0% 46.3% 64.4% 56.5% 18.3% 15.1% 8.6% 15.1% 5.8% 14.5% 3.4% 12.5% 11.8% 11.3% 9.6% 8.5% 9.1% 9.0% 51.9% 8.6% 8.3% 48.7% 5
Slide 13: Earnings profile – impact of growth initiatives
Earnings profile – impact of growth initiatives Reduced earnings strain from new initiatives and ramping up investment in Ireland Operating losses generated by growth initiatives as % of profit from mature business units (R’million) • Appetite for new venture losses is set at 10% of full-year operat
Slide 14: Financial review
Financial review
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 Life results capital position results results OUTsurance Group Limited Interim Results 2025
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 OUTsurance Group share price 75 H1 2025 • The final vintage of the legacy ESOP instruments vests in September 2025. Beyond this point H1 2024 all LTIP vintages used in the South African and Group
Slide 17: OGL Group consolidated results overview
OGL Group consolidated results overview Key performance outcomes Dec Dec R’ million 2024 2023 % change Normalised earnings 2 158 1 411 52.9% Normalised ROE 30.8% 21.6% • The differential growth rate of the OGL and OHL normalised earnings is attributed to: Normalised earnings per share (cents) 140.0
Slide 18: OHL Group consolidated results overview
OHL Group consolidated results overview OHL GROUP NORMALISED EARNINGS (R’ million) OHL GROUP NORMALISED ROE (%) 1 437 1 102 1 599 1 546 2 219 34.9% 1,132 30.2% 86 26.1% 505 589 24.9% 64 343 1,305 23.6% 98 1,100 1,012 1,008 940 (2) (59) (218) Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 20 Dec 21 Dec 22 De
Slide 19: Operational performance – Property and Casualty
Operational performance – Property and Casualty P&C key performance outcomes Dec Dec R’ million 2024 2023 % change Gross written premium 18 916 16 110 17.4% (9.2%) Net earned premium 16 442 13 761 19.5% Annualised new business premium written 5 675 4 814 17.9% 49.8% P&C OPERATING Operating profit1 2
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 • In the six months under review, investment income represented a lower proportion of operating income due to the significant increase
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 Life results capital position results results OUTsurance Group Limited Interim Results 2025
Slide 22: OUTsurance SA
OUTsurance SA OUTsurance SA key financial outcomes Dec Dec R’ million 2024 2023 % change Gross written premium 6 624 6 051 9.5% • Elevated premium inflation, driven by repair costs, Net earned premium 6 454 5 896 9.5% remained a material contributor to GWP growth. Normalised operating profit 1 317 1
Slide 23: OUTsurance SA Personal
OUTsurance SA Personal Gross written Operating profit Combined ratio premium 73.0% 66.3% +34.7% + 9.2% 1 757 • Excluding the HOC book (in run-off), OUTsurance 5 125 20.6% Personal grew gross written premium by 10.3%. 4 695 19.2% 1 304 • The claims ratio improvement is attributed to lower exposure to
Slide 24: OUTsurance SA Business
OUTsurance SA Business Gross written premium Operating profit Combined ratio 1 356 1 499 175 306 88.1% 81.2% • 10.5% growth in GWP attributed to inflation and 17.5% growth in the OUTsurance Broker + 10.5% +74.9% channel. 10 • OUTsurance Brokers is considered to be 296 sustainably profitable with the
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 Life results capital position results results OUTsurance Group Limited Interim Results 2025
Slide 26: Youi Group
Youi Group Youi Group key financial outcomes Dec Dec R’million 2024 2023 % change Gross written premium 12 212 10 059 21.4% • Gross written premium accelerated by 21.4% in Rand and 25.2% in Australian Dollars. Net earned premium 9 983 7 865 26.9% • The core Direct channel delivered more expansive gr
Slide 27: Youi Group
Youi Group Gross written premium Operating profit Combined ratio 10 059 12 212 619 1 572 94.4% 87.0% + 21.4% +>100% • In AUD, gross and net earned premiums grew by 25.2% 25 664 1 583 30.0% and 31.0%, respectively. 592 • Lower claims ratio driven by benign weather conditions 30.5% 358 10 956 and prio
Slide 28: Youi Personal
Youi Personal Gross written premium Operating profit Combined ratio • Good organic growth and sustained premium inflation delivered strong gross written premium growth. 93.8% 84.7% + 19.5% • BZI’s gross written premium contracted by 6.6% in response to pricing actions in pursuit of achieving target
Slide 29: 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 Life results capital position results results OUTsurance Group Limited Interim Results 2025
Slide 30: OUTsurance Ireland
OUTsurance Ireland OUTsurance Ireland key financial outcomes Dec Dec R’ million 2024 2023 % change Gross written premium 80 - 100% • The Onerous Loss allowance is calculated by accruing Net earned premium 5 - 100% a liability for the expected loss to be incurred by Operating loss1 (246) (64) >(100%)
Slide 31: Financial Review
Financial Review PART 1 PART 2 PART 3 PART 34 PART 5 PART 6 OGL and OHL OUTsurance Youi Group Youi Group OUTsurance OUTsurance Dividend and consolidated results results results Ireland Life results capital position results results OUTsurance Group Limited Interim Results 2025
Slide 32: OUTsurance Life
OUTsurance Life R’million 2024 2023 % change • The increase in the operating profit in OUTsurance Life was impacted by the scaling of the funeral segment, Accounting measures good expense control and the impact favourable yield movements. Operating profit 185 57 >100% • The strong underlying perform
Slide 33: 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 Life results capital position results results OUTsurance Group Limited Interim Results 2025
Slide 34: Capital and dividends
Capital and dividends All operating units are in a strong solvency positions OGL ordinary and special dividends declared per share (cents) SCR ratio Dec June 66.4% 75.0% (pre interim dividend) 2024 2024 Target 62.0% 63.5% 65.0% 88.6 55.0% OHL Group 2.4 2.3 1.5 45.0% Property and casualty 61.2 35.0%o
Slide 35: Outlook & strategic focus areas
Outlook & strategic focus areas
Slide 36: Group outlook
Group outlook Operational outlook for the remainder of the financial year • Cyclone Alfred made landfall on the South-East Queensland coast on 7 March 2025, and the main peril from this event is flooding. Youi’s reinsurance attachment point for its first two catastrophe events is $40 million per eve
Slide 37: 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
Slide 38: Thank you
Thank you Contact: InvestorRelations@out.co.za group.outsurance.co.za
Slide 39: Supplementary information
Supplementary information OUTsurance Group Limited Interim Results 2025
Slide 40: Group structure
Group structure OUTsurance Group Limited Interim Results 2025
Slide 41: Normalised earnings reconciliation - OGL
Normalised earnings reconciliation - OGL Dec Dec Year ended R’ million 2024 2023 % change 30 June 2024 Earnings attributable to ordinary shareholders 2 039 1 891 7.8% 4 061 Profit on dilution of investments in associates - (471) (511) Profit on disposal of investments in associates - (78) (40) Reali
Slide 42: Normalised earnings reconciliation - OHL
Normalised earnings reconciliation - OHL R’million 2024 2023 Headline earnings attributable to ordinary shareholders 2 285 1 535 Adjusted for: Taxation on capital gain in respect of the share trust wind down 100 - Fair value adjustment on OGL shares including the tax impact (198) - Losses / (gains)
Slide 43: Total normalised investment income
Total normalised investment income Net income earned on insurance liabilities vs investment income on share capital 306 361 317 363 6 30 87 133 746 1 027 • The total normalised investment income earned by OHL is 37.7% higher owing to the high interest 553 rates, improved equity returns and overall p