Askume, Sept 17 – South Africa’s third-largest insurer OUTsurance Group (OUTJ.J) reported a 20% profit rise on Tuesday and announced a special dividend, sending its stock price to a record high.
The insurer said normalised earnings per share (NEPS) for the year ended June 30 rose to R3.54 billion ($201.1 million) from R2.94 billion previously.
OUTsurance declared a final dividend of 113.2 cents per share and a special dividend of 40 cents per share, making the final dividend for the year to 214.4 cents per share, an increase of 49.6% from the previous year.
OUTsurance shares were up 9% by 1205 GMT, reaching their highest level since listing in 2022.
OUTsurance said the special dividend came from surplus funds held by its former parent company, Rand Merchant Investment Holdings Ltd.
The property and casualty insurance specialist’s Australian and South African operations grew gross written premiums by 20.5%.
The South African business’s profit was 17.4% higher than the previous year, driven by improved claims rates.
Its Australian Youi unit reported normal revenue growth of 12.8% despite severe weather conditions leading to a surge in natural disaster claims.
The group’s claims ratio increased from 54.3% to 56.8%, mainly due to the impact in Australia.
Meanwhile, OUTsurance Ireland, which launches in May 2024, had a start-up loss of R180 million that year.
“We have set a five-year timetable for Ireland, as we have done in Australia, because it takes time to build a credible brand,” Outsurance Chief Executive Marthinus Visser said on a conference call.
