OUTsurance is expecting another strong financial year, with headline earnings per share forecast to increase by as much as 26%, driven largely by a standout performance in its South African insurance operations.
OUTsurance is heading into its full-year results with strong earnings momentum, forecasting 21% to 26% growth in headline earnings per share (HEPS) for the financial year ended 30 June 2026.
The insurance group generated revenue of R37.1 billion and headline earnings of R4.59 billion in 2025, putting the latest growth forecast on a strong base.
At its current rate of expansion, OUTsurance could potentially double both figures within four years.
The group will publish its full-year results on 10 September 2026.
South African Business Leads The Charge
OUTsurance’s core South African property and casualty business was the standout performer during the year.
Excluding life insurance, normalised earnings from the South African operation are expected to increase by more than 40%, from R2.9 billion in 2025.
The company attributed the strong performance primarily to improved underwriting margins, helped by lower claims and better cost-to-income ratios.
A significant reduction in share-based payment expenses, following the introduction of a new Conditional Share Plan, also supported the result.
Australia Faces Pressure
Not every part of the group delivered the same level of growth.
Australian subsidiary Youi expects normalised earnings to decline by between 4% and 10%.
The weaker performance was largely attributed to higher natural catastrophe losses, particularly during the first half of the financial year.
Despite the setback, the Australian operation remains an important part of OUTsurance’s international portfolio.
Life Earnings Under Pressure
OUTsurance’s Life business also experienced a difficult year, with normalised earnings expected to fall between 17% and 23%.
The decline comes despite what the group described as strong operational performance, including robust new-business growth and improved cost efficiency.
The company said the comparison was affected by a particularly strong prior year, which benefited from favourable yield movements on profit.
For insurers, changes in investment yields can have a significant impact on returns because premiums are invested while policies remain active.
Ireland Moves Closer To Breakeven
OUTsurance’s Irish business continues to expand in the car and home insurance markets.
The group says the operation is now showing encouraging signs of improvement, with its loss profile beginning to decline after a period of heavy investment in growth.
OUTsurance believes the Irish business has passed its peak loss phase and is moving towards breakeven.
Investors will get the full picture when OUTsurance releases its results on 10 September.
Main Image: OUTsurance
