|
|
OUTsure - trading update and statement
Trading update
The OHL Group delivered a pleasing operational and financial performance for the financial year ended 30 June 2025 (current year). The normalised earnings of the OHL Group (92.8%-held by OGL) were influenced by:
• good organic premium growth delivered by the major operating segments which is attributed to new business growth and in-force premium inflation;
• favourable weather and lower natural perils claims incurred across the OHL Group compared to the year ended 30 June 2024 (comparative year), as well as a favourable trend in working claims observed by OUTsurance SA;
• Youi's retained loss from Cyclone Alfred is estimated at AUD5.1 million;
• higher investment income;
• lower reinsurance costs owing to improved reinsurance market conditions;
• good new business momentum, a reduction in expenses, coupled with the impact of favourable yield movements at OUTsurance Life;
• a material increase in the cost of the South African Employee Share Option Scheme (ESOP), following the 68.7% increase in the OGL share price over the current year. The final tranche of the ESOP vests in September 2025 after which all vintages of long-term incentives will have been transitioned to the new Conditional Share Plan. Shareholders are referred to a Stock Exchange News Service (SENS) announcement dated 2 May 2025 outlining the hedge adopted against the market exposure of the final ESOP tranche;
• a 4.2% strengthening of the Rand against the Australian Dollar which impacted translated earnings and premium growth;
• significantly higher start-up losses being incurred by OUTsurance Ireland in the 2025 financial year, which represents the first full-year operating result post the launch in May 2024. OUTsurance Ireland has delivered a satisfactory performance in line with the business plan. The operating loss and net claims expense are skewed by the requirement of IFRS 17 to account for an onerous loss due to the sub-scale nature of this start-up business. As the business scales, the onerous loss balance will decrease.
Trading statement
In addition to the positive performance of the OHL Group as outlined above, RMI Treasury Company's associate income delivered a significantly stronger performance, together with a reduction in expenses at OGL level. The following guidance is provided to OGL shareholders regarding the OGL Group's expected normalised earnings per share (NEPS), headline earnings per share (HEPS) and earnings per share (EPS) for the year ended 30 June 2025:
- NEPS are expected to increase by between 30% and 36% to between 299.8c per share and 313.6c per share (2024: 230.6c per share);
- HEPS are expected to increase by between 26% and 32% to between 290.3c per share and 304.1c per share (2024: 230.4c per share); and
- EPS are expected to increase by between 12% and 18% to between 297.4c per share and 313.3c per share (2024: 265.5c per share).
OGL's financial results for the year ended 30 June 2025 are expected to be released on SENS on Monday, 15 September 2025.
|
|
Click here for original article
|
| |
| |
| Click here for full news archive for this company |
|
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
| |
|
|
