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Voluntary trading update for OHL and trading statement for Outsurance Group Limited for the year ended 30 June 2025
OUTSURANCE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2010/005770/06)
ISIN: ZAE000314084
Share code: OUT
("OGL")
VOLUNTARY TRADING UPDATE FOR OUTSURANCE HOLDINGS LIMITED AND TRADING
STATEMENT FOR OUTSURANCE GROUP LIMITED FOR THE YEAR ENDED 30 JUNE 2025
1. VOLUNTARY TRADING UPDATE FOR OUTSURANCE HOLDINGS LIMITED (OHL) FOR THE
YEAR ENDED 30 JUNE 2025
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 A$5.1 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.
As referred to in the announcement released on SENS on 31 March 2025, Youi
discontinued its participation in the broker distribution channel in
partnership with its associate, Blue Zebra Insurance Proprietary Limited
(BZI). This exit allows Youi to focus on its core direct distribution channel.
With effect from 1 July 2025, Youi no longer writes new business in the
broker channel. The in-force book is expected to be substantially run-off by
30 June 2026. The OHL Group's equity stake in BZI was sold on 30 June 2025.
Shareholders are advised that normalised earnings for OHL and its major
operating subsidiaries for the current year are expected to fall within the
ranges provided below:
Guidance
Year ended
Year ended 30 June
30 June 2025
2024 % increase/
R million (decrease)
OHL (Group consolidated) 3 830 27% to 32%
OUTsurance SA (short-term operations) 2 212 29% to 35%
Youi Group 1 574 42% to 48%
OUTsurance Life 210 63% to 69%
OUTsurance Ireland (180) (120%) to (126%)
2. TRADING STATEMENT FOR OUTSURANCE GROUP LIMITED FOR THE YEAR ENDED 30 JUNE 2025
Paragraph 3.4(b) of the JSE Limited Listings Requirements requires companies
to publish a trading statement as soon as they become reasonably certain
that their financial results for the period to be reported on next will
differ by at least 20% from those of the previous corresponding period.
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:
Guidance for the year ended
30 June 2025
Year ended
30 June 2024 Expected Expected range
(cents) % increase (cents)
NEPS 230.6 30% to 36% 299.8 to 313.6
HEPS 230.4 26% to 32% 290.3 to 304.1
EPS 265.5 12% to 18% 297.4 to 313.3
Included in earnings attributable to ordinary shareholders for the
comparative year is an amount of R540 million relating to the profit on sale
and dilution of associates and assets held for sale, which was excluded from
headline and normalised earnings. The corresponding number included in the
current year is significantly lower. This explains the lower expected
increase in EPS compared to HEPS and NEPS. The lower expected increase in
HEPS compared to NEPS is mainly attributable to the add-back of a once-off
capital gains tax incurred in respect of the wind-up of the OUTsurance
Holdings Share Trust in the current year.
OGL regards normalised earnings (which excludes non-operational items and
accounting anomalies) as the key indicator of the OGL Group's operational
performance.
The financial information on which this voluntary trading update and trading
statement is based is the responsibility of the OGL directors and has not
been reviewed and reported on by the OGL Group's external auditor.
OGL's financial results for the year ended 30 June 2025 are expected to be
released on SENS on Monday, 15 September 2025.
Centurion
27 August 2025
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 27-08-2025 10:45:00
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