OUTsurance Holdings has announced satisfactory interim financial results for the six months ended 31 December 2025, with normalised earnings up 7.7% to R2.324 billion, despite higher storm claims in Australia. The company highlighted strong underwriting in South Africa and cost efficiencies as key supports. Chief executive Marthinus Visser expressed confidence in navigating potential economic challenges from geopolitical tensions.
OUTsurance Holdings delivered a strong operational performance in its interim results for the period ending 31 December 2025, even as natural perils claims rose sharply. The group's normalised earnings increased by 7.7% to R2.324 billion, with the normalised return on equity improving to 32.3% from 30.8% in the prior period. Dividends also saw a significant boost, with the interim ordinary dividend rising 36.2% to 120.7 cents per share, accompanied by a special dividend of 30.3 cents. The company maintains a solvency multiple of 2.0 times, exceeding its target of 1.5 times.
Challenges arose primarily from Australia, where storm events led to retained natural perils claims surging to 12.4% of net earned premium, nearly double the 6.5% from the comparative period. This pushed the overall claims ratio to 58.6%, up from 53.0%. Chief executive Marthinus Visser addressed concerns during a media call, noting that short-term periods can distort storm impacts due to timing. He emphasised the company's pricing, reinsurance, and underwriting discipline as sufficient to manage these risks.
Visser also discussed broader pressures, including climate change and urbanisation increasing the frequency and severity of such events. He called for mitigation measures like levies, improved flood systems, and stricter building regulations to maintain affordability.
Regarding the Iranian war's potential effects, Visser outlined a scenario of higher inflation and slower growth. He stated that OUTsurance's pricing power and cost controls would allow it to pass through costs effectively. While weaker vehicle sales could affect premiums, economic pressures might drive consumers to seek competitive insurance options, benefiting the company as a challenger brand. Visser remarked, “It’s not great for the world, it’s not great for the country, but I think we’ll be able to navigate it.”
The group continues focusing on organic growth in South Africa, Australia, and Ireland. In Ireland, normalised losses widened to R263 million from R218 million, but management anticipates monthly break-even by April 2029.
