Half Year 2026 OUTsurance Group Ltd Earnings Call Transcript
Key Points
- OUTsurance Group Ltd (JSE:OUT) reported strong organic growth momentum despite declining premium inflation.
- The company achieved a notable improvement in cost efficiency, contributing to a higher underwriting margin.
- OUTsurance SA's broker channel showed significant growth, moving towards its target margins and contributing to a 54.2% increase in profitability.
- The company observed favorable reinsurance renewal terms, positively impacting net earned premium growth.
- OUTsurance Ireland's gross written premium more than doubled, indicating successful scaling and operational progress.
- Natural peril claims significantly impacted UE's operating profit, reducing it by 43.2% due to unfavorable weather conditions.
- The strong rand provided a headwind for overall growth, affecting UE's premium growth and earnings in rand terms.
- OUTsurance Life experienced a 43.8% reduction in operating profit due to an extraordinary reduction in the yield curve.
- The UE CTP book delivered a disappointing operating result, with challenges in achieving the target loss ratio.
- The geopolitical environment and global developments pose potential risks to inflation and supply chain pressures, which could impact future performance.
Good morning everyone. Welcome to the results presentation for the OUTsurance Group for the six month ended 31 December, 2025. As per usual, I'll be taking you through the operational view, then I'll hand over Jan for the financial review, and then I'll, close things off with the outlook.
So to look at the macroeconomic trends.
First of all, to start with CPI inflation. So previously we have remarked that we do see over time a loose correlation between CPI and our own claims inflation, as well as premium inflation.
However, we also pointed out that generally claims in previous inflation have been higher than CPI inflation for quite some time because of trends like frequency trends like climate change, urbanization, and on the severity side, you have technology like solar panels being more exposed to damage in case of events like hail.
So, while we've seen CPI increase over the last year, I think most of our markets, Australia and South Africa, have been quite profitable, and as
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