OUTsurance life gross written premium up 17.6%

OUTsurance, a leading insurance company, has recently announced record earnings for the latest financial period, with a significant increase in premium growth. The company's CEO, Marthinus Visser, attributed the strong performance to a combination of factors, including organic growth, premium inflation, and favorable exchange rates. OUTsurance reported a 21.1% increase in premium growth, driven by higher premium inflation and the weakening of the rand against the Australian dollar. Operating profits also surged by 41.5% to 4.068 billion, supported by favorable weather-related claims in Australia and higher investment income due to increased interest rates. However, the company faced challenges such as a reset of claim frequency following the COVID-19 pandemic and rising claims inflation, particularly in vehicle theft and load shedding-related claims. Despite these headwinds, OUTsurance's new ventures showed promising progress, contributing positively to the overall earnings. The CEO emphasized the impact of premium inflation on consumers, attributing it to the rise in claims costs and escalating reinsurance expenses due to international market dynamics and climate change. While the company aims for sustainable profitability, it acknowledges the pressure on consumers from faster-than-CPI premium increases. Visser highlighted the importance of a moderating trend in premium inflation to ease the burden on customers over time. Looking ahead, OUTsurance anticipates continued growth in both top-line and bottom-line performance, driven by the low market share in key segments and favorable market conditions. The company remains optimistic about its growth prospects, particularly in the Australian market where it has increased its shareholding to 100%. With a focus on sustainable and profitable growth, OUTsurance is strategically positioning itself to capitalize on opportunities in both local and international markets. The CEO emphasized the potential for further expansion in Australia and Ireland, citing the similarities with the South African market and the opportunities for cost synergies. Additionally, the company's overseas growth has contributed to job creation in South Africa, underscoring its commitment to supporting the local economy. In terms of the outlook for growth, OUTsurance sees significant potential in the South African insurance market, particularly in commercial insurance where it holds a modest market share. The company aims to leverage trends like solar and electric car proliferation to drive growth rates above CPI levels. With a focus on expanding its presence in commercial insurance and maintaining its strong position in personal lines, OUTsurance is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the insurance sector.