Short-term insurer OUTsurance has reported strong earnings growth for the financial year ended June 2023, boosted significantly by its Australian operations, which helped to offset the impact of power cuts, higher claims inflation, vehicle theft and reinsurance costs.
Operating profit in the business grew by 41.7% to R4.073 billion amid premium growth, and as the net claims ratio declined from 56.1% to 53.6% during the period.Normalised earnings grew by 39.8% to R3.238 billion, supporting the improvement in normalised return on equity to 29.8%, from 22% in the last comparable period.OHL’s earnings were significantly boosted by the performance of Youi, the group’s Australian business.
“Profit growth was also robust on account of more favourable weather-related claims in Australia as well as timeous action to combat the effects of a sudden reset in vehicle accident frequency as well as higher claims inflation, load shedding, vehicle theft and reinsurance cost. ADVERTISEMENT CONTINUE READING BELOW “Importantly, the group has managed to steer growth segments towards profitability through a clear focus on cost efficiencies, scale and claims ratio improvements,’ Visser added.