The insurer reported a solid financial performance for the year ending June 2025, showcasing expansion in profitability and shareholder returns. The group's net insurance and investment results saw a substantial increase, driving strong growth in profit before tax and profit attributable to shareholders. Citing this impressive performance, the board has declared both a final cash dividend and a special dividend, reinforcing its commitment to returning value to its investors.
● Net insurance and investment result: R9.7 billion, up 33% from R7.3 billion a year earlier. This 33% growth shows the company exceeded the previous year in both its core business of underwriting insurance and generating returns from its investment portfolio. It's a useful indicator of improved performance in its primary operations.
● Profit before taxation: R7.7 billion, up 22% from R6.3 billion a year earlier. The 22% increase confirms the company's overall operational success, showcasing that the performance from its core activities successfully translated into higher corporate profitability compared to the previous year.
● Profit attributable to ordinary shareholders: R4.7 billion, up 15% from R4.1 billion a year earlier. This 15% growth demonstrates that the company's success flowed directly to its owners at a greater rate than the prior year, providing a stronger foundation for increased dividends and future reinvestment.
● Headline earnings per share (HEPS): 298.3 cents per share (cps), up 30% from 230.4 cps a year earlier. This key metric's sharp 30% increase is a clear sign of improved operational efficiency and core profitability on a per-share basis compared to the previous year. A signal investors value highly.
● Dividend declaration: a final dividend of R1.49 and a special dividend of R0.33 per share were declared. Compared to the previous year, the declaration of a special dividend on top of the final one signals a marked improvement in financial health and management's confidence. It shows the company generated cash in excess of its growth plans this year, allowing it to directly reward shareholders beyond its regular dividend policy.
Analysis & Outlook
OUTsurance’s latest results highlight strong execution and financial confidence, highlighted by notable underwriting profitability, solid investment returns and the declaration of both a final and special dividend. The stock is trading near its 52-week high of around R81.29, with analysts maintaining a “Moderate Buy” consensus and an average 12-month price target of R82.59, signalling optimism in its growth trajectory. Strategically, OUTsurance is diversifying geographically, with its Australian Youi Group delivering a 45.5% earnings increase and reducing reliance on the South African market, while the new Irish venture, though currently loss-making, reflects disciplined, long-term expansion. Combined with its focus on customer service, operational efficiency and pricing discipline, OUTsurance is viewed as well-positioned to sustain momentum and build long-term value.
Disclaimer:
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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