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OUTsurance Surges in Performance, Doubles Dividend after Significant Earnings Boost

Published September 21, 2023
9 months ago

OUTsurance (OGL), formerly known as Rand Merchant Investment Holdings Limited, continues to record triumphant strides after announcing a 100% increase in its ordinary dividend. This comes after its normalised earnings from ongoing operations spiked by over 60%, largely powered by an earnings bump from Australian insurance company, Youi Holdings.

The company's year-end results as of 30th June 2023 affirm this favourable outcome. One of the notable turning points for OUTsurance Group Limited was in December 2022, when it rebranded and kick-started trading under the new banner on the Johannesburg Stock Exchange (JSE). This transformation was part of a managed transition, following major financial moves within the Group's portfolio in the previous year.

OGL took over an impressive 89.8% equity stake previously belonging to OUTsurance Holdings Limited (OHL) and wholly took control of RMI's Investment Managers. This portfolio includes various boutique asset managers and venture capital investments.

The fiscal year 2023 saw OGL's earnings from continuous operations escalate by 62.1% to R2.88 billion, and earnings per share alongside. This remarkable growth was chiefly fuelled by Youi's outstanding performance, showing substantial gross written premium growth in both rand and Australian dollar terms. Key aspects of OUTsurance Life’s operations, including the Funeral segment’s gross written premium, also contributed significantly.

Moreover, the recent increase in equity share in Youi indicates the company's confidence in the subsidiary's performance. This move involved the acquisition of Mr. Roos’ Youi shares in two parts, with the remaining 50% due for acquirement by end of October 2023 for a total cash consideration of AU$42.5 million.

The net asset value of Youi as of 30th June 2023 reached a total of R5.88 billion, solidifying its financial strength alongside a profit after tax of R1.4 billion. The ordinary dividend declared was 134.8 cents, showing a substantial rise from its prior-year dividend, accompanied by a special cash dividend of 8.5 cents.

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