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OUTSURANCE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2010/005770/06)
ISIN: ZAE000314084
Share code: OUT
("OGL" or "the Group")
VOLUNTARY TRADING UPDATE FOR OUTSURANCE HOLDINGS LIMITED AND TRADING
STATEMENT FOR OUTSURANCE GROUP LIMITED FOR THE SIX MONTHS ENDED 31 DECEMBER
2023
1. VOLUNTATRY TRADING UPDATE FOR OUTSURANCE HOLDINGS LIMITED (OHL) FOR THE
SIX MONTHS ENDED 31 DECEMBER 2023
The results for the six months ended 31 December 2023 (current period)
reflect the first-time adoption of IFRS 17. The adoption of IFRS 17 has
resulted in a significant change in the accounting policies of the OHL group
and, in particular, to the measurement approach for the life insurance
operation. Results for the six months ended 31 December 2022 (comparative
period) and 30 June 2023 have been restated as a result of the IFRS 17
transition.
The normalised earnings of the OHL group (89.8%-held by OGL) for the current
period were driven by:
- the impact of higher natural perils claims incurred compared to the
comparative period, most prominently in Australia;
- a material increase in the cost of the South African Employee Share Option
Scheme, following the increase in the OGL share price over the current
period;
- OUTsurance Ireland incurring more start-up losses during the current
period, compared the comparative period. Expenses are escalating as the
business is operationalising for the launch phase; and
- the life insurance business delivering a much-improved operating result,
following the impact of stronger growth achieved in the funeral market
and favourable yield movements compared to the comparative period.
From an operational point of view, the short-term insurance gross written
premium and annualised new business premium increased by more than 20% and
35% respectively.
Shareholders are advised that normalised earnings for OHL and its major
operating subsidiaries for the current period are expected to fall within
the ranges provided below:
Guidance
Restated Six months
Six months ended
ended 31 December
31 December 2023
2022 % (decrease)/
R million increase
OHL (group consolidated) 1 599 (8%) to 2%
OUTsurance (SA short-term operations) 955 (8%) to 2%
OUTsurance Life 13 >400%
Youi Group 658 (20%) to (10%)
OUTsurance Ireland (2) >(2 800%)
2. TRADING STATEMENT FOR OUTSURANCE GROUP LIMITED FOR THE SIX MONTHS ENDED
31 DECEMBER 2023
Paragraph 3.4(b) of the JSE Limited Listings Requirements requires companies
to publish a trading statement as soon as they become reasonably certain
that their financial results for the period to be reported on next will
differ by at least 20% from those of the previous corresponding period.
Included in earnings attributable to ordinary shareholders for the current
period is an amount of c. R0.5 billion relating to the profit on sale and
dilution of associates, which is excluded from headline and normalised
earnings. The majority of this amount relates to the profit on dilution of
one of the portfolio investments of RMI Treasury Company Limited. As a result
of the dilution in shareholding, the Group ceased the equity accounting of
this investment in December 2023 and recognised the investment as a financial
asset at fair value through other comprehensive income.
The following guidance is provided to OGL shareholders regarding the Group's
expected normalised earnings per share (NEPS), headline earnings per share
(HEPS) and earnings per share (EPS) for the six months ended 31 December
2023:
Pre- Post-
implementation implementation Guidance for the six months
of IFRS 17 of IFRS 17 ended
Reported Restated 31 December 2023
Six months Six months
ended ended
31 December 31 December Expected %
2022 2022 (decrease)/ Expected range
(cents) (cents) increase (cents)
NEPS 86.0 91.6 (5%) to 5% 87.0 to 96.2
HEPS 86.6 92.3 (6%) to 4% 86.8 to 96.0
EPS 89.1 94.8 25% to 35% 118.5 to 128.0
OGL regards normalised earnings (which excludes non-operational items and
accounting anomalies) as the key indicator of the Group's operational
performance.
The financial information on which this voluntary trading update and trading
statement is based is the responsibility of the OGL directors and has not
been reviewed and reported on by the Group's external auditor.
OGL's financial results for the six months ended 31 December 2023 are expected
to be released on SENS on Monday, 18 March 2024.
Centurion
7 March 2024
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07-03-2024 04:33:00
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