OUTsurance GROUP LIMITED - Voluntary trading update for OHL and trading statement for Outsurance Group for the year ended 30 June 2024

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 YEAR ENDED 30 JUNE 2024


1. VOLUNTARY TRADING UPDATE FOR OUTSURANCE HOLDINGS LIMITED (OHL) FOR THE
   YEAR ENDED 30 JUNE 2024


The results for the year ended 30 June 2024 (current year) 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 year ended 30 June 2023 (comparative year) have been restated
as a result of this IFRS 17 transition.


The normalised earnings of the OHL Group (90.5%-held by OGL) for the current
year were impacted by the following salient factors:
- favourable claims experience in South Africa;

- increased investment income linked to higher interest rates in South
  Africa and Australia;

- the impact of higher natural perils claims incurred in Australia compared
  to the comparative year;

- a material increase in the cost of the South African Employee Share Option
  Scheme, following the increase in the OGL share price;

- OUTsurance Ireland incurring more start-up losses with trading commencing
  in May 2024; and

- the life insurance business delivering a much-improved operating result,
  following the impact of stronger growth achieved in the funeral market
  and the discontinuation of the face-to-face channel.


From an operational point of view, the Property and Casualty insurance gross
written premium increased by more than 20%.


Shareholders are advised that normalised earnings for OHL and its major
operating subsidiaries for the current year are expected to fall within the
ranges provided below:


                                                   Restated         Guidance
                                                 Year ended       Year ended
                                                    30 June     30 June 2024
                                                       2023      % increase/
                                                  R million       (decrease)


OHL (group consolidated)                              3 310       11% to 21%
OUTsurance SA (SA Property and Casualty

insurance operation)                                  1 884       12% to 22%
OUTsurance Life                                         142       38% to 58%
Youi Group                                            1 396        8% to 18%
OUTsurance Ireland                                     (56)          >(200%)



2. TRADING STATEMENT FOR OGL FOR THE YEAR ENDED 30 JUNE 2024


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
year is an amount of c. R0.5 billion (relating to the profit on sale of
assets held for sale and also 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 year ended 30 June 2024:

                      Pre-            Post-

            implementation   implementation   Guidance for the year ended
                of IFRS 17       of IFRS 17           30 June 2024
                  Reported         Restated

                Year ended       Year ended     Expected       Expected range
              30 June 2023     30 June 2023   % increase              (cents)
                   (cents)          (cents)



NEPS                 187.7           191.9    15% to 25%       220.7 to 239.9
HEPS                 189.2           193.4    14% to 24%       220.5 to 239.8
EPS                  190.3           194.5    32% to 42%       256.7 to 276.2


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 audited financial results for the year ended 30 June 2024 are expected
to be released on SENS on Tuesday, 17 September 2024.

Centurion
5 September 2024

Sponsor

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 05-09-2024 04:30:00

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