OUTsurance GROUP LIMITED - Youis participation in the Australian Broker Distribution Market and exposure from ex-tropical Cyclone Alfred

Youi’s participation in the Australian Broker Distribution Market and exposure from ex-tropical Cyclone Alfred

OUTsurance Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2010/005770/06)
ISIN: ZAE000314084
Share code: OUT
("OGL")

VOLUNTARY UPDATE RELATED TO YOUI'S PARTICIPATION IN THE
AUSTRALIAN BROKER DISTRIBUTION MARKET AND EXPOSURE FROM EX-
TROPICAL CYCLONE ALFRED

1. Voluntary update related to Youi's participation in the
   Australian broker distribution market

Shareholders are referred to the commentary as disclosed in
the OGL Interim Results Circular released on 14 March 2025,
wherein it was noted that Youi Group (Australia) (Youi) was in
the process of performing a strategic review of its
participation in the broker distribution channel.

The strategic review was prompted by a desire to focus more
attention and capital on Youi's core direct distribution
channel which offers much needed competition in the Australian
market. Youi entered the broker channel in partnership with
Blue Zebra Insurance (BZI) in 2020 and underwrites Car, Home
and Commercial insurance products through a Managing General
Agent (MGA) arrangement.

Shareholders are advised that this strategic review has been
completed with a decision to exit the MGA arrangement and
therefore the broker distribution channel. Youi will cease to
underwrite new business through BZI's platform with effect
from 1 July 2025. The in-force book will subsequently run-off
over a period of 12 months to 30 June 2026.

Youi's exit allows BZI to obtain new underwriting partners to
position the company for the future. Youi wishes to thank BZI
and its management for the partnership and wishes the company
well for its future success.

Youi is in the process of negotiating the disposal of its
36.9% interest in BZI to existing shareholders in this
business.

2. Voluntary update related to Youi's exposure from ex-
   tropical Cyclone Alfred

Although the ultimate losses from Cyclone Alfred remain
uncertain, it is expected that the majority of the incurred
losses will fall within the reinsurance claim window allowed
for by the Australian Cyclone Reinsurance Corporation's
coverage of the event. It is estimated that Youi's exposure to
residual losses, outside of this claims window and therefore
its overall net loss from the event, will be between
AUS$10 million to AUS$15 million.

Centurion
31 March 2025

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 31-03-2025 02:30:00
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