JOHANNESBURG (Reuters) – South African short-term insurer OUTsurance Group reported on Wednesday an almost three-fold jump in half-year profit, helped by strong growth in premiums and favourable operating conditions.
The company’s headline earnings per share, a profit measure, was 86.6 South African cents in the six months to Dec.
31, up from 35 cents a year ago.
It declared a dividend of 56.8 cents per share.
OUTsurance, which provides cover for vehicles and homes and as well as small- and medium-sized businesses, had managed to recover following a tough two years, driven by COVID-19-led claims.
However, rising interest rates are making premiums more expensive and customers strained, making the outlook cloudy for insurance firms.
“We expect continued macro-economic uncertainty, particularly in South Africa where the frictional effects of load-shedding, service delivery and governmental fiscal challenges limit economic progress and confidence,” the company said.
(Reporting by Tannur Anders; Editing by Promit Mukherjee and Sonia Cheema)
