Investor Presentaiton
OUTsurance Life
R'million
2022
2021
% change
Gross written premium
465
386
20.5%
Operating loss
(100)
(51)
(>100%)
Funeral (incl Shoprite)
2
(26)
>100%
Underwritten life
(102)
(25)
(>100%)
Headline earnings
(68)
(21)
(>100%)
Embedded value
1 453
1 389
4.6%
Return on embedded value
(11.4%)
19.5%
VNB margin (excl F2F initiative) (%) 1
7.4%
18.0%
1 The VNB margin excludes the strain from the newly launched Face-to-Face initiative. Inclusive of this initiative, the VNB margin was 0.6% for the period
compared to 14.5% in 2021.
The Funeral segment grew gross written
premium by 60.0%, driven by strong
new business flows from the Shoprite
partnership.
Significant changes in the shape of the
yield curve since June 22, was the
primary contributor to the realisation of
the operating loss for the period.
A significant investment is being made
in OUTsurance Life tied-agency model
(OUTsurance Financial Advisors) which
commenced operations in the 2022
financial year. This channel realised an
operating loss of R57 million (2022: R45
million). This channel is included in the
Underwritten Life reporting segment.
The lower VNB margin is linked to
higher acquisition costs and a slow-
down of new business in the direct
Underwritten Life and Funeral channels.
OUTsurance Group Limited
OUT
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