Our opinion on the current state of OUTSURE(OUT)

OUTsurance (OUT) took over the listing of Rand Merchant Insurance (RMI) with effect from 7th December 2022. RMI unbundled its stakes in Discovery (DSY) and Momentum (MTM) and sold its 30% stake in Hastings Plc for R14,6bn. By March 2023, all that was left was the insurance business of OUTsurance.

In its results for the six months to 31st December 2024, the company reported gross written premiums up 17,4% and new business up 17,9%. Embedded value rose by 6,8% to 1969c per share. The company said, "In response to the lower inflationary environment, interest rates and our investment income generation will be adversely impacted. These macroeconomic trends will, however, support a more favourable real growth outlook for the South African and Australian operations."

Technically, the share has been climbing steadily since the unbundling, and we believe it will continue to perform. We added it to the Winning Shares List (WSL) on 15th June 2024 at a price of 4457c. It has since risen to 6364c, but it is looking "toppish" now and may be in for a downward trend.