Banking on loyalty, OUTsurance woos more investors
OUTsurance will list on the A2X next week, an alternative to Africa's oldest bourse, the JSE.
Image: Graphic: Nicola Mawson | IOL
As consumers seek to cut costs in Januworry, short- and long-term insurance company OUTsurance is betting on their clients’ – and investors’ – loyalty.
From next Wednesday, the company will start trading on the A2X, South Africa’s alternative to the JSE.
The move allows shareholders to trade shares on a complementary platform, potentially lowering fees and improving liquidity, according to Moonstone Information Refinery.
OUTsurance – which belongs to a class of services many consider grudge purchases – joins the likes of 167 other securities listed on A2X.
Overall, the bourse has a market capitalisation of R12 billion. Among those listed are AngloGold Ashanti, Aspen, Exxaro, Discovery, Growthpoint, Implats, Investec, Mr Price, Naspers, Nedbank, Prosus, Remgro, Sanlam, Sasol, and Standard Bank.
This comes as global TransUnion research last year saw a notable uptick in people shopping around for insurance products.
Auto insurance shopping in the first quarter of last year was up 10% compared to the same period in 2024. Home insurance shopping was up 5% year over year, according to TransUnion.
Closer to home, TransUnion found that nearly six in ten South Africans shopped around for a better car insurance deal in the first six months of 2024. Its most recent South Africa Insurance Trends also shows that cheaper premiums and better coverage were the leading reasons that consumers switched car insurers.
Founded in 1998, OUTsurance offers car, household, business, pet and life insurance products.
Kevin Brady, chief executive of A2X, said the secondary listing expands shareholder choice. He added that A2X was “pleased” that it could extend OUTsurance’s “innovative, value-for-money products” to shareholders.
“By listing on A2X, OUTsurance will provide its investors with the benefit of choice to transact its shares on an additional venue with reduced transaction fees and extra liquidity,” said Brady.
The company’s share price on the JSE was trading 0.47% lower year-on-year at R68.78. OUTsurance debuted on the bourse on 7 December 2022, taking over the listing of its former parent, Rand Merchant Investment Holdings.
The transition was effectively a share swap, with shares beginning around the R30–R50 range, replacing RMI’s listing.
Launched in 2017, A2X offers a platform for secondary listings.
OUTsurance has been benefitting from more people signing up for its products despite a challenging macro-economic environment, “benign weather conditions and favourable working claims” in the year to June 2025, as well as a strong operational focus.
According to Moonstone Information Refinery, the company benefitted from a 16.8% increase in property and casualty insurance premiums, including car and home policies.
This was supported by growth in South Africa and the Australian brand Youi Direct. Claims payouts were lower relative to premiums, improving profitability.
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