Youi is focused on expanding its direct personal lines business after exiting the broking space, South African parent company Outsurance Holdings says.

The Queensland-based insurer has stopped distributing through intermediaries after selling its minority stake in underwriting agency Blue Zebra to Envest on June 30.

Outsurance says the in-force book of Blue Zebra-generated personal and business policies is expected to be substantially run off by June 30 next year.

“The discontinuation of Youi’s participation in the ... broker channel allows for focus on its core direct distribution channel, where Youi is positioned to provide healthy competition in Australia’s personal lines insurance market.”

Outsurance CEO Marthinus Visser says the Australian personal lines space is a “large and profitable market in which Youi holds a limited but growing market share.

“Our objective is to achieve incremental and profitable growth through focused operational execution and underwriting discipline. The continued growth potential of Youi’s direct car and home business is the most prominent growth lever in the group.” 

Youi accounted for 64.9% of Outsurance gross written premium in the year to June 30, up from 63.3%, and its share of normalised earnings grew to 43% from 39%.

Outsurance says the Australian insurer delivered “impressive” top-line growth and operating results last financial year.

Youi’s overall GWP grew 25.1% to $2.15 billion and operating profit improved 60% to $256 million.

Outsurance says the higher operating profit “is on account of strong organic growth and lower claims experience. The growth in operating profit was bolstered by the reversal of the operating loss position of the [Blue Zebra] channel.”