Insurance group Outsurance has rewarded shareholders with a higher dividend as well as a special dividend after reporting strong full-year results with a stellar performance from its South African operations.The group said on Thursday that normalised earnings for the year to end-June grew 20.9% to R6bn, with normalised earnings per share up 18.9% at 363.3c. The group regards normalised earnings, which excludes non-operational items and accounting anomalies, as the key indicator of operational performance. HEPS was up 23.5% to 368.5c. The group declared a final dividend of 170.8c per share, resulting in a full-year payout of 291.5c, representing a 22.7% increase on the previous year. It also declared a special dividend of 87.5c per share, resulting in a full-year special dividend of 117.8c.Insurance revenue rose to R41.49bn from R37.13bn a year ago, while profit grew to R6.18bn from R5.22bn in that period. Outsurance said the results reflected its diversified earnings base and were achieved despite lower premium inflation and the stronger rand.Outsurance Holdings’ gross written premium generated by its property and casualty insurance operations increased 15.7%, with net earned premium rising 18.7%.The claims ratio of the property and casualty insurance operations increased from 53.6% to 54.9% due to higher natural perils claims experienced by Youi, which offset more favourable weather outcomes in South Africa, it said.While the global and local economic environments remain uncertain, our agile operating model, disciplined underwriting culture and focus on customer outcomes position us well to navigate changing market conditions— OutsuranceOverall, the natural perils claims ratio for the group was 9.1% compared to 7.5% in the prior year. The working claims ratio, which excludes natural perils claims, improved by 0.3%, driven by a favourable claims experience in South Africa.The South African property and casualty insurance operations recorded growth of 43.3% in normalised earnings, due to higher underwriting margins resulting from lower claims and cost-to-income ratios and the substantial reduction in the share-based payments expense. Youi’s strong operational performance was dampened by the higher natural perils losses, which particularly affected the results of the first half of the current financial year, it said.Outsurance Ireland continued to increase its presence in the Irish car and home insurance market. The monthly operating loss profile started to decline as the business moved through its peak loss period in the first half of the financial year.Outsurance Life delivered a strong operational performance, marked by new business growth of 41.5% and improved cost efficiencies. However, earnings growth was affected by the high base in the prior financial year, which benefited from the favourable net impact of yield movements on profit.Subsequent to year-end, the group entered into a sale agreement to dispose of its investment in Polar Star. Outsurance said it is entering the new financial year with strong brands, a focused strategy, growing geographic diversification and meaningful organic growth opportunities. “While the global and local economic environments remain uncertain, our agile operating model, disciplined underwriting culture and focus on customer outcomes position us well to navigate changing market conditions,” it said.Business Day