Annual financial statement
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OUTsurance Group Limited for the year ended 30 June 2026 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
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OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 The reports and statements set out below comprise the consolidated and separate annual financial statements presented to the shareholders: Contents 2 Statement of responsibility by the Board of directors 3 Certificate by the Group Secretary 3 Internal financial controls declaration 4 Report by the Board Audit Committee 7 Directors’ report 12 Independent auditor’s report 18 Consolidated statement of profit or loss 19 Consolidated statement of comprehensive income 20 Consolidated statement of financial position 21 Consolidated statement of changes in equity 22 Consolidated statement of cash flows 23 Notes to the consolidated financial statements 184 Separate financial statements 201 Shareholder information 202 Glossary 204 Corporate information OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 1
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Statement of responsibility by the Board of directors In accordance with Companies Act requirements, the directors of OUTsurance Group Limited are responsible for the preparation of the consolidated and separate financial statements which conform with IFRS ® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), and fairly present the financial position of the Group and Company as at the end of the financial year and the comprehensive income and cash flows for that year. The directors are ultimately responsible for the Group and Company’s system of internal control. Management enables the directors to meet these responsibilities. Standards and systems of internal control are designed and implemented by management to provide reasonable assurance as to the integrity and reliability of the consolidated and separate financial statements in terms of IFRS Accounting Standards and to adequately safeguard, verify and maintain accountability for Group and Company assets. Accounting policies supported by judgements, estimates and assumptions which comply with IFRS Accounting Standards are applied on a consistent and going concern basis. Systems and controls include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties. Systems and controls are monitored throughout the Group and Company. Based on the information and explanations given by management, internal audit, the Board Audit Committee and the Board Risk and Compliance Committee, the directors are of the opinion that the accounting controls are adequate and that the financial records may be relied upon for preparing the consolidated and separate financial statements in accordance with IFRS Accounting Standards and maintaining accountability for the Group and Company’s assets and liabilities. Nothing has come to the attention of the directors to indicate that any breakdown in the functioning of these controls, resulting in material loss to the Group and Company, has occurred during the year and up to the date of this report. The directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the consolidated and separate financial statements. It is the responsibility of the Group and Company’s independent external auditors to report on the fair presentation of the consolidated and separate financial statements. Their unmodified report appears on pages 12 to 17. The preparation of the audited consolidated and separate financial statements for the year ended 30 June 2026 was supervised by JH Hofmeyr, Chief financial officer of OUTsurance Group Limited. The audited consolidated and separate financial statements have been audited in compliance with section 30(2)(a) of Companies Act 71 of 2008. The audited consolidated and separate financial statements for the year ended 30 June 2026 which appear on pages 18 to 200, were approved by the Board of directors on 9 September 2026 and are signed on its behalf by: HL Bosman MC Visser Chairman Group Chief Executive Officer Signed: Centurion Signed: Centurion 9 September 2026 9 September 2026 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 2
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Certificate by the Group Secretary for the year ended 30 June 2026 As Group Secretary, I hereby confirm, in terms of section 88(2)(e) of the Companies Act of 2008, that for the year ended 30 June 2026, the Group and Company have lodged with the Registrar of Companies all such returns as are required of a public company in terms of this Act and that all such returns are true, correct and up to date. JS Human Group Secretary Signed: Centurion 9 September 2026 Each of the directors, whose names are stated below, hereby confirm that: • the annual financial statements set out on pages 18 to 200 fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of IFRS; • to the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading; • internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the issuer; • the internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, and we have fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls; • where we are not satisfied, we have disclosed to the Audit committee and the auditors any deficiencies in design and operational effectiveness of the internal financial controls, and have taken steps to remedy the deficiencies; and • we are not aware of any fraud involving directors. MC Visser Group Chief Executive Officer 9 September 2026 JH Hofmeyr Group Chief Financial Officer 9 September 2026 Internal financial controls declaration OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 3
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Report by the Board Audit Committee OUTsurance Group Limited’s independent Board Audit Committee (the Committee) is pleased to present its report in respect of the financial year ended 30 June 2026. The Committee performed its statutory duties in compliance with the Companies Act 71 of 2008 (Companies Act) as amended, the Insurance Act 18 of 2017, Prudential Standards issued under the Insurance Act and the JSE Listings Requirements (JSE LR). The Committee executed its duties in line with its Board-approved charter, which is reviewed annually to ensure alignment with evolving regulatory requirements and best governance practices. The Committee’s responsibilities are also guided by the King IV™ Report on Corporate Governance for South Africa 2016 (King IV™*). In fulfilling its mandate, the Committee engages with management, risk, compliance, internal audit and external audit to obtain the information required to discharge its responsibilities. It also ensures that sufficient time and oversight are allocated to all licensed entities. Composition and meetings During the year under review, the Committee’s membership comprised four independent directors, including the Chair who is also an independent non-executive director. The Committee members were approved by the shareholders in November 2025 in accordance with Section 94(2) of the Companies Act which requires that at each annual general meeting, a public company must elect an audit committee comprising at least three independent members. The composition, knowledge, experience, and size of the Committee complied with the requirements of Section 33 of the Insurance Act 18 of 2017 and Prudential Standard GOI 2. The Committee comprises members with technical, accounting, and actuarial skills as well as experience in both long-term and short-term insurance. All the appointed directors satisfied the requirements of section 94 (4) of the Companies Act and King IV recommendations. All members have the appropriate financial and related qualifications and experience required to discharge their responsibilities. Brief profiles of the Committee members are available on pages 60 to 62 of our 2026 integrated report. Senior executives, including the Group Chief Executive Officer (CEO), Group Chief Financial Officer (CFO), Group Chief Risk Officer (CRO), Group Chief Audit Executive (CAE), Heads of Actuarial functions, as well as External Auditors and other assurance providers attend committee meetings by invitation. The Heads of the Control Functions meet at least quarterly with the Chair of the Committee. The Group CRO, CAE and External Auditors meet independently with the committee members as and when required. Seven meetings were held during the reporting period, which included the meetings to approve the trading statement to be published on SENS. The membership and attendance at year end is available on page 68 of the 2026 integrated report. Roles and responsibilities The Committee operates within a Board approved charter. In line with the functions delegated to the Committee in terms of section 94 (7) of the Companies Act, the Committee discharged all its prescribed duties which include the following: • Review all financial reports, the interim and annual financial statements and any announcements pertaining to the Group’s financial results • Nominate for appointment, a registered external auditor who is independent of the company in accordance with the Companies Act requirements and JSE LR • Discuss and review with the auditor, the auditor’s engagement letter, the terms, nature and procedures of engagement, and the audit fees • Ensure the independency of the auditor by ascertaining whether the auditor has in any other capacity, other than as registered auditor received any benefit or remuneration from the Group or any other Group related entity • Determine the nature and extent of any non-audit services that the auditor may provide to the Group • Pre-approve any proposed agreement with the auditor for the provision of non-audit services to the Group • Provide input to the scope of the audit work • Recommendations to the board regarding the appointment of the heads of control functions, performance assessment, discipline and their dismissal • Ensure that a combined assurance model is applied to provide a coordinated approach to all assurance activities • Attend to any matters relating to accounting practices and internal audit of the Group, content or auditing of the Group’s financial statements and the internal financial controls of the Group • Make submissions to the Board on any matter concerning the Group’s accounting policies, financial control, records and reporting • Monitor, evaluate, review and approve internal audit, financial accounting and reporting practices, the internal control environment and corporate governance practices. During the year under review, the Committee, amongst others, considered the following: • The annual financial results and the interim financial results, together with the Interim Results Circular • Reviewed and recommended to the Board the Financial Results presentation • Reviewed and recommended dividends to the Board for approval • Confirmed that there were no going concern issues within the Group • Reviewed and approved the external audit engagement of KPMG for the 2026 financial year and considered matters related to independence, approved the audit plan and proposed audit fees • Reviewed and considered the JSE proactive monitoring report and the investment report* Copyright and trademarks are owned by the Institute of Directors in Southern Africa NPC and all of its rights are reserved. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 4
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functions and assurance providers to ensure the integration, and alignment of risk management and assurance activities. The model includes risk and compliance, internal audit, external audit, finance and actuarial functions. The Combined Assurance Forum (the Forum) implements the combined assurance model, and it is chaired by the Group CAE. The membership comprises the Group CRO, Group CFO, CRO, CFO, Risk management members, Compliance, Information Security Manager and the Head of Actuarial Control Function as well as internal and external audit. The Forum met four times during the reporting period and serves to support the objectives of the combined assurance model, to accomplish the philosophy behind it and maintain an effective control environment. It provides a platform for control functions and assurance providers to discuss relevant themes including emerging and material risks. The Committee is satisfied that the combined assurance model provides appropriate coverage of key risks and contributes to an effective control environment. 1.2 Internal audit The Group’s internal audit function plays a key role as an independent assurance provider to the Committee and is crucial in assessing and enhancing the Group’s governance, risk management and internal control processes. The internal audit function operates in terms of a Board-approved charter and provides value by contributing insight into the activities of the Group and employs a risk-based audit approach. Appropriate structures are in place to ensure the independence of the internal audit team, and the Group CAE has direct access to the Committee. The Committee approved the internal audit charter, strategy, annual plan and budget and monitored the execution thereof. The Group CAE is responsible for reporting on the findings of the internal audit work against the agreed internal audit plan to the Committee on a regular basis. The Group Chief Audit Executive and internal audit team In accordance with King IV requirements, the Committee assessed the performance of the Group CAE and is satisfied that he holds the appropriate skills and expertise to fulfil the obligations of the position and that the internal audit function is independent and adequately resourced with appropriate skills and expertise. Internal audit performed an annual review of the adequacy and effectiveness of the Group’s internal control environment and based on the results, confirmed to the Committee that no material weaknesses were identified in the Group’s governance, risk management and internal control processes, including internal financial controls from the aspect of design, implementation or operation. This written assessment by internal audit formed the basis for the Committee’s recommendation to the Board. Report by the Board Audit Committee continued • Reviewed the accounting policies for the year ended 30 June 2026 • Approved the Internal Audit Strategy and the Internal Audit plan and budget • Approved the Internal Financial Controls Framework. The Committee further assisted the Board in: • Evaluating the adequacy and effectiveness of the internal control systems, accounting practices, information systems, auditing and actuarial valuation processes applied in the day-to-day management of the business of the Group • Facilitating and promoting communication and liaison between the Board, senior management, the external auditor and internal audit function concerning matters regarding effective governance King IV report on Corporate Governance The Group applied the principles of King IV by coordinating all assurance providers to enhance transparency, accountability and risk management across the Group, and to support an effective control environment that strengthens decision-making. King IV recognises the audit committee’s role in providing independent oversight of, among other matters, the effectiveness of the organisation’s assurance functions and services, and the integrity of its financial statements. The Committee therefore oversees the implementation of the combined assurance model to ensure that assurance activities across the various lines of assurance are combined, coordinated and aligned. King V will apply to the Group from the next financial year; however, the Board is reviewing the amended principles to ensure alignment. The first line of defence owns and manages risk, with line management overseeing frameworks, policies, procedures and system controls. The second line comprises specialist functions that oversee risk management and compliance independently from day-to-day management and provide assurance to the Board. The third line consists of independent internal assurance providers. Internal audit remains central to governance and assurance, and King IV requires the Board to consider the assurance standards expected of internal audit. The fourth line comprises external assurance providers, such as external auditors, who provide an independent and balanced view of the effectiveness of the other lines of defence. The fifth line comprises the Board and its committees, which oversee the effective operation of the combined assurance framework. Annual Confirmations 1.1 Combined assurance The Group applies a combined assurance model, which incorporates and optimises the assurance- related activities of line management, specialist OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 5
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1.3 Internal financial control attestation The Group continues to maintain a strong control environment that safeguards, verifies and supports accountability for its financial position performance, and reporting. The Internal Financial Control (IFC) attestation process was completed in accordance with paragraph 5.9 of the JSE LR. The Group CEO and Group Financial Director provided positive attestations under their respective names and signatures. The Committee has reviewed and evaluated the effectiveness of the Group’s internal financial controls. This assessment was informed by regular reporting from management, assurance activities undertaken by internal audit and reports from the external auditors. Based on these inputs, the Committee is satisfied that the internal financial controls are operating effectively and that the financial information presented in the annual report is materially accurate, complete, and provides a fair representation of the Group’s financial performance for the year ended. 1.4 Finance function The Committee reviewed the effectiveness and adequacy of the finance function and the experience of the senior members of management and is satisfied that it is appropriately resourced with a skilled and competent team to deliver the Group’s financial reporting obligations. The Committee is satisfied that the expertise and experience of the Group CFO continue to meet the requirements of the role. 1.5 External audit KPMG serves as the Group’s external auditor and was approved by shareholders at the Annual General Meeting held in November 2025. The Committee is satisfied that KPMG is independent of the Group. In consultation with executive management, the Committee approved the engagement letter, terms of engagement, audit plan and budgeted audit fees for the 2026 financial year. The external auditor attends all Committee meetings and the Annual General Meeting and has direct access to the Chair of the Committee and the Chair of the Board. As part of the combined assurance model, external audit and internal audit collaborate effectively to identify instances where external audit can place reliance on the work performed by internal audit. A formal process is in place to assess and approve any non-audit services proposed by the external auditor. 1.6 Independence of the external auditor The Committee assessed the independence of the external auditor and considered details of any relationship between the Group and KPMG that may have an impact on their independence. The Committee is satisfied that the external auditor acted with unimpaired independence and have the requisite skills and expertise and observed the highest level of business and professional ethics. In reaching this conclusion, the Committee considered the following factors: • Auditors’ independence criteria specified by the Independent Regulatory Board for Auditors and international regulatory bodies as well as criteria for internal governance processes within the audit firms • Representations and confirmations by the external auditor in respect of Section 5.7(h)(iii) of the JSE Listings Requirements • Previous appointments of the auditor • The extent of other non-audit services undertaken by the auditor for the Group. The Committee meets with the auditor independently from senior management to provide an opportunity for open dialogue and feedback. 1.7 Regulatory environment The Committee monitors the Group’s compliance with evolving regulatory and legislative requirements. It is satisfied that appropriate processes are in place to ensure ongoing compliance, and that management demonstrates the necessary competence in this regard. 1.8 Going concern The Committee has reviewed management’s assessment of the Group’s ability to continue as a going concern, including the supporting forecasts, liquidity analyses, and underlying assumptions. In conducting this review, the Committee considered input from both internal and external auditors. Based on this evaluation, the Committee is satisfied that the going concern basis of accounting is appropriate and accordingly recommends to the Board that it is reasonable to conclude the Group will continue to operate for the foreseeable future. Report by the Board Audit Committee continued Conclusion The Committee is satisfied that it has discharged its responsibilities in accordance with its mandate, relevant legislation and governance standards. The Committee will continue to support the Board in maintaining the integrity of financial reporting and the effectiveness of the Group’s control environment. Ms Venessa Naidoo Board Audit Committee Chairperson 9 September 2026 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 6
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Directors’ report Nature of business OUTsurance Group Limited (OGL) is a public company listed on the Johannesburg Stock Exchange. It holds 92.8% in OUTsurance Holdings Limited (OHL), the holding company of the OUTsurance group of companies which provides short-term and life insurance products in South Africa and short-term insurance products in Australia and Ireland. OGL also holds smaller investments in Polar Star, a hedge fund manager and Prodigy Finance, an international fintech platform offering loans to postgraduate students attending top universities. During the 2026 financial year, the following restructuring and corporate actions took place: • OGL issued an additional 896 387 shares in exchange for 2 052 835 shares in OHL and acquired an additional 995 953 shares in OHL for R30 972 999. This increased OGL’s stake in OHL from 92.75% to 92.83%. • The Group’s 45% investment in CloudBadger was classified as held for sale as at 30 June 2025. During the current financial year, the Competition Commission of Eswatini has approved the sale of CloudBadger and the transaction was concluded. • During the current financial year, the Group concluded the sale of its 14.4% interest in Entersekt. This investment was included under financial assets valued at fair value through other comprehensive income in the comparative year. • During the previous financial year, an agreement was reached to dispose of the Group’s equity stake in Merchant Capital by way of a company share buy-back spread across four tranches. The first tranche was concluded in the previous financial year and the final three tranches were concluded in the current financial year. The table below summarises the OGL Group’s actual interest in its investee companies as at 30 June 2026 compared to 30 June 2025: 30 June 2026 30 June 2025 OUTsurance Holdings Limited 92.8% 92.8% RMI Treasury Company Limited 100.0% 100.0% RMI Investment Managers Group Proprietary Limited 100.0% 100.0% RMI Investment Holdings Proprietary Limited 100.0% 100.0% Main Street 1353 Proprietary Limited 51.0% 51.0% corner Further details regarding the investments are provided in note 18 to these financial statements. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 7
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Directors’ report continued Share capital The classes of shares in terms of OGL’s MOI are as follows: Ordinary shares The total authorised number of ordinary shares is 2 000 000 000, with a par value of R0.0001 per share. The total number of issued ordinary shares is 1 548 127 892 (2025: 1 547 231 505). The unissued share capital is under the control of the board of directors until the forthcoming annual general meeting. Preference shares Cumulative, redeemable par value preference shares The total authorised number of cumulative, redeemable par value preference shares is 100 000 000, with a par value of R0.0001 per share. There are no issued cumulative, redeemable par value preference shares. Cumulative, redeemable no par value preference shares The total authorised number of cumulative, redeemable no par value preference shares is 100 000 000. There are no issued cumulative, redeemable no par value preference shares. Cumulative, redeemable no par value preference shares in terms of clause 7.1 of the MOI The total authorised number of cumulative, redeemable no par value preference shares created in terms of the Group’s debt programme and outlined in clause 7.1 of the MOI, is 100 000 000. None of these shares have been issued to date. Shareholder analysis Based on information disclosed by STRATE and investigations conducted on behalf of the company, the following shareholders have an interest of 5% or more in the issued ordinary share capital of the company: 30 June 2026 30 June 2025 Remgro Limited 30.3% 30.3% Royal Bafokeng Investment Holding Company 12.7% 12.7% Public Investment Corporation 10.2% 9.6% corner Earnings Earnings attributable to ordinary shareholders for the year ended 30 June 2026 amounted to R5 623 million or 365.2 cents per share (2025: R4 707 million or 306.2 cents per share). Headline earnings amounted to R5 675 million or 368.5 cents per share (2025: R4 585 million or 298.3 cents per share). Dividends The following dividends were declared by OGL during the year under review: • An ordinary interim dividend for the six months ended 31 December 2025 of 120.7 cents and a special dividend of 30.3 cents per ordinary share, declared on 10 March 2026 and paid on 20 April 2026 (31 December 2024: ordinary dividend of 88.6 cents per ordinary share, declared on 14 March 2025 and paid on 7 April 2025). • An ordinary final dividend for the year ended 30 June 2026 of 170.8 cents and a special dividend of 87.5 cents per ordinary share, declared on 9 September 2026 and payable on 5 October 2026 (30 June 2025: ordinary dividend of 149.0 cents and special dividend of 33.1 cents per ordinary share, declared on 12 September 2025 and paid on 20 October 2025). OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 8
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Directors’ report continued Directorate The directorate comprises: Name Date of appointment Non-executive directors HL Bosman (Chairman) 2 April 2014 JJ Durand 8 December 2010 A Kekana 6 February 2013 WT Roos 8 November 2022 Independent non-executive directors N Kahlon 17 August 2026 K Kroll 17 August 2026 MM Mahlare 31 March 2018 ET Moabi 8 November 2022 SV Naidoo 8 November 2022 RSM Ndlovu 8 November 2022 K Pillay (lead independent) 8 November 2022 CML Taljaard 17 August 2026 JA Teeger 31 March 2018 JE van Heerden 8 November 2022 RD Werbeloff (Govender) 17 August 2026 Executive directors MC Visser (CEO) 8 November 2022 JH Hofmeyr (FD) 8 November 2022 Alternate directors CPF Vosloo 1 February 2026 UH Lucht 3 September 2019 Mr F Knoetze retired as an alternate non-executive director on 31 January 2026 and Mr CPF Vosloo was appointed as alternate non-executive director with effect from 1 February 2026. Ms K Kroll, Ms N Kahlon, Ms RD Werbeloff (Govender) and Mr CML Taljaard were appointed as independent non-executive directors on 17 August 2026. JH Hofmeyr has resigned and will be replaced by JF van Rooyen on 3 October 2026. Interests of directors and officers During the financial year, no contracts were entered into in which directors or officers of the company had an interest and which significantly affected the business of the Group. The directors had no interest in any third party or company responsible for managing any of the business activities of the Group except to the extent that they are shareholders in OGL as disclosed in this report. Directors’ emoluments and service contracts Directors’ and prescribed officers’ emoluments are disclosed in note 39 to the consolidated financial statements. At each annual general meeting one third of the non-executive directors have to retire from office. If at the date of any annual general meeting any non-executive director has held office for a period of three years since his last election or appointment, he has to retire at such meeting. A retiring director is eligible for re-election. The remuneration of the non-executive directors is approved annually by way of a special resolution at the annual general meeting. The company’s remuneration policy is approved once every three years by way of an ordinary resolution at the annual general meeting. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 9
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Directors’ report continued Directors’ participation in group share incentive schemes OHL, Youi and OUTsurance Ireland have equity-settled share schemes. No non-executive directors have an interest in these share schemes. Insurance OGL has appropriate insurance cover against crime risks as well as professional indemnity. Company secretary and registered offices Schalk Human is the company secretary of OGL. The address of the company secretary is that of the company’s registered office. The company’s registered office is 1241 Embankment Road, Zwartkop Ext 7, Centurion, 0157. Special resolutions The following special resolutions were passed at the annual general meeting of OGL held on 25 November 2025: • approval of non-executive directors’ remuneration with effect from 1 December 2025; • general authority to repurchase company shares; • issue of shares, convertible securities and/or options to persons listed in section 41(1) of the Companies Act for the purposes of their participation in a reinvestment option; • issue of shares, convertible securities and/or options to persons listed in section 41(1) of the Companies Act in connection with the settlement of eligible participants’ rights under the Group’s applicable share or employee incentive schemes; • financial assistance to directors, prescribed officers and employee share scheme beneficiaries; and • financial assistance to related or inter-related entities. OHL passed the following special resolutions at its annual general meeting held on 25 November 2025: • general authority to provide financial assistance to related or inter-related entities in terms of section 45 of the Companies Act; and • approval of the remuneration of non-executive directors. Events subsequent to reporting date Refer to note 40 to the consolidated financial statements. Directors’ interests in ordinary shares of OGL Directors have disclosed the following interest in the ordinary shares of OGL at 30 June 2026: 000’s Direct beneficial Indirect beneficial Held by related persons Total 2026 HL Bosman – 1 200 – 1 200 JJ Durand – – – – JH Hofmeyr1 36 1 074 – 1 110 A Kekana 4 – – 4 UH Lucht (alternate) – – – – MM Mahlare – – – – ET Moabi 1 – – 1 SV Naidoo – – – – RSM Ndlovu – – – – K Pillay – 37 – 37 WT Roos – 296 – 296 JA Teeger2 50 143 – 193 JE van Heerden 2 – – 2 CPF Vosloo (alternate) – – – – MC Visser 571 – – 571 Total interest 664 2 750 – 3 414 corner 1 Mr Hofmeyr pledged 249 681 OGL shares as security for a share lending facility of R5 million. 2 Mr Teeger pledged 61 500 OGL shares (together with other shares in a portfolio) as security for a R2 million preference share arrangement. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 10
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Directors’ report continued On 17 November 2025, Mr Bosman entered into an off-market cash-settled equity derivative transaction comprising the acquisition of call options referencing OGL’s shares (“Bought Call Options”), the cost of which was offset by the sale of (i) higher strike call options (“Sold Call Options”) and (ii) knock-out put options (“Sold Put Options”), in each case referencing OGL’s shares. The common and specific terms are set out below: Common terms: Class of securities : Options over OGL ordinary shares Option style : European Expiry date : 17 November 2026 Number of OGL shares provided as security/collateral : 500 000 Bought Call Option terms: Number of options : 250 000 Strike price : R75.10 per share Total value of reference shares : R18 775 000 (based on a share price of R75.10 per share) Sold Call Option terms: Number of options : 500 000 Strike price : R87.30 per share Total value of reference shares : R37 550 000 (based on a share price of R75.10 per share) Sold Put Option terms: Number of options : 250 000 Strike price : R63.84 per share Knock-out price : R26.29 per share Total value of reference shares : R18 775 000 (based on a share price of R75.10 per share) Directors have disclosed the following interest in the ordinary shares of OGL at 30 June 2025: 000’s Direct beneficial Indirect beneficial Held by related persons Total 2025 HL Bosman – 1 200 – 1 200 JJ Durand – – – – JH Hofmeyr1 36 1 074 – 1 110 A Kekana 4 – – 4 F Knoetze (alternate) – – – – UH Lucht (alternate) – – – – MM Mahlare – – – – ET Moabi 2 – – 2 SV Naidoo – – – – RSM Ndlovu – – – – K Pillay – 37 – 37 WT Roos – 296 – 296 JA Teeger2 45 104 – 149 JE van Heerden 2 – – 2 MC Visser 571 – – 571 Total interest 660 2 711 – 3 371 1 Mr Hofmeyr pledged 249 681 OGL shares as security for a share lending facility of R5 million. 2 Mr Teeger pledged 32 500 OGL shares (together with other shares in a portfolio) as security for a R2 million preference share arrangement. Since 30 June 2026 to the date of this report, the interest of directors remained unchanged. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 11
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Independent auditor’s report To the shareholders of OUTsurance Group Limited Report on the audit of the consolidated and separate financial statements Opinion We have audited the consolidated and separate financial statements of OUTsurance Group Limited (the Group and Company) set out on pages 18 to 200, which comprise the consolidated and separate statements of financial position at 30 June 2026, and the consolidated and separate statements of profit or loss, consolidated and separate statements of comprehensive income, the consolidated and separate statements of changes in equity and the consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate financial statements, including a summary of material accounting policies. In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of OUTsurance Group Limited as at 30 June 2026, and its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and the requirements of the Companies Act of South Africa. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report. We are independent of the Group and Company in accordance with the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (IRBA Code), as applicable to audits of financial statements of public interest entities, and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. In terms of the IRBA Rule on Enhanced Auditor Reporting for the Audit of Financial Statements of Public Interest Entities, published in Government Gazette No. 49309 dated 15 September 2023 (EAR Rule), we report: Final materialities The scope of our audit was influenced by our application of materiality. We set quantitative thresholds and overlay qualitative considerations to help us determine the scope of our audit and the nature, timing and extent of our procedures, and in evaluating the effect of misstatements, both individually and in the aggregate, on the consolidated and separate financial statements as a whole. Based on our professional judgement, we determined materiality for the consolidated and separate financial statements as a whole as follows: Consolidated financial statements Separate financial statements Final materiality R384,000,000 determined as 4,4% (rounded) of Profit Before taxation (PBT) R133,000,000 determined as 1% (rounded) of Total Assets Rationale for the benchmark and percentage applied We selected profit before tax (PBT) as the most appropriate benchmark because in our view, it is the metric against which the performance of the Group is most likely to be measured by users of the consolidated financial statements when evaluating the performance of an insurance group. The percentage applied of 4.4% (rounded), was based on our professional judgement after consideration of the qualitative factors that impact the Group. We selected total assets as the most appropriate benchmark because in our view, it is the metric which best reflects the focus of the users of the Company’s separate financial statements given that the Company is an investment holding company. The percentage applied of 1% (rounded), was based on our professional judgement after consideration of the qualitative factors that impact the Company. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 12
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Independent auditor’s report continued Group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. We performed risk assessment procedures to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements and which further audit procedures to perform at these components to address those risks. Our judgement included assessing the size of the components, nature of assets, liabilities and transactions within the components as well as specific risks. In total, we identified seven (7) components. Of those, we identified four (4) components at which further audit procedures were performed on the entire financial information of the component, either because audit evidence needed to be obtained on all or a significant proportion of the component’s financial information, or that component represents a pervasive risk of material misstatement to the consolidated financial statements. Accordingly, we performed audit procedures on four (4) components, of which we involved component auditors in performing the audit work on two (2) components. For the remaining financial information where audit procedures were not performed, we performed an analysis at an aggregated Group level to re-examine our risk assessment to support our final determination that there is less than a reasonable possibility of a material misstatement in the remaining financial information. Group auditor oversight As part of establishing the overall Group audit strategy and plan, we conducted risk assessment and planning discussion meetings with component auditors to discuss the Group audit risks relevant to the respective components. As group auditor, we engaged with the component auditors to assess the audit risks and strategy relating to their respective components. During these engagements, the results of the planning procedures and further audit procedures communicated to us were discussed in more detail, and any further audit procedures required by us was then performed by the component auditors. We also inspected the work performed by component auditors for the purpose of the Group audit and evaluated the appropriateness of conclusions drawn from the audit evidence obtained and consistencies between communicated findings and work performed. Key audit matter Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report on the separate financial statements. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 13
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In terms of the EAR Rule, we are required to report key audit matters and the outcome of audit procedures or key observations with respect to the key audit matters and these are included below. Valuation of insurance contract assets and liabilities and reinsurance assets and liabilities Refer to following notes in the consolidated financial statements: Note 3.2 – Insurance risk management; Note 27 – Insurance and Reinsurance contracts; Note 41.2 – Insurance Contracts; and Note 41.3 – Recognition and measurement of insurance contracts Key audit matter How the matter was addressed in our audit As at 30 June 2026, the Group has insurance contract liabilities amounting to R19 311 million, and insurance contract assets amounting to R536 million with corresponding reinsurance liabilities of R51 million and reinsurance assets of R2 599 million. Significant judgements and estimations were applied in determining the value of the insurance and reinsurance contract assets and liabilities to be recognised in the consolidated financial statements, as the valuation process involves the selection of actuarial methods and assumptions relating to the liability for remaining coverage, liability for incurred claims (LIC), risk adjustment for non-financial risk, Contractual Service Margin (CSM) and any associated loss component. Management uses their internal actuarial team to value the insurance and reinsurance contract assets and liabilities, which is then verified by management’s engaged external consultants (Head of Actuarial Function). For short-term insurance business, significant accounting estimates and judgements are involved in measuring the insurance contract liabilities under the IFRS 17, Insurance Contracts (IFRS 17), Premium Allocation Approach (PAA). These estimates and judgements relate to the following key IFRS 17 reserving elements: • Application of the Premium Allocation Approach (“PAA model”) as described in IFRS 17; • Valuation and discounting of the liability for incurred claims; and • Determination of the risk adjustment for non-financial risk For long-term insurance business, significant accounting estimates and judgements are involved in measuring the insurance and reinsurance contract assets and liabilities under the IFRS 17, General Measurement Model (GMM). These estimates and judgements relate to the following key IFRS 17 reserving elements: • Determination of the profitability groupings • Valuation of the fulfilment cash flows • Discounting of cashflows • Determination of the risk adjustment for non-financial risk • Contractual service margin (CSM) Through inquiries with management and inspection of underlying documentation, including reports prepared by management’s Head of Actuarial Function and Internal audit, we evaluated the design and implementation of the key controls over the valuation of the Company’s IFRS 17 insurance and reinsurance contract assets and liabilities. We performed the following procedures with the assistance of our own actuarial specialists: • We evaluated the professional competence and capabilities of management’s actuarial team through inquiries and inspection of their qualifications. • We evaluated the professional competence, capabilities and objectivity of management’s Head of Actuarial Function, through inquiries and inspection of professional qualifications and tenure in the role. • We assessed the Company’s IFRS 17 valuation methodology and assumptions for compliance against the latest industry actuarial guidance, legislation and against the requirements of IFRS 17. • We assessed the appropriateness of the actuarial assumptions applied in the year-end IFRS 17 valuations by challenging the key assumptions, methodologies and processes used to determine and update those assumptions. This included a detailed analysis of the assumption investigation papers prepared by management for the year ended 30 June 2026. Our actuarial specialists evaluated the assumptions and assessed the reasonableness of the underlying projections and resulting valuation estimates by evaluating assumption changes against the established reserving methodology framework and inspecting the underlying experience investigations used as an input to the assumption setting. • We assessed the reasonability of the build-up and changes in the probability-weighted best estimate liabilities (BEL) risk adjustment (RA) and CSM. This included comparing expected changes to previous periods and unexpected changes to our knowledge of changes in the business and assumptions, based on the experience investigation results and assumption changes approved by management/governance structures. • We evaluated and recalculated the accuracy of the risk adjustment for non-financial risk, by assessing the calculation methodology and recalculating the amount released for risk that had expired during the year, in accordance with the Company’s IFRS 17 accounting policies. Independent auditor’s report continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 14
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Valuation of insurance contract assets and liabilities and reinsurance assets and liabilities Refer to following notes in the consolidated financial statements: Note 3.2 – Insurance risk management; Note 27 – Insurance and Reinsurance contracts; Note 41.2 – Insurance Contracts; and Note 41.3 – Recognition and measurement of insurance contracts Key audit matter How the matter was addressed in our audit We considered the valuation of insurance and reinsurance contract assets and liabilities as well as the presentation and disclosure of the above to be a key audit matter in our audit of the consolidated financial statements because of the following: • Significant judgement and estimation applied by management; and • The quantitative and qualitative magnitude of the insurance and reinsurance contract assets and liabilities in relation to the consolidated financial statements. • We tested the accuracy and completeness of the data used in the CSM calculations by reconciling data-inputs from source systems to outputs from the calculation engine and testing accuracy of key data points as reflected in modelpoint files to underlying support including policy administration data. • We challenged the assumptions applied in calculating the CSM on the reporting date by evaluating them against underlying data. The assumptions included: – the appropriateness of the coverage units used to amortise the CSM and – the impact of assumption changes unlocking the CSM. • We evaluated management’s Actuarial Valuation Report and reconciled the IFRS 17 reserves to the underlying subledgers and financial statements. • For the valuation of the liability for incurred claims (LIC), we assessed management’s valuations and performed the following procedures: – Independently calculated the incurred but not reported component of the BEL. – On a sample basis for outstanding claims at year-end, we agreed the claims information recorded on the underlying source system (such as loss event, claim estimate, and item being claimed) by agreeing this information to underlying supporting documentation. We further compared the claim values used by management to assessor reports to evaluate the validity of the claims. – Evaluated the discounting calculations against the requirements of IFRS 17. – Assessed the reliability, completeness and accuracy of the underlying data inputs including claims payment data used as the basis for the underlying IFRS 17 estimates and year-end valuations by inspecting and agreeing relevant data to supporting evidence such as assessor reports, evidence for claims payments and by performing independent extractions from source systems to compare against data used for reserving purposes. • We evaluated the discounting of future cashflows for IFRS 17 year-end valuation purposes by inspecting the underlying yield curves used and comparing these to independently sourced rates and performing recalculations by applying the relevant risk-free rates on the discounting of underlying cashflows. • We evaluated management’s process for identifying onerous contracts through the inspection of model point files and agreeing relevant datapoints to supporting evidence as it related to the application of grouping rules. We also performed sample-based testing on contracts included in relevant cohorts to assess the reasonability of classification of contracts included in loss component and loss recovery component calculations. Independent auditor’s report continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 15
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Valuation of insurance contract assets and liabilities and reinsurance assets and liabilities Refer to following notes in the consolidated financial statements: Note 3.2 – Insurance risk management; Note 27 – Insurance and Reinsurance contracts; Note 41.2 – Insurance Contracts; and Note 41.3 – Recognition and measurement of insurance contracts Key audit matter How the matter was addressed in our audit • We evaluated the appropriateness of the application of the “PAA” as applied to short term insurance contracts in accordance with IFRS 17 by assessing the eligibility on application of the PAA method requirements through inspection of underlying policy contracts. • We evaluated the presentation and disclosure related to the insurance and reinsurance contract assets and liabilities, against the requirements of IFRS 17. Based on the procedures performed above, we did not identify any matters requiring further consideration with respect to our audit of the valuation of insurance and reinsurance contract assets and liabilities Other information The directors are responsible for the other information. The other information comprises the information included in the document titled “OUTsurance Group Limited Consolidated Annual Financial Statements for the year ended 30 June 2026” which includes the Directors’ report, Report by the Board Audit Committee and the Certificate by the Group Secretary as required by the Companies Act of South Africa. The other information does not include the consolidated and separate financial statements and our auditor’s report thereon. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the consolidated and separate financial statements The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the consolidated and separate financial statements Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements. Independent auditor’s report continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 16
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As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group and Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group and Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other legal and regulatory requirements Audit tenure In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that KPMG Inc. has been the auditor of OUTsurance Group Limited for three years. KPMG Inc. Per Nishen Bikhani Chartered Accountant (SA) Registered Auditor Director 85 Empire Road Parktown Johannesburg 2193 10 September 2026 Independent auditor’s report continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 17
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Consolidated statement of profit or loss for the year ended 30 June R million Notes 2026 2025 Insurance revenue 27 41 487 37 131 Insurance service expenses 27 (33 037) (28 668) Net expenses from reinsurance contracts held 27 (376) (882) Insurance service result 8 074 7 581 Administration and other revenue 5 503 450 Net investment income 1 903 2 177 Investment income 6 381 287 Interest income on financial assets using the effective interest method 6 1 345 1 349 Net gains from fair value adjustments on financial assets 7 175 515 Change in expected credit losses on financial assets 7 2 26 Net insurance finance expenses (348) (296) Finance expenses from insurance contracts issued 8 (348) (452) Finance income from reinsurance contracts held 8 – 156 Fair value adjustment to financial liabilities 37 (212) (211) Net insurance and investment result 9 920 9 701 Other operating expenses 9 (1 119) (2 274) Finance costs 10 (132) (136) Equity accounted earnings 19 26 189 (Loss)/profit on sale of assets held for sale 24 (5) 35 Profit on sale of associate 19 – 176 Impairment of assets held for sale 24 – (10) Impairment of investments in associates 19 (42) – Profit before taxation 8 648 7 681 Taxation 11 (2 468) (2 462) Profit for the year 6 180 5 219 Profit attributable to: Ordinary shareholders 5 623 4 707 Non-controlling interests 557 512 Profit for the year 6 180 5 219 Earnings per share (cents) 12 365.2 306.2 Diluted earnings per share (cents) 12 362.0 303.3 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 18
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Consolidated statement of comprehensive income for the year ended 30 June R million Note 2026 2025 Profit for the year 6 180 5 219 Other comprehensive loss for the year Items that may subsequently be reclassified to profit or loss Exchange differences on translation of foreign operations (360) (115) Fair value gains/(losses) on other comprehensive income financial instruments 7 14 (422) Deferred tax on fair value movements on other comprehensive income financial instruments (3) 16 Share of comprehensive income of associates Items that may subsequently be reclassified to profit or loss, after taxation – 1 Other comprehensive loss for the year (349) (520) Total comprehensive income for the year 5 831 4 699 Total comprehensive income attributable to: Ordinary shareholders 5 309 4 210 Non-controlling interests 522 489 Total comprehensive income for the year 5 831 4 699 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 19
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Consolidated statement of financial position at 30 June R million Notes 30 June 2026 30 June 2025 Assets Property and equipment 15 1 186 1 205 Intangible assets 16 227 224 Right-of-use assets 17 378 354 Investments in associates 19 228 258 Deferred income tax 20 459 501 Reinsurance assets 27 2 599 2 353 Insurance assets 27 536 370 Financial assets Fair value through profit or loss 21 7 525 6 758 Fair value through other comprehensive income 21 7 995 8 111 Measured at amortised cost 21 16 930 14 355 Derivative financial instrument 22 185 326 Other receivables 23 934 1 866 Taxation 36 7 1 Assets held for sale 24 – 102 Cash and cash equivalents 25 1 633 1 865 Total assets 40 822 38 649 Equity Share capital and premium 26 15 915 15 922 Other reserves (5 763) (5 603) Retained earnings 4 574 4 226 Total shareholders’ equity 14 726 14 545 Non-controlling interests 18 1 475 1 399 Total equity 16 201 15 944 Liabilities Reinsurance liabilities 27 51 35 Insurance liabilities 27 19 311 16 229 Derivative financial instrument 22 140 7 Investment contract liability 28 1 940 1 863 Lease liabilities 29 430 379 Share-based payment liability 30 187 1 454 Employee benefits 31 697 670 Deferred income tax 20 65 158 Financial liabilities at fair value through profit or loss 32 136 126 Taxation 36 305 350 Other payables 34 1 359 1 434 Total liabilities 24 621 22 705 Total equity and liabilities 40 822 38 649 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 20
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Consolidated statement of changes in equity for the year ended 30 June R million Share capital and premium Equity accounted reserves Share-based payments reserve Other reserves 1 Transactions with non- controlling interests Foreign currency translation reserve Retained earnings Non- controlling interests Total equity Balance as at 30 June 2024 15 486 1 69 (99) (5 430) 769 3 289 1 302 15 387 Profit for the year – – – – – – 4 707 512 5 219 Other comprehensive income/(loss) for the year – 1 – (406) – (92) – (23) (520) Additional shares issued 436 – – – – – – – 436 Derecognition of retained earnings on deregistration of subsidiary – – – – – – (3) – (3) Transactions with non-controlling interest – – – – (535) – 2 40 (493) Share-based payment reserve – 1 118 – – – (55) (2) 62 Dividends paid – – – – – – (3 714) (430) (4 144) Balance as at 30 June 2025 15 922 3 187 (505) (5 965) 677 4 226 1 399 15 944 Profit for the year – – – – – – 5 623 557 6 180 Other comprehensive income/(loss) for the year – – – 10 – (324) – (35) (349) Additional shares issued 64 – – – – – – – 64 Treasury shares acquired (71) – – – – – – – (71) Transactions with non-controlling interest – – – – (93) – 3 (3) (93) Share-based payment reserve – (3) 180 – – – (78) (2) 97 Sale of financial asset at fair value through other comprehensive income – – – 70 – – (70) – – Dividends paid – – – – – – (5 130) (441) (5 571) Balance as at 30 June 2026 15 915 – 367 (425) (6 058) 353 4 574 1 475 16 201 Notes 26 18 1 Included in other reserves is the comprehensive income reserve and preference share capital issued by OUTsurance Life. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 21
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Consolidated statement of cash flows for the year ended 30 June R million Notes 2026 2025 Cash flows from operating activities Cash generated by operations 35 9 254 9 884 Interest received 505 421 Dividends received 159 80 Cash flows on assets backing policyholder liabilities 130 (314) Purchase of financial assets¹ (13 593) (6 853) Proceeds on disposal of financial assets¹ 10 898 5 292 Income tax paid 36 (2 539) (2 315) Net cash generated from operating activities 4 814 6 195 Cash flows from investing activities Property and equipment acquired to maintain and expand operations 15 (172) (373) Proceeds on disposal of property and equipment 15 3 191 Purchase of financial assets² (1 335) (1 186) Proceeds on disposal of financial assets² 1 571 637 Dividends received from associate 160 59 Proceeds on disposal of associate 19 526 – Proceeds on disposal of assets held for sale 24 161 24 Net cash inflow/(outflow) from investing activities 914 (648) Cash flows from financing activities³ Purchase of shares from non-controlling interest (47) (178) Purchase of OGL treasury shares by a subsidiary (71) – Repayment of lease liability 29 (115) (120) Borrowings repaid – (774) Cost of funding (115) (136) Dividends paid by subsidiaries to non-controlling interests (441) (430) Cash dividends paid to shareholders (5 130) (3 714) Net cash outflow from financing activities (5 919) (5 352) Net (decrease)/increase in cash and cash equivalents for the year (191) 195 Cash of associate becoming a subsidiary – 2 Unrealised foreign currency translation adjustment on cash and cash equivalents (41) (24) Cash and cash equivalents at the beginning of the year 1 865 1 692 Cash and cash equivalents at the end of the year 1 633 1 865 corner 1 Related to the management of insurance liabilities operational cash flows and regulatory capital. 2 Related to long-term Investments of primarily shareholder capital. 3 The financial liabilities of the Group consist of the lease liabilities and the revolving credit facility . Refer to note 29 and note 33 for the reconciliations thereof. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 22
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Notes to the consolidated financial statements 1. General information OUTsurance Group Limited (OGL), a listed public company incorporated in South Africa, its subsidiaries and associates (collectively referred to as the Group) is a financial services group offering insurance products. The Group has short-term insurance operations in South Africa, Australia and Ireland. The South African operation also underwrites long-term insurance products. In addition, the Group owns a portfolio of Fintech investments and an investment in an asset management entity. 2. Basis of preparation The Group financial statements for the year ended 30 June 2026 have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), the Financial Pronouncements as issued by the Financial Reporting Standards Council, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, JSE Listing Requirements and the Companies Act of South Africa. The financial statements are prepared in accordance with the going concern principle using the historical cost basis except for certain financial assets and liabilities where it adopts the fair value basis of accounting. Such financial assets and liabilities include financial assets classified as fair value through other comprehensive income, financial instruments at fair value through profit or loss, including designated, and financial instruments at amortised cost. The preparation of the financial statements necessitates the use of estimates, assumptions and judgements that affect the reported amounts in the statement of financial position and the statement of profit or loss and other comprehensive income. Where appropriate, details of estimates are presented in the accompanying notes to the consolidated financial statements. All monetary information and figures presented in these financial statements are stated in millions of Rand (R million), unless otherwise indicated. All material accounting policies are contained in note 41. Only accounting policies relating to transactions occurring in the current and prior financial year have been included. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 23
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Notes to the consolidated financial statements continued 3. Management of risk and capital 3.1 Risk management framework The Group has an Enterprise Risk Management framework to provide reasonable assurance that the Group’s risks are being prudently and soundly managed. The framework is designed according to acceptable principles on Corporate Governance and Risk Management standards. The risk management framework outlines the key risks facing the business and how these risks are monitored and mitigated. Risk and governance oversight is provided by the OUTsurance Group Board, OUTsurance Group Board Audit Committee (BAC), Group Board Risk and Compliance Committee (BRC), OUTsurance Holdings Asset, Liability and Capital Committee (ALCCO), OUTsurance Reinsurance Committee and the OUTsurance Holdings Risk Committee, the latter three being internal management committees. 3.2 Insurance risk management 3.2.1 Short-term insurance (i) Terms and conditions of insurance contracts The Group conducts short-term insurance business in different classes of short-term insurance risk. Below is a table showing the risks and the percentage insurance revenue earned per risk category. Types of insurance contract written South Africa Australia Ireland Personal Commercial Direct BZI CTP Personal Liability – 6.4% 1.6% 6.1% – – Miscellaneous 1.3% – – – – – Motor 66.2% 56.6% 65.7% 18.4% – 88.0% Personal accident – 0.2% – – 100% – Property 32.5% 33.2% 31.8% 75.5% – 12.0% Transportation – 3.6% 0.9% – – – corner The personal lines segment of the business provides insurance to the general public allowing them to cover their personal possessions and property. The commercial segment of the business targets medium and small businesses in South Africa. Insurance products are sold with either a monthly or an annual premium payable by the covered party or entity. The following gives a brief explanation of each risk: Personal accident Provides compensation arising out of death or disability directly caused by an accident occurring anywhere in the world, provided that death or disability occurs within twelve months of this accident. Liability Provides cover for risks relating to the incurring of a liability other than relating to a risk covered more specifically under another insurance contract. Miscellaneous Provides cover relating to all other risks that are not covered more specifically under another insurance contract. This class includes pet and motor warranty products as well as certain agricultural products related to livestock. Motor Provides indemnity cover relating to the possession, use or ownership of a motor vehicle. The cover includes comprehensive cover, third party, fire and theft and liability to other parties. Property Provides indemnity relating to damage to movable and immovable property caused by perils including fire, explosion, earthquakes, acts of nature, burst geysers and pipes and malicious damage. Transportation Provides cover to risks relating to stock in transit. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 24
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3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.1 Short-term insurance continued (ii) Insurance risks The primary activity of the Group relates to the assumption of possible loss arising from risks to which the Group is exposed through the sale of short-term insurance products. Insurance risks to which the Group is exposed relate to property, personal accident, liability, motor, transportation and other miscellaneous perils that may result from a contract of insurance. The Group is exposed to uncertainty regarding the timing, magnitude and frequency of such potential losses. The theory of probability forms the core base of the risk management model. Through the continuous sale of insurance products and subsequent growth in the pool of insured risks, the Group can diversify its portfolio of risks and therefore minimise the impact of variability of insurance losses affecting that portfolio. Insurance perils are unpredictable in nature, timing and extent, which expose the Group to a risk that actual future insured losses exceed their expected values. Along with its underwriting approach, the Group also manages its insurance risk through its reinsurance programme which is structured to protect the Group against material losses to either a single insured risk, or a group of insured risks in the case of a catastrophe where there would tend to be a concentration of insured risks. The reinsurance programme also provides protection against the occurrence of multiple natural catastrophe events. Climate risk is an emerging risk which increases the group’s insurance risk exposure to natural perils. This remains a top risk of the group as it exposes the group to more volatile earnings. This not only increases the cost of reinsurance but also the risk of availability of reinsurance to offload the risk. The Group can reprice for climate risk and it will remain a watch item as part of the underwriting and reinsurance strategy of the Group. The underwriting of insurance risk and the passing on of risk beyond appetite to reinsurers is further described below. Underwriting strategy The Group aims to diversify the pool of insured perils through writing a balanced portfolio of insurance risks over a large and differentiated geographical area. Products are priced using statistical regression techniques which identify risk factors through correlations identified in past loss experiences. Risk factors would typically include factors such as age of the insured person, past loss experiences, past insurance history, type and value of asset covered, security measures taken to protect the asset, major use of the covered item, and so forth. Risks are priced and accepted on an individual basis. Insurance premiums charged for a certain pool of risks are adjusted frequently according to the normalised loss ratios experienced on that pool of risks. Insurance risk is monitored within the Group on a daily basis to ensure that risks accepted by the Group for its own account are within the limits set by the Board of directors. Exception reporting is used to identify areas of concentration of risk so that management are able to consider the levels adopted in the reinsurance programme covering that pool of risk. Risks are rated individually by programmes loaded onto the computer system based on information captured by staff for each risk. Conditions and exclusions are also automatically set at an individual risk level. Individual risks are only automatically accepted up to predetermined thresholds which vary by risk type. Risks with larger exposure than the thresholds are automatically referred and underwritten individually by the actuarial department. These limits are set at a substantially lower level than the reinsurance retention limits. No risks which exceed the upper limits of the reinsurance programme can be accepted without the necessary facultative cover being arranged. Non-claims bonuses which reward customers for not claiming also form part of the Group’s Southern African and OUTsurance Ireland’s underwriting strategy. Multi-claimants are also monitored and managed by tightening conditions of cover or ultimately cancelling cover. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 25
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.1 Short-term insurance continued (ii) Insurance risks continued Reinsurance strategy The Group reinsures a portion of the risk it assumes through its reinsurance programme in order to control the exposure of the Group to losses arising from insurance contracts and in order to protect the profitability of the Group and its capital. A suite of treaties is purchased in order to limit losses suffered from individual and aggregate insurance risks. • OUTsurance Insurance Company Limited (OUTsurance): OUTsurance makes use of two non-proportional reinsurance treaty arrangements, as well as facultative placements in order to mitigate risk. Risk excess-of-loss (XL) cover is utilised for the property and liability risk classes. The deductible, layer limits and number of reinstatements for each layer vary based on class and are governed by the OUTsurance Reinsurance Policy. Additionally, advice from OUTsurance’s reinsurance broker and results from internal investigations are considered. For property risks, any risk in excess of the risk XL top limit of R150 million will be placed facultatively. The same is true for liability risks over R50 million. The following key measures define OUTsurance’s risk appetite when determining reinsurance for single large losses: • Maximum Event Retention (MER) 1 (per Risk) should not exceed 0.3% of the expected annual Gross Earned Premium (GEP) for the particular treaty year; • MER (multiple Risks) should not exceed 2% of the expected annual GEP for the particular treaty year; and • The probability of an insufficient number of reinstatements for each layer should be less than 1%. Limits are also placed on exposure to individual counterparties based on credit rating and jurisdiction equivalency. Reinstatement premiums are payable to the extent that reinsurance for individual losses under the risk XL and catastrophe events under the catastrophe XL is utilised, on a pro-rata basis. Catastrophe XL cover is utilised to help manage accumulation risk. The key classes exposing OUTsurance to catastrophe risk include property, motor and engineering of which property is the primary contributor. The deductible, layer limits and number of reinstatements are determined following intensive catastrophe modelling conducted both internally and by OUTsurance’s reinsurance broker in conjunction with consideration of the OUTsurance Reinsurance Policy. The following key measures define OUTsurance’s risk appetite when determining reinsurance for catastrophes: • MER (per catastrophe) should not exceed 3.6% of the expected annual Gross earned premium (GEP) for the particular treaty year. Catastrophe cover attaches R200 million deductible; • MER (multiple catastrophes) should not exceed 7% of the expected annual GEP for the particular treaty year; and • The probability of an insufficient number of reinstatements for each layer should be less than 0.5%. Limits are also placed on exposure to individual counterparties based on credit rating and jurisdiction equivalency. 1 Maximum Event Retention (MER) is defined as the net loss after allowance for reinsurance recoveries including reinstatement premiums payable. Therefore, calculated as the shortfall between the gross claim and the top limit (if any) plus retention plus reinstatement premium. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 26
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3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.1 Short-term insurance continued (ii) Insurance risks continued Reinsurance strategy continued • Youi Pty Limited (Youi) Youi makes use of proportional and non-proportional reinsurance arrangements in order to limit net risk retention, mitigate earnings volatility, and provide protection against severe catastrophe and large loss events. Quota Share reinsurance is utilised in the current financial year for Cyclone Pool reinsurance, where 100% is ceded for eligible losses from any cyclone event, as declared by the Australian Reinsurance Pool Corporation (ARPC). The SA CTP quota share treaty lapsed on 30 June 2025. Individual risk reinsurance is purchased up to the maximum policy limits via risk excess of loss reinsurance for property and liability risk classes. The deductible, layer limits and number of reinstatements for each layer vary based on class and are governed by Youi’s Reinsurance Placement Strategy and Reinsurance Management Strategy. Additionally, advice from Youi’s brokers and internal assessments are considered. For individual property (Youi Direct and BZI), no risk exceeded the risk XL top limit of A$10.0 million. The same is true for liability risks, with no risk exceeding A$20 million (Youi Direct, BZI SME and BZI Home Business Extension) or A$30 million (BZI Home and Motor). No facultative cover was used. The following key measures define Youi’s risk appetite when determining reinsurance for single large losses: • MER (per risk) may not exceed A$2.5 million; • Multiple reinstatements are purchased or negotiated in advance to minimise the possibility of insufficient cover for a frequency of losses. Unlimited reinstatements are provided for liability classes (including CTP); • Reinsurer participations are determined in line with stated requirements in the Reinsurance Management Strategy, to manage counterparty credit risk and achieve the objective of having diverse and strongly rated reinsurance partners. Catastrophe XL reinsurance is utilised to help manage accumulation risk. The key classes exposing Youi to catastrophe risk include property, SME commercial property and motor. Property is the primary contributor. The deductible, layer limits and number of reinstatements are determined following intensive catastrophe modelling conducted by Youi’s broker AON and take into consideration the guidelines set by the regulator for the company’s capital adequacy assessment. The following key measures define Youi’s risk appetite when determining reinsurance for catastrophes: • MER (per catastrophe) should not exceed A$65million; • Sufficient Catastrophe cover is purchased to cover the Company up to its 1 in 200-year event as determined by the aforementioned exposure analysis. In purchasing reinsurance, Youi buys additional cover above the 1:200 level as a buffer against, for example, greater than anticipated growth, modelling uncertainty and post loss inflation; • A single prepaid reinstatement is negotiated for the catastrophe programme with an additional two prepaid reinstatements purchased on the first layer as a capital protection against frequency of losses; • Limits are also placed on exposure to individual counterparties by layer and over the whole programme; • Reinsurer participations are monitored by credit rating and APRA authorisation status; and • Youi manages volatility, and increases capital efficiency, through the purchase of underlying third and fourth event covers and a sublayer which sits below the first and second event catastrophe programme. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 27
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.1 Short-term insurance continued (ii) Insurance risks continued Reinsurance strategy continued • OUTsurance Ireland DAC (OUTsurance Ireland) OUTsurance Ireland makes use of non-proportional reinsurance arrangements in order to mitigate risk. The company, through its reinsurance programme, controls its exposure to losses arising from insurance contracts and protects the profitability of the company and its capital. A suite of treaties is purchased in order to limit losses suffered from individual and aggregate insurance risks. Risk excess of loss cover is utilised for the property and liability risk classes. The deductible, layer limits and number of reinstatements for each layer vary based on class and are governed by the Company’s reinsurance strategy and reinsurance management strategy. Additionally, advice from the Company’s reinsurance broker and internal investigations are considered. For motor risks, in the event that any risk might exceed the risk XL retention level of EUR 1 million (risk excess) it would be covered under the XL treaty. The following key measures define the OUTsurance Ireland’s risk appetite when determining reinsurance for single large losses: • MER (per risk) may not exceed EUR 1 million; • Per risk excess of loss cover is purchased to protect the Company’s net retention under the motor XL treaty; • Multiple reinstatements are purchased in advance to minimise the possibility of insufficient cover for a frequency of losses. Unlimited reinstatements are provided for motor liability classes; and • On the long tail liability contract, reinsurer participations are monitored by credit rating. Limits are also placed on exposure to individual counterparties based on credit rating and jurisdiction equivalency. Property catastrophe excess of loss reinsurance is utilized to help manage accumulation risk. The key classes exposing OUTsurance Ireland to catastrophe risk include property and motor. Property is the primary contributor. The deductible, layer limits and the number of reinstatements are determined following intensive catastrophe modelling conducted by company’s broker. The following key measures define the company’s risk appetite when determining reinsurance for property catastrophes: • Single event retention (per catastrophe) should not exceed EUR 1 million; • Sufficient catastrophe cover is purchased to cover the Company up to its 1:200 year event as determined by the aforementioned exposure analysis; • A single reinstatement is purchased for the catastrophe programme; and • Limits are also placed on exposure to individual counterparties by layer and over the whole programme reinsurer participations are monitored by credit rating. OUTsurance Ireland only enters into reinsurance agreements with reinsurers which have credit ratings above a certain threshold as approved by the Board in the Group’s Reinsurance Policy. Credit rating scales are defined in note 3.3.3. Concentrations of risk and mitigating policies Risk concentrations are monitored by means of exception reporting. When large risks are underwritten individually, the impacts which they could have on risk concentrations are considered before they are accepted. Marketing efforts are also coordinated to attract business from a wide geographical spread. Risks which could lead to an accumulation of claims as the result of a single event are declined due to inadequate diversification and overall pool of risk covered. Attention is paid to attract large numbers of relatively small independent risks which would lead to very stable and predictable claims experience. The table below illustrates the concentration of insurance risk in terms of sum assured to which each geographical location is exposed to. The concentration risk which arises in each insurance entity is mitigated through the catastrophe excess of loss program entered into by that entity. The single largest geographical exposure of the insurance operations in Ireland is concentrated in the capital city, with the remaining concentration spread across the country. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 28
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3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.1 Short-term insurance continued (ii) Insurance risks continued Concentrations of risk and mitigating policies continued Gross insurance exposure 2026 2025 South Africa Gauteng 46.0% 46.5% Western Cape 26.4% 25.2% KwaZulu Natal 9.1% 9.7% Other 18.5% 18.6% Australia Queensland 22.3% 20.4% New South Wales 31.5% 30.3% Victoria 31.7% 32.5% Other 14.5% 16.8% corner Exposure to catastrophes and policies mitigating this risk Catastrophe modelling is performed to determine the impact of different types of catastrophe events (including natural disasters) in different geographical areas, at different levels of severity and at different times of the day. Catastrophe limits are set so as to render satisfactory results to these simulations. The catastrophe cover is also placed with reinsurers with a reputable credit rating and cognisance is taken of the geographical spread of the other risks underwritten by the reinsurers in order to reduce correlation of our exposure with the balance of their exposure. These reinsurance models are run at least annually to take account of changes in the portfolio and to take the latest potential loss information into account. Profit sharing arrangements A profit-sharing arrangement exists between the OUTsurance Insurance Company Limited (OUTsurance) and FirstRand Bank Limited. In terms of this profit-sharing arrangement, a portion of the operating profit generated on the Homeowners’ insurance business referred by FirstRand Bank Limited businesses is paid to FirstRand Bank Limited by way of a bi-annual preference dividend. Where operating losses arise, OUTsurance remains liable for such losses in full, but these losses may be offset against future profit distributions. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 29
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.2 Long term insurance (i) Terms and conditions of insurance contracts The Group conducts long-term insurance business on various classes of long-term insurance risk and manages the sale of these classes of risk between direct and partnership segments. Products are only sold to the South African retail market. The types of insurance and investment products sold are as follows: Insurance products • Underwritten Life; • Life Protector; and • Funeral Plan. Investment products • Endowment. The following gives a brief explanation of each product: Underwritten Life The Underwritten Life Insurance product is a fully underwritten product and covers the following insurance risks: • Death cover; • Disability cover; • Critical illness cover; and • Family funeral cover. In the event of a valid death, permanent disability (occupational disability) or critical illness claim, OUTsurance Life Insurance Company Limited (OUTsurance Life) pays the contractual sum assured. Life Protector The Life Protector product is a limited underwritten product and provides the following cover: • Death cover; • Disability cover; • Critical illness cover; • Retrenchment cover; • Temporary disability cover; • Family funeral cover; and • Premium waiver. In the event of a valid death, permanent disability (occupational disability) or critical illness claim OUTsurance Life pays the contractual sum assured. In the event of a valid temporary disability or retrenchment claim, OUTsurance Life undertakes to pay the policyholder a monthly instalment of a specified percentage of the sum assured as well as the premium for the specified period. The Group discontinued sales of this product. Funeral Plan The OUTsurance Life Funeral Plan product is a limited underwritten product and provides the following cover: • Death cover; • Stillborn benefit; • Premium waiver; and • Repatriation benefit. Endowment OUTsurance Life offered a linked endowment policy with a term of 5 years, which is structured as a life insurance policy. This is a pure investment product and the investment risk is referenced to a zero-coupon deposit issued by a large South African bank. The Group discontinued sales of this product when its investment in OUTvest was sold. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 30
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3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.2 Long term insurance continued (ii) Insurance risks Insurance risks The primary activity of OUTsurance Life relates to the assumption of loss arising from risks to which it is exposed through the sale of long-term insurance products. It is exposed to uncertainty regarding primarily the timing, frequency and to a lesser extent, the magnitude of such potential losses. The theory of probability forms the core base of the risk management model. Through the continuous sale of insurance products and subsequent growth in the pool of insured risks, OUTsurance Life can diversify its portfolio of risks and therefore minimise the impact of variability of insurance losses affecting that portfolio. Along with its underwriting approach OUTsurance Life also manages its insurance risk through its quota share and excess of loss reinsurance programme which is structured to protect it against material losses on single insured risks. Climate risk is an emerging risk which increases the OUTsurance Life’s insurance risk exposure to natural perils. This remains a top risk of OUTsurance Life as it exposes the company to more volatile earnings. This not only increases the cost of reinsurance but also the risk of availability of reinsurance to offload the risk. OUTsurance Life can reprice for climate risk and it will remain a watch item as part of the underwriting and reinsurance strategy of the OUTsurance Life Company. The underwriting of insurance risk and the passing on of risk beyond appetite to reinsurers is further described below. The most material risk assumed by OUTsurance Life is mortality risk linked to a death benefit and arises from insurance contracts entered with the retail market. The concentration risk of the total benefit is more specific to the target market per the distribution channels. The table below provides the concentration per OUTsurance Life’s distribution channels, based on the latest assumptions as at 30 June: 2026 2025 R million Gross of reinsurance Net of reinsurance Gross of reinsurance Net of reinsurance Value of benefits insured Direct business 20 260 2 026 17 097 1 710 Partnerships 140 280 80 240 126 270 74 524 corner Refer to note 27.17 and note 27.19 for a sensitivity analysis of insurance contract liabilities. Mortality and morbidity risk Mortality risk is the risk of loss arising due to actual death rates on life insurance business being higher than expected. Morbidity risk is the risk of loss arising due to policyholder health related claims being higher than expected. The following processes and procedures are in place to manage mortality and morbidity risk: • Premium rates are differentiated by factors which historical experience has shown are significant determinants of mortality and morbidity claims experience such as medical history and condition, age, gender, smoker status and HIV status; • The expertise of reinsurers is used for pricing where adequate claims history is not available; and • Reinsurance arrangements are put in place to reduce the mortality and morbidity exposure per individual policy and provide cover in catastrophic events. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 31
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.2 Long term insurance continued (ii) Insurance risks continued Underwriting experience risk There is a risk that actual mortality and morbidity experience is higher than expected. This could arise as a result of the number of claims or the value of the claims being higher than expected within a period. Selection risk is the risk that worse than expected risks are attracted and charged inadequate premiums. There is also a risk that the number of claims can increase due to the emergence of a new disease or pandemic. Underwriting experience risk is managed through: • Product design and pricing Rating factors are applied to different premium rates to differentiate between different levels of risk. Amongst others, premiums are differentiated by age, gender, smoking status and medical history. Premium rates are approved and reviewed by the Head of Actuarial Function. • Underwriting Underwriting ensures that only insurable risks are accepted and that premiums accurately reflect the unique circumstances of each risk. The Group has developed an advanced medical underwriting system which captures detailed information regarding the customers’ medical history and condition which is used for premium adjustments and to indicate where further underwriting is required by experienced medical underwriters. To verify the accuracy of customer data, customers who select the fully underwritten product are subject to various medical tests. Quality audits are performed on the underwriting process to ensure underwriting rules are strictly followed. • Reinsurance OUTsurance Life’s quota share and excess of loss reinsurance programme mitigates claims volatility and risk accumulation. Reinsurers also assist with pricing and product design decisions. OUTsurance Life makes use of proportional reinsurance in order to mitigate risk given its growing nature and exposure to multiple product lines in the early stages of development. The percentage ceded varies based on product and is determined based on various factors including maturity of the line of business as well as inherent risk exposure for each line. Certain lines of business employ surplus reinsurance over and above conventional quota share reinsurance in order to introduce an upper bound to the risk exposure faced on large policies. There are two Key Risk Indicators (KRIs) that define the risk appetite for OUTsurance Life: Risk Type Key Risk Indicator Appropriate Cover Single Risk Loss (net of Reinsurance) should be less than 5% of net monthly premiums. Counterparty Default Risk Exposure to counterparties with a Credit Quality Step (CQS) higher than 4. In order to assess the exposure that OUTsurance Life has to a single large loss, the retained exposures of the biggest risks are measured and compared to the earned monthly premium net of reinsurance. The CQS which are prescribed by the regulator, groups the issued credit ratings per reinsurer together and has an associated probability of default per CQS. The risk appetite for reinsurer counterparties is currently a CQS of 4 and lower and this is monitored on a quarterly basis. • Experience monitoring Experience investigations are conducted and corrective action is taken where adverse experience is noted. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 32
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3. Management of risk and capital continued 3.2 Insurance risk management continued 3.2.2 Long term insurance continued (ii) Insurance risks continued Lapse risk Policyholders have the right to cancel their policies at any given time during the policy duration. There is a risk of financial loss and reduced future profitability due to the lapse experience being higher than expected. Lapse risk is managed by ensuring: • Appropriate product design and pricing; • Providing high quality service; and • Continuous experience monitoring. Modelling and data risk Modelling risk is the risk that discounted cash flow models used to calculate actuarial liabilities and valuations do not accurately project the policy cash flows into the future. Data risk is the risk that the data which is used by the above models is inaccurate relative to actual experience. Modelling risk is mitigated by way of employing specialist actuarial software which is widely used by industry participants. The services of the Head of Actuarial Function are also employed to ensure models are accurately set up. Risk is further mitigated through periodic third line reviews. Data risk is managed by using internal systems and data warehouse technology. Data reports are readily available and frequently used and reviewed by management to track performance and verify experience variables. Expense risk Expense risk is the risk that actual expenses are higher than the budgeted expenses on which premium rates are calculated. Expenses are monitored on a monthly basis against budgeted expenses. Any deviation from budget is investigated, reported and remedial action taken where necessary. Higher than expected inflation is one potential cause of a deviation between actual and budgeted expenses. The Group therefore introduced an inflation linked derivative structure as part of the asset- liability matching strategy, where bond forward asset instruments are purchased to mitigate this risk. The aim is to provide protection against volatility in real cash flows (expenses) arising from changes in the inflation curve. Non-claims bonus risk Non-claims bonus risk is the risk that the future contractual bonus payments are higher than assumed in the calculation of the fulfilment cash flows or that the investment return received is lower than expected (economic risk). A decrease in the lapse rate will result in an increase in the non-claims bonus risk. This risk is managed by applying an appropriate lapse assumption to allow for uncertainty. A decrease in interest rates would result in a lowering of the investment return achieved on the assets backing the bonus liabilities, increasing the economic risk. This risk is mitigated by a zero-coupon deposit matching strategy, where the investment return on the zero-coupon deposit matches the required investment return in both timing and amount. Interest rate risk Interest rate risk is managed by an asset-liability matching strategy which is executed by the use of interest rate derivative structures which are partially collateralised. Profit-sharing arrangements A profit-sharing arrangement has been entered into between OUTsurance Life and Shoprite Investments Limited. In terms of this profit-sharing arrangement, a portion of the operating profit generated on the funeral insurance business distributed through the Shoprite distribution network is paid to Shoprite Investments Limited by way of an annual preference dividend. Operating losses incurred are for OUTsurance Life’s account. This contract is executory in nature. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 33
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued The Group’s activities expose it to a variety of financial risks: market risk (including equity price risk, interest rate risk and currency risk), credit risk and liquidity risk. 3.3.1 Financial instruments measured at fair value The table below analyses financial instruments carried at fair value, by level of fair value hierarchy. The different levels are based on the extent that quoted prices are used in the calculation of the fair value of the financial instruments. These levels are defined as follows: • Level 1 – fair value is based on quoted market prices (unadjusted) in active markets for identical instruments as measured on reporting date. • Level 2 – fair value is determined through inputs, other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (prices) or indirectly (derived from prices). • Level 3 – fair value is determined through valuation techniques which use significant unobservable inputs. The following table presents the Group’s financial assets and liabilities that are measured at fair value: R million Level 1 Level 2 Level 3 Total 30 June 2026 Financial assets Equity securities Exchange traded funds 1 136 – – 1 136 Listed non-cumulative, non-redeemable preference shares 143 – – 143 Collective investment schemes – 1 081 – 1 081 Unlisted equity – – 10 10 Debt securities Collective investment schemes – 3 062 – 3 062 Zero-coupon deposits – 1 770 – 1 770 Government, municipal and public utility securities – 1 184 – 1 184 Money market securities <1year – 2 184 – 2 184 Money market securities >1 year – 2 791 – 2 791 Zero-coupon deposits backing endowment policies – 1 940 – 1 940 Unsecured investment in development fund – – 131 131 Contingent receivable – – 88 88 Derivative financial instruments Collateralised swaps – 163 – 163 Total return swap – 16 – 16 Bond forward – 6 – 6 Total financial assets 1 279 14 197 229 15 705 Financial liabilities Debt securities Investment contract liability – 1 940 – 1 940 Financial liabilities at fair value through profit or loss – – 136 136 Derivative financial instruments Interest rate swaps – 112 – 112 Foreign exchange derivative – 28 – 28 Total financial liabilities – 2 080 136 2 216 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 34
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.1 Financial instruments measured at fair value continued R million Level 1 Level 2 Level 3 Total 30 June 2025 Financial assets Equity securities Exchange traded funds 1 184 – – 1 184 Listed non-cumulative, non-redeemable preference shares 227 – – 227 Collective investment schemes 810 – 810 Unlisted equity – – 484 484 Debt securities Collective investment schemes – 2 646 – 2 646 Zero-coupon deposits – 1 730 – 1 730 Government, municipal and public utility securities – 789 – 789 Money market securities <1year – 1918 – 1918 Money market securities >1 year – 3 046 – 3 046 Zero-coupon deposits backing endowment policies – 1 863 – 1 863 Unsecured investment in development fund – – 84 84 Contingent receivable – – 74 74 Convertible loan – – 14 14 Derivative financial instruments Total return swap – 249 – 249 Collateralised swaps – 67 – 67 Foreign exchange derivative – 10 – 10 Bond forward1 – – – – Total financial assets 1411 13 128 656 15 195 Financial liabilities Debt securities Investment contract liability – 1 863 – 1 863 Financial liabilities at fair value through profit or loss – – 126 126 Derivative financial instruments Interest rate swaps – 7 – 7 Total financial liabilities 1 870 126 1 996 1 An amount of R461 000 was excluded due to rounding. There were no transfers between levels during the year ended 30 June 2026. The fair values of the above instruments were determined as follows: Level 1 The fair value of financial instruments traded in an active market is based on quoted market prices at the statement of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. • Listed, non-cumulative, non-redeemable preference shares: The listed preference share investments comprise instruments which are listed on a securities exchange. The fair values of these investments are calculated based on the quoted closing prices of the individual investments on reporting date. These instruments are included in Level 1 and comprise mainly equity and debt instruments classified as trading securities. • Exchange traded funds: The investment in the exchange traded funds track the performance of the top fifty companies listed on the JSE. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 35
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.1 Financial instruments measured at fair value continued Level 2 The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are market observable, the instrument is included in Level 2. Level 2 instruments comprise the following, with a description of their valuation techniques provided. • Collective investment schemes: The Group is invested in various unit trusts that hold a diversified portfolio of assets. These instruments are fair valued monthly by multiplying the number of units held by the closing market price which is based on the most recently available observable inputs. The collective investment schemes include: – Money market funds: The Group utilises money market collective investment schemes for short-term cash preservation. These funds invest in a diversified portfolio of short-term, low risk debt instruments; – MSCI World: To increase the Group’s foreign exposure it invested in MSCI world index feeder fund that invests in equities across developed markets; – Australian Equity Index Fund: An investment in a unit trust that tracks the performance of the top 300 companies listed on the ASX; and – Australian Bond fund: An investment in a fund that invests in government, government-related and investment grade corporate debt in issued in Australia. • Zero-coupon deposits: These instruments are not traded actively during a financial reporting period. The Group uses zero-coupon deposits to offset the interest rate risk inherent in some of the life insurance products underwritten by OUTsurance Life. The counterparties to these deposits are the large South African banks. The zero-coupon deposits have been structured to allow for the payment of the notional initial deposit to be spread over the specified term to enable cash flow matching. The maturity dates of the accreting zero-coupon deposits are long-term, with maturity dates at the various trading dates not exceeding 15 years. The fair values of the accreting zero-coupon deposits are determined monthly based on observable market inputs. To determine the fair values of the accreting zero-coupon deposits, a risk-free Swap Yield Curve produced every business day by the Johannesburg Securities Exchange is referenced. The instruments are designated at fair value through profit or loss, with both the interest accrual and fair value accounted for in profit or loss. The entire balance of the zero-coupon deposits is exposed to credit risk, refer to note 3.3.3. The zero-coupon deposit has specifically remained classified as fair value through profit or loss under the ‘accounting mismatch’ rule as these financial assets have specifically been acquired to match the non-claims bonus portion of the policyholder liability. • Government, municipal and public utility securities and money market securities: The fair value of money market instruments and government, municipal and public utility securities is determined based on observable market inputs. These instruments consist of fixed and floating rate notes held in segregated portfolios and are typically listed on the JSE Interest Rate Market. These listed instruments are not as actively traded as Level 1 instruments. The fair value of these instruments is determined by using market observable inputs. The fair value yield, term-to-maturity, coupon payments and maturity value are used to discount the expected cash flows of these instruments to their present value in determining the fair value at the financial year-end. • Zero-coupon deposits backing endowment policies and the investment contract liability backing the asset: These instruments relate to a linked endowment policy. The fair value is based on the quoted interest rates provided in each contract. The Group is not the ultimate counterparty to these endowment policies but rather acts as an agent to the arrangement between the client and third party. As such the asset and liability are designed to set off against each other. • Foreign exchange derivative contracts: The fair value of the foreign exchange derivatives is measured on a mark to market basis using the current exchange rate, the volatility of the underlying currency and the risk-free rate at reporting date. The risk-free rate is the issuer’s chosen government bond yield which matches the term of the derivative. • Total return swap: The Group entered into a total return swap to hedge its obligation under the ESOP cash settled share-based payment scheme. The fair value of the total return swap is based on the net of the growth of the underlying listed share price, relative to the purchase price, and the interest payable on the notional equity value based on 3-month JIBAR. The total return swaps entered into in the current financial year are exposed to ZARONIA. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 36
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.1 Financial instruments measured at fair value continued Level 2 continued • Interest rate swaps: These swap arrangements consist of fixed for floating instruments. The fixed leg is priced at a fixed percentage plus a contractually agreed basis point adjustment and the floating leg is priced at 3-month JIBAR. • Collateralised swaps: The fair value of the collateralised swap arrangement, whereby the R2048 government bond serves as collateral and is the underlying instrument, is determined in the same manner as other money market instruments described above. • Bond forward contract: The fair value of the bond forwarded contract is derived from the fair value of the underlying bonds which are linked to the CPI index. The fair value of those bonds are calculated in the same manner as the other government and money securities described above. The Group makes use of the interest rate swap, collateralised swap and bond forward arrangement to manage the interest rate risk contained in the non-bonus policyholder liability of OUTsurance Life. Refer to note 3.3.2 for further information with regards to how this arrangement manages interest rate risk. Whilst the above instruments are not traded on an active market, the variable inputs relating to their valuation are readily available in the marketplace. The remaining inputs have been contractually agreed and are reflective of market-related terms and conditions. Level 3 If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3. The instruments at fair value through profit or loss represent the following: The table below analyses the movement of the total Level 3 financial assets as at 30 June: R million 2026 2025 Opening balance at 1 July 656 1 111 Contingent receivable recognised 4 – Additions 44 28 Disposals (sales and redemptions) (492) (29) Foreign exchange adjustments – (1) Fair value movement through profit or loss 27 (19) Fair value movement through other comprehensive income (10) (434) Closing balance at 30 June 229 656 corner • Unlisted equity: The table below analyses the movement of the total unlisted equity as at 30 June: R million 2026 2025 Opening balance at 1 July 484 – Disposals (sales and redemptions) (463) 918 Foreign exchange adjustments (1) – Fair value movement through other comprehensive income (10) (434) Closing balance at 30 June 10 484 corner Unlisted equity at fair value through profit or loss The movements in fair value of the investment in The SA SME Fund Limited with a carrying value of R10 million (2025: R10 million) were immaterial in the current and prior financial year. Unlisted equity at fair value through other comprehensive income An asset worth R464 million (30 June 2025: R474 million) was disposed on 12 September 2025 at fair value of US$26.7 million. The remaining asset valued at no value and unchanged from 30 June 2025 is determined based on discounted cash flow calculations taking into account unobservable inputs of similar companies. The negative fair value movement on this portfolio relates primarily to persistent negative investor sentiment in respect of international postgraduate student lending to students aspiring to complete their postgraduate studies at top universities in the USA. Recent policy measures in the USA, which include a pause on visa interviews and mass revocation of student visas have resulted in a sharp decline in new international students. These policy measures together with constraints on the statement of financial position have placed significant strain on the Group’s investment (via RMI Treasury Company Limited) in an international fintech platform, Prodigy, which offers loans to these students. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 37
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.1 Financial instruments measured at fair value continued Level 3 continued • Unsecured Investment in Development Fund: The Group invested in the ASISA Enterprise Development Fund of which the objective is to make investments in underlying B-BBEE development entities. The nature of the underlying debt and equity investments are high risk, small- and medium sized businesses which are exposed to start-up, scale and macro-economic risk. As such gains and losses which could arise from the underlying investments are material, relative to the size of the Group’s investment in the fund. The investment is fair valued by multiplying the number of units held by the closing price per unit as valued by the fund. During the current financial year, an additional contribution was made and, in order to manage exposure within the funds, the overall contributions have been split between the existing fund and another fund with the same objectives. The respective unit price is R95 389 (2025: R87 194) and R96 991 (2025: R96 933). A 20% positive or negative change in the value of the underlying investments is deemed to be a reasonable expected range of potential fluctuation of the Group’s investment and will result in the following fair value of the fund. The increase or decrease in fair value has a corresponding increase or decrease in profit or loss. R million Current 20% increase in fair value 20% decrease in fair value 30 June 2026 Fair value 131 157 105 corner 30 June 2025 Fair value 84 100 67 The table below analyses the movement of the unsecured investment in development fund as at 30 June: R million 2026 2025 Opening balance at 1 July 84 57 Additional investments 44 27 Fair value adjustments1 3 – Closing balance at 30 June 131 84 corner 1 Fair value adjustment of R96 000 in the prior financial year has been excluded due to rounding. • Contingent receivable: The contingent receivable relates to the disposal of CloudBadger Technologies (Pty) Ltd (CloudBadger). The total consideration for the disposal is contingent on the revenue generated from the agreed contracts within CloudBadger. This will be calculated over the period that the contracts remain in force, up to a maximum of four years from the effective date of the sale and will be payable on an annual basis. The fair value of the contingent receivable as at 30 June 2026 is R4.0 million, R3.8 million of which is expected to be received in the next financial year on 1 October 2026. Refer to assets held for sale note 24 for more information regarding the sale of shares held in CloudBadger. Due to the value of the balance, the movement during the financial year is not deemed material. The balance of the contingent consideration at fair value of R84 million (2025: R74 million) is receivable on the third anniversary date (28 March 2027). The first receivable of R17 million was received during the prior financial year, the second receivable of R14 million was received during the current financial year. The value of the contingent consideration is inter alia determined based on performance fees earned by certain assets disposed of over a period of three years from the date of disposal. The table below analyses the movement of the contingent receivable as at 30 June: R million 2026 2025 Opening balance at 1 July 74 117 Contingent receivable recognised 4 – Disposals (sales and redemptions) (15) (16) Fair value movement through profit or loss 25 (27) Closing balance at 30 June 88 74 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 38
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.1 Financial instruments measured at fair value continued Level 3 continued • Convertible loan: This was a loan with AutoGuru Australia Pty Limited (AutoGuru) which was convertible to ordinary shares in the event of default which also exposes the Group to equity price risk and therefore failed the SPPI criteria. The loan was therefore designated at fair value through profit or loss. The fair value was determined based on a present value calculation taking into account the term to maturity, a market related interest rate and the recoverability of the loan. The fair value increased with the agreed repayment terms reached on the disposal of the Group’s equity interest in AutoGuru, which increased the likelihood of recovery of the outstanding balance. During the current financial year, this loan was settled by AutoGuru in line with the agreed repayment terms. In the prior financial year, a 2% movement in the interest rate would have resulted in a fair value adjustment being recognised in profit or loss. Based on the fair value adjustment of R14 million, a 2% increase in interest rates would have increased profit or loss by R1 million to R15 million, while a 2% decrease in interest rates would have reduced profit or loss by R1 million to R13 million. • Financial liabilities at fair value through profit or loss: The valuation of this financial instrument is based on the underwriting results of the insurance contracts written in terms of the FirstRand Bank Limited homeowners and the Shoprite funeral profit sharing arrangement and represents the accrued profit related to these arrangements. Profits arising out of the profit-sharing arrangements accrue on a monthly basis and are distributed as preference dividends bi-annually to FirstRand Bank Limited. Profits arising out of the funeral profit sharing arrangement accrue on a monthly basis and are distributed as preference dividends annually to Shoprite Investment Limited. The significant unobservable input in the calculation of the preference dividends is the underwriting results of the profit-sharing arrangements which are measured in accordance with the Group’s accounting policies for measuring insurance contracts. Should the profit of the profit-sharing arrangement increase or decrease by 10%, for instance, the preference dividend will also increase or decrease by 10%. No assumptions or adjustments or any other inputs are made to the profits before or after distribution. Distribution of the profits arising are made in the form of preference dividends. The table below analyses the movement of the Level 3 debt security as at 30 June: R million 2026 2025 Opening balance at 1 July 126 113 Preference dividend paid (202) (198) Profit accrued 212 211 Closing balance at 30 June 136 126 corner The profit or loss of these profit-sharing arrangements is sensitive to the insurance service results of the contracts issued in these arrangements. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 39
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk Market risk is the risk that the value of a financial instrument may fluctuate as a result of changes in the market price. Investments valued at fair value are therefore subject to changes in value due to market fluctuations, which may impact on the net income during those financial years in which such fluctuations occur. Market risk therefore comprises equity price risk, interest rate risk and currency risk. Equity price risk Equity price risk is the risk that the price of an equity instrument will fluctuate due to market forces rather than as a direct result of some other market risk such as currency or interest rate risk. The Group is exposed to equity price risk because of the listed equity investments held by the Group and classified on the statement of financial position as fair value through profit or loss. The Group’s objective is to earn competitive relative returns by investing in a diverse portfolio of high-quality, liquid securities. The Group’s holdings are diversified across companies and concentration in any one company is limited by parameters established by management which is influenced by solvency capital requirements. The Group’s ALCCO actively monitors equity assets owned by the Group as well as the concentration of these holdings. The Group’s ALCCO actively monitors equity assets owned by the Group as well as the concentration of these holdings. R million 2026 2025 Exposure in South African market Ordinary shares and exchange trade funds Exchange traded funds 1 136 1 184 Unlisted equities 10 10 Perpetual preference shares Listed non-cumulative, non-redeemable preference shares 143 227 Collective investment schemes Collective investment schemes: Equities 68 42 Exposure in Australian market Collective investment schemes Collective investment schemes: Equities 1 013 768 Exposure in markets denominated in US Dollar Ordinary shares Unlisted equities – 474 2 370 2 705 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 40
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk continued The Group’s largest concentration of equity investments in one particular company is 6.2% (2025: 17.5%) of total assets subject to equity risk. Refer to note 3.3.1 for detail on the total unlisted equity of R10 million (2025: R484 million). At 30 June 2026, the Group’s total equity securities were recorded at their fair value of R2 370 million (2025: R2 705 million). The following table illustrates the impact on profit or loss if the fair value of the instruments were to increase or decrease. The sensitivity was based on the annualised volatility of returns in the two territories (three territories for the prior financial year). The impact on equity is expected to be consistent with the impact on profit or loss (net of tax) and has therefore not been shown separately in the table. An increase or decrease of 15% in the fair value of the assets exposed to equity price risk would result in the following changes in profit or other comprehensive income before tax of the Group: 2026 2025 R million 15% increase in fair value of the unit price 15% decrease in fair value of the unit price 15% increase in fair value of the unit price 15% decrease in fair value of the unit price South African Equities 294 (294) 219 (219) Australian Equities 152 (152) 115 (115) Equities denominated in US Dollar (other comprehensive income)1 – – 71 (71) corner 1 The movement in the unlisted equities denominated in US dollar would have impacted equity directly as these instruments are measured at fair value through OCI. All other equity instruments are measured at fair value through profit or loss. The Group has Total return swaps (TRS) to hedge its exposure to the OGL shares contained in the conditional share plan and divisional incentive schemes of the Group to manage its equity price risk. Refer to note 22 for the nature of the derivative. The new TRS contracts entered in the current financial period are linked to ZARONIA. A subsequent 15% movement in the OGL share price and a 200-basis point move in the ZARONIA (JIBAR for the prior financial year) will have the following changes in profit or loss: R million Current 15% increase in the equity fair value 15% decrease in the equity fair value 2% increase in interest rates 2% increase in interest rates 30 June 2026 Equity receipt1 19 46 (9) – – Floating payment2 (2) – – (2) (1) Net impact 17 46 (9) (2) (1) corner 30 June 2025 Equity receipt1,3 266 533 – – – Floating payment2 (18) – – (22) (14) Net impact 248 533 – (22) (14) 1 The Group has the right to receive the growth in the OGL share price from contract inception. 2 Floating interest payable linked to ZARONIA (JIBAR for the prior financial year). 3 The impact of the 15% decrease in the equity fair value of R363 000 in the prior financial year was excluded due to rounding. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 41
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk continued Interest rate risk Interest rate risk is the risk that the value or the future cash flow of a financial instrument will fluctuate as a result of a change in market interest rates. The Group’s financial assets are exposed to interest rate risk as a significant portion of the Group’s assets are invested in interest rate sensitive debt and money market securities. The risk attached to these securities is managed according to pre-specified risk levels based on a mandate with the fund managers. Risk exposure to movements in yields is specified as a maximum value per interest rate point move per million rand invested. These levels are approved annually by the Board of directors and the Group ALCCO. Transition to ZARONIA South Africa’s financial market is actively transitioning from the Johannesburg Interbank Average Rate (JIBAR) to the South African Rand Overnight Index Average (ZARONIA). The market is in the final stages of the transition, moving from policy planning to active implementation across all contracts. • ZARONIA-linked instruments began trading in the derivative and cash markets in May 2025. • As of 1 May 2026, the milestone of “no new JIBAR” has been met – from this date onward the market may not issue new instruments that reference JIBAR. • 31 December 2026 is the date for JIBAR cessation, from which JIBAR will be discontinued and all contracts referencing JIBAR must be adjusted to ZARONIA. Management initiated a transition approach to assess affected contracts, systems, processes and risk management activities. Group’s current JIBAR-related exposures yet to be transitioned include the investments in instruments through the money market and fixed income assets, the interest rate swaps held by OUTsurance Life and the Group’s revolving credit facility. At the reporting date, management does not expect the transition to have a material impact on the Group’s financial position or results of operations. Any modifications to contractual cash flows arising solely as a direct consequence of the benchmark reform, and which are economically equivalent, will be accounted for in accordance with the IFRS interest rate benchmark reform amendments. As at 30 June 2026, the fair value of the Group’s exposure to ZARONIA-linked instruments comprised money market assets of R1 160.8 million and interest rate swaps held by OUTsurance Life of R1.8 million. The ZARONIA rate of 6.99% and the JIBAR rate of 6.86% as at 30 June 2026 did not expose the Group to materially different interest rate risk. The Group’s exposure to interest rate risk is R29 675 million (2025: R26 487 million), which consists of fixed rate instruments of R20 155 million (2025: R17 317 million) and variable rate instruments of R9 520 million (2025: R9 170 million). An increase or decrease of 2% in the market interest rate would result in the following changes in profit or loss and other comprehensive income before tax of the Group and equity. A 2% movement is reflective of potential changes in the interest rate in the current economic environment. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 42
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk continued Interest rate risk continued 2026 2025 R million 2% increase 2% increase 2% increase 2% increase Amortised cost instruments Fixed rate instruments Cash and cash equivalents 4 (4) 4 (4) Term deposits (337) 337 (287) 287 Variable rate instruments Cash and cash equivalents 28 (28) 34 (34) Term loan (2) 2 – – Fair value through profit or loss Fixed rate instruments Zero-coupon deposits backing endowment policies 39 (39) 37 (37) Convertible loan – – 1 (1) Variable rate instruments Collective investment schemes 24 (24) 15 (15) Money market securities <1 year 1 (1) – – Fair value through other comprehensive income Fixed rate instruments Government, municipal and public utility securities (29) 32 (9) 10 Money market securities <1 year (4) 4 (3) 3 Money market securities >1 year (3) 3 (6) 6 Variable rate instruments Government, municipal and public utility securities (33) 36 (26) 29 Money market securities <1 year (17) 18 (15) 15 Money market securities >1 year (116) 125 (121) 131 Collective investment schemes 37 (37) 38 (38) (408) 424 (338) 352 corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 43
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk continued Interest rate risk continued The Group’s asset portfolio used to match regulatory long-term insurance contract liabilities is exposed to interest rate risk. At 30 June 2026, the carrying value and fair value of this portfolio was R1 826.0 million (2025: R1 730.1 million). A 200-basis point shift in the market yield curve would result in the following changes in the profit or loss and corresponding capital value of this portfolio: 2026 2025 R million 2% increase 2% decrease 2% increase 2% decrease Zero-coupon deposits (128) 142 (155) 174 Derivative financial instruments – Interest rate swap 338 (395) 240 (280) Derivative financial instruments – Bond forward (54) 73 (39) 51 Derivative financial instruments – Collateralised swap (124) 244 (44) 85 Total net impact1 32 64 2 30 corner 1 The impact on equity is expected to be consistent with the impact on profit or loss (net of tax) and has therefore not been shown separately in the table. Currency risk Currency risk arises on financial instruments that are denominated in a currency other than its functional currency. Translation risk arises as a result of movements between the functional currencies of foreign subsidiaries and the Group’s reporting currency. The Group’s exposure to translation risk is mainly in respect of foreign investments made in line with the long-term strategy approved by the Board for seeking international diversification of investments to expand its income stream. The Group has investments in foreign subsidiaries and associates whose net assets are exposed to currency translation risk, primarily the Australian Dollar and Euro. The foreign exchange profits or losses arising from the translation of the Group’s foreign subsidiaries’ statements of financial position from their functional currencies into Rand are recognised in the foreign currency translation reserve (FCTR). The movements in exchange rates therefore have no impact on profit. The FCTR is realised in profit or loss on disposal of the foreign companies. The Group’s exposure to currency risk due to transactions denominated in foreign currency for the current financial year is considered not significant. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 44
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.2 Market risk continued Currency risk continued The table below sets out the balances of financial instruments denominated in Australian Dollar: 2026 2025 A$ million R million A$ million R million At 30 June Convertible loan to Autoguru – – 1 14 Foreign bank account 1 6 2 27 cornerExchange rates: Closing rate at 30 June 2026 11.34 Closing rate at 30 June 2025 11.68 The table below sets out the balances of financial instruments denominated in US Dollar: 2026 2025 US$ million R million US$ million R million At 30 June Unlisted equity – – 27 474 cornerExchange rates: Closing rate at 30 June 2026 n/a Closing rate at 30 June 2025 17.75 In the prior financial year, an appreciation or depreciation of 1ZAR to the US$ would have resulted in other comprehensive income before tax of the Group decreasing by R26.7 million or increasing by R26.7 million. Foreign exchange derivatives The Group utilises derivative financial instruments to reduce the impact of the currency risk contained in its open foreign currency exposures. The Group undertakes transactions involving derivative financial instruments with other financial institutions. During the current and prior financial year, the Group entered into foreign derivative contracts to economically hedge its exposure against the volatility of the Rand against the Euro. The Euro FEC was entered into to hedge the €10 million additional capital investment in OUTsurance Irish Insurance Holdings Limited, which is due in November each year as part of the incremental capital investment over the next 5 years to meet the minimum capital requirements of the Central Bank of Ireland. An additional €20 million is expected to be invested in November 2026 to assist with funding the scaling of the Irish operations. This additional capital has also been hedged with FECs. The table below sets out the Forward Exchange Contracts (FEC’s) entered into by the Group: Million FEC currency FEC weighted average strike price Foreign currency contract amount Current Rand Exposure Fair value at 30 June 2026 At 30 June 2026 EUR FEC EURO 19.65 30 590 (28) corner Million FEC currency FEC weighted average strike price Foreign currency contract amount Current Rand Exposure Fair value at 30 June 2025 At 30 June 2025 EUR FEC EURO R19.93 10 199 10 Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 45
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk Credit risk is the risk that a financial asset may not be realisable due to the inability or unwillingness of the issuer of such an instrument to discharge its contractual obligations over the expected life of the financial instrument. The key areas where the Group is exposed to credit risk are: • Cash and cash equivalents; • Loans and receivables at amortised cost; • Favourable derivative financial instruments; • Financial assets measured at fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL); • Reinsurers’ share of insurance liabilities; and • Amounts due from debtors. The Group limits its counterparty exposures from its money market and preference share investment operations by investing in entities with a minimum credit rating and ensuring counterparty diversification. The credit quality of the Group’s counterparties as well as the exposure to credit risk is monitored by the Group’s ALCCO against a set Board investment mandate. The mandate is informed by the prudential regulatory capital requirements of each entity. The table below indicates the credit quality of the Group’s financial assets: R million AAA AA A BBB BB B CCC Not rated Total At 30 June 2026 Reinsurance contract assets1 240 1 817 562 6 – – – (26) 2 599 Term deposits – 16 842 – – – – – – 16 842 Collective investment schemes – 1 178 – 1 851 31 – – 2 3 062 Cash and cash equivalents – 826 20 20 767 – – – 1 633 Other receivables2 – 373 – – 5 – – 316 694 Government, municipal and public utility securities – – – – 1 180 – 2 2 1 184 Money market securities >1 year – – – – 2 702 89 – – 2 791 Money market securities <1 year – – – – 2 134 50 – – 2 184 Zero-coupon deposits backing endowment policies – – – – 1 940 – – – 1 940 Zero-coupon deposits – – – – 1 770 – – – 1 770 Unsecured investment in development fund – – – – – – – 131 131 Contingent receivable – – – – – – – 88 88 Preference share investment – – – – – – – 1 1 Term loan – – – – – – – 87 87 Total 240 21 036 582 1 877 10 529 139 2 601 35 006 corner 1 Reinsurance creditors included in the unrated counterparty credit rating exposure exceed the related assets included in this balance. 2 This excludes receivables classified as non-financial assets. The unrated receivable is materially related to unrated brokers and intermediaries who collect premiums from policyholders. Credit quality assessment is done through the underwriting process of the policyholder. Notes to the consolidated financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202646
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued R million AAA AA A BBB BB B CCC Not rated Total At 30 June 2025 Reinsurance contract assets 814 1 320 213 3 3 – – – 2 353 Term deposits – 14 347 – – – – – – 14 347 Cash and cash equivalents – 1 210 – 639 16 – – – 1 865 Collective investment schemes – 743 1 893 7 2 – – 1 2 646 Other receivables1 – 329 – 19 – – – 1 311 1 659 Zero-coupon deposits – – – 740 846 144 – – 1 730 Government, municipal and public utility securities – – – – 780 4 3 2 789 Money market securities >1 year – – – – 2 950 96 – – 3 046 Money market securities <1 year – – – – 1 900 18 – – 1 918 Zero-coupon deposits backing endowment policies – – – – 1 863 – – – 1 863 Unsecured investment in development fund – – – – – – – 84 84 Contingent receivable – – – – – – – 74 74 Convertible loan – – – – – – – 14 14 Preference share investment – – – – – – – 8 8 Total 814 17 949 2 106 1 408 8 360 262 3 1 494 32 396 1 This excludes receivables classified as non-financial assets. The unrated receivable is materially related to unrated brokers and intermediaries who collect premiums from policyholders and once-off receivables from a corporate transaction. Credit quality assessment is done through the underwriting process of the policyholder. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial asset in the table above, except for the reinsurance contract assets that only represents the credit quality of the balance. Notes to the consolidated financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202647
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued As at 30 June 2026, the maximum exposure to credit risk from reinsurance contracts, which relates to incurred claims recoverable from the re-insurers, is R2 625 million (2025: R2 167 million). The credit quality of the balance of this exposure is as follows: R million 2026 2025 Credit rating AAA 238 814 AA 1 765 1 062 A 496 171 BBB 3 3 Unrated 123 117 Total 2 625 2167 corner As at 30 June 2026, the maximum exposure to credit risk on insurance contracts is R162 million (2025: R117 million), which relates to premiums receivable for services the Group already provided. These balances are considered unrated as they relate to receivables from policyholders who do not have a credit rating. The credit quality assessment is done through the underwriting process of the policyholder: R million 2026 2025 Credit rating OUTsurance 160 116 Youi 1 1 OUTsurance Ireland1 1 - Total 162 117 corner 1 A balance of R185 000 in the prior financial year has been excluded due to rounding. Where available, the Group utilises the credit ratings per counterparty as provided by each of the major credit rating agencies to determine the credit quality of a specific instrument. Where the instrument credit rating is not available, the credit rating of the counterparty as provided by the major credit ratings agencies is utilised. In instances where the credit rating for the counterparty is not available, the Group utilises the credit rating provided by a service provider amended to take into account the credit risk appetite of the Group. The internal methodology of the service provider provides a credit rating which assesses the counterparty’s credit quality based on its financial standing. During the current financial year, the Group improved its credit rating mapping process to map credit ratings from different ratings agencies to the Group’s disclosable credit ratings, per the mapping guidance, which is accepted by the Regulator and applied by the industry. This has caused movements in the credit ratings for cash and cash equivalents, Zero coupon deposits and the Government, municipal and public utility securities and money market securities. The underlying credit quality of the instruments hasn’t changed. Although the Land Bank instrument is rated CCC, the exposure is subject to ongoing monitoring by the ALCCO. This methodology has been approved by the Group’s ALCCO. Should the service provider not provide a credit rating, the counterparty is shown as unrated. The ratings are defined as follows: Long-term ratings AAA Highest credit quality. The ratings denote the lowest expectation of credit risk, ‘AAA’ ratings are assigned only in the case of exceptionally strong capacity or payment of financial commitments. AA Very high credit quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. A High credit quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. The capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 48
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued Long-term ratings continued BBB Good credit quality. ‘BBB’ rating indicates a low expectation of credit risk. They indicate adequate capacity for timely payment of financial commitments. Changes in circumstances or in economic conditions are more likely to impair this capacity than is the case for higher ratings. BB Speculative quality. ‘BB’ ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade. B Highly speculative. ‘B’ rating indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met, however capacity for continued payment is vulnerable to deterioration in the business and economic environment. CCC Poor credit quality. ‘CCC’ rating indicates that default is highly probable and that the instrument carries a high credit risk. Impairment of financial assets Calculation of Expected Credit Losses (ECL) The ECL allowance is an unbiased, probability-weighted amount determined by evaluating a range of possible outcomes that reflects reasonable and supportable information that is available without undue cost or effort of past events, current conditions and forecasts of forward-looking economic conditions. The ECL model is dependent on the availability of relevant and accurate data to determine whether a significant increase in credit risk occurred since initial recognition, the probability of default (PD), the loss given default (LGD) and the possible exposure at default (EAD). Of equal importance is sound correlation between these parameters and forward-looking economic conditions. ECL reflects the Group’s own expectations of credit losses discounted to its present value. However, when considering all reasonable and supportable information that is available without undue cost or effort in estimating ECL, the Group also considers observable market information about the credit risk of the particular financial instrument or similar financial instruments. The ECL loss allowances are measured on either of the following bases: • 12-month ECL: ECL that result from possible default events within the 12 months after the reporting date; and • Lifetime ECL: ECL that result from all possible default events over the expected life of a financial instrument. The Group measures loss allowances at an amount equal to lifetime ECL, except for the following, which are measured as 12-month ECL: • Financial assets that are determined to have low credit risk at the reporting date; and • Financial assets where credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition. Exposures are assessed on a per instrument type basis unless there is sufficient evidence that one or more events associated with an exposure could have a detrimental impact on future cash flows. Where such evidence exists, the exposure is assessed on an individual instrument basis. Financial assets are also grouped according to the type of financial asset. The Group makes use of estimates of PDs, LGDs and EADs to calculate the ECL balance for financial assets. Depending on the relevant information available, PDs are based on historic default rate factors and linked to national scale credit ratings assigned to the issuing parties. LGDs are derived from a free cash flow (FCF) forecast taking into account the interest rate spreads attached to the instruments. The FCF is discounted at the discount rates provided by the regulating authority, which takes the current and expected macro-economic conditions into account. The LGD represents losses expected on default, taking into account the mitigating effect of collateral, its expected value when realised and the time value of money. EADs are determined with reference to expected amortisation schedules, historical payment patterns and taking into account credit conversion factors as applicable for undrawn or revolving facilities. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 49
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued Impairment of financial assets continued The market risk capital calculation prescribed under the current regulatory regime is used as a reference point in the above calculations. The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk. The ECL calculation of a financial instrument takes into account both the contractual and available behavioural repayment patterns over the relevant estimation period. The gross carrying amount of instruments subject to ECL is written off or reduced when there is no reasonable expectation of recovering a financial instrument in its entirety or a portion thereof. Significant increase in credit risk and default When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers quantitative and qualitative information based on the Group’s historical experience, credit assessment and forward-looking information. The Group’s assessment of a significant increase in credit risk subsequent to initial recognition is performed through credit quality assessments of the debt instruments as well as that of the issuing party throughout the financial year. This includes the use of market indicators. The credit quality of debt instruments is assessed on a monthly basis by means of ensuring that the credit rating of an individual instrument has not deteriorated to a point where it breaches the Group’s investment policy. The Group’s investment policy allows for investments to be made in high quality debt instruments. If the investment policy is breached, the impact on the ECL will be assessed. The assessment described above is part of the Group’s ongoing monitoring of its investment portfolios. When making a quantitative assessment, the Group uses the change in the PD occurring over the expected life of the financial instrument. This requires a measurement of the PD at initial recognition and at the reporting date. The Group deems that a significant increase in credit risk arises when a debtor is 30 days past due in making a contractual payment. A financial asset is in default when the financial asset is credit-impaired or if the financial asset is 90 days past due. Forward looking information The yield curves and discount rates utilised to project the forward rate spreads on the financial instruments takes macro-economic conditions into account. Macro-economic market conditions are based on the expectations of the debt market such as economic, political and market liquidity risks. These yield curves and discount rates are utilised to calculate the present value of future cash flows taking into account the unsystematic risk for future periods. This, coupled with the credit outlook attached to a specific financial instrument, is utilised to calculate the PD and LGD based on the formulas prescribed by the current regulatory regime. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 50
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued Analysis of credit risk and allowance for ECL The following table sets out information about the credit quality of financial assets at 30 June 2026 where it carries credit risk. The total carrying amounts represent the maximum exposure to credit risk at the reporting date: Gross carrying amount R million Subject to 12-month ECL Subject to lifetime ECL At 30 June 2026 Cash and cash equivalents 1 633 – Term deposits 16 842 – Term loan 87 – Preference share investment – 1 Government, municipal and public utility securities 1 182 2 Money market securities <1 year 2 184 – Money market securities >1 year 2 791 – Other receivables 694 – Total 25 413 3 corner Gross carrying amount R million Subject to 12-month ECL Subject to lifetime ECL At 30 June 2025 Cash and cash equivalents 1 865 – Term deposits 14 347 – Preference share investment – 6 Government, municipal and public utility securities 786 3 Money market securities <1 year 1 918 – Money market securities >1 year 3 046 – Other receivables 1 659 – Total 23 621 9 Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 51
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.3 Credit risk continued Analysis of credit risk and allowance for ECL continued The loss allowance for debt investments at FVOCI in 30 June 2026, is recognised in profit or loss and reduces the fair value loss otherwise recognised in OCI. R million 12-month ECL1 Lifetime ECL2 Total 2026 Expected credit losses Preference share investment – 1 1 Government, municipal and public utility securities 4 1 5 Money market securities <1 year 6 – 6 Money market securities >1 year 8 – 8 Total 18 2 20 corner R million 12-month ECL1 Lifetime ECL2 Total 2025 Expected credit losses Preference share investment – 3 3 Government, municipal and public utility securities 3 1 4 Money market securities <1 year 5 – 5 Money market securities >1 year 9 – 9 Total 17 4 21 1 Financial assets subject to 12-month ECL have an investment grade credit rating of AAA to BB. 2 Financial assets subject to lifetime ECL have a sub-investment grade of B and lower. The movement in the ECL allowance is primarily attributable to the increase in the balances of the money market segregated portfolios, resulting in a corresponding increase in the Group’s exposure to expected credit losses: The counter party exposure changed from the prior year, with exposure in • Banking counterparties decreasing from 64.2% to 56.6%; • Corporate counterparties increasing from 22.1% to 24.0%; and • Government counterparties increasing from 13.7% to 19.4%. Reinsurance credit exposures Under the terms of reinsurance agreements, reinsurers agree to reimburse the ceded amount in the event that the gross claim is paid. However, the Group remains liable to its policyholders regardless of whether the reinsurer meets the obligations it has assumed. Consequently, the Group is exposed to credit risk. The Group reviews its reinsurance agreements on an annual basis and ensures the appropriate credit quality of any reinsurer prior to renewing or entering an agreement. The Group’s reinsurer’s credit ratings are measured on an international scale. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 52
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.4 Liquidity risk Liquidity risk is the risk that the Group, although solvent, is not able to settle its obligations as they fall due because of insufficient liquid assets in the Group. To ensure that the Group’s operating entities are able to meet their liabilities when they fall due, the liquidity profile of the various balance sheets are actively managed with a defined investment mandate. The table below provides a liquidity profile of the Group’s financial and insurance contract assets. The liquidity profile assumes that instruments can be traded or settled in the ordinary course of business and in markets with sufficient liquidity. The effect of discounting on financial liabilities is considered to be immaterial. The Group has access to a revolving credit facility of R1 000 million (2025: R1 350 million) and internally generated surplus capital to support the Group’s capital investment in OUTsurance Ireland as well as to provide support for the capital projects of the Group. At 30 June 2026 Rnil was drawn from this facility (2025: Rnil million). Refer to note 33 for more information. R million 30 June 2026 % 30 June 2025 % Liquid financial assets Realisable within 30 days1 Cash and cash equivalents 1 633 4.7% 1 865 5.6% Collective investment schemes 4 143 11.9% 3 456 10.5% Government, municipal and public utility securities Money market securities 1 184 3.4% 789 2.4% Exchange traded funds – ordinary shares 4 975 14.2% 4 964 15.0% Other receivables 1 136 3.3% 1184 3.6% Realisable between one and twelve months - 0.0% 25 <1% Term deposits 16 842 48.2% 14 347 43.4% Other receivables 694 2.0% 1 634 4.9% Contingent receivable 88 <1% 18 <1% Preference share investment 1 <1% 3 <1% Derivative assets 6 <1% 259 <1% Convertible loan – 0.0% 14 <1% Total liquid financial assets 30 702 28 558 Illiquid assets Realisable in more than twelve months Term loan 87 <1% – 0.0% Zero-coupon deposits 1 770 5.1% 1730 5.2% Listed non-cumulative, non-redeemable preference shares 143 <1% 227 <1% Unsecured investment in development fund 131 <1% 84 <1% Zero-coupon deposits backing endowment policies 1 940 5.6% 1 863 5.6% Unlisted equity 10 <1% 484 1.5% Contingent receivable – 0.0% 56 <1% Preference share investment – 0.0% 5 <1% Derivative assets 179 <1% 67 <1% Total illiquid assets 4 260 4 516 Total financial assets held 34 962 100% 33 074 100% Reinsurance contract asset – non-Life Realisable within 30 days 429 285 Realisable between one and twelve months 1 503 1 234 Realisable after more than twelve months 631 766 Reinsurance contract asset – Life Realisable within 30 days – 16 Realisable between one and twelve months 19 21 Realisable after more than twelve months 17 31 Insurance contract asset – Life Realisable within 30 days 16 6 Realisable between one and twelve months 44 42 Realisable after more than twelve months 476 322 Total insurance contract assets held 3 135 2 723 Total assets (excluding non-monetary assets) 38 097 35 797 corner 1 Can be converted to cash before contractual maturity. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 53
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.4 Liquidity risk continued Maturity profile of liabilities The table below shows the expected liquidity profile of the Group’s liabilities and shows the liquid asset coverage ratio which indicates how many times the liabilities are covered by liquid assets. This ratio is actively managed in accordance with the investment and balance sheet management mandate of each Group entity. Time bands are structured based on the timing of when the insurance contract liabilities are due in the normal course of business. It is expected that the non-life insurance contract liabilities in the 0 – 12 month time band will realise as follows: • 52% (2025: 53%) within 0 – 3 months, • 26% (2025: 26%) within 4 – 6 months, and • 22% (2025: 21%) within 7 – 12 months. R million 0 – 12 months 13 – 24 months1 25 – 36 months1 37 – 48 months1 49 – 60 months1 >60 months Total At 30 June 2026 Expected discounted cash flows Insurance contract liabilities – Life (205) (24) 367 336 239 200 913 Reinsurance contract liabilities – Life (28) (7) 3 2 3 43 16 Insurance contract liabilities – non-Life 14 367 2319 236 1 061 40 375 18 398 Reinsurance contract liabilities – non-Life 26 2 2 1 3 1 35 Derivative financial instruments 61 24 24 17 12 2 140 Investment contract liability1 39 1 450 451 – – – 1 940 14 260 3 764 1 083 1 417 297 621 21 442 Contractual undiscounted cash flows2 Financial liabilities at fair value through profit and loss 136 – – – – – 136 Trade creditors 78 – – – – – 78 Other payables 802 – – – – – 802 1 016 – – – – – 1016 Total liabilities 15 276 3 753 1 084 1417 299 629 22 458 Liquid asset coverage ratio3 2.01 1.45 Financial assets coverage ratio 1.70 corner 1 The Investment contract liability cash flows are disclosed on a discounted basis as the liability is fully offset by the zero-coupon term deposits, which are also disclosed on this basis. Presenting the Investment contract liability cash flows on an undiscounted basis would cause a misrepresentation of the economic nature relating to this offset. 2 The effects of discounting do not have a significant effect on the contractual undiscounted cash flow due to the short-term maturity profile. 3 The zero-coupon deposits backing endowment policies assets have been included in the total liquid asset coverage ratio as they are used to match the investment contract liability, creating a netting off effect. Notes to the consolidated financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202654
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3. Management of risk and capital continued 3.3 Financial risk management continued 3.3.4 Liquidity risk continued Maturity profile of liabilities continued R million 0 – 12 months 13 – 24 months 25 – 36 months 37 – 48 months 49 – 60 months >60 months Total At 30 June 2025 Expected discounted cash flows Insurance contract liabilities – Life4 (206) (172) (44) 347 312 396 633 Reinsurance contract liabilities – Life (10) 5 4 2 1 4 6 Insurance contract liabilities – Non-Life 12 883 1143 678 360 220 312 15 596 Reinsurance contract liabilities – Non-Life 22 2 1 1 1 2 29 Derivative financial instruments 22 27 20 10 (1) (71) 7 Investment contract liability1 16 37 1 395 415 – – 1 863 12 727 1 042 2 054 1 135 533 643 18 134 Contractual undiscounted cash flows2 Financial liabilities at fair value through profit and loss 126 – – – – – 126 Trade creditors 162 – – – – – 162 Other payables 761 – – – – – 761 1 049 – – – – – 1 049 Total liabilities 13 776 1 042 2 045 1 137 534 649 19 183 Liquid asset coverage ratio3 2.08 1.59 Financial assets coverage ratio 1.85 1 The Investment contract liability cash flows are disclosed on a discounted basis as the liability is fully off-set by the zero-coupon term deposits, which are also disclosed on this basis. Presenting the Investment contract liability cash flows on an undiscounted basis would cause a misrepresentation of the economic nature relating to this offset. 2 The effects of discounting do not have a significant effect on the contractual undiscounted cash flow due to the short-term maturity profile. 3 The zero-coupon deposits backing endowment policies assets have been included in the total liquid asset coverage ratio as they are used to match the investment contract liability, creating a netting off effect. 4 The prior year has been updated to better reflect the maturity profile of the Life insurance contract liabilities. Notes to the consolidated financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202655
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.4 Capital management Capital adequacy risk is the risk that there are insufficient reserves to provide for variations in actual future experience that is worse than what has been assumed in conducting insurance business and to facilitate growth and strategic objectives. The Group’s objectives when managing capital are: • to comply with the regulatory solvency capital requirements for each entity and the Group; • to safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; • to provide an adequate return for shareholders by pricing insurance commensurately with the level of risk; and • to retain sufficient surplus capital to facilitate future growth and strategic expansion. The Group and its insurance entities assess the solvency capital requirement as follows: • Non-life underwriting risk: The risk that arises from insurance obligations for short-term insurance business and includes reserve, premium, catastrophe and lapse risk. • Life underwriting risk: The risk that arises from insurance obligations for long-term insurance business and includes lapse, mortality, morbidity, catastrophe and expense risks. • Market risk: The risk of loss arising from movements in market prices on the value of the insurer’s assets and liabilities or of loss arising from the default of the insurer’s counterparties. • Operational risk: The risk of loss arising from inadequate or failed internal processes, people and systems, or from external events. In each country in which the Group operates, the local insurance regulator specifies the minimum amount and the type of capital that must be held by each of the subsidiaries in addition to their insurance liabilities. The Group and its insurance entities set a target solvency coverage multiple of the regulated minimum for each jurisdiction and the Group in aggregate to act as a buffer against uncertainty. These target multiples are derived from considering the unique risk characteristics of each entity and the Group in aggregate. These risk characteristics include the impact of stress and scenario tests, the level and variability of profits and the accepted risk appetite. The Group target multiple for 2026 and 2025 was set as the weighted average of the target SCR’s of each entity. Qualifying regulatory capital or own funds consists of retained earnings, contributed share capital and distributable reserves. The table below summarises the Solvency Coverage Ratio for each of the regulated Group companies and the actual solvency achieved: Solvency coverage ratio1 Jurisdiction 30 June 2026 Target2 30 June 2025 Target2 Group 2.2 1.5 2.3 1.5 Short-term insurance OUTsurance Insurance Company Limited South Africa 2.2 1.3 1.8 1.3 Youi Holdings Group Australia 2.2 1.5 – 1.8 2.3 1.6 – 1.9 OUTsurance Ireland Group Ireland 3.5 1.5 8.7 1.5 Long-term insurance OUTsurance Life Insurance Company Limited3 South Africa 1.9 1.5 2.2 1.5 corner 1 Solvency Coverage Ratio, which is defined as the ratio of regulatory admissible net assets to the solvency capital requirement. 2 The target ratio is before foreseeable dividends. 3 The target ratio for OUTsurance Life is a range of 1.3 to 1.7. For the purposes of the table the midpoint of 1.5 is disclosed. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 56
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Notes to the consolidated financial statements continued 3. Management of risk and capital continued 3.4 Capital management continued The regulated solvency capital requirements for the various regulated entities are calculated as follows: Group and South African operations The Financial Soundness for Insurers and Financial Soundness for Groups prudential standards prescribes certain measures by which insurers and Groups measure their eligible own funds and prescribe the manner in which the solvency capital requirement (SCR) needs to be calculated. The Group and solo entities apply the standard formula approach to determine the SCR. OUTsurance Holdings Limited and its subsidiaries are regulated as an insurance group. The deduction and aggregation method is used to assess capital adequacy on a group-wide basis. This method sums the solo capital requirements and aims to calculate the relevant adjustments to avoid double or multiple gearing of capital. Excess or deficits of capital existing at the level of each entity, including entities in other jurisdictions in the group, i.e. on a solo basis, are aggregated (net of intragroup transactions) in order to measure the own funds surplus (or deficit) at a Group level. The prescribed SCR is the level of eligible own funds required to ensure the value of assets will exceed technical provisions and other liabilities at a 99.5% level of certainty over a one-year time horizon. The SCR is calculated based on the following key risk categories: • Non-life underwriting risk; • Life underwriting risk; • Market risk; and • Operational risk. Australian operations – Short-term insurance operations The Australian Prudential Regulation Authority (APRA) regulates the capital requirements of Australian entities which are licensed general insurers calculated in accordance with Prudential Standards GPS 110 Capital Adequacy. The prudential capital requirement (PCR) is equal to the sum of the prescribed capital amount (PCA) and any supervisory adjustment determined by APRA. The PCA is calculated in accordance with the Standard Method as the sum of: • Insurance risk charge; • Insurance Concentration risk charge; • Asset risk charge; • Asset Concentration risk charge; • Operational risk charge; and • Less aggregation benefit. Ireland operations – Short-term insurance operations The Central Bank of Ireland (CBI) regulates the capital requirements of OUTsurance DAC in Ireland under the European Solvency II Standard Formula. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 57
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Notes to the consolidated financial statements continued 4. Segment information For management purposes, the Group is organised into business units based on product offering and distribution channel. With the discontinuation of the BZI Broker channel in the Youi Group, OHL’s 94.4% owned subsidiary in Australia, the Group changed the reporting segments to align with how information will be reported to and monitored by the chief operating decision-maker (CODM) going forward. Historically, the Group has presented the Youi Group segments as Personal, Business and CTP reflecting a product view. Following the sale of BZI, the segment focus has been realigned to reflect Direct, BZI and CTP to review the financial results per channel and distinct product line. To ensure comparability across reporting periods, the segmental results for the prior financial year ended 30 June 2025 have been restated according to the new segment definitions. Consequently, the Group has the following operating segments: For OUTsurance Insurance Company Limited • Personal Insurance: This segment provides personal and casualty insurance products to individuals; • Business insurance: This segment provides short-term insurance products to small and medium sized businesses; and • OUTsurance Central: This is the central cost incurred by OUTsurance that is not allocated to the OUTsurance personal and business segments. For Youi Holdings Pty Limited • Youi Direct: This segment provides Personal and Business insurance products to individuals, sold through the Direct channel to individuals; • Youi BZI: This segment provides Personal and Business insurance products to individuals, sold through the Broker channel ‘Blue Zebra Insurance Proprietary Limited’. This channel has materially run off at 30 June 2026; • Youi CTP: This segment provides compulsory third-party vehicle insurance to individuals in Australia. For the other companies • OUTsurance Ireland: This segment provides personal and casualty insurance products to individuals conducted in OUTsurance Designated Activity Company; • Life insurance: This segment provides long-term insurance products to individuals. Life insurance business is conducted in OUTsurance Life Insurance Company Limited; • Administration services: This segment provides contact centre services to Youi Group and external third parties and earns inter-segment license fees on the core insurance technology of the Group; and Central and consolidation adjustments: This includes central costs incurred in the Holding companies that cannot be allocated to specific segments due to their overarching nature, as well as consolidation adjustments to eliminate intergroup transactions between the operational entities. The Group manages its balance sheet and capital requirements at a total company level and not per product level at which the operations of the Group is managed. The balance sheet information is also presented to the CODM at a company level. This presentation better reflects the way the CODM reviews the results. For risk classes included in the Personal and Business insurance segments refer to note 3.2.1(i). For insurance products issued in the Life insurance segment refer to note 3.2.2(i). The information in the segment report is presented on the same basis as reported to and managed by management. Material items of dissimilar nature are presented separately. Items are aggregated based on the qualitative and quantitative significance of the business units. Reporting adjustments are those accounting reclassifications and entries required to produce IFRS compliant results. The Group’s total earnings are managed on a normalised basis, which most appropriately reflects the economic performance of the Group. The material revenue of the Group is derived from insurance revenue for insurance policies issued. The Group accounts for inter-segment revenues gross in the segment note and eliminates the inter-segment values in the central and consolidation adjustments column. The inter-segment revenue consists of license fees and administration fees for call centre services to the value of R282.6 million (2025: R250.7 million). Given the nature of the operations there is no single external customer that provides 10% or more of the Group’s revenues. In addition to the IFRS 17 compliant income statements, additional disclosure is provided in support of the management metrics monitored, which include volume and ratio calculations. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 58
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Notes to the consolidated financial statements continued 4. Segment information continued Market segmentation Property and casualty insurance Long-term insurance OUTsurance Youi Group Central and consolidation entries Treasury Company and consolidation entriesR million Personal1 Business Central Total Direct BZI CTP Total OUTsurance Ireland P&C Total OUTsurance Life Administration services OHL Group Total OGL Group Total Segment income statement information Year ended 30 June 2026 Insurance revenue 10 981 3 375 – 14 356 21 769 1 703 1 772 25 244 521 40 121 1 366 – – 41 487 – 41 487 Insurance service expenses (6 240) (2 266) – (8 506) (19 190) (1 300) (2 235) (22 725) (915) (32 146) (891) – – (33 037) – (33 037) Net expenses from reinsurance contracts held (140) (65) – (205) (23) (122) 23 (122) (37) (364) (12) – – (376) – (376) Insurance service results 4 601 1 044 – 5 645 2 556 281 (440) 2 397 (431) 7 611 463 – – 8 074 – 8 074 Administration and other revenue 14 36 1 51 – – – – – 51 26 708 (282) 503 – 503 Fair value adjustment to financial liabilities (156) – – (156) – – – – – (156) (56) – – (212) – (212) Other operating expenses (189) (41) (245) (475) (121) (1) (4) (126) (70) (671) (87) (643) 234 (1 167) 48 (1 119) Underwriting result 4 270 1 039 (244) 5 065 2 435 280 (444) 2 271 (501) 6 835 346 65 (48) 7 198 48 7 246 Investment income on insurance contract assets and liabilities 115 38 – 153 384 67 92 543 12 708 273 – – 981 – 981 Finance expenses from insurance contracts issued (95) (34) – (129) (35) – 12 (23) – (152) (196) – – (348) – (348) Finance income from reinsurance contracts held – 1 – 1 3 – 12 15 – 16 (16) – – – – – Operating profit/(loss) 4 290 1 044 (244) 5 090 2 787 347 (328) 2 806 (489) 7 407 407 65 (48) 7 831 48 7 879 Equity accounted earnings – – – – – – – – 26 26 Loss on sale of assets held for sale – – – – – – (5) (5) – (5) Impairment of investments in associates – – – – – – – – – – – – – – (42) (42) Operating profit/(loss) including associate earnings 5 090 2 806 (489) 7 407 407 65 (53) 7 826 32 7 858 Net investment income on shareholder investment capital 576 268 25 869 7 6 (8) 874 48 922 Finance costs (61) (11) (2) (74) (10) (5) (43) (132) – (132) Profit/(loss) before tax 5 605 3 063 (466) 8 202 404 66 (104) 8 568 80 8 648 Taxation (1 460) (929) – (2 389) (41) (14) (12) (2 456) (12) (2 468) Profit/(loss) after tax 4 145 2 134 (466) 5 813 363 52 (116) 6 112 68 6 180 Non-controlling interest – – – – – – (120) (120) (437) (557) Profit/(loss) attributable to ordinary shareholders 4 145 2 134 (466) 5 813 363 52 (236) 5 992 (369) 5 623 Headline and normalised earnings adjustments 51 2 – 53 (83) 2 36 8 (26) (18) Normalised earnings 4 196 2 136 (466) 5 866 280 54 (200) 6 000 (395) 5 605 corner 1 Includes the Homeowners cover book sourced from FirstRand Bank Limited. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202659
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Notes to the consolidated financial statements continued 4. Segment information continued Segmental ratio calculation and reconciliation Property and casualty insurance OUTsurance Youi Group OUTsurance Ireland P&C TotalR million Personal Business Central Total Direct BZI CTP Total Segmental ratio calculation Year ended 30 June 2026 Gross written premium 10 960 3 382 – 14 342 23 850 (71) 1 830 25 609 801 40 752 Movements in unearned premium 21 (7) – 14 (2 081) 1 774 (58) (365) (280) (631) Gross earned premium = insurance revenue 10 981 3 375 – 14 356 21 769 1 703 1 772 25 244 521 40 121 Reinsurance premium expense (140) (65) – (205) (1 209) (168) (72) (1 449) (52) (1 706) 1. Net earned premium 10 841 3 310 – 14 151 20 560 1 535 1 700 23 795 469 38 415 Change in loss component – 4 – 4 – – – – (36) (32) Gross claims expenses (including OUTbonus) (4 468) (1 352) – (5 820) (13 246) (760) (2 114) (16 120) (345) (22 285) Gross claims expenses (including OUTbonus) (4 468) (1 348) – (5 816) (13 246) (760) (2 114) (16 120) (381) (22 317) Finance expenses from insurance contracts issued (95) (34) – (129) (35) – 12 (23) – (152) Gross claims expenses including net IFE 1 (4 563) (1 382) – (5 945) (13 281) (760) (2 102) (16 143) (381) (22 469) Reinsurance recoveries – – – – 1 186 46 95 1 327 – 1 327 Loss recovery component – – – – – – – – 15 15 Finance income from reinsurance contracts held – 1 – 1 3 – 12 15 – 16 2. Net claims expense including IFE1 (4 563) (1 381) – (5 944) (12 092) (714) (1 995) (14 801) (366) (21 111) 3. Other operating expenses (1 961) (959) (245) (3 165) (6 065) (541) (125) (6 731) (604) (10 500) Attributable expenses (included in Insurance service expenses) (1 772) (918) – (2 690) (5 944) (540) (121) (6 605) (534) (9 829) Non-attributable expenses (included in Operating expenses) (189) (41) (245) (475) (121) (1) (4) (126) (70) (671) 4. Administration and other revenue 14 36 1 51 – – – – – 51 5. Fair value to financial liabilities (156) – – (156) – – – – – (156) 6. Underwriting result 4 175 1 006 (244) 4 937 2 403 280 (420) 2 263 (501) 6 699 Investment income on insurance contract assets and liabilities 115 38 – 153 384 67 92 543 12 708 Operating profit/(loss) 4 290 1 044 (244) 5 090 2 787 347 (328) 2 806 (489) 7 407 corner 1 Includes net insurance finance expense (IFE) as disclosed in the statement of profit or loss. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202660
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4. Segment information continued Segmental ratio calculation and reconciliation continued Property and casualty insurance OUTsurance Youi Group OUTsurance IrelandR million Personal Business Central Total Direct BZI CTP Total P&C Total Ratio calculations (as disclosed in management commentary) Net claims ratio (2/(1+4)) 42.0% 41.2% 41.9% 58.8% 46.5% 117.4% 62.2% 54.9% Cost-to-income ratio (3/(1+4)) 18.1% 28.7% 22.3% 29.5% 35.2% 7.4% 28.3% 27.3% Underwriting margin (6/(1+4)) 38.5% 30.1% 34.8% 11.7% 18.2% (24.7%) 9.5% 17.4% Combined ratio ((2+3+5)/(1+4)) 61.5% 69.9% 65.2% 88.3% 81.8% 124.8% 90.5% 82.6% Reconciliation of insurance service expense Gross claims (including OUTbonus) (4 468) (1 352) – (5 820) (13 246) (760) (2 114) (16 120) (345) (22 285) Change in loss component – 4 – 4 – – – – (36) (32) Attributable expenses (1 772) (918) – (2 690) (5 944) (540) (121) (6 605) (534) (9 829) Insurance service expense as disclosed (6 240) (2 266) – (8 506) (19 190) (1 300) (2 235) (22 725) (915) (32 146) corner Operating expenses including directly attributable and non attributable expenses R million OUTsurance Youi Group OUTsurance Ireland OUTsurance Life Administration services OHL central and consolidation entries OHL Group Total Treasury Company and consolidation entries OGL Group Total Year ended 30 June 2026 Depreciation and amortisation (98) (163) (22) – (30) – (313) – (313) Employee benefits (2 114) (2 955) (282) (330) (537) (31) (6 249) 82 (6 167) Other expenses (953) (3 613) (300) (144) (76) 265 (4 821) (34) (4 855) Total operating expenses including directly attributable and non attributable expenses (3 165) (6 731) (604) (474) (643) 234 (11 383) 48 (11 335) corner Notes to the consolidated financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202661
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Notes to the consolidated financial statements continued 4. Segment information continued Market segmentation Property and casualty insurance Long-term insurance OUTsurance Youi Group Central and consoli- dation entries Treasury Company and consoli- dation entriesR million Personal1 Business Central Total Direct BZI CTP Total OUTsurance Ireland P&C Total OUTsurance Life Administration services OHL Group Total OGL Group Total Segment income statement information Year ended 30 June 2025 Insurance revenue 10 345 3 002 – 13 347 17 787 3 540 1 223 22 550 97 35 994 1 137 – – 37 131 – 37 131 Insurance service expenses (6 146) (2 224) – (8 370) (14 626) (3 259) (1 412) (19 297) (452) (28 119) (549) – – (28 668) – (28 668) Net expenses from reinsurance contracts held (143) (51) – (194) (470) (180) 24 (626) (23) (843) (39) – – (882) – (882) Insurance service results 4 056 727 – 4 783 2 691 101 (165) 2 627 (378) 7 032 549 – – 7 581 – 7 581 Administration and other revenue 13 29 – 42 1 – – 1 – 43 24 634 (251) 450 – 450 Fair value adjustment to financial liabilities (181) – – (181) – – – – – (181) (30) – – (211) – (211) Other operating expenses (164) (59) (1 191) (1 414) (110) – (1) (111) (74) (1 599) (173) (619) 36 (2 355) 81 (2 274) Underwriting result 3 724 697 (1 191) 3 230 2 582 101 (166) 2 517 (452) 5 295 370 15 (215) 5 465 81 5 546 Investment income on insurance contract assets and liabilities 127 35 – 162 372 117 84 573 4 739 139 – – 878 – 878 Finance expenses from insurance contracts issued (100) (35) – (135) (42) (10) (133) (185) – (320) (132) – – (452) – (452) Finance income from reinsurance contracts held – – – – 4 2 89 95 – 95 61 – – 156 – 156 Operating profit/(loss) 3 751 697 (1 191) 3 257 2 916 210 (126) 3 000 (448) 5 809 438 15 (215) 6 047 81 6 128 Equity accounted earnings – 70 – 70 – – (3) 67 122 189 Profit on sale of associate/held for sale asset – 176 – 176 – – – 176 35 211 Impairment of assets held for sale – – – – – – (10) (10) – (10) Operating profit/(loss) including associate earnings 3 257 3 246 (448) 6 055 438 15 (228) 6 280 238 6 518 Net investment income on shareholder investment capital 1 027 205 47 1 279 57 17 224 1 577 (278) 1 299 Finance costs (60) (11) (1) (72) (5) (2) (52) (131) (5) (136) Profit/(loss) before tax 4 224 3 440 (402) 7 262 490 30 (56) 7 726 (45) 7 681 Taxation (1 145) (1 027) – (2 172) (145) (6) (118) (2 441) (21) (2 462) Profit/(loss) after tax 3 079 2 413 (402) 5 090 345 24 (174) 5 285 (66) 5 219 Non-controlling interest – – – – – – (134) (134) (378) (512) Profit/(loss) attributable to ordinary shareholders 3 079 2 413 (402) 5 090 345 24 (308) 5 151 (444) 4 707 Headline and normalised earnings adjustments (151) (123) – (274) 4 4 77 (189) 210 21 Normalised earnings 2 928 2 290 (402) 4 816 349 28 (231) 4 962 (234) 4 728 1 Includes the Homeowners cover book sourced from FirstRand Bank Limited. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202662
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Notes to the consolidated financial statements continued 4. Segment information continued Segmental ratio calculation and reconciliation Property and casualty insurance OUTsurance Youi Group OUTsurance IrelandR million Personal Business Central Total Direct BZI CTP Total P&C Total Segmental ratio calculation Year ended 30 June 2025 Gross written premium 10 335 3 018 – 13 353 20 138 3 492 1 530 25 160 269 38 782 Movements in unearned premium 10 (16) – (6) (2 351) 48 (307) (2 610) (172) (2 788) Gross earned premium = insurance revenue 10 345 3 002 – 13 347 17 787 3 540 1 223 22 550 97 35 994 Reinsurance premium expense (146) (52) – (198) (1 043) (455) (122) (1 620) (29) (1 847) 1. Net earned premium 10 199 2 950 – 13 149 16 744 3 085 1 101 20 930 68 34 147 Change in loss component – 6 – 6 – – 5 5 (128) (117) Gross claims expenses (including OUTbonus) (4 391) (1 349) – (5 740) (9 778) (2 168) (1 212) (13 158) (83) (18 981) Gross claims expenses (including OUTbonus) (4 391) (1 343) – (5 734) (9 778) (2 168) (1 207) (13 153) (211) (19 098) Finance expenses from insurance contracts issued (100) (35) – (135) (42) (10) (133) (185) – (320) Gross claims expenses including net IFE 1 (4 491) (1 378) – (5 869) (9 820) (2 178) (1 340) (13 338) (211) (19 418) Reinsurance recoveries 3 1 – 4 573 275 148 996 – 1 000 Loss recovery component – – – – – – (2) (2) 6 4 Finance income from reinsurance contracts held – – – – 4 2 89 95 – 95 2. Net claims expense including IFE1 (4 488) (1 377) – (5 865) (9 243) (1 901) (1 105) (12 249) (205) (18 319) 3. Other operating expenses (1 919) (940) (1 191) (4 050) (4 958) (1 091) (206) (6 255) (315) (10 620) Attributable expenses (included in Insurance service expenses) (1 755) (881) – (2 636) (4 848) (1 091) (205) (6 144) (241) (9 021) Non-attributable expenses (included in Operating expenses) (164) (59) (1 191) (1 414) (110) – (1) (111) (74) (1 599) 4. Administration and other revenue 13 29 – 42 1 – – 1 – 43 5. Fair value to financial liabilities (181) – – (181) – – – – – (181) 6. Underwriting result 3 624 662 (1 191) 3 095 2 544 93 (210) 2 427 (452) 5 070 Investment income on insurance contract assets and liabilities 127 35 – 162 372 117 84 573 4 739 Operating profit/(loss) 3 751 697 (1 191) 3 257 2 916 210 (126) 3 000 (448) 5 809 1 Includes net insurance finance expense (IFE) as disclosed in the statement of profit or loss. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202663
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Notes to the consolidated financial statements continued 4. Segment information continued Segmental ratio calculation and reconciliation continued OUTsurance Youi Group OUTsurance IrelandR million Personal Business Central Total Direct BZI CTP Total P&C Total Ratio calculations (as disclosed in management commentary) Net claims ratio (2/1) 44.0% 46.7% 44.6% 55.2% 61.6% 100.3% 58.5% 53.6% Cost-to-income ratio (3/1) 18.8% 31.8% 30.8% 29.6% 35.4% 18.8% 29.9% 31.1% Normalised Cost-to-income ratio¹ 31.7% 31.5% Underwriting margin (6/1) 35.5% 22.4% 23.5% 15.2% 3.0% (19.1%) 11.6% 14.8% Combined ratio ((2+3+5)/1) 64.6% 78.5% 76.8% 84.8% 97.0% 119.1% 88.4% 85.3% Normalised Combined ratio 77.7% 85.6% Reconciliation of insurance service expense Gross claims (including OUTbonus) (4 391) (1 349) – (5 740) (9 778) (2 168) (1 212) (13 158) (83) (18 981) Change in loss component – 6 – 6 – – 5 5 (128) (117) Attributable expenses (1 755) (881) – (2 636) (4 848) (1 091) (205) (6 144) (241) (9 021) Insurance service expense as disclosed (6 146) (2 224) – (8 370) (14 626) (3 259) (1 412) (19 297) (452) (28 119) 1 Operating profit for OUTsurance SA includes a normalised adjustment of R123 million (as an earnings reduction) related to a profit that arose from a restructuring of an intragroup property lease arrangement. Operating expenses including directly attributable and non attributable expenses R million OUTsurance Youi Group OUTsurance Ireland OUTsurance Life Administration services OHL central and consolidation entries OHL Group Total Treasury Company and consolidation entries OGL Group Total Year ended 30 June 2025 Depreciation and amortisation (118) (143) (20) - (19) 10 (290) - (290) Employee benefits (3 168) (2 512) (183) (411) (525) (93) (6 892) 121 (6 771) Other expenses (765) (3 596) (111) (136) (65) 101 (4 572) (40) (4 612) Total operating expenses including directly attributable and non attributable expenses (4 051) (6 251) (314) (547) (609) 18 (11 754) 81 (11 673) OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202664
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Notes to the consolidated financial statements continued 4. Segment information continued Geographical segmentation A summary of the Group’s assets, liabilities and equity are shown below: Southern Africa and OHL Group consolidation Australia Ireland OHL Group South Africa OGL Group R million OUTsurance OUTsurance Life Admini- stration services Central and consolidation adjustments Youi Group OUTsurance Ireland Total Treasury Company and consolidation adjustments Total Segment statement of financial position information As at 30 June 2026 Segment assets Property and equipment 322 – 10 (1) 817 38 1 186 – 1 186 Investment in associates – – – – – – – 228 228 Reinsurance assets 30 36 – – 2 486 47 2 599 – 2 599 Insurance assets – 536 – – – – 536 – 536 Financial assets 8 041 4 033 25 77 19 120 1 812 33 108 (473) 32 635 Other assets 488 106 216 (215) 1 190 220 2 005 – 2 005 Cash and cash equivalents 365 243 52 24 826 20 1 530 103 1 633 Total segment assets 9 246 4 954 303 (115) 24 439 2 137 40 964 (142) 40 822 Segment Equity Share capital and premium 25 445 180 (1 076) 1 702 2 429 3 705 12 210 15 915 Retained earnings 5 573 1 183 (7) 1 759 4 984 (1 104) 12 388 (7 814) 4 574 Other equity reserves 65 1 – (967) 391 (49) (559) (5 204) (5 763) Non-controlling interests – – – 370 – – 370 1 105 1 475 Total segment equity 5 663 1 629 173 86 7 077 1 276 15 904 297 16 201 Segment liabilities Reinsurance liabilities 36 15 – – – – 51 – 51 Insurance liabilities 2 046 912 – – 15 751 602 19 311 – 19 311 Financial liabilities 80 168 – 28 – – 276 – 276 Investment contract liabilities – 1 940 – – – – 1 940 – 1 940 Employee benefits and share based payment liability 757 163 75 – 338 7 1 340 (456) 884 Other liabilities 664 127 55 (229) 1 273 252 2 142 17 2 159 Total segment liabilities 3 583 3 325 130 (201) 17 362 861 25 060 (439) 24 621 Total segment equity and liabilities 9 246 4 954 303 (115) 24 439 2 137 40 964 (142) 40 822 corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202665
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Notes to the consolidated financial statements continued 4. Segment information continued Geographical segmentation continued Southern Africa and OHL Group consolidation Australia Ireland OHL Group South Africa OGL Group R million OUTsurance OUTsurance Life Admini- stration services Central and consolidation adjustments Youi Group OUTsurance Ireland Total Treasury Company and consolidation adjustments Total Segment statement of financial position information As at 30 June 2025 Segment assets Property and equipment 332 – 13 (2) 837 25 1 205 – 1 205 Investment in associates – – – 4 – – 4 254 258 Reinsurance assets 25 69 – – 2 239 20 2 353 – 2 353 Insurance assets – 370 – – – – 370 – 370 Financial assets¹ 7 869 3 813 – 93 15 835 1 893 29 503 47 29 550 Other assets¹ 681 13 214 (231) 2 052 107 2 836 212 3 048 Cash and cash equivalents 165 9 111 56 1 211 25 1 577 288 1 865 Total segment assets 9 072 4 274 338 (80) 22 174 2 070 37 848 801 38 649 Segment Equity Share capital and premium 25 445 180 (856) 1 682 2 229 3 705 12 217 15 922 Retained earnings 4 525 844 (30) 1 770 4 717 (638) 11 188 (6 962) 4 226 Other equity reserves 46 1 – (989) 573 94 (275) (5 328) (5 603) Non-controlling interests – – – 351 – – 351 1 048 1 399 Total segment equity 4 596 1 290 150 276 6 972 1 685 14 969 975 15 944 Segment liabilities Reinsurance liabilities 30 5 – – – – 35 – 35 Insurance liabilities 2 077 633 – – 13 245 274 16 229 – 16 229 Financial liabilities² 96 37 – – – – 133 – 133 Investment contract liabilities² – 1 863 – – – – 1 863 – 1 863 Employee benefits and share based payment liability² 1 646 208 126 (36) 424 6 2 374 – 2 374 Other liabilities² 627 238 62 (320) 1 533 105 2 245 (174) 2 071 Total segment liabilities 4 476 2 984 188 (356) 15 202 385 22 879 (174) 22 705 Total segment equity and liabilities 9 072 4 274 338 (80) 22 174 2 070 37 848 801 38 649 1 The prior financial year geographical segment report has been updated to better reflect the nature of the derivatives with a value of R218m in OUTsurance, R87m in OUTsurance Life and R305m for OUTsurance Holdings. The derivative balance has been reallocated from ‘other assets’ to ‘financial assets’. 2 The prior financial year geographical segment report has been updated to separately identify financial liabilities (‘derivative financial instrument’ and ‘financial liabilities at fair value through profit or loss’), ‘Investment contract liabilities’ and ‘Employee benefits and share based payment liability’. These were previously included in ‘other liabilities’. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 202666
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Notes to the consolidated financial statements continued 4. Segment information continued Reconciliation of IFRS earnings to headline earnings attributable to ordinary shareholders as per note 13. R million 2026 2025 Normalised earnings per segment report 5 605 4 728 Recognition of deferred tax asset resulting from assessed loss 80 – Fair value adjustments on derivative financial instruments (27) 12 Remeasurement of contingent receivable 20 (27) Discounting effect of deferred receivable on associate sold 5 (2) Adjustment for Group treasury shares and treatment of share incentive scheme (4) (30) Amortisation of intangible assets relating to business combinations (4) (4) Taxation on capital gain in respect of the OHL share trust wind-up – (92) Headline earnings attributable to ordinary shareholders per note 13 5 675 4 585 corner Normalised earnings adjustments are applied where the Group believes that certain transactions create a mismatch between the Group’s accounting and economic performance. Normalised earnings are therefore considered to most accurately reflect the Group’s economic performance. Recognition of deferred tax asset: The gain arising from the recognition of deferred tax asset resulting from an assessed loss. Fair value adjustments: The fair value adjustments on derivative financial instruments relate to gains and losses on hedges of capital investments. These transactions are considered normalised earnings adjustments as they are entered into to manage the Group’s capital and are not part of ordinary operations. Remeasurement of contingent receivable: Remeasurement of the expected remaining proceeds on the sale of held for sale assets in the prior financial year. Adjustment for Group treasury shares: The Group views treasury shares held by group companies as having economic value and therefore adjusts for the impact of the elimination thereof to derive normalised earnings. Dividend income, the tax effect on fair value gains on treasury shares held, and the tax effect on the difference between equity and cash settled treatment of CSP share scheme as well as the difference between actual and effective shareholding in OHL were included in this adjustment. Amortisation of intangible assets: The Group has always viewed the amortisation of intangible assets relating to business combinations as non-operational in nature and therefore excludes it from the normalised earnings that are presented to the chief operating decision maker. Taxation on capital gain: Capital gains tax on the long-term cumulative build up of gain on treasury shares in the OHL Share Trust. Due to the non-operating nature of the wind-up of the share trust, this tax is excluded. 5. Administration and other revenue R million 2026 2025 Government grant received 7 17 Commission income¹ 50 42 Fees received from investment advice and investment administration services 26 24 Fees received from contact centre services 418 367 Other income 2 – Total administration and other income 503 450 corner 1 Commission income relates to SASRIA commission earned. Government grant received The Group qualifies for a job-creation incentive associated with call centre activities of Youi and Hastings offshored to South Africa. The incentive is accounted for based on the actual incentive qualified for during the financial year under review. In order to satisfy the requirements of the grant a minimum number of jobs must be created and maintained for previously unemployed individuals. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 67
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Notes to the consolidated financial statements continued 6. Investment income and interest income on financial assets using the effective interest method R million 2026 2025 Investment income: 381 287 Interest – financial assets at fair value through profit or loss 222 199 Dividends – listed equities 119 61 Dividends – unlisted equities 39 27 Dividends – other financial assets 1 – Interest income on financial assets using the effective interest method 1 345 1 349 Interest – financial assets measured at amortised cost 836 788 Interest – financial assets at fair value through other comprehensive income 509 561 Total Investment income and interest income on financial assets using the effective interest method 1 726 1 636 corner 7. Net gains from fair value adjustments on financial assets and change in expected credit losses on financial assets R million Fair value through profit or loss Fair value through other comprehensive income Measured at amortised cost Total 2026 Net gains/(loss) from fair value adjustments on financial assets 180 (5) – 175 Expected credit losses on financial assets – (1) 3 2 Effect on profit or loss 180 (6) 3 177 Fair value gains on financial assets at fair value through other comprehensive income – 13 – 13 Expected credit loss on financial assets – 1 – 1 Effect on other comprehensive income – 14 – 14 2025 Net gains from fair value adjustments on financial assets¹ 515 – – 515 Expected credit losses on financial assets – – 26 26 Effect on profit or loss 515 – 26 541 Fair value losses on financial asset at fair value through other comprehensive income – (421) – (421) Expected credit loss on financial assets – (1) – (1) Effect on other comprehensive income – (422) – (422) 1 The realised and unrealised gain of R44m and R471m, respectively has been collapsed to better reflect the nature of the movement in the financial asset on a net basis. Refer to note 3.3.1 for the fair value hierarchy of financial instruments measured at fair value, which provides more information on what instruments were measured using quoted market prices and what measurement techniques were used for instruments that do not have quoted market prices. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 68
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Notes to the consolidated financial statements continued 8. Finance expenses from insurance contracts issued and finance income from reinsurance contracts held R million OUTsurance Youi Group OUTsurance Life Total 2026 Finance expense from insurance contracts issued (129) (23) (196) (348) Interest accreted (112) (107) (51) (270) Effect of changes in interest rates and other financial assumptions (17) 84 (133) (66) Effect of measuring changes in estimates as current rates and adjusting the CSM rates on initial recognition – – (12) (12) Finance income from reinsurance contracts held 1 15 (16) – Interest accreted – 30 – 30 Effect of changes in interest rates and other financial assumptions 1 (15) (15) (29) Effect of measuring changes in estimates as current rates and adjusting the CSM rates on initial recognition – – (1) (1) Net insurance finance expenses (128) (8) (212) (348) 2025 Finance expense from insurance contracts issued (135) (185) (132) (452) Interest accreted (121) (135) (53) (309) Effect of changes in interest rates and other financial assumptions (14) (50) 87 23 Effect of measuring changes in estimates as current rates and adjusting the CSM rates on initial recognition – – (166) (166) Finance income from reinsurance contracts held – 95 61 156 Interest accreted – 67 5 72 Effect of changes in interest rates and other financial assumptions – 28 (4) 24 Effect of measuring changes in estimates as current rates and adjusting the CSM rates on initial recognition – – 60 60 Net insurance finance expenses (135) (90) (71) (296) The majority of assets backing the insurance liabilities for OUTsurance and OUTsurance Life are invested in money market portfolios of which the yield curve is similar to what was applied in discounting the insurance liabilities. For Youi which has term deposits invested in banks to support their insurance obligations, income earned is a proxy of the yields with similar durations. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 69
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Notes to the consolidated financial statements continued 9. Operating expenses The following expenses have been included in the statement of profit or loss and other comprehensive income under operating expenses: R million 2026 2025 Depreciation Buildings (140) (124) Computer and office equipment (86) (82) Furniture and fittings (15) (16) Motor vehicles (21) (19) Amortisation Purchased computer software (9) (9) Internally generated computer software (42) (40) Total depreciation and amortisation (313) (290) Employee benefits Salaries excluding retirement funding (5 222) (4 680) Medical aid contributions (179) (177) Retirement funding (431) (398) Share-based payments¹ (297) (1 481) Other staff expenses (38) (35) Total employee benefits (6 167) (6 771) Other disclosable items Auditor’s remuneration (27) (23) Financial statement audit(s) (22) (21) Other services2 (5) (2) Loss on sale of property and equipment (5) (1) Consulting and legal fees for professional services (55) (95) Investment fees paid (12) (12) Foreign exchange (loss)/gain (5) 21 Acquisition expenses³ (228) (316) Marketing and management expenses (4 523) (4 186) Total other disclosable expenses (4 855) (4 612) Total operating expenses including directly attributable expenses (11 335) (11 673) Directly attributable operating expenses⁴ (10 216) (9 399) Total other operating expenses excluding directly attributable expenses (1 119) (2 274) corner 1 The large reduction in the share-based payments expense arises where the final tranche of Employee Share Option Scheme (ESOP) vested in the current financial year. This is in line with the expectation following the replacement of the ESOP with the Conditional Share Plan (CSP). The CSP is significantly less geared to share price movements. 2 Other services include fees in respect of the performance of regulatory audits and specified procedures for regulatory purposes. 3 Acquisition expenses include both standard commission and spotter fees. 4 Expenses directly attributable in fulfilling the obligation under the insurance contracts and included in the ‘Insurance service expenses line in the Statement of profit or loss and other comprehensive income. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 70
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Notes to the consolidated financial statements continued 10. Finance costs R million 2026 2025 Interest paid – operational financing Interest paid on revolving credit facility – (33) Interest charge on lease liabilities (17) (13) Interest on Total Return Swap (60) (44) Other interest (11) (10) Guarantee fee (36) (29) Commitment fee on credit revolving facility (8) (7) Total finance costs (132) (136) corner 11. Taxation R million 2026 2025 South African normal taxation Current taxation Current year (1 497) (1 594) Prior year under provision¹ (54) – Deferred taxation Current year (71) 159 Prior year over provision2 83 – Australian normal taxation Current taxation Current year (939) (1 081) Deferred taxation Current year 10 54 Ireland normal taxation3 Current taxation Current year – – Total taxation charge (2 468) (2 462) Profit before taxation 8 648 7 681 corner 1 The current tax for 30 June 2026 includes an additional capital gains tax paid, resulting from a reclassification of unrealised gains to realised gains on investments. 2 The deferred tax adjustment for 30 June 2026 resulting from a change in estimate of capital gains tax accrued on unrealised gains. 3 OUTsurance DAC, a start-up subsidiary based in Ireland, remains in a tax loss position and, consequently, no current or deferred taxation expense or credit has been recognised for the current and prior financial year. Refer to note 20 for details of unrecognised deferred tax assets relating to assessed tax losses. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 71
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Notes to the consolidated financial statements continued 11. Taxation continued The tax on the group’s profit before taxation differs from the theoretical amount that would arise using the basic tax rate of South Africa as follows: % 2026 2025 Tax rate reconciliation Effective tax rate 28.54 32.05 Non-temporary differences (1.39) (3.44) Fair value adjustment¹ – 1.66 Non-taxable income² 0.28 0.54 Share-based payment schemes in the Group (0.10) (0.79) Capital gains tax 0.01 (1.13) Foreign tax rate differential (0.93) (1.52) Exempt dividends 0.35 0.20 Dividend related tax credit³ 0.08 0.17 Equity accounted earnings 0.08 0.67 Fair value adjustments to financial liabilities – (0.10) Insurance policyholder funds (0.05) – Non-allowable expenses³ ⁴ (1.00) (3.14) Other permanent differences 0.05 – Impairment of investment in associate (0.13) – Loss on sale of associates (0.03) – Prior year over/(under) provision³ 0.32 (0.20) Insurance policyholder funds – deferred tax asset recognised 0.99 – Deferred tax asset not recognised (1.46) (1.41) Standard income taxation rate in South Africa 27.00 27.00 corner 1 Includes the Capital Gains Tax (CGT) exempt portion on the fair value adjustments of capital assets. 2 Includes transfers of payroll provisions that are non-taxable in terms of the Income Tax Act. 3 In respect of the prior financial year tax rate reconciliation, the effect of the dividend related tax credit and the assessment adjustment have been disaggregated from the non-allowable expenses line to better reflect the nature of the reconciling item. 4 These expenses are disregarded due to the allocation of the taxable and non-taxable income earned by the Group entities. Preference dividends paid is also included in non-allowable expenses. This non-taxable income is mainly as a result of income being derived from dividends received in a holding company structure. 12. Earnings per share Earnings per share is calculated by dividing the earnings attributable to shareholders by the weighted number of ordinary shares in issue during the year. R million 2026 2025 Earnings attributable to ordinary shareholders 5 623 4 707 Weighted average number of ordinary shares in issue (full amount) 1 540 038 980 1 537 128 700 Earnings per share (cents) 365.2 306.2 Earnings attributable to ordinary shareholders 5 623 4 707 Dilutory impact of the share incentive schemes on earnings 1 (22) (24) Diluted earnings attributable to ordinary shareholders 5 601 4 683 Diluted weighted average number of ordinary shares in issue (full amount) 1 547 489 328 1 544 006 450 Diluted earnings per share (cents) 362.0 303.3 corner 1 The dilutory impact relates to the Group’s shareholding diminishing due to the vesting of share options in Group companies. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 72
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Notes to the consolidated financial statements continued 13. Headline earnings per share Headline earnings per share is calculated by dividing the adjusted earnings attributable to shareholders by the weighted number of ordinary shares in issue during the year. Headline earnings reconciliation 2026 2025 R million Gross Net Gross Net Earnings attributable to ordinary shareholders 5 623 4 707 Adjustments for: – Impairment of investments in associates 42 42 – – – Loss on disposal of property and equipment 5 4 1 1 – Loss/(profit) on sale of assets held for sale 4 6 (35) (23) – Profit on disposal of investments in associates – – (153) (110) – Impairment of assets held for sale 1 – – 10 10 Headline earnings attributable to ordinary shareholders 5 675 4 585 1 There is no tax impact on this headline earnings adjustment as it relates to a net capital loss from a tax perspective. R million 2026 2025 Headline earnings attributable to ordinary shareholders 5 675 4 585 Weighted average number of ordinary shares in issue (full amount) 1 540 038 980 1 537 128 700 Headline earnings per share (cents) 368.5 298.3 Headline earnings attributable to ordinary shareholders 5 675 4 585 Dilutory impact of the share incentive schemes on earnings 1 (22) (24) Diluted headline earnings attributable to ordinary shareholders 5 653 4 561 Diluted weighted average number of ordinary shares in issue (full amount) 1 547 489 328 1 544 006 450 Diluted headline earnings per share (cents) 365.3 295.4 corner 1 The dilutory impact relates to the Group’s shareholding diminishing due to the vesting of share options in Group companies. 14. Dividend per share R million 2026 2025 Total dividends paid during the year 5 130 3 714 Total dividends declared relating to the year 6 305 4 171 Number of issued shares at the end of the year 1 548 127 892 1 547 231 505 Dividend declared per share – Normal (cents) 291.5 237.6 Dividend declared per share – Special (cents) 117.8 33.1 Total dividend 409.3 270.7 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 73
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Notes to the consolidated financial statements continued 15. Property and equipment R million Land and buildings Computer equipment Furniture fittings and office equipment Motor vehicles Total Year ended 30 June 2026 Opening net book amount 877 239 85 4 1 205 Cost 1 066 700 168 6 1 940 Accumulated depreciation (189) (461) (83) (2) (735) Additions 70 79 23 – 172 Disposals (3) (3) (2) – (8) Foreign exchange adjustments (23) (3) (2) – (28) Depreciation charge (53) (86) (15) (1) (155) Closing net book amount 868 226 89 3 1 186 At 30 June 2026 Cost 1 101 760 186 6 2 053 Accumulated depreciation (233) (534) (97) (3) (867) Net book amount 868 226 89 3 1 186 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 74
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Notes to the consolidated financial statements continued 15. Property and equipment continued R million Land and buildings Computer equipment Furniture fittings and office equipment Motor vehicles Total Year ended 30 June 2025 Opening net book amount 921 215 63 6 1 205 Cost 1 281 659 149 8 2 097 Accumulated depreciation (360) (444) (86) (2) (892) Additions 188 111 69 5 373 Disposals (154) (2) (31) (5) (192) Foreign exchange adjustments (27) (3) – – (30) Depreciation charge (51) (82) (16) (2) (151) Closing net book amount 877 239 85 4 1 205 At 30 June 2025 Cost 1 066 700 168 6 1 940 Accumulated depreciation (189) (461) (83) (2) (735) Net book amount 877 239 85 4 1 205 Land and buildings assets are utilised by the Group in the normal course of operations to provide services. Included in these assets are leasehold improvements with a carrying value of R65.9 million (2025: R11.3 million). The South African head office is situated in Centurion, Gauteng. The Australian head office for the Youi Group is situated on the Sunshine Coast. Both these properties are owner-occupied. Information regarding land and buildings is kept at the respective Companies’ registered offices. This information will be open for inspection in terms of section 20 of the Companies Act. Refer to note 38 for the current and non-current analysis of property and equipment. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 75
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Notes to the consolidated financial statements continued 16. Intangible assets Internally developed software relates to a project to redevelop the core insurance technology of the Group’s insurance operations. These intangible assets will be amortised once the software development is substantially completed and available for use. R million Internally developed computer software Purchased computer software Computer software under development1 Total Year ended 30 June 2026 Opening net book amount 213 8 3 224 Cost 329 108 3 440 Accumulated amortisation (116) (100) – (216) Additions 56 5 1 62 Write-off – – (3) (3) Foreign exchange adjustments (5) – – (5) Amortisation charge (42) (9) – (51) Closing net book amount 222 4 1 227 At 30 June 2026 Cost 378 112 1 491 Accumulated amortisation (156) (108) – (264) Net book amount 222 4 1 227 1 Computer software under development relates to specific modules of the core insurance technology of the Group’s insurance operations. R million Internally developed computer software Purchased computer software Computer software under development 1 Total Year ended 30 June 2025 Opening net book amount 234 16 3 253 Cost 311 108 3 422 Accumulated amortisation (77) (92) – (169) Additions 18 1 – 19 Foreign exchange adjustments 1 – – 1 Amortisation charge (40) (9) – (49) Closing net book amount 213 8 3 224 At 30 June 2025 Cost 329 108 3 440 Accumulated amortisation (116) (100) – (216) Net book amount 213 8 3 224 1 Computer software under development relates to specific modules of the new policy administration system still being developed. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 76
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Notes to the consolidated financial statements continued 17. Right-of-use assets R million Properties1 Motor vehicles2 Total Year ended 30 June 2026 Opening net book amount 298 56 354 Cost 396 81 477 Accumulated depreciation (98) (25) (123) Additions³ 18 16 34 Modification 119 1 120 Depreciation (87) (20) (107) Terminations/cancellations⁴ – (6) (6) Foreign currency adjustments (14) (3) (17) Closing net book amount 334 44 378 At 30 June 2026 Cost 511 84 595 Accumulated depreciation (177) (40) (217) Closing net book amount 334 44 378 1 Property leases relate to the use of regional offices. 2 Leased motor vehicles are for the use of operational staff. 3 The additions relate to new leases entered into in OUTsurance and Youi for both motor vehicles and properties. 4 Terminations include motor vehicles leased by Youi with a cost of R10.7 million and an accumulated depreciation of R4.4 million. Cancellations include motor vehicles leased by OUTsurance with a cost of R1.0 million and an accumulated depreciation of R0.9 million. During the current financial year, the lease contract for the Head office in OUTsurance Ireland was renegotiated to extend the lease term from 5 years to 10 years. This reflected the increased certainty associated with the entity’s growth and continued operations. The change in the lease term was accounted for as a lease modification. In addition to the extended lease term, additional floor space was acquired for compensation that was commensurate with the increase in scope and therefore recognised as a separate lease. As a result, the useful lives of the related leasehold improvements to the property were reassessed and the depreciation period was revised to reflect the period over which the assets are expected to generate future economic benefits. The revised depreciation charges have been recognised prospectively from the date of reassessment in accordance with the Company’s accounting policy for property and equipment. R million Properties 1 Motor vehicles 2 Total Year ended 30 June 2025 Opening net book amount 250 27 277 Cost 277 57 334 Accumulated depreciation (27) (30) (57) Additions³ 126 51 177 Depreciation (73) (17) (90) Terminations⁴ – (4) (4) Foreign currency adjustments (5) (1) (6) Closing net book amount 298 56 354 At 30 June 2025 Cost 396 81 477 Accumulated depreciation (98) (25) (123) Closing net book amount 298 56 354 1 Property leases relate to the use of regional offices. 2 Leased motor vehicles are for the use of operational staff. 3 The addition is new leases entered into in OUTsurance Shared Services for motor vehicles and Youi for properties. 4 Following Youi’s transitioning to electric vehicles during the prior financial year, motor vehicles with a cost of R20.1 million and an accumulated depreciation of R15.8 million was derecognised. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 77
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18. Subsidiaries The following companies are subsidiaries of OGL as at 30 June 2026: Issued ordinary shares Effective holdings Subsidiary Nature of business Country of Incorporation 2026 R million 2025 R million 2026 % 2025 % Directly held by the company: Main Street 1353 Proprietary Limited¹ Holdings company South Africa 6 123 6 131 100 100 OUTsurance Holdings Limited Holdings company South Africa 4 259 4 259 92.8 92.8 RMI Treasury Company Limited² Holdings company South Africa 7 314 7 973 100 100 Additiv Proprietary Limited Holdings company South Africa 9 9 100 100 Indirectly held via OUTsurance Holdings Limited: OUTsurance Designated Activity Company³ Short-term Insurer Ireland 2 429 2 229 100 100 OUTsurance Insurance Company Limited Short-term Insurer South Africa 25 25 100 100 OUTsurance International Holdings Proprietary Limited³ Holdings company South Africa 4 263 4 263 100 100 OUTsurance Irish Insurance Holdings Ltd³ Long-term insurer Ireland 2 429 2 229 100 100 OUTsurance Life Insurance Company Limited Long-term insurer South Africa 435 435 100 100 OUTsurance Shared Services Proprietary Limited Service company South Africa 180 180 100 100 Youi Holdings Proprietary Limited Holdings company Australia 1 514 1 522 94.8 95.0 Youi Properties Proprietary Limited⁴ Property company Australia – – 94.8 95.0 Youi Proprietary Limited (Australia) Short-term Insurer Australia 2 382 2 409 94.8 95.0 corner corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 78
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Notes to the consolidated financial statements continued 18. Subsidiaries continued Issued ordinary shares Effective holdings Subsidiary Nature of business Country of Incorporation 2026 R million 2025 R million 2026 % 2025 % Indirectly held via RMI Treasury Company Limited: AlphaCode Proprietary Limited Holdings company South Africa 37 37 100 100 Firness International Proprietary Limited Holdings company South Africa 1 874 1 874 100 100 RMI Investment Holdings Proprietary Limited⁵ Holdings company South Africa 380 835 100 100 RMI Invest One Proprietary Limited⁶ Holdings company South Africa – 26 100 100 RMI Invest Two Proprietary Limited⁷ Holdings company South Africa – 239 100 100 RMI Invest Three Proprietary Limited Holdings company South Africa 499 499 100 100 RMI Invest Four Proprietary Limited Holdings company South Africa 69 69 100 100 RMI Invest Five Proprietary Limited⁸ Holdings company South Africa – – 100 100 RMI Invest Six Proprietary Limited⁸ Holdings company South Africa – – 100 100 RMI Investment Managers Affiliates 1 Proprietary Limited⁹ Holdings company South Africa 89 248 100 100 RMI Investment Managers Group Proprietary Limited¹⁰ Holdings company South Africa 492 719 100 100 corner corner 1 During the current financial year, Main Street 1353 Proprietary Limited made a cash return of capital distribution in the amount of R8 million. 2 During the current financial year, the company received R659 million (2025: R718 million) in cash from RMI Treasury Company Limited as a return of capital distribution. 3 During the current financial year, the Group made additional share capital investment of R199 million (€10 million) (2025: R191 million (€10 million)) in OUTsurance Designated Activity Company and OUTsurance Irish Insurance Holdings Ltd through its interest in OUTsurance International Holdings Proprietary Limited. 4 An amount of R10 000 relating to Youi Properties Proprietary Limited issued ordinary capital in the current and prior financial years were excluded due to rounding. 5 During the current financial year, RMI Investment Holdings Proprietary Limited made a cash return of capital distribution in the amount of R455 million. 6 During the current financial year, RMI Invest One Proprietary Limited made a cash return of capital distribution in the amount of R26 million. 7 During the current financial year, RMI Invest Two Proprietary Limited made a cash return of capital distribution in the amount of R239 million. 8 Amounts of R100 relating to these investments were excluded due to rounding. 9 During the current financial year, RMI Investment Managers Affiliates 1 Proprietary Limited made a cash return of capital distribution in the amount of R159 million. 10 During the current financial year, RMI Investment Managers Group Proprietary Limited made a cash return of capital distribution in the amount of R227 million. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 79
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18. Subsidiaries continued Investment in Ireland During the current and prior financial years, the Group made an additional share capital investment of €10 million per annum. This is aligned with the Group’s capital commitment to fund the growth in OUTsurance DAC by subscribing for additional shares in OUTsurance Irish Holdings to the value of €10 million per year for five years until 2029. In line with the capital commitment agreement an investment of €10 million was made on 1 November 2025 at a spot rate of R19.93 with a total foreign exchange gain of R0.7 million. Up to 15% of the issued ordinary share capital of OUTsurance Irish Holdings can be made available under the employee share capital scheme in Ireland. All subsidiaries are included in the consolidation. The proportion of voting rights in subsidiaries does not differ from the proportion of ordinary shares held. There is no difference between the effective holdings and the actual holdings in subsidiaries and associates consolidated for the current and prior financial years. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 80
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18. Subsidiaries continued Investment in OUTsurance Holdings R million 2026 2025 OUTsurance Holdings Limited Financial year: 30 June Year used for consolidation: 30 June Number of shares held 3 526 569 014 3 523 520 226 Equity shares at cost 12 133 12 039 Profit for the year 6 112 5 285 Results for the year ended 30 June Income statement Insurance revenue 41 487 37 131 Insurance service expenses (33 037) (28 668) Net expenses from reinsurance contracts held (376) (882) Insurance service result 8 074 7 581 Administration and other revenue 503 450 Net investment income 1 855 2 455 Investment income 386 282 Interest income on financial assets using the effective interest method 1 314 1 316 Net gains from fair value adjustments on financial assets 156 857 Expected credit losses reversed on financial assets (1) – Net insurance finance expenses (348) (296) Finance expenses from insurance contracts issued (348) (452) Finance income from reinsurance contracts held – 156 Fair value adjustment to financial liabilities (212) (211) Net insurance and investment result 9 872 9 979 Other operating expenses (1 167) (2 355) Finance costs (132) (131) Equity accounted earnings – 67 (Loss)/profit on sale of associates (5) 176 Impairment of investment in asset held for sale – (10) Profit before taxation 8 568 7 726 Taxation (2 456) (2 441) Profit for the year 6 112 5 285 Profit attributable to: Ordinary shareholders 5 992 5 151 Non-controlling interest 120 134 Profit for the year 6 112 5 285 Financial position as at 30 June Current assets 32 724 30 471 Non-current assets 8 240 7 377 Current liabilities (17 300) (16 743) Non-current liabilities (7 760) (6 136) Cash flows for the year ended 30 June Cash inflow from operating activities 4 843 5 724 Cash outflow from investing activities 92 (1 288) Cash outflow from financing activities (4 941) (4 301) corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 81
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18. Subsidiaries continued Investment in RMI Treasury Company R million 2026 2025 RMI Treasury Company Limited consolidated Financial year: 30 June Year used for consolidation: 30 June Number of shares held 27 623 27 623 Equity shares at cost 7 314 7 973 Profit for the year 55 010 114 Results for the year ended 30 June Income statement Investment income 19 22 Interest income on financial assets using the effective interest method 9 6 Net gain/(loss) from fair value adjustments on financial assets 24 (27) Other operating expenses (17) (24) Result of operating activities 35 (23) Finance costs – (5) Equity accounted earnings 26 122 Impairment of investments in associates (42) – Profit on sale of assets held for sale – 35 Profit before taxation 19 129 Taxation (6) (15) Profit for the year 13 114 Financial position as at 30 June Current assets 177 326 Non-current assets 229 794 Current liabilities (3) (26) Non-current liabilities – (38) Cash flows for the year ended 30 June Cash outflow from operating activities (75) (23) Cash inflow from investing activities 701 789 Cash outflow from financing activities (659) (722) corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 82
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18. Subsidiaries continued Reconciliation of non-controlling interest Non-controlling interest relating to: OUTsurance Holdings Limited Youi Holdings Proprietary Limited R million 7.2% 5.6% Total At 30 June 2026 Opening balance of non-controlling interest 1 048 351 1 399 Profit attributable to non-controlling interests 437 120 557 FCTR attributable to non-controlling interest (24) (11) (35) Transactions with non-controlling interests (12) 9 (3) Non-controlling interest in other reserves (2) – (2) Dividends paid (342) (99) (441) Closing balance of non-controlling interest 1 105 370 1 475 corner Non–controlling interest relating to: OUTsurance Holdings Limited Youi Holdings Proprietary Limited R million 7.2% 5.6% Total At 30 June 2025 Opening balance of non-controlling interest 1 007 295 1 302 Profit attributable to non-controlling interests 378 134 512 FCTR attributable to non-controlling interest (7) (16) (23) Transactions with non-controlling interests 35 5 40 Non-controlling interest in other reserves (2) – (2) Dividends paid (363) (67) (430) Closing balance of non-controlling interest 1 048 351 1 399 Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 83
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18. Subsidiaries continued OUTsurance Holdings Limited Transactions in the current financial year During the current financial year, OGL acquired an additional 3 048 788 OHL ordinary shares in exchange for issuing 896 387 new OGL ordinary shares with a total market value of R64 million and a total cash consideration of R31 million. These acquisitions of OHL shares can be broken down as follows: • On 17 November 2025, OGL issued 388 661 new ordinary shares at R72.44 per share (R28 million) in exchange for 890 130 OHL shares acquired from minority shareholders; • On 10 June 2026, OGL issued 507 726 new ordinary shares at R70.67 per share (R36 million) in exchange for 1 162 705 OHL shares acquired from minority shareholders; and • OGL acquired a further 995 953 OHL shares from minority shareholders for a total cash consideration of R31 million at various times during the current financial year. The total consideration for OHL shares acquired from OHL minority shareholders is therefore R95 million, which resulted in OGL’s shareholding in OHL increasing by 0.08% from 92.75% to 92.83% as at 30 June 2026. Current financial year effect on the equity attributable to owners of OHL was as follows: R million Transactions with OHL minority shareholders Carrying amount of the 7.25% non-controlling interest before the transactions with the OHL minority shareholders 1 033 Carrying amount of the 0.08% non-controlling interest acquired 11 Total consideration for OHL shares acquired from OHL minority shareholders (95) Excess of consideration exchanged and recognised in the transaction with non- controlling interest reserve (84) corner Transactions in the prior financial year During the prior financial year, OGL acquired an additional 87 311 782 OHL ordinary shares in exchange for issuing 18 461 156 new OGL ordinary shares with a total market value of R990 million and a total cash consideration of R981 million. These acquisitions of OHL shares can be broken down as follows: 1. Acquiring OHL shares from the OHL Share Trust On 16 September 2024, OGL issued 12 079 169 new ordinary shares at R48.69 per share (R588 million) and paid R900 million in cash in exchange for 69 996 930 OHL ordinary shares acquired from the OHL Share Trust (total consideration of R1 488 million). This transaction increased OGL’s actual shareholding in OHL from 90.45% (as at 1 July 2024) to 92.15% (as at 16 September 2024). 2. Acquiring OHL shares from OHL minority shareholders • On 15 November 2024, OGL issued 5 552 510 new ordinary shares at R61.12 per share (R339 million) in exchange for 12 720 025 OHL shares acquired from minority shareholders; • On 20 June 2025, OGL issued 829 477 new ordinary shares at R75.68 per share (R63 million) in exchange for 1 899 976 OHL shares acquired from minority shareholders; and • OGL acquired a further 1 684 751 OHL shares from minority shareholders for a total cash consideration of R81 million at various times during the prior financial year. The total consideration for OHL shares acquired from OHL minority shareholders is therefore R483 million, which resulted in OGL’s shareholding in OHL increasing by 0.6% from 92.15% to 92.75% as at 30 June 2025. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 84
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18. Subsidiaries continued OUTsurance Holdings Limited continued Transactions in the prior financial year continued Current financial year effect on the equity attributable to owners of OHL was as follows: R million Transactions with OHL minority shareholders Carrying amount of the 7.85% non-controlling interest before the transactions with the OHL minority shareholders 1 073 Carrying amount of the 0.6% non-controlling interest acquired 82 Non-controlling interest in total consideration in respect of the OHL shares acquired from the OHL share trust (117) Total consideration for OHL shares acquired from OHL minority shareholders (483) Excess of consideration exchanged and recognised in the transaction with non- controlling interest reserve (518) Youi Holdings Proprietary Limited (Youi Holdings) During the current financial year, in September 2025, Youi Holdings Pty Limited (Youi Holdings) issued 956 928 additional ordinary shares to its Share Trust. The issue price per share was A$1.87 for a total market value of A$1.8 million. The OHL Group’s ownership in Youi Holdings decreased from 94.41% to 94.36% as a result of this transaction and the results of the Youi Group were consolidated in line with the updated percentage holding from the effective date. During the prior financial year, in September 2024, Youi Holdings Pty Limited (Youi Holdings) issued 5 030 000 additional ordinary shares to its Share Trust. The issue price per share was A$1.23 for a total market value of A$6.2 million. The OHL Group’s ownership in Youi Holdings decreased from 94.64% to 94.41% as a result of this transaction and the results of the Youi Group were consolidated in line with the updated percentage holding from the effective date. The effect of the share issue on equity attributable to owners of Youi Holdings during the current and prior financial year is summarised as follows: R million 2026 2025 Carrying amount of the 5.59% (2025: 5.36%) non-controlling interest before the sale 328 284 Carrying amount of the 0.05% (2025: 0.23%) non-controlling interest acquired 20 (58) Value of consideration for the non-controlling interest 20 74 Excess of consideration exchanged and recognised in the transaction with non-controlling interest reserve 40 16 corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 85
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19. Investment in associates Number of shares % of equity 2026 2025 2026 2025 The following companies are associates of the Group as at 30 June 2026: Polar Star Management 155 000 155 000 25.0 25.0 Sancreed Proprietary Limited (Guidepost)¹ 122 839 122 839 45.5 45.5 corner corner 1 Guidepost is carried at R nil. R million 2026 2025 Investment in associates Polar Star Management 228 258 Sancreed Proprietary Limited (Guidepost) – – Investment in associates 228 258 Reconciliation of investment in associates Opening balance 258 806 Equity-accounted earnings for the year 25 189 Dividends received for the year (13) (185) Impairment of investment in associate (42) – Foreign exchange adjustments – (12) Carrying value of associate sold – (350) Carrying value of associates classified as held for sale – (188) Associate becoming a subsidiary – (2) Closing balance 228 258 corner The Group assesses whether there is an indicator for impairment of its associate investments on an annual basis and performs an impairment assessment if such an indicator exists. The assessments are based on discounted cash flow models with company forecasts used as inputs. These forecasts can be adjusted to allow for our own assessment of expected performance. Based on this assessment, the Group’s investment in Polar Star Management was impaired by R42 million in the current financial year. There are no contingent liabilities relating to the Group’s investment in associates. The tables below provides a summary of the financial information of the associate (Polar Star Management) held within the Group: R million 2026 2025 Statement of financial position Current assets 105 93 Non-current assets 394 1 065 Current liabilities (71) (775) Non-current liabilities (6) (10) Equity 422 373 Statement of profit and loss and other comprehensive income Revenue 275 608 After tax profit or loss 122 501 Closing balance of cash and cash equivalents 42 50 corner Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 86
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Notes to the consolidated financial statements continued 19. Investment in associates continued The tables below provides a reconciliation of the carrying value of the associate (Polar Star Management) held within the Group: R million 2026 2025 % of ownership¹ 25.0% 25.0% Nature of business Asset Management Asset Management Place of business South Africa South Africa Opening net assets 373 479 Profit for the year 122 500 Foreign currency translation adjustments (41) (22) Dividend (50) (584) Closing net assets 404 373 Interest in associates¹ 102 95 Notional goodwill 119 161 Foreign currency translation reserve attributable to notional goodwill 7 2 Carrying value 228 258 corner 1 The percentage of ownership have been rounded to one decimal for disclosure purposes, where the actual ownership percentage is at least two decimals. This will have a slight impact on the interest in associates value being recalculated. Associates sold and or classified as held for sale during the prior financial year Additiv Proprietary Limited and its 100% subsidiary Additiv Capital Proprietary Limited (Additiv) During the prior financial year, as at 30 June 2025, Additiv changed from being previously treated as an associate to a 100%-owned subsidiary. The increase in shareholding is as a result of the acquisition of all the shares not previously held for a nominal amount. Merchant Capital Advisory Services Proprietary Limited (Merchant Capital) During the prior financial year, in January 2025, an agreement was reached to dispose of Merchant Capital by way of a company share buy-back. Accordingly, the investment in the Merchant Capital met the criteria for classification as held for sale as at the interim reporting period, 31 December 2024. This disposal was tranched over a period of 15 months with total proceeds amounting to R92 million, and the outstanding deferred proceeds (R65 million) as at 30 June 2025 was received in full during April 2026. CloudBadger Proprietary Limited (CloudBadger) CloudBadger is a software company operating in South Africa. During the prior financial year, a Memorandum of Understanding (MOU) was concluded in December 2024, followed by the execution of a Sale and Purchase Agreement (SPA) on 1 July 2025 for the disposal of CloudBadger. The SPA became binding upon fulfilment of the condition precedent relating to approval by the Competition Commission of Eswatini. During the current financial year, the Competition Commission of Eswatini approved the transaction, and the disposal became effective on 1 October 2025, being the effective date of sale. The SPA provides for contingent consideration in the form of an “Agterskot” payment, which is performance-based and payable over a four-year period subsequent to the closing date, subject to the fulfilment of specified conditions, including Prudential Authority approval. The contingent payments are determined annually based on the revenue performance of the agreed contracts and are allocated equally between the sellers. The first year’s contingent consideration is calculated based on 40% of the revenue generated from the agreed contracts. The estimated contingent consideration of R4 million has been recognised as a ‘contingent receivable’ and is included within ‘financial assets at fair value through profit or loss’ (refer to note 21). Blue Zebra Insurance Proprietary Limited (BZI) The Group’s subsidiary, Youi Holdings had an associate investment in BZI, which is an insurance underwriting agency operating in Australia. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 87
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Notes to the consolidated financial statements continued 19. Investment in associates continued Associates sold and or classified as held for sale during the prior financial year continued During the prior financial year, Youi Holdings sold its share in BZI which was unconditional as at 30 June 2025. The interest was sold to Envest Pty Ltd for a total net proceeds of R526 million, resulting in a profit of R176 million (pre-tax) included in profit or loss. The net proceeds is included in ‘other receivables’ as at 30 June 2025 which was received on 1 July 2025. Profit on sale of associates are as follows: R million BZI 2025 Sales proceeds 526 Carrying amount of associate sold (350) Profit on sale of associate 176 Associates classified as held for sale are as follows: R million Merchant Capital CloudBadger Total 2025 Carrying value at 1 July 2024 58 135 193 Equity-accounted earnings for the prior financial year – (3) (3) Dividends received for the prior financial year (2) – (2) Carrying value of associates classified as held for sale 56 132 188 The Group had no classification of associates to held for sale during the current financial year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 88
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Notes to the consolidated financial statements continued 20. Deferred income tax Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. Movement R million Opening Balance Profit or loss Other compre- hensive income Equity1 Closing Balance At 30 June 2026 Deferred tax assets Provision relating to staff costs 568 (259) – (4) 305 Other provisions 12 4 – – 16 Insurance contract assets 153 44 – (5) 192 Fair value adjustments (5) 5 – – – Service costs on employee benefits 10 (4) – – 6 Lease liabilities 99 (18) – (2) 79 Financial assets at fair value through other comprehensive income 1 (1) – – – Allowances on fixed and intangible assets 32 3 – (1) 34 Special transfer credit – 3 – – 3 Expected loss adjustment 7 – – – 7 Other 26 (13) – 6 19 Assessed loss – 83 – – 83 Total before adjustment relating to offset 903 (153) – (6) 744 Adjustment relating to offset2 (402) (285) Total deferred tax assets 501 459 Deferred tax liabilities Fair value adjustments³ (350) 124 (6) 38 (194) Investment in associates⁴ (9) 9 – – – Prepayments (12) 7 – – (5) Right-of-use assets (92) 25 – 3 (64) Insurance contract liabilities (127) 38 – – (89) Reinsurance contract assets 31 (8) – – 23 Capital loss utilised (1) 1 – – – Other adjustments – (21) – – (21) Total before adjustment relating to offset (560) 175 (6) 41 (350) Adjustment relating to offset2 402 285 Total deferred tax liabilities (158) (65) 1 Included in the equity movement is the movement in the FCTR on the deferred tax balances where applicable. 2 The adjustment relating to offset relates to the reclassification of the balance from the underlying companies to disclose the net position per legal entity as the Group does not have a legal right of offset of the underlying companies. 3 A deferred tax liability was recognised in the prior financial year in respect of taxable temporary differences associated with an unlisted equity investment measured at fair value through other comprehensive income (FVOCI). Following the disposal of the investment during the current financial year, the deferred tax liability was reassessed and adjusted to reflect the actual capital gains tax arising on disposal. The resulting tax liability was settled in full by 30 June 2026. 4 During the prior financial year, the Group recognised a deferred income tax liability of R9 million arising from the disposal of an investment in an associate following a share buy-back transaction by the associate. The related deferred income tax liability was settled in full during the current financial year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 89
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Notes to the consolidated financial statements continued 20. Deferred income tax continued Movement R million Opening Balance Profit or loss Other compre- hensive income Equity 1 Closing Balance At 30 June 2025 Deferred tax assets Provision relating to staff costs 397 178 – (7) 568 Other provisions 13 – – (1) 12 Insurance contract assets 103 54 – (4) 153 Fair value adjustments 3 (8) – – (5) Service costs on employee benefits (32) 42 – – 10 Operating lease charges (5) 5 – – – Lease liabilities 72 29 – (2) 99 Financial assets at fair value through other comprehensive income 1 – – – 1 Allowances on fixed and intangible assets 26 7 – (1) 32 Special transfer credit 12 (12) – – – Expected loss adjustment 7 – – – 7 Other 34 (9) – 1 26 Reinsurance contract assets (1) 1 – – – Total before adjustment relating to offset 630 287 – (14) 903 Adjustment relating to offset² (323) (402) Total deferred tax assets 307 501 Deferred tax liabilities Fair value adjustments (199) (169) 17 1 (350) Investment in associates³ (27) 17 – 1 (9) Prepayments (19) 7 – – (12) Operating lease charges (1) 1 – – – Right-of-use assets (68) (26) – 2 (92) Insurance contract liabilities (262) 135 – – (127) Reinsurance contract assets 39 (8) – – 31 Capital loss utilised (1) – – – (1) Other adjustments 31 (31) – – – Total before adjustment relating to offset (507) (74) 17 4 (560) Adjustment relating to offset² 324 402 Total deferred tax liabilities (183) (158) 1 Included in the equity movement is the movement in the FCTR on the deferred tax balances where applicable. 2 The adjustment relating to offset relates to the reclassification of the balance from the underlying companies to disclose the net position per legal entity as the Group does not have a legal right of offset of the underlying companies. 3 The Group recognised a deferred income tax liability of R9 million during the prior financial year following the share buy-back transaction of an associate resulting in a disposal. As per the share buy-back agreement, this deferred income tax liability was to be settled within the current financial year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 90
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Notes to the consolidated financial statements continued 20. Deferred income tax continued The Group reviews the carrying amount of deferred tax assets at each reporting date and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. The following deferred tax assets were not recognised: • An amount of R220 million as at 30 June 2025 which related to the individual policyholder tax fund in OUTsurance Life Insurance Company. In the current financial year, the taxable income exceeded the deductible expenses in the fund and the full assessed loss was recognised. • An amount of R126 million (2025: R108 million) which relates to OUTsurance DAC, the Group’s start-up subsidiary which does not have sufficient future taxable profits at this stage. • During the prior financial year, OUTsurance purchased the Embankment office building that was owned by a fellow subsidiary, OUTsurance Properties, under a section 45 Inter-group transaction of the Income Tax Act. In terms of the Act, the transaction has a roll-over effect where OUTsurance and Properties are assumed to be one in the same person for purposes of the transaction. The deferred tax liabilities to the value of R88 million previously recognised by OUTsurance Properties has been rolled forward to OUTsurance for tax purposes. This deferred taxation liability is not recognised because the transaction is not a business combination as required by IAS 12 and will realise when the building is disposed of to a third party. The unrecognised deferred tax assets do not have an expiry date. Refer to note 38 for the current and non-current analysis of deferred taxation. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 91
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Notes to the consolidated financial statements continued 21. Financial assets R million 2026 2025 Fair value through profit or loss 7 525 6 758 Measured at fair value through profit or loss 4 310 4 108 Debt securities Zero-coupon deposits backing endowment policies 1 940 1 863 Convertible loan – 14 Equity securities Listed non-cumulative, non-redeemable preference shares 143 227 Exchange traded funds 1 136 1 184 Collective investment schemes¹ 1 081 810 Unlisted shares 10 10 Designated at fair value through profit or loss 3 215 2 650 Debt securities Money market securities 48 20 Zero-coupon deposits 1 770 1 730 Unsecured investment in development fund 131 84 Contingent receivable 88 74 Collective investment schemes² 1 178 742 Fair value through other comprehensive income 7 995 8 111 Debt securities Government, municipal and public utility securities 1 184 789 Money market securities <1year 2 136 1 898 Money market securities >1 year 2 791 3 046 Collective investment schemes³ 1 884 1 904 Equity securities Unlisted equity – 474 Amortised cost 16 930 14 355 Debt securities Term deposits 16 842 14 347 Term loan⁴ 87 – Preference share investment 1 8 Total financial assets 32 450 29 224 1 The Group’s investment in Equity Collective investment schemes consist of R67.8 million (2025: R41.6 million) for MSCI World Index Feeder Fund and R1 013.3 million (2025: R768.5 million) for the Australian Equity Index Fund. 2 This investment relates to the Group’s investment in the Australian Bond Fund. 3 These investments relate to the Group’s investment in the Money Market Funds of which the most material fund is OUTsurance Ireland’s investment of R1 811 million (2025: R1 892 million) in the Morgan Stanley Euro Liquidity Fund. 4 The Term loan was advanced to the independent Youi ESOP Financing Trust. The loan was negotiated and concluded on arm’s length terms and conditions and provides the lender with full recourse against the Trust in the event of default. Refer to page 36 under level 2 fair value hierarchy description for more information on the type of collective investment schemes. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 92
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Notes to the consolidated financial statements continued 21. Financial assets continued R million Fair value through profit or loss Fair value through other compre- hensive income Amortised cost Total Year ended 30 June 2026 Movement Analysis Opening balance 6 758 8 111 14 355 29 224 Additions (purchases and issues) 1 339 3 552 10 041 14 932 Interest reinvested 375 509 373 1 257 Disposals (sales and redemptions) (1 039) (3 983) (7 395) (12 417) Fair value adjustments 143 8 – 151 Expected credit loss movement – – 3 3 Foreign exchange difference (51) (202) (447) (700) Closing balance 7 525 7 995 16 930 32 450 Year ended 30 June 2025 Movement Analysis Opening balance 5 632 8 203 12 634 26 469 Additions (purchases and issues) 1 838 2 251 4 602 8 691 Dividends reinvested 9 – – 9 Interest reinvested 25 559 380 964 Disposals (sales and redemptions) (1 051) (2 607) (2 813) (6 471) Fair value adjustments 323 (421) – (98) Expected credit loss movement – – 26 26 Foreign exchange difference (18) 126 (474) (366) Closing balance 6 758 8 111 14 355 29 224 A register of investments is available for inspection at the registered office of the Group. Refer to note 3.3.1 for information relating to the fair value of investment securities. Refer to note 38 for the current and non-current analysis of investment securities. Critical accounting estimates – ECL In determining the ECL allowances for financial instruments carrying credit risk, the following significant judgements and estimates were considered: • Judgement was applied in identifying the qualitative and quantitative triggers and thresholds used to identify significant increases in credit risk since initial recognition of the financial assets. Depending on the availability of reasonable and supportable information without undue cost or effort, significant increases in credit risk are identified through, amongst others, market curve movements, credit quality of the instrument and issuing party, and portfolio assessments. • For financial instruments that are significantly over-collateralised or have a contractual maturity of less than 12-months, expected credit losses are measured using a 12-month ECL approach from initial recognition, as these characteristics are considered indicative of limited credit risk. • The Group applies judgement in identifying default and credit-impaired financial assets. In making this judgement, the Group considers whether the balance is in legal review, debt review or under administration or expert judgement. Financial assets are credit impaired when one or more events with a detrimental impact on the expected cash flows have taken place. • Management relies on the discount rates observed on the zero-coupon bond curve as published by the Johannesburg Stock Exchange to discount all cash flows to their present value. These discount rates are considered to be reflective of the current market conditions as well as those expected in the future. • Management deems the instrument type aggregation to be the most appropriate manner to calculate the allowance for ECL taking undue costs and effort into account. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 93
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Notes to the consolidated financial statements continued 22. Derivative financial instruments The Group utilises derivative financial instruments for the following: • to reduce the impact of the interest rate risk contained in the insurance contract liabilities in its long- term insurance business; • to reduce the impact of the currency risk contained in its open foreign currency exposures; • to provide price certainty related to future equity investments; and • to reduce equity price risk contained in the cash settled share-based payment scheme. The Group undertakes transactions involving derivative financial instruments with other financial institutions. Management has established limits commensurate with the credit quality of the institutions with which it deals and manages the resulting exposures such that a default by any individual counterparty is unlikely to have a materially adverse impact on the Group. R million 2026 2025 Derivative assets 185 326 Derivative liabilities (140) (7) Net derivative financial instruments 45 319 corner The following table presents the detailed breakdown of the Group’s derivative financial instruments outstanding at year-end and that are subject to enforceable master netting arrangements as at 30 June: R million Gross assets Gross liabilities Net derivatives At 30 June 2026 Interest rate swap 1 495 (1 607) (112) Effect of assets relating to the floating rate swap 1 495 – 1 495 Effect of liability relating to the fixed rate swap – (1 607) (1 607) Collateralised swap 163 – 163 Bond forward 6 – 6 Forward exchange derivatives EUR FEC – (28) (28) Total return swap 18 (2) 16 Effect of assets relating to the fixed rate swap 18 – 18 Effect of liability relating to the floating rate swap – (2) (2) Total 1 682 (1 637) 45 R million Gross assets Gross liabilities Net derivatives At 30 June 2025 Interest rate swap 1 181 (1 188) (7) Effect of assets relating to the floating rate swap 1 181 – 1 181 Effect of liability relating to the fixed rate swap – (1 188) (1 188) Collateralised swap 67 – 67 Bond forward¹ – – – Forward exchange derivatives EUR FEC 10 – 10 Total return swap² 267 (18) 249 Effect of assets relating to the fixed rate swap 267 – 267 Effect of liability relating to the floating rate swap – (18) (18) Total 1 525 (1 206) 319 1 The prior financial year value of the Bond forward of R461 105 was excluded due to rounding. 2 The prior financial year value has been disaggregated to better reflect the fair value position of the derivative instrument. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 94
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Notes to the consolidated financial statements continued 22. Derivative financial instruments continued Net derivatives R million 2026 2025 Movement analysis of derivative asset and liability Opening balance 319 (1) Additions (purchases and issuings) – 33 Disposals (including interest settled) (182) 166 Fair value adjustments (5) 162 Interest accrued (87) (41) Closing balance 45 319 corner The interest rate swap is set to match cash flows from year 0 to year 14 and is in a net liability position of R112 million (2025: R7 million). The collateralised swap arrangement is intended to match payments due to policyholders in the future, after a specified date. The collateralised swap is set to cover fulfilment cash flows from year 14 onward. The market value of the collateralised swap is R163 million (2025: R67 million). The Bond forward contract has a fair value of R6 million (2025: R0.5 million) which is rolled on a 3 month basis. The interest on the underlying bonds is linked to inflation and is intended to offset the Group’s exposure to inflation risk. Total return swap The Group entered into a total return swap arrangement to hedge its obligation under the cash settled share-based payment scheme. The fair value of the total return swap is based on the net of the growth of the underlying listed share price, relative to the purchase price, and the interest payable on the notional equity value based on ZARONIA (2025: JIBAR). Foreign currency derivatives The Group utilises derivative financial instruments to reduce the impact of the currency risk contained in its open foreign currency exposures. The Group undertakes transactions involving derivative financial instruments with other financial institutions. The Group has entered into foreign derivative contracts to economically hedge its exposure against the volatility of the Rand against the Australian Dollar (AUD) and the Euro. The Euro derivative instrument as at 30 June 2026 is for the additional capital investment in OUTsurance Irish Insurance Holdings Limited on the 1 November 2026 as required per the capital commitment deed. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 95
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Notes to the consolidated financial statements continued 23. Other receivables R million 2026 2025 Due from agents, brokers and intermediaries¹ 15 479 Fees receivable from contact centre services 77 27 Interest receivable 378 333 Other receivables 224 83 Prepayments 240 207 Dividend receivable from investment in associate – 146 Due in respect of associates sold – 591 Total other receivables 934 1 866 corner 1 The balance due from agents, brokers and intermediaries relates to premiums collected by the BZI broker channel in the prior financial year. The decrease in the current year is attributable to the recovery of these amounts following the disposal of BZI. The remaining balance in the current financial year is with other agents and independent brokers. Included in other receivables and prepayments are amounts due by related parties. Refer to note 39 for further details thereof. Since other receivables have short-term maturities, the carrying amount approximates the fair value. Refer to note 38 for the current and non-current analysis of other receivables. 24. Assets held for sale The Group sold its previously equity accounted investee, CloudBadger Proprietary Limited (CloudBadger), during the current financial year and has no assets held for sale as at 30 June 2026. CloudBadger was reported as an asset held for sale as at 30 June 2025. In the prior financial year, the Group sold its previously equity accounted investee, Merchant Capital Advisory Services Proprietary Limited (Merchant Capital), which was reported as an asset held for sale as at 1 July 2024. Investment in CloudBadger Proprietary Limited (CloudBadger) CloudBadger is a software company operating in South Africa. During the prior financial year, a Memorandum of Understanding (MOU) was concluded in December 2024, followed by the execution of a Sale and Purchase Agreement (SPA) on 1 July 2025 for the disposal of CloudBadger. The SPA became binding upon fulfilment of the condition precedent relating to approval by the Competition Commission of Eswatini. During the current financial year, the Competition Commission of Eswatini approved the transaction, and the disposal became effective on 1 October 2025, being the effective date of sale. The SPA provides for contingent consideration in the form of an “Agterskot” payment, which is performance-based and payable over a four-year period subsequent to the closing date, subject to the fulfilment of specified conditions, including Prudential Authority approval. The contingent payments are determined annually based on the revenue performance of the agreed contracts and are allocated equally between the sellers. The first year’s contingent consideration is calculated based on 40% of the revenue generated from the agreed contracts. The estimated contingent consideration of R4 million has been recognised as a ‘contingent receivable’ and is included within ‘financial assets at fair value through profit or loss’ (refer to note 21). Merchant Capital Advisory Services Proprietary Limited (Merchant Capital) During the prior financial year, in January 2025, an agreement was reached to dispose of Merchant Capital by way of a company share buy-back. Accordingly, the investment in the Merchant Capital met the criteria for classification as held for sale as at the interim reporting period, 31 December 2024. This disposal was tranched over a period of 15 months with total proceeds amounting to R92 million, and the outstanding deferred proceeds (R65 million and undiscounted, R68 million, included in other receivables as at 30 June 2025) as at 30 June 2025 was received in full by April 2026. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 96
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Notes to the consolidated financial statements continued 24. Assets held for sale continued Effect on consolidated statement of financial position R million 2026 2025 CloudBadger – 102 Assets held for sale – 102 corner Reconciliation of assets held for sale: R million Merchant Capital CloudBadger Total At 30 June 2025 Reclassification from investment in associates 56 132 188 Dividends received in respect of an associate asset – (20) (20) Impairment to net realisable value – (10) (10) 56 102 158 Carrying value of assets held for sale disposed of (56) – (56) Assets held for sale – 102 102 The Group has no assets held for sale as at 30 June 2026. Effect on consolidated statement of profit or loss Reconciliation of (loss)/profit on sale of assets held for sale: R million CloudBadger 2026 Merchant Capital 2025 Proceeds 97 92 Proceeds in cash 93 24 Proceeds included in contingent receivable/other receivables 4 68 Assets held for sale disposed of (102) (56) Other reserves recycled – (1) (Loss)/profit on sale of assets held for sale (5) 35 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 97
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Notes to the consolidated financial statements continued 25. Cash and cash equivalents Included in money market investments are deposits with a term of maturity of less than three months. The carrying value of cash and cash equivalents approximates the fair value. R million 2026 2025 Cash at bank and on hand 1 498 1 849 Short-dated money market instruments 135 16 Balance at the end of the year 1 633 1 865 corner Included in the cash and cash equivalent note is restricted cash balances relating cash back and demand deposits to the value of R1.5 million (2025: R25.5 million). These deposits secure specific assets and are therefore not available for general use by the other entities within the Group. 26. Share capital and premium R million Number of shares after treasury shares Ordinary share capital1 Share premium Treasury shares Total At 30 June 2026 Opening balance 1 547 231 505 – 16 229 (307) 15 922 Ordinary shares issued 896 387 – 64 – 64 Treasury shares – – – (71) (71) Share capital and premium 1 548 127 892 – 16 293 (378) 15 915 R million Number of shares after treasury shares Ordinary share capital1 Share premium Treasury shares Total At 30 June 2025 Opening balance 1 537 535 862 – 15 667 (181) 15 486 Ordinary shares issued 9 695 643 – 562 – 562 Treasury shares – – – (126) (126) Share capital and premium 1 547 231 505 – 16 229 (307) 15 922 1 Due to rounding, the amounts were excluded. Ordinary shares The total authorised number of ordinary shares is 2 000 000 000, with a par value of R0.0001 per share. The total number of issued ordinary shares increased by 896 387 during the year (2025: 9 695 643) to 1 548 127 892 as at 30 June 2026 (2025: 1 547 231 505). During the current financial year the Company issued 388 661 ordinary shares at a value of R28 million and another 507 726 ordinary shares at a value of R36 million on 17 November 2025 and 10 June 2026 respectively. These shares issued during the current financial year were in exchange for OHL shares. During the prior financial year the Company issued 12 079 169 ordinary shares at a value of R588 million, another 5 552 510 ordinary shares at a value of R339 million and 829 477 ordinary shares at a value of R63 million on 16 September, 22 November 2024 and 20 June 2025 respectively. These shares issued during the prior financial year were in exchange for 42 283 911 OHL shares. 8 765 513 ordinary shares at a value of R428 million were cancelled on 14 October 2024 following an asset distribution (OGL shares) by OHL to its shareholders. The unissued share capital is under the control of the board of directors until the forthcoming annual general meeting. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 98
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Notes to the consolidated financial statements continued 26. Share capital and premium continued Preference shares The total authorised number of cumulative, redeemable, par value preference shares is 100 000 000 with a par value of R0.0001 per share. The issued number of par value preference shares is nil (2025: nil). The total authorised number of cumulative, redeemable, no par value preference shares is 100 000 000 with a par value of R0.0001 per share. The issued number of no par value preference shares is nil (2025: nil). The company created a new class of 100 000 000 authorised, cumulative, redeemable, no par value preference shares in the 2016 financial year in terms of its debt programme. None of these preference shares have been issued yet. OGL had no issued preference shares as at 30 June 2026. If any of these preference shares would be issued, it would be classified as debt. 2026 2025 Number of treasury shares held at 30 June 7 836 458 6 877 750 Weighted number of treasury shares held during the year 7 450 348 7 054 561 The treasury shares are eliminated from the weighted number of shares in issue for the purposes of calculating earnings and headline earnings per share: Weighted number of issued shares 1 547 489 328 1 544 183 261 Less: Weighted number of treasury shares (7 450 348) (7 054 561) Weighted number of shares in issue 1 540 038 980 1 537 128 700 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 99
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts 30 June 2026 30 June 2025 R million OUTsurance Youi OUTsurance Ireland OUTsurance Life Total OUTsurance Youi OUTsurance Ireland OUTsurance Life Total Insurance contracts 2 046 15 751 602 376 18 775 2 077 13 246 273 263 15 859 Insurance contract liabilities 2 046 15 751 602 912 19 311 2 077 13 246 273 633 16 229 Insurance contract assets – – – (536) (536) – – – (370) (370) Reinsurance contracts 6 (2 486) (47) (21) (2 548) 4 (2 239) (20) (63) (2 318) Reinsurance contract assets (30) (2 486) (47) (36) (2 599) (26) (2 239) (20) (68) (2 353) Reinsurance contract liabilities 36 – – 15 51 30 – – 5 35 corner 27.1 Short-term insurance contracts issued Material judgements – Short-term business This note provides an overview of the areas that involve a higher degree of judgement or complexity on the measurement of insurance and reinsurance contract liabilities. Unit of account The Group has determined that the unit of account is not the insurance policy per policyholder but rather the separate risk insured in the contract. This is based on the substance of the insurance policy, which can contain several insured risks. In concluding that the unit of account is the risk being insured, management considered the following to determine that the risks are not interdependent, do not lapse together, and are priced and sold separately: • Each risk is priced separately. The premium is determined by assessing the duration of the insurance policy at inception of the contract and the risk covered. The premium is then determined separately for each risk. • The Group has a sophisticated underwriting model. This model considers factors of the policyholder and the risk ensuring each risk is underwritten and monitored separately. • The cancellation of one risk by the policyholder does not affect the continuation of cover of other risks covered by the policy. • Renewals are done at a risk and policy level. Liability for remaining coverage The Group’s non-life insurance operations apply the PAA model to measure its liability for remaining coverage. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026100
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.1 Short-term insurance contracts issued continued Material judgements – Short-term business continued Liability for incurred claims To estimate the future claims cash flows within the boundary of the contract for contracts measured under the PAA, the Group uses the following methodologies to determine the ultimate value of the liability for incurred claims: • Development Factor Method (DFM) • Cape Cod Method (CC) • Bornhuetter-Ferguson Method (BF) • Expected Loss ratio • System case estimates • Payment Per Claim Incurred (PPCI). Each method attempts to predict the progression of claims incurred and/or reported through a combination of various development factors, loss ratios and dependency factors. The method chosen depends on the materiality and data credibility of various cash flows. When determining the various cash flows of the calculation it is assumed at a high level that past claims development can be used as a reasonable guide for future expected claim development. In all cases judgement is applied to appropriately allow for expected future experience. The future expense cash flows are split between the allocated loss adjustment expenses (ALAE) and the unallocated loss adjustment expenses (ULAE). The ALAE reserve relates to costs directly attributable to claims. These are loaded on claims explicitly and included in the analysis of claims data. The ULAE reserve relates to overhead costs directly attributable to claims management and is allowed for by expressing total claims-related management expenses as a proportion of gross claims paid, for the 12 months preceding the calibration date. This assumption is then applied to the current liability for incurred claims (LIC). The OUTbonus liability makes use of a probability adjustment which is calibrated using the long-term average ratio of the ultimate OUTbonus cost to OUTbonus accrual. This probability adjustment is then applied to the total OUTbonus accrued liability at the reporting date. Directly attributable expenses IFRS 17 requires an entity to include a portion of its overhead costs that is directly attributable in fulfilling the obligations under the insurance contract, in the fulfilment cash flows of the liability. The Group leveraged off its management expense allocation methodology and allocates all expenses as either directly attributable or non-attributable depending on the nature of the function being fulfilled by the cost centre. Where the function is not closely related in fulfilling the insurance obligation, the costs incurred in that cost centre are deemed not attributable and the cost centre is classified as non-attributable. Once the cost centre has been allocated as attributable, all attributable cost centres are allocated to a risk code (linked to the portfolios) using an activity-based costing methodology. Discount rate – Contracts measured under the PAA The Group has long tail claim components and chose to discount the LIC for claims that are expected to be settled within 1 year from the date the claim was incurred, rather than utilising the practical expedient available. As there are no referenced asset portfolios backing the LIC because of the volatility and uncertainty of claims on short term insurance contracts, it was deemed more appropriate to use the bottom-up approach. Under this approach, a risk-free bond yield curve was used. No illiquidity premium was added to the discount rate as there is no penalty or surrender value required to exit the insurance contract. Treatment of the OUTbonus under PAA The Group awards an OUTbonus to all policyholders who remain claim free for a specified period of time. The OUTbonus is forfeited with cancellation of the insurance policy and highly interrelated to the host contract. Given that the OUTbonus is largely dependent on the claim’s behaviour of the policyholder, it’s accounted for under the LIC as an unsettled claim as it relates to insurance contract services already provided. The OUTbonus is forfeited when the underlying insurance contract is cancelled, and thus it does not serve to extend the contract boundary of the underlying contract given that the contract can be cancelled or repriced with a month’s notice. Consequently, the OUTbonus liability is limited to the same boundary as the underlying contract, which is one month. If the policyholder does not claim, the contractual obligation created by the OUTbonus results in a liability which accrues monthly and accumulates over the period. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 101
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.1 Short-term insurance contracts issued continued Material judgements – Short-term business continued Risk adjustment For the personal, business and CTP segments, the risk adjustment is a Value at Risk (VaR) approach on the distribution of the relevant LIC. In the LIC, a reserve risk volatility factor is calculated for main major risk classes by leveraging off methods described in the regulatory framework. The standardised reserve risk volatility factors, as specified in the regulatory framework, are applied to smaller classes. The reserve risk volatility factors represent fluctuations in the timing and amount of claims settlements. For the OUTbonus liability, the risk adjustment is calibrated by using the Mack Bootstrapping approach on the OUTbonus liability ratio. A confidence level ranging between the 75th and 85th percentile, depending on each underlying portfolio, is deemed appropriate. New risks may require a larger confidence interval until stable claims experience is obtained. 27.2 Short-term Insurance Contracts Issued – OUTsurance The following events and considerations have been considered in the fulfilment cash flows of OUTsurance Claims experience from natural perils was less favourable compared to the previous year, with combined estimated losses of R315 million. Two of these events had estimated losses above R100 million, being the Gauteng hail storms and the Western and Eastern Cape storms. There were no events that breached the catastrophe excess-of-loss deductible. There were no material methodology or assumption changes made to the fulfilment cash flows of the Company. The changes made resulted from experience updates, made in the ordinary course of business. The effect of changes in interest rates (disclosed in note 8) had a less than 1% impact on the entire LIC balance in the current financial year. Therefore, a sensitivity on the potential changes in interest rates would not have a material impact on profit or loss or equity. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 102
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.2 Short-term Insurance Contracts Issued – OUTsurance continued 30 June 2026 30 June 2025 LRC LIC LRC LIC R million Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Opening liabilities 433 5 1 509 130 2 077 427 11 1 397 110 1 945 Changes in the statement of profit or loss and OCI Insurance revenue (14 356) – – – (14 356) (13 347) – – – (13 347) Insurance service expenses – (4) 8 529 (19) 8 506 – (6) 8 364 11 8 369 Total claims expense – – 7 820 90 7 910 – – 7 634 100 7 734 Incurred claims – – 5 130 90 5 220 – – 4 998 100 5 098 Other insurance service expenses – – 2 690 – 2 690 – – 2 636 – 2 636 OUTbonus accrual – – 729 8 737 – – 563 7 570 Losses and reversal of losses on onerous contracts – (4) – – (4) – (6) – – (6) Changes that relate to past service: adjustment to liabilities for incurred claims – – (83) (109) (192) – – (68) (87) (155) Changes that relate to past service: adjustment to liabilities for OUTbonus – – 63 (8) 55 – – 235 (9) 226 Insurance service result (14 356) (4) 8 529 (19) (5 850) (13 347) (6) 8 364 11 (4 978) Net finance expenses from insurance contracts – – 119 10 129 – – 126 9 135 Total changes in the statement of profit or loss and OCI (14 356) (4) 8 648 (9) (5 721) (13 347) (6) 8 490 20 (4 843) Transfer to other items in the statement of Financial position – – 125 – 125 – – 871 – 871 Cash flows Premiums received 14 300 – – – 14 300 13 353 – – – 13 353 Claims – – (5 119) – (5 119) – – (5 034) – (5 034) Other insurance service expenses paid – – (2 814) – (2 814) – – (3 507) – (3 507) OUTbonus claims paid – – (802) – (802) – – (708) – (708) Total cash flows 14 300 – (8 735) – 5 565 13 353 – (9 249) – 4 104 Closing liabilities 377 1 1 547 121 2 046 433 5 1 509 130 2 077 corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026103
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.3 OUTsurance – Reinsurance Contracts Held 30 June 2026 30 June 2025 Asset for remaining coverage Asset for incurred claims Asset for remaining coverage Asset for incurred claims R million Excluding loss recovery component Loss recovery component1 Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk3 Total Excluding loss recovery component Loss recovery component 1 Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk3 Total Opening asset (10) – 36 – 26 (10) – 37 – 27 Opening liabilities 6 – (36) – (30) (4) – (21) – (25) Net opening balance (4) – – – (4) (14) – 16 – 2 Changes in the statement of profit or loss Reinsurance expense (205) – – – (205) (197) – – – (197) Incurred claims recovery – – 2 – 2 – – 2 – 2 Changes that relate to past service – Changes to the FCF relating to incurred claims recovery – – (2) – (2) – – 1 – 1 Changes relating to future services: loss recovery component2 – – – – – – – – – – Net Income/(expense) from reinsurers contracts held (205) – – – (205) (197) – 3 – (194) Finance income from reinsurance contracts held – – 1 – 1 – – – – – Total changes in the statement of profit or loss and OCI (205) – 1 – (204) (197) – 3 – (194) Cash flows Premiums paid 206 – – – 206 207 – – – 207 Recoveries from Reinsurer – – (4) – (4) – – (19) – (19) Total cash flows 206 – (4) – 202 207 – (19) – 188 Net closing balance (3) – (3) – (6) (4) – – – (4) Closing asset (6) – 36 – 30 (10) – 36 – 26 Closing liability 3 – (39) – (36) 6 – (36) – (30) corner 1 The Loss recovery component of R580 (2025: R68 256) was omitted due to rounding. 2 Movements in the period is immaterial. 3 The balance of the risk adjustment for the asset for incurred claims of R35 274 (2025: R236 747) was omitted due to rounding. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026104
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.4 OUTsurance – Critical accounting estimates and judgements Sensitivity to underwriting risk variables The table below presents the impact on profit or loss for changes in assumptions in determining the LIC balance. In order to determine the appropriate level of sensitivity on the risk variables, an assessment was performed to assess the impact of an acceptable change in the loss ratio together with the impact of when the full risk adjustment raised were to be utilised. With this assessment performed, a reasonable level of sensitivity equates to a 15% increase in the underlying assumptions. The impact of the sensitivities was performed on the attritional claims only. Given that the reinsurance program’s objective is mainly to protect the business against catastrophe events, the sensitivities do not have a material impact on the reinsurance contacts and were therefore only performed on the gross claims impact. The sensitivities on the LIC also exclude the OUTbonus liability component of the LIC, as it is unaffected by the severity shock and accrues at a fixed percentage. The sensitivity impact on equity equals the sensitivity impact in profit or loss. The sensitivity analysis on the Liability for incurred claims 30 June 2026 30 June 2025 R million LIC at 30 June 2026 Impact on profit or loss – with a 15% increase in underlying assumptions LIC at 30 June 2025 Impact on profit or loss – with a 15% increase in underlying assumptions Direct insurance contracts Change in assumptions Claims severity South Africa 1 668 (119) 1 639 (124) Recoveries and Salvages South Africa 1 668 (137) 1 639 (174) corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 105
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.4 OUTsurance – Critical accounting estimates and judgements continued 27.4.1 Personal and business – Claims development For OUTsurance, the claims with an incurred date prior to the current financial year, have a greater proportion of outstanding salvages and recoveries from third parties due to the longer tailed nature of these cashflows. This could result in the claims paid exceeding the ultimate claims costs in previous years. Gross claims development – undiscounted excluding direct attributable expenses Accident year R million 2026 2025 2024 2023 2022 2021 Total At the end of the accident year 4 787 4 665 4 947 4 751 4 914 3 910 27 974 one year later – 4 572 4 947 4 729 4 917 3 826 22 991 two years later – – 4 981 4 757 4 949 3 813 18 500 three years later – – – 4 755 4 948 3 822 13 525 four years later – – – – 4 960 3 823 8 783 five years later – – – – – 3 815 3 815 Gross cumulative ultimate claims 4 787 4 572 4 981 4 755 4 960 3 815 27 870 Gross cumulative paid claims (4 314) (4 637) (4 984) (4 774) (4 978) (3 821) (27 508) Gross cumulative claims outstanding 473 (65) (3) (19) (18) (6) 362 Accident years beyond 2021 8 Directly attributable expenses 349 OUTbonus 931 Risk adjustment 128 Discounting (108) Other insurance payables (2) LIC (insurance contracts) 1 668 corner Net claims development – undiscounted, net of reinsurance excluding direct attributable expenses Accident year R million 2026 2025 2024 2023 2022 2021 Total At the end of the accident year 4 784 4 663 4 933 4 747 4 662 3 908 27 697 one year later – 4 572 4 933 4 724 4 613 3 825 22 666 two years later – – 4 967 4 754 4 642 3 812 18 176 three years later – – – 4 753 4 637 3 822 13 212 four years later – – – – 4 648 3 821 8 470 five years later – – – – – 3 814 3 814 Net cumulative ultimate claims 4 784 4 572 4 967 4 753 4 648 3 814 27 538 Net cumulative paid claims (4 311) (4 637) (4 970) (4 771) (4 665) (3 819) (27 173) Net cumulative claims outstanding 473 (65) (3) (18) (17) (5) 365 Accident years beyond 2021 6 Directly attributable expenses 349 OUTbonus 931 Risk adjustment 128 Discounting (109) Other insurance payables 1 LIC (insurance contracts) 1 671 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 106
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.4 OUTsurance – Critical accounting estimates and judgements continued 27.4.1 Personal and business – Claims development continued Average weighted term to settlement The table below represents the average time it takes to settle a claim. The weighted average time includes the expected term to payout on the OUTbonus liability. The claims liability and OUTbonus liability are used as weightings in the term to settlement. 30 June 2026 30 June 2025 Personal Business Personal Business Average weighted term to settlement in years 0.79 1.31 0.78 1.15 corner The following yield curves were used in discounting the LIC: 1 year 2 years 3 years 10 years 15 years 30 June 2026 Property and casualty Direct insurance contracts issued and reinsurance contracts held 7.0% 7.0% 8.0% 9.0% 10.0% corner 1 year 2 years 3 years 10 years 15 years 30 June 2025 Property and casualty Direct insurance contracts issued and reinsurance contracts held 7.0% 8.0% 8.0% 11.0% 12.0% 27.5 Short-term Insurance Contracts Issued – Youi The following events and considerations have been considered in the fulfilment cash flows of Youi During the current financial year there were two major natural catastrophe events in Youi with a combined net ultimate loss of R1 060 million. The largest being South East Queensland and New South Wales hail which has a net exposure of R601 million due to the reinsurance catastrophe program in place. The overall estimate is tracking below the Youi market share in the exposed region and Youi is outperforming on average claim size and finalization rates. All other events have ultimate estimated losses below R537 million. The increase in the Youi reinsurance contract assets from R2 239 million to R2 485 million is mostly due to losses incurred with South East Queensland and New South Wales hail events. The effect of changes in interest rates (disclosed in note 8) had a less than 1% impact on the entire LIC balance in the current financial year. Therefore, the sensitivity of the potential changes in interest rates would not have a material impact on profit or loss and equity. During the prior financial year there were three major natural catastrophe events in Youi with a gross ultimate loss above R134 million. The largest being ex-tropical Cyclone Alfred, with an ultimate estimated loss of R819 million, of which R505 million has been reported as of 30 June 2025. The net exposure is R60 million due to the reinsurance catastrophe program in place. The overall gross loss estimate is tracking lower than Youi’s market share in the exposed region. All other events have ultimate estimated losses below R221 million. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 107
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.5 Short-term Insurance Contracts Issued – Youi continued 30 June 2026 30 June 2025 LRC LIC LRC LIC R million Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Opening liabilities 5 331 1 7 429 485 13 246 4 296 6 5 552 441 10 295 Changes in the statement of profit or loss and OCI Insurance revenue (25 244) – – – (25 244) (22 550) – – – (22 550) Insurance service expenses 3 818 – 18 768 139 22 725 3 637 (5) 15 625 40 19 297 Total claims expense – – 18 604 357 18 961 – – 15 510 326 15 836 Incurred claims – – 15 817 357 16 174 – – 13 003 326 13 329 Other insurance service expenses – – 2 787 – 2 787 – – 2 507 – 2 507 Amortisation of insurance acquisition costs 3 818 – – – 3 818 3 637 – – – 3 637 Losses and reversal of losses on onerous contracts – – – – – – (5) – – (5) Changes that relate to past service: adjustment to liabilities for incurred claims – – 164 (218) (54) – – 115 (286) (171) Insurance service result (21 426) – 18 768 139 (2 519) (18 913) (5) 15 625 40 (3 253) Net finance expenses from insurance contracts – – 23 – 23 – – 163 22 185 Total changes in the statement of profit or loss and OCI (21 426) – 18 791 139 (2 496) (18 913) (5) 15 788 62 (3 068) Transfer to other items in the statement of Financial position – – – – – (137) – (276) – (413) Premiums received 25 479 – – – 25 479 24 378 – – – 24 378 Insurance acquisition cash flows paid (3 652) – – – (3 652) (4 129) – – – (4 129) Claims – – (13 787) – (13 787) – – (11 190) – (11 190) Other insurance service expenses paid – – (2 586) – (2 586) – – (2 231) – (2 231) Total cash flows 21 827 – (16 373) – 5 454 20 249 – (13 421) – 6 828 Foreign exchange movement 4 (1) (441) (15) (453) (164) – (214) (18) (396) Closing liabilities 5 736 – 9 406 609 15 751 5 331 1 7 429 485 13 246 corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026108
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.6 Youi – Reinsurance Contracts Held 30 June 2026 30 June 2025 Asset for remaining coverage Asset for Incurred claims Asset for remaining coverage Asset for Incurred claims R million Excluding loss recovery component Loss recovery component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Excluding loss recovery component Loss recovery component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Opening asset 146 – 1 976 117 2 239 (100) 2 1 401 127 1 430 Opening liabilities – – – – – – – – – – Net opening balance 146 – 1 976 117 2 239 (100) 2 1 401 127 1 430 Changes in the statement of profit or loss Reinsurance expense (1 449) – – – (1 449) (1 620) – – – (1 620) Incurred claims recovery – – 1 185 57 1 242 – – 831 14 845 Changes that relate to past service – Changes to the FCF relating to incurred claims recovery – – 134 (49) 85 – – 183 (32) 151 Changes relating to future services: loss recovery component – – – – – – (2) – – (2) Net Income/(expense) from reinsurers contracts held (1 449) – 1 319 8 (122) (1 620) (2) 1 014 (18) (626) Finance income/(expense) from reinsurance contracts held – – 14 1 15 – – 82 13 95 Total changes in the statement of profit or loss and OCI (1 449) – 1 333 9 (107) (1 620) (2) 1 096 (5) (531) Cash flows Premiums paid 1 253 – – – 1 253 1 863 – – – 1 863 Recoveries from Reinsurer – – (830) (830) – – (466) – (466) Total cash flows 1 253 – (830) – 423 1 863 – (466) – 1 397 Foreign exchange movements (3) – (63) (3) (69) 3 – (55) (5) (57) Net closing balance (53) – 2 416 123 2 486 146 – 1 976 117 2 239 Closing asset (53) – 2 416 123 2 486 146 – 1 976 117 2 239 Closing liability – – – – – – – – – – corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026109
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.7 Youi – Critical accounting estimates and judgements Sensitivity to underwriting risk variables The table below presents the impact on profit and loss for changes in assumptions in determining the LIC balance. In order to determine the appropriate level of sensitivity on the risk variables, an assessment was performed to assess the impact of an acceptable change in the loss ratio together with the impact of utilisation of the entire risk adjustment. With this assessment performed, a reasonable level of sensitivity equates to a 5% increase in the underlying assumptions. Youi’s proportional reinsurance program on the CTP portfolio ended in June 2024 for New South Wales and June 2025 for South Australia. The revised excess of loss reinsurance program’s objective is mainly to protect the business against large individual claims. The sensitivity is therefore done on a net basis to best reflect the potential impact on profit or loss. The sensitivity impact on equity equals the sensitivity impact in profit or loss. The sensitivity analysis on the Liability for incurred claims 30 June 2026 30 June 2025 R million LIC at 30 June 2026 Impact on Profit or loss with a 5% increase in underlying assumptions LIC at 30 June 2025 Impact on Profit or loss with a 5% increase in underlying assumptions Net insurance contract assets Change in assumptions Claims severity Australia 10 015 (527) 7 914 (425) Recoveries and Salvages Australia 10 015 (26) 7 914 (30) corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 110
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.7 Youi – Critical accounting estimates and judgements continued 27.7.1 Personal and business – Claims development Gross claims development – undiscounted excluding direct attributable expenses Accident year R million 2026 2025 2024 2023 2022 2021 Total At the end of the accident year 15 545 12 528 9 843 7 596 7 926 34 485 87 923 one year later – 12 546 9 779 7 695 7 334 36 638 73 992 two years later – – 9 831 7 823 7 426 36 664 61 744 three years later – – – 7 898 7 495 36 745 52 138 four years later – – – – 7 533 36 589 44 122 five years later – – – – – 36 751 36 751 Gross cumulative ultimate claims 15 545 12 546 9 831 7 898 7 533 36 751 90 104 Gross cumulative paid claims (9 236) (10 832) (9 063) (7 638) (7 444) (36 653) (80 866) Gross cumulative claims outstanding 6 309 1 714 768 259 89 99 9 238 Directly attributable expenses 614 Discounting (520) Risk adjustment 651 Other 32 LIC (insurance contracts) 10 015 corner Net claims development – undiscounted, net of reinsurance excluding direct attributable expenses Accident year R million 2026 2025 2024 2023 2022 2021 Total At the end of the accident year 14 314 11 751 9 176 6 891 5 849 29 411 77 392 one year later – 11 762 8 852 7 020 5 688 31 586 64 908 two years later – – 8 869 6 780 5 771 31 595 53 015 three years later – – – 6 824 5 986 31 628 44 438 four years later – – – – 6 055 31 678 37 733 five years later – – – – – 31 735 31 735 Net cumulative claims 14 314 11 762 8 869 6 824 6 055 31 735 79 559 Net cumulative paid claims (9 225) (10 301) (8 668) (6 778) (6 057) (31 787) (72 816) Net cumulative claims outstanding 5 089 1 461 201 46 (2) (52) 6 743 Directly attributable expenses 614 Discounting (429) Risk adjustment 521 Other 27 LIC (insurance contracts) 7 476 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 111
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.7 Youi – Critical accounting estimates and judgements continued 27.7.1 Personal and business – Claims development continued Average weighted term to settlement The table below represent the average time it takes to settle a claim. 30 June 2026 30 June 2025 Personal Business CTP Personal Business CTP Average weighted term to settlement in years 0.35 0.38 2.68 0.35 0.35 2.79 corner The following yield curves that were used in discounting the LIC: 1 year 2 years 3 years 10 years 15 years 30 June 2026 Property and casualty Direct insurance contracts issued and reinsurance contracts held 4.6% 4.5% 4.4% 4.9% 5.2% corner 1 year 2 years 3 years 10 years 15 years 30 June 2025 Property and casualty Direct insurance contracts issued and reinsurance contracts held 3.3% 3.2% 3.3% 4.3% 4.7% 27.8 Short-term Insurance Contracts Issued – OUTsurance Ireland The following events and considerations have been considered in the fulfilment cash flows of Ireland During the current financial year there were no natural catastrophe events. The effects of changes in interest rates (disclosed in note 8) had a negligible impact on the LIC balance in the current financial year, and hence a sensitivity on the potential changes in interest rates would not have a material impact on profit or loss. A sensitivity of a 20% increase in the yield curve would not have a material impact on profit or loss and equity. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 112
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.8 Short-term Insurance Contracts Issued – OUTsurance Ireland continued 30 June 2026 30 June 2025 LRC LIC LRC LIC R million Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Excluding loss component Loss component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Opening liabilities 61 149 61 2 273 6 13 – – 19 Changes in the statement of profit or loss and OCI Insurance revenue (521) – – – (521) (97) – – – (97) Insurance service expenses 291 36 581 7 915 73 128 249 2 452 Total claims expense – – 559 8 567 – – 242 2 244 Incurred claims1 – – 316 8 324 – – 74 2 76 Other insurance service expenses – – 243 – 243 – – 168 – 168 OUTbonus accrual – – 34 – 34 – – 7 – 7 Amortisation of acquisition cost 291 – – – 291 73 – – – 73 Losses and reversal of losses on onerous contracts – 36 – – 36 – 128 – – 128 Changes that relate to past service: adjustment to liabilities for incurred claims – – (12) (1) (13) – – – – – Insurance service result (230) 36 581 7 394 (24) 128 249 2 355 Net finance expenses from insurance contracts – – – – – – – – – – Total changes in the statement of profit or loss and OCI (230) 36 581 7 394 (24) 128 249 2 355 Transfer to other items in the statement of Financial position – – (63) – (63) – – (53) – (53) Cash flows Premiums received 768 – – – 768 241 – – – 241 Insurance acquisition cash flow (385) – – – (385) (165) – – – (165) Claims – – (159) – (159) – – (24) – (24) Other insurance service expenses paid – – (180) – (180) – – (115) – (115) Total cash flows 383 – (339) – 44 76 – (139) – (63) Foreign exchange movement (13) (17) (15) (1) (46) 3 8 4 – 15 Closing liabilities 201 168 225 8 602 61 149 61 2 273 corner 1 The prior financial year values have been updated to better reflect the value of incurred claims with an impact on past service adjustments. The total of R53 million included in Changes that relate to past services: adjustment to liabilities for incurred claims has been reallocated to incurred claims. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026113
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.9 OUTsurance Ireland– Reinsurance Contracts Held 30 June 2026 30 June 2025 Asset for remaining coverage Asset for incurred claims1 Asset for remaining coverage Asset for incurred claims R million Excluding loss recovery component Loss recovery component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Excluding loss recovery component Loss recovery component Present Value of Future Cash Flows Risk Adjustment for Non- Financial Risk Total Opening asset 14 6 – – 20 18 – – – 18 Opening liabilities – – – – – – – – – – Net opening balance 14 6 – – 20 18 – – – 18 Changes in the statement of profit or loss Reinsurance expense (52) – – – (52) (29) – – – (29) Changes relating to future services: loss recovery component – 15 – – 15 – 6 – – 6 Net Income/(expense) from reinsurers contracts held (52) 15 – – (37) (29) 6 – – (23) Finance income from reinsurance contracts held – – – – – – – – – – Total changes in the statement of profit or loss and OCI (52) 15 – – (37) (29) 6 – – (23) Cash flows Premiums paid 67 – – – 67 24 – – – 24 Recoveries from Reinsurer – – – – – – – – – – Total cash flows 67 – – – 67 24 – – – 24 Foreign exchange movement (2) (1) – – (3) 1 – – – 1 Net closing balance 27 20 – – 47 14 6 – – 20 Closing asset 27 20 – – 47 14 6 – – 20 Closing liability – – – – – – – – – – corner 1 OUTsurance Ireland have not incurred claims that reached the minimum attachment points of the reinsurance contracts and therefore have not recorded any reinsurance incurred claims during the current and prior reporting period. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026114
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.10 Ireland – Critical accounting estimates and judgements Sensitivity to underwriting risk variables The table below presents the impact on profit or loss for changes in assumptions in determining the LIC balance. In order to determine the appropriate level of sensitivity on the risk variables, an assessment was performed to assess the impact of an acceptable change in the loss ratio together with the impact of utilisation of the entire risk adjustment. With this assessment performed, a reasonable level of sensitivity equates to a 20% increase in the underlying assumptions. The sensitivity impact on equity equals the sensitivity impact in profit or loss. The impact of the sensitivities was performed on the attritional claims only. Given that the reinsurance program’s objective is mainly to protect the business against catastrophe events, the sensitivities do not have a material impact on the reinsurance contacts and were therefore only performed on the gross claims impact. The sensitivity analysis on the Liability for incurred claims 30 June 2026 30 June 2025 R million LIC at 30 June 2026 20% increase in underlying assumptions LIC at 30 June 2025 20% increase in underlying assumptions Net insurance contract assets Change in assumptions Claims severity Ireland 233 (47) 63 (13) corner 27.10.1 Personal – Claims development Gross claims development – undiscounted excluding direct attributable expenses Accident year R million 2026 2025 2024 2023 2022 2021 Total At the end of the accident year 304 72 – – – – 376 one year later – 58 – – – – 58 Gross cumulative ultimate claims 304 58 – – – – 362 Gross cumulative paid claims (127) (32) – – – – (159) Gross cumulative claims outstanding including attributable expenses 177 26 – – – – 203 Discounting 41 Risk adjustment 10 OUTbonus (21) LIC (insurance contracts) 233 corner OUTsurance Ireland only commenced trading in May 2024 and therefore no claims development prior to 2025. Average weighted term to settlement The table below represents the average expected time it takes to settle a claim based on similar claims in the Irish market. 30 June 2026 30 June 2025 Personal Personal Average weighted term to settlement in years 3.44 3.30 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 115
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.10 Ireland – Critical accounting estimates and judgements continued The following yield curves that were used in discounting the LIC: 1 year 2 years 3 years 10 years 15 years 30 June 2026 Property and casualty Direct insurance contracts issued and reinsurance contracts held 2.6% 2.6% 2.6% 2.9% 3.1% corner 1 year 2 years 3 years 10 years 15 years 30 June 2025 Property and casualty Direct insurance contracts issued and reinsurance contracts held 1.9% 1.8% 1.9% 2.4% 2.6% 27.11 Material judgements – Life insurance business This note provides an overview of the areas that involve a higher degree of judgement or complexity on measurement of insurance and reinsurance contract assets and liabilities. Unit of account The Group has determined that the unit of account is not the insurance policy per policyholder but rather the separate risk(s) insured in the contract. Each policy could contain multiple lives, different types of products and cover incepted with different start dates, of which each are underwritten and assessed differently. Profitability groupings OUTsurance Life applies both a qualitative and quantitative assessment to determine the profitability groupings. The quantitative approach supports the qualitative assessment and is based on a projected cash flow stress calibration methodology. Based on the outcome of the stress tests, the contract is grouped as insurance contracts that are onerous at initial recognition, insurance contracts that have no possibility of becoming onerous, and the remainder of the contracts. Fulfilment cash flows (FCF) Directly attributable cash flows IFRS 17 requires an entity to include a portion of its overhead costs that are directly attributable in fulfilling the obligations under the insurance contract, in the fulfilment cash flows of the liability. Similar to the short-term insurance business, the Group leveraged off its management expense allocation methodology and allocate all expenses as either directly attributable or non-attributable depending on the nature of the function being fulfilled by the cost centre. The Group uses the following non-financial assumptions: lapses, expenses, retrenchment rates, morbidity rates, mortality rates and disability rates in its estimation of future cash flows for the Life insurance business. The best estimate assumptions in respect of dread disease & disability, mortality and retrenchment rates were set taking into consideration the rates provided by the reinsurers, actual past experience and modifications for expected future trends. In particular, the base industry rates provided by the reinsurers are explicitly adjusted based on actual vs expected analyses performed on an annual basis. The level of granularity adopted in each analysis depends on the credibility of the data available. The Group reviews its assumptions to measure insurance contracts and reinsurance contracts at each reporting period, which have been reviewed and approved by the Head of Actuarial Function. All adjustments to future assumptions will adjust the CSM. Discount rate The discount rate is determined using the bottom-up approach as the cash flows do not vary based on the underlying items. Under this approach, the JSE bond and swap curve are used as the risk-free rate. The discount curve is constructed from a combination of the swap and bond curve which reflects the underlying interest rate of the hedging instruments used in the asset liability matching. Additionally, non-recurring bonus cash flows at all durations make use of the swap curve and recurring bonus cash flows at all durations make use of the bond curve. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 116
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.11 Material judgements – Life insurance business continued Discount rate continued By calculating the weighted average of the two curves according to the magnitude of the various types of future expected cash flows of the contracts, the aforementioned curves are aggregated to form a single locked-in yield curve for each group of contracts. By doing so, the present value of the cash flows calculated using the single yield curve is equivalent to what would be obtained by applying each curve individually to the relevant cash flows at the corresponding points in time. The relevant spot rates are subjected to the weighting to generate the new single yield curve. For direct insurance contracts and reinsurance contract held, no illiquidity premium is added as there are no surrender values or exit penalties included in the insurance contract or reinsurance contract held. Risk adjustment The risk adjustment has been calculated through a risk quantification by using a historical empirical Actual vs Expected (AvE) analysis. Distributions are then generated from which the appropriate margin per underwriting factor can be determined to target the chosen percentile for the Risk Adjustment. A confidence level ranging between 70% and 80%, depending on each underlying portfolio, is deemed appropriate. The granularity of the probability distribution will also depend on the risk associated with the portfolio, with the margins currently calculated on a segment level. To support the appropriateness of the selected confidence levels, the resulting calibration is benchmarked against the 99.5% confidence level in the Financial Soundness Standards for Insurers. Refer to note 27.18 for the impact of the revised estimation technique used to determine the risk adjustment. Coverage units Direct insurance contracts Coverage units are defined as the quantity of insurance contract services provided by the contracts in the group determined by considering the sum assured under the contract and its expected coverage period. The principles used to determine OUTsurance Life’s coverage unit calculation methodology encapsulates the following: • The maximum amount of benefits the insurer stands ready to provide the insured at any claims event throughout the coverage period. • Adjusting the maximum amounts payable to reflect the time value of money at the locked-in discount rate. • Adjusting the maximum amounts payable to reflect the expected coverage duration. • The expected coverage duration is determined based on the contractual term where applicable, or whole-of-life for lifetime products, and is adjusted for expected policyholder experience, including lapses and other decrements. Reinsurance contracts held Coverage units that represent the amount of coverage ceded to the reinsurer are calculated separately and used to release the contractual service margin recognised on the reinsurance contracts held. The judgement used to determine the coverage unit methodology for reinsurance contracts held are: • The maximum amount of coverage ceded to the reinsurer. • Adjusting the maximum amounts payable to reflect the time value of money at the locked-in discount rate. • Adjusting the maximum amounts payable to reflect the expected coverage duration. Reinsurance contract boundary The reinsurance contract boundary is influenced by the guarantee period of the reinsurer supported by any changes of reinsurer behaviour in the reinsurance market with regards to in-force insurance contracts, if relevant. The contract boundary also considers that a re-assessment of the reinsurance rates and reduction or cancellation of the treaty, needs to be done on a mutually agreed basis. Refer to note 27.18 for the impact of the change in the reinsurance contract boundary and estimated cash flows. Risk of non-performance of reinsurers Management have assessed the risk of non-performance by quantifying the loss given default based on the credit quality steps of the respective reinsurers to which they are exposed. The outcome of this assessment had an immaterial impact on the balances which is also due to management’s stringent requirements of reinsurance credit quality. Loss recovery ratio The loss recovery component is determined as a proportion of the loss component, based on the ratio of expected reinsurance recoveries relative to gross expected outflows to service the in-force book. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 117
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.12 Life risk – insurance contracts issued Reconciliation of the liability for remaining coverage and the liability for incurred claims 30 June 2026 Liabilities for Remaining Coverage Liabilities for Incurred claimsR million Excluding loss component Loss component Total Opening insurance contract assets (520) 138 12 (370) Opening insurance contract liabilities 386 183 64 633 Net opening balance (134) 321 76 263 Insurance revenue (1 366) – – (1 366) CSM recognised for services provided (390) – – (390) Change in risk adjustment for non-financial risk for risk expired (52) – – (52) Expected insurance service expenses incurred (597) – – (597) Recovery of insurance acquisition cash flows (286) – – (286) Experience adjustment not related to future service (41) – – (41) Insurance Service Expenses Incurred insurance service expenses: – (25) 591 566 Claims – (22) 537 515 Expenses – (3) 79 76 Changes in the risk adjustment on the LIC – – (25) (25) Amortisation of insurance acquisition cash flows 286 – – 286 Changes that relate to past service (changes in fulfilment cash flows re LIC) – – 10 10 Changes that relate to future service – 29 – 29 Losses for the net outflow recognised on initial recognition – 13 – 13 Losses and reversal of losses on onerous contracts – subsequent measurement – 16 – 16 Total Insurance Service Expenses 286 4 601 891 Total Insurance Service result (1 080) 4 601 (475) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk 163 24 9 196 Total Insurance Finance Income or Expense 163 24 9 196 Total Changes in the Statement of Financial Performance (917) 28 610 (279) Cash flows Premium received 1 327 – – 1 327 Claims and other insurance service expenses paid – – (626) (626) Insurance acquisition cash flows (309) – – (309) Total cash flows 1 018 – (626) 392 Net closing balance (33) 349 60 376 Closing Insurance contract assets (697) 151 10 (536) Closing Insurance contract liabilities 664 198 50 912 Net closing balance (33) 349 60 376 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 118
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.12 Life risk – insurance contracts issued continued Reconciliation of the liability for remaining coverage and the liability for incurred claims continued 30 June 2025 Liabilities for Remaining Coverage Liabilities for incurred claimsR million Excluding loss component Loss component Total Opening insurance contract assets (415) 150 14 (251) Opening insurance contract liabilities 194 364 89 647 Net opening balance (221) 514 103 396 Insurance revenue (1 137) – – (1 137) CSM recognised for services provided (302) – – (302) Change in risk adjustment for non-financial risk for risk expired (36) – – (36) Expected insurance service expenses incurred (549) – – (549) Recovery of insurance acquisition cash flows (248) – – (248) Experience adjustment not related to future service (2) – – (2) Insurance Service Expenses Incurred insurance service expenses: – (31) 546 515 Claims – (27) 507 480 Expenses – (4) 87 83 Changes in the risk adjustment on the LIC – – (48) (48) Amortisation of insurance acquisition cash flows 248 – – 248 Changes that relate to past service (changes in fulfilment cash flows re LIC) – – (13) (13) Changes that relate to future service – (201) – (201) Losses for the net outflow recognised on initial recognition – 5 – 5 Losses and reversal of losses on onerous contracts – subsequent measurement – (206) – (206) Total Insurance Service Expenses 248 (232) 533 549 Total Insurance Service result (889) (232) 533 (588) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk 77 39 16 132 Total Insurance Finance Income or Expense 77 39 16 132 Total Changes in the Statement of Financial Performance (812) (193) 549 (456) Cash flows Premium received 1 186 – – 1 186 Claims and other insurance service expenses paid – – (576) (576) Insurance acquisition cash flows (287) – – (287) Total cash flows 899 – (576) 323 Net Closing balance (134) 321 76 263 Closing Insurance contract assets (520) 138 12 (370) Closing Insurance contract liabilities 386 183 64 633 Net closing balance (134) 321 76 263 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 119
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.12 Life risk – insurance contracts issued continued Reconciliation of the measurement components of insurance contract balances 30 June 2026 Estimates of Present Value of Future Cash Flows Risk Adjustment for Non- financial Risk CSM TotalR million Opening insurance contract assets (1 052) 141 541 (370) Opening insurance contract liabilities (709) 198 1 144 633 Net opening balance (1 761) 339 1 685 263 Changes that relate to current services (66) (58) (390) (514) CSM recognised for services provided – – (390) (390) Change in risk adjustment for non-financial risk for risk expired – (58) – (58) Experience adjustments not related to future service (66) – – (66) Changes that relate to future services (703) 86 646 29 Contracts initially recognised in the year (738) 201 550 13 Changes in estimates that adjust the CSM 10 (106) 96 – Changes in estimates that relate to losses and reversal of losses on onerous contracts 25 (9) – 16 Changes that relate to past services 13 (3) – 10 Changes in estimates in LIC fulfilment cash flows 1 1 – 2 Experience adjustments in claims and other insurance service expenses in LIC 12 (4) – 8 Total Insurance Service result (756) 25 256 (475) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk (89) 123 162 196 Total Insurance Finance Income or Expense (89) 123 162 196 Total Changes in the Statement of Financial Performance (845) 148 418 (279) Cash flows – Premiums received 1 327 – – 1 327 Claims and other insurance service expenses paid (626) – – (626) Insurance acquisition cash flows (309) – – (309) Total cash flows 392 – – 392 Net Closing balance (2 214) 487 2 103 376 Closing Insurance contract assets (1 489) 186 767 (536) Closing Insurance contract liabilities (725) 301 1 336 912 Net closing balance (2 214) 487 2 103 376 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 120
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.12 Life risk – insurance contracts issued continued Reconciliation of the measurement components of insurance contract balances continued 30 June 2025 Estimates of Present Value of Future Cash Flows Risk Adjustment for Non- financial Risk CSM TotalR million Opening insurance contract assets (689) 86 352 (251) Opening insurance contract liabilities (323) 245 725 647 Net opening balance (1 012) 331 1 077 396 Changes that relate to current services (36) (36) (302) (374) CSM recognised for services provided – – (302) (302) Change in risk adjustment for non-financial risk for risk expired – (36) – (36) Experience adjustments not related to future service (36) – – (36) Changes that relate to future services (913) (90) 802 (201) Contracts initially recognised in the year (526) 132 399 5 Changes in estimates that adjust the CSM (295) (108) 403 – Changes in estimates that relate to losses and reversal of losses on onerous contracts (92) (114) – (206) Changes that relate to past services – (13) – (13) Changes in estimates in LIC fulfilment cash flows (26) (6) – (32) Experience adjustments in claims and other insurance service expenses in LIC 26 (7) – 19 Total Insurance Service result (949) (139) 500 (588) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk (123) 147 108 132 Total Insurance Finance Income or Expense (123) 147 108 132 Total Changes in the Statement of Financial Performance (1 072) 8 608 (456) Cash flows Premiums received 1 186 – – 1 186 Claims and other insurance service expenses paid (576) – – (576) Insurance acquisition cash flows (287) – – (287) Total cash flows 323 – – 323 Net Closing balance (1 761) 339 1 685 263 Closing Insurance contract assets (1 052) 141 541 (370) Closing Insurance contract liabilities (709) 198 1 144 633 Net closing balance (1 761) 339 1 685 263 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 121
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.13 Life Risk – Reinsurance contracts held Reconciliation of the Movement in Carrying Amounts – By Remaining Coverage Component and Incurred Claims Component for reinsurance – GMM 30 June 2026 Remaining Coverage Component Incurred Claims Component TotalR million Excluding Loss- recovery Component Loss- recovery Component Opening reinsurance contract assets (46) 63 51 68 Opening reinsurance contract liabilities (37) 9 23 (5) Net opening balance (83) 72 74 63 Allocation of the premiums paid (286) – – (286) CSM recognised for services provided (11) – – (11) Change in risk adjustment for non-financial risk for risk transferred (11) – – (11) Expected recoveries of incurred claims and other insurance service expense (272) – – (272) Experience adjustment not related to future service 8 – – 8 Amounts Recovered from Reinsurance Recoveries of incurred claims and other insurance service expense – (7) 276 269 Changes related to past service (changes related to incurred claims component) – – 4 4 Changes that relate to future service: – 1 – 1 Recoveries of losses on onerous underlying contracts on initial recognition – 3 – 3 Recoveries and reversals of recoveries of losses on onerous underlying contracts – subsequent measurement – (2) – (2) Total Amounts Recovered from Reinsurance – (6) 280 274 Total Net Expenses from Reinsurance (286) (6) 280 (12) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk (25) 7 2 (16) Total Insurance Finance Income or Expense (25) 7 2 (16) Total Changes in the Statement of Financial Performance (311) 1 282 (28) Cash flows Premiums paid 258 – – 258 Amounts recovered – – (272) (272) Total cash flows 258 – (272) (14) Net closing balance (136) 73 84 21 Closing reinsurance contract assets (15) 26 25 36 Closing reinsurance contract liabilities (121) 47 59 (15) Net closing balance (136) 73 84 21 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 122
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.13 Life Risk – Reinsurance contracts held continued Reconciliation of the Movement in Carrying Amounts – By Remaining Coverage Component and Incurred Claims Component for reinsurance – GMM continued 30 June 2025 Remaining Coverage Component Incurred Claims Component TotalR million Excluding Loss- recovery Component Loss- recovery Component Opening reinsurance contract assets (86) 114 84 112 Opening reinsurance contract liabilities (5) 1 1 (3) Net opening balance (91) 115 85 109 Allocation of the premiums paid (231) – – (231) CSM recognised for services provided 16 – – 16 Change in risk adjustment for non-financial risk for risk transferred (9) – – (9) Expected recoveries of incurred claims and other insurance service expense (253) – – (253) Experience adjustment not related to future service 15 – – 15 Amounts Recovered from Reinsurance Recoveries of incurred claims and other insurance service expense – (11) 257 246 Changes related to past service (changes related to incurred claims component) – – (11) (11) Changes that relate to future service: – (44) – (44) Recoveries of losses on onerous underlying contracts on initial recognition – 3 – 3 Recoveries and reversals of recoveries of losses on onerous underlying contracts – subsequent measurement – (47) – (47) Total Amounts Recovered from Reinsurance – (55) 246 191 Effect of change in non-performance risk of reinsurers 1 – – 1 Total Net Expenses from Reinsurance (230) (55) 246 (39) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk 43 12 6 61 Total Insurance Finance Income or Expense 43 12 6 61 Total Changes in the Statement of Financial Performance (187) (43) 252 22 Cash flows Premiums paid 195 – – 195 Amounts recovered – – (263) (263) Total cash flows 195 – (263) (68) Net closing balance (83) 72 74 63 Closing Insurance contract assets (46) 63 51 68 Closing Insurance contract liabilities (37) 9 23 (5) Net closing balance (83) 72 74 63 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 123
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.13 Life Risk – Reinsurance contracts held continued Reconciliation of the measurement components of reinsurance contract balances – GMM 30 June 2026 Estimates of Present Value of Future Cash Flows Risk Adjustment for Non- financial Risk CSM TotalR million Opening reinsurance contract assets (24) 44 48 68 Opening reinsurance contract liabilities 10 15 (30) (5) Net opening balance (14) 59 18 63 Changes that relate to current services 5 (11) (12) (18) CSM recognised for services received – – (12) (12) Change in risk adjustment for non-financial risk for risk expired – (11) – (11) Experience adjustments not related to future service 5 – – 5 Changes that relate to future services (120) 20 101 1 Contracts initially recognised in the year (29) 14 18 3 Changes in estimates that adjust the CSM (96) 8 88 – Changes in estimates that adjust recoveries of losses on onerous underlying contracts 5 (2) – 3 Changes in recoveries of losses on onerous underlying contracts that adjust the CSM – – (5) (5) Changes that relate to past services 6 (1) – 5 Changes in fulfilment cash flows re asset for incurred claims 2 1 – 3 Experience adjustments in claims and other insurance service expenses in asset for incurred claims 4 (2) – 2 Total Net Expenses from Reinsurance (109) 8 89 (12) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk (42) 25 1 (16) Total Insurance Finance Income or Expense (42) 25 1 (16) Total Changes in the Statement of Financial Performance (151) 33 90 (28) Cash flows Premiums received 258 – – 258 Amounts recovered (272) – – (272) Total cash flows (14) – – (14) Net closing balance (179) 92 108 21 Closing reinsurance contract assets 15 1 20 36 Closing reinsurance contract liabilities (194) 91 88 (15) Net closing balance (179) 92 108 21 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 124
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.13 Life Risk – Reinsurance contracts held continued Reconciliation of the measurement components of reinsurance contract balances – GMM continued 30 June 2025 R million Estimates of Present Value of Future Cash Flows Risk Adjustment for Non- financial Risk CSM Total Opening reinsurance contract assets 280 73 (241) 112 Opening reinsurance contract liabilities 3 2 (8) (3) Net opening balance 283 75 (249) 109 Changes that relate to current services 8 (9) 16 15 CSM recognised for services received – – 16 16 Change in risk adjustment for non-financial risk for risk expired – (9) – (9) Experience adjustments not related to future service 8 – – 8 Changes that relate to future services (294) (24) 274 (44) Contracts initially recognised in the year 42 6 (45) 3 Changes in estimates that adjust the CSM (307) 7 300 – Changes in estimates that adjust recoveries of losses on onerous underlying contracts (29) (37) – (66) Changes in recoveries of losses on onerous underlying contracts that adjust the CSM – – 19 19 Changes that relate to past services (4) (7) – (11) Changes in fulfilment cash flows re asset for incurred claims 2 (5) – (3) Experience adjustments in claims and other insurance service expenses in asset for incurred claims (6) (2) – (8) Effect of changes in non-performance risk of reinsurance 1 – – 1 Total Net Expenses from Reinsurance (289) (40) 290 (39) Insurance Finance Income or Expense The effect of and changes in time of time value of money and financial risk 60 24 (23) 61 Total Insurance Finance Income or Expense 60 24 (23) 61 Total Changes in the Statement of Financial Performance (229) (16) 267 22 Cash flows Premiums received 195 – – 195 Amounts recovered (263) – – (263) Total cash flows (68) – – (68) Net closing balance (14) 59 18 63 Closing Reinsurance contract assets (24) 44 48 68 Closing reinsurance contract liabilities 10 15 (30) (5) Net closing balance (14) 59 18 63 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 125
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.14 Life risk – Effect of Contracts Initially Recognised in the Period for Insurance 30 June 2026 30 June 2025 R million Profitable contracts issued Onerous contracts issued Total Profitable contracts issued Onerous contracts issued Total Insurance Contracts Issued Initially Recognised in the Period Estimates of the present value of future cash outflows: 1 138 88 1 226 1 040 55 1 095 Insurance acquisition cash flows 346 33 379 315 28 343 Claims and other cash outflows 792 55 847 725 27 752 Estimates of the present value of future cash inflows (1 879) (85) (1 964) (1 565) (55) (1 620) Risk adjustment for non- financial risk 191 10 201 126 5 131 Contractual service margin 550 – 550 399 – 399 Losses for the net outflow recognised on initial recognition – 13 13 – 5 5 corner 27.15 Life risk – Effect of Contracts Initially Recognised in the Period for Reinsurance 30 June 2026 30 June 2025 Contracts Initiated Contracts initiated R million Without Loss Recovery Component With Loss Recovery Component Total Without Loss Recovery Component With Loss Recovery Component Total Reinsurance Contracts Held Initially Recognised in the Period Estimates of the present value of future cash inflows (360) – (360) (329) – (329) Estimates of the present value of future cash outflows 389 – 389 287 – 287 Risk adjustment for non-financial risk (15) – (15) (6) – (6) Loss recovery related to losses on underlying insurance contracts at initial recognition – 3 3 – 3 3 Contractual Service Margin 14 3 17 (48) 3 (45) corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 126
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.16 Life Risk – Expected recognition of CSM Movement in CSM The CSM increased by R328 million (2025: R340 million) for the current financial year. This was driven by the sale of profitable new business, increasing the CSM with R532 million (2025: R444 million). Furthermore, the CSM increased by R161 million (2025: R131 million) due to interest accrued during the period under review, as well as with R8 million (2025: R43 million) due to the reversal of the loss component. Assumptions were updated to reflect actual experience and methodology changes introduced which improved the accuracy of the valuation model, leading to a further increase in the CSM of R5 million. The material assumption changes included improved decrement and expense experience, as well as the recalibration of the risk adjustment. These were offset by a R45 million decrease in the CSM due to updated reinsurance premium expectations, whereby possible future reinsurance reprices are expected earlier, eliminating the long-term reinsurance asset, as well as updated lapse experience. The impact of the abovementioned changes were partly offset due to CSM amortisation as services are provided and profits recognised, which decreased the CSM with R378 million (2025: R318 million). The following table represents a reconciliation of the opening to closing of the CSM balance for the period under review: R million 30 June 2026 30 June 2025 Opening CSM 1 667 1 326 Statement of financial position movement New business 532 444 Method and non-economic assumptions 5 41 – In-force business (32) 95 – New business 37 (54) Statement of profit and loss movement Unwind of discount rate 161 131 – In-force business 142 111 – New business 19 20 Reversal of loss component 8 43 – In-force business 8 41 – New business – 2 Closing balance before CSM amortisation 2 373 1 985 – In-force business 1 784 1 573 – New business 589 412 CSM amortisation (378) (318) – In-force business (308) (266) – New business (70) (52) Closing CSM 1 995 1 667 corner The expected recognition of the CSM balance is front-loaded, with the majority releasing within 5 to 10 years reflecting the short-duration nature and higher lapse experience of Partnership products in conjunction with the impact of discounting on the longer duration life direct products resulting in smaller profit recognition the later the duration becomes. The remaining CSM in the more than 10 years bucket relates primarily to the remaining portion of the underwritten life book which will run off in a decelerating pattern. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 127
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27. Insurance and Reinsurance contracts continued 27.16 Life Risk – Expected recognition of CSM continued An analysis of the expected recognition of the CSM remaining at the end of the reporting period in profit or loss is provided in the following table: 30 June 2026 R million Total Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 to 10 years More than 10 years Insurance contracts issued 2 103 359 294 243 201 166 492 348 Reinsurance contracts held (108) (15) (13) (11) (9) (8) (26) (26) Total 1 995 344 281 232 192 158 466 322 corner 30 June 2025 R million Total Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 to 10 years More than 10 years Insurance contracts issued 1 685 275 228 191 161 135 406 289 Reinsurance contracts held (18) 11 3 – (2) (2) (10) (18) Total1 1 667 286 231 191 159 133 396 271 The yield curves that were used in discounting the insurance and reinsurance liabilities: 30 June 2026 1 year 5 years 10 years 20 years 30 years Life Risk (issued and reinsurance held) 7.2% 7.3% 7.8% 9.1% 8.6% Fulfilment cash flows (R million) (45) 2 (23) (3) 20 corner 30 June 2025 1 year 5 years 10 years 20 years 30 years Life Risk (issued and reinsurance held) 7.0% 7.3% 8.7% 12.2% 11.9% Fulfilment cash flows (R million) (46) 28 (21) (1) 22 1 The prior year has been updated to better reflect the expected recognition of the CSM. 27.17 Interest rate sensitivity The table below represents the impact in profit or loss, should there be a change in the yield curve. The sensitivity was performed on the fulfilment cash flows of the insurance contracts which is the components of the liability measured using a market related interest rate. 30 June 2026 30 June 2025 R million 2% increase in yield curve 2% decrease in yield curve 2% increase in yield curve 2% decrease in yield curve Insurance contract assets 117 (142) 72 (84) Insurance contract liabilities (44) 213 18 16 Reinsurance contract assets – – (8) 9 Reinsurance contract liabilities (17) 16 – – corner The results of the sensitivity only indicate the impact on profit and loss and do not reflect the change in the statement of financial position of the insurance and reinsurance contracts as a result of the change in yield curves. The sensitivity impact on equity equals the sensitivity impact in profit or loss. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 128
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Notes to the consolidated financial statements continued 27. Insurance and Reinsurance contracts continued 27.18 Critical accounting estimates and adjustments relating to long-term insurance The following events and considerations have been considered in the fulfilment cash flows of OUTsurance Life In the current financial year, valuation improvements have been introduced, enhancing the accuracy of contract liability projection. The impact of these changes in assumptions are as follows: Change in expected reinsurance repricing assumption The assumption regarding future reinsurance repricing was updated during the year, with the expected timing of a plausible reinsurance reprice being revised from five years to one year based on actual claims experience. This change provides an updated best estimate expectation of future reinsurance costs. The net impact on the reinsurance asset for remaining coverage was a decrease of R2 million and an increase in the reinsurance finance income from reinsurance contracts in the statement of profit or loss of R2 million, for the effect of measuring changes in estimates and adjusting the CSM at the locked in interest rate. Estimates of Present Value of Future Cash Flows Risk Adjustment CSM Net impact Statement of financial position R million Assets for remaining coverage (ARC) (74) 26 46 (2) corner Effect of measuring changes in estimates and adjusting the CSM at locked in interest rate Statement of profit or loss impact R million Reinsurance finance income from reinsurance contracts held (2) corner Best estimate assumptions applied in the valuation of the insurance contract liabilities The best estimate assumptions in respect of dread disease & disability, mortality and retrenchment rates were set taking into consideration the rates provided by the reinsurers, actual past experience and modified by expected future trends. These rates have further been reviewed and approved by the Head of Actuarial Function. The underwritten business has continued to exhibit improved experience resulting in mortality expectation being lightened. The Partnership class of business showed improvements resulting in mortality expectations being lightened. The best estimate assumptions for renewal expenses were set taking into consideration the board approved business budget, which is based on past experience as well as expected changes in the business’ landscape. Continuous cost efficiencies resulted in this assumption being lowered. The following risk adjustments per assumption were applied in the valuation of the insurance contract liabilities at 30 June 2026: Assumption Margin Mortality 2.67% increase Morbidity 6.87% increase Disability 6.87% increase Retrenchment 7.85% increase/decrease* Expenses 9.75% increase Lapses 10.34% increase/decrease* on best estimate * Depending on which change increases the liability. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 129
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27. Insurance and Reinsurance contracts continued 27.18 Critical accounting estimates and adjustments relating to long-term insurance continued Economic assumptions Investment return The Group calculates its investment return assumption using a full yield curve as opposed to using a point estimate on the underlying yield curve. The comparative point estimate of the current yield curve at the valuation date is 8.80% (2025: 10.96%). Inflation The Group calculates its inflation assumption using a full inflation curve as opposed to using a point estimate on the underlying inflation curve, derived from nominal and real curves. The comparative point estimate of the current inflation curve at the valuation date is 3.65% (2025: 5.98%). Taxation The tax position is taken into account and the taxation rates, consistent with that position and the likely future changes in that position, are allowed for. The below table illustrates the non-economic assumptions considered in the valuation of fulfilment cashflows: Economic Assumptions 2026 2025 Discounted Mean Term 9.55 7.18 Securities backing non-bonus liabilities 8.8% 11.0% Securities backing bonus liabilities 7.7% 7.8% Inflation rate 3.7% 6.0% corner * The rates are calculated as cash flow weighted average rates to reflect the sensitivity of the liabilities to the shape of the yield curve. 27.19 Sensitivity on CSM The below table represent the impact on the unrealized profit if the underlying assumptions increased or decreased: Insurance contract Reinsurance contract Assumption Change in variable 2026 2025 2026 2025 Life contracts Effect on CSM Change in assumptions Lapses +10% (152) (72) 23 11 -10% 187 92 (35) (18) Morbidity/Mortality/Retrenchment +10% (308) (274) 188 (28) -10% 350 312 (209) 20 Expenses +10% (33) (30) (2) (2) -10% 34 30 2 2 Nett effect on profit or loss Change in assumptions Lapses +10% (42) (58) -10% 35 57 Morbidity/Mortality/Retrenchment +10% (153) 52 -10% 137 (78) Expenses +10% (11) (8) -10% 11 7 corner Insurance risk sensitivities are applied as a proportional percentage change to the assumptions made in the measurement of policyholder liabilities and the impact is reflected as the change in policyholder liabilities. Each sensitivity is applied in isolation with all other assumptions left unchanged. The sensitivity impact on equity equals the sensitivity impact in profit or loss. The impact of the sensitivities applied to the reinsurance contract assets or liabilities reversed when compared to 30 June 2025 due to the impact of the updated reinsurance contract boundaries applied in the current reporting period as disclosed earlier in this note. Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 130
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Notes to the consolidated financial statements continued 28. Investment contract liability The investment contract liability relates to linked endowment products sold by OUTsurance Life. The balance and the movements on the liability equally offsets against the investment contract asset held, with a third party. R million 2026 2025 Balance at beginning of the year 1 863 1 738 Terminations (49) (64) Fair value adjustments (42) 22 Interest accrued on linked endowment product 168 167 Balance at end of the year 1 940 1 863 corner 29. Lease liabilities R million 2026 2025 Balance at beginning of the year 379 294 Cash movements Lease payments (115) (120) Non-cash movements Modification¹ 139 – New leases entered into and lease extensions during the year 34 172 Terminations/cancellations² (7) – Interest 17 38 Foreign exchange adjustments (17) (5) Balance at the end of the year 430 379 corner 1 During the current financial year the lease contract for the Head office in OUTsurance Ireland was renegotiated to extend the lease term. In addition to the extended lease term, additional floor space was acquired for compensation that was commensurate with the increase in scope and therefore recognised as a separate lease. Refer to note 17 for more information. 2 Terminations include motor vehicles leased by Youi with a cost of R10.7 million and an accumulated depreciation of R4.4 million. Cancellations include motor vehicles leased by OUTsurance with a cost of R1.0 million and an accumulated depreciation of R0.9 million. The following table summarises the contractual maturity dates for lease liabilities. The maturity analysis is represented on an undiscounted contractual cash flow basis. R million Within year 1 – 5 years More than 5 years Total 30 June 2026 Lease liability 125 260 109 494 R million Within year 1 – 5 years More than 5 years Total 30 June 2025 Lease liability 114 294 – 408 Short-term leases are leases that have a duration of 12 months or less from date of inception. At 30 June 2026, the Group was not committed to any to short-term leases. Low-value leases are immaterial and are recognised in profit or loss. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 131
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Notes to the consolidated financial statements continued 30. Share based payments The various Group share schemes are as follows: Name of scheme Method of settlement IFRS 2 classification OUTsurance Holdings notional scheme Cash – fully run off in September 2025 Cash-settled Divisional incentive scheme Cash Cash-settled OUTsurance Holdings Conditional Share Plan scheme Equity – OUTsurance Group shares Equity-settled Youi Holdings share scheme Equity – Youi Holdings shares Equity-settled OUTsurance Irish Holdings share scheme Equity – Irish Holdings shares Equity-settled The purpose of these schemes is to attract, incentivise and retain managers within the Group by exposing them to growth in the Group’s equity value and providing them with an option to acquire shares. Consolidated view of share-based payment liability and movement for the year R million 2026 2025 Cash settled share-based payment liability 187 1 454 Total liability 187 1 454 Reconciliation of cash settled share-based payment liability Opening balance 1 454 811 Charge to profit or loss for the year 1 140 1 358 Liability settled (1 368) (715) Cancellation of Youi DIS (30) – Foreign exchange difference (9) – Closing balance 187 1 454 corner 1 The large reduction in the share-based payments expense arises where the final tranche of Employee Share Option Scheme (ESOP) vested in the current financial year. This is in line with the expectation following the replacement of the ESOP with the Conditional Share Plan (CSP). The CSP is significantly less geared to share price movements. The charge to profit or loss for share-based payments is as follows: R million 2026 2025 Equity settled share scheme1 Youi Holdings equity-settled scheme 6 13 OUTsurance Irish Holdings equity-settled scheme 25 28 OUTsurance Holdings CSP equity-settled scheme 81 84 Charge to Share-based payment reserve 112 125 Cash settled share schemes Youi Holdings Divisional Incentive cash-settled scheme2 – 28 OUTsurance Holdings cash-settled scheme3 29 1 301 OUTsurance Holdings Divisional Incentive cash-settled scheme 111 29 Charge to Statement of Profit or Loss 140 1 358 corner 1 Refer to the Statement of Changes in Equity for a reconciliation of the opening and closing balances. 2 The Youi Holdings Divisional Incentive cash-settled scheme was cancelled in the current financial year. 3 The Employee Share Option Plan (ESOP) related to the OUTsurance Holdings cash-settled scheme was settled in the current financial year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 132
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Notes to the consolidated financial statements continued 30. Share based payments continued OUTsurance Holdings Limited cash-settled share scheme Description and valuation methodology of the scheme Under this cash-settled scheme, participants received notional shares which had a value equal to the market value of an OUTsurance Holdings Limited ordinary share if the employee was still under the employment of the Group. Participants received an after-tax gain in the market value over the vesting period of three years as a cash payment. This scheme was phased out on 1 July 2023 with the last tranche having vested on 30 September 2025 and was fully paid in October 2025. The cash-settled scheme was valued using a Black-Scholes option pricing model with all notional shares vesting in one tranche at the end of year three. The scheme is cash-settled and will thus be repriced at each reporting date. Share scheme expenditure The following assumptions were applied in determining the OUTsurance cash-settled share-based payment liability: OUTsurance Holdings notional scheme 2026 2025 Share price – R34.43 Exercise price range – R11.95 to R15.19 Remaining duration – < 1 year Expected volatility – 22.83% Risk free interest rate – 8.06% Dividend yield – 3.50% corner Number of notional shares linked to the OUTsurance Holdings notional scheme OUTsurance Holdings notional scheme 2026 2025 Number of options in force at the beginning of the year 121 211 100 121 211 100 Number of options delivered during the year 1 (121 211 100) (54 339 800) Number of options cancelled/forfeited during the year – (2 775 000) Number of options/notional units in force at the end of the year – 64 096 300 Range of strike prices/notional units of closing balance – R11.95 – R15.19 Price per ordinary share2/notional unit – R34.43 Number of scheme participants – 217 Maximum remaining vesting period (years) – 0,83 corner 1 The market value of the OHL share price on vesting date of the final tranche was R32.27. 2 The market value of the ordinary shares for OUTsurance Holdings scheme is based on the 15 day VWAP share price as at the end of the financial year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 133
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Notes to the consolidated financial statements continued 30. Share based payments continued OUTsurance Holdings Limited cash-settled share scheme continued OUTsurance Holdings Share Trust The objective of the OUTsurance Holdings Share Trust (the Trust) was to facilitate the employee share incentive scheme of the OUTsurance Holdings Limited’s (OHL) group of entities. The purpose in holding the treasury shares was to back the OUTsurance Holdings Share Option Scheme (ESOP). Furthermore, the Trust has played the market making role for OHL employee shareholders wishing to dispose of their OHL shares. With the introduction of the OUTsurance Conditional Share Plan (OGL CSP), which ultimately settles in OUTsurance Group Limited (OGL) shares, the Trust served no further purpose due to the CSP instruments issued being listed OGL shares with no requirement for internal market making. The Share trust was fully wound-up in the prior financial year. Any OHL shares now being sold by employees will be purchased by OGL directly. 2026 2025 Number of treasury shares and market value Number of shares in portfolio at the beginning of the year – 69 996 930 Number of shares sold during the year – (42 333 020) Number of shares swapped for OGL shares – (27 663 910) Number of shares held in portfolio at the end of the year – – Market value per share held in portfolio at transaction date and year-end (Rand)1,2 – 21.26 Market value of portfolio at year-end – – Cost price of treasury shares Cost price of shares held in portfolio at the beginning of the year (R million) – 439 Cost price of shares sold to OGL and swapped for OGL shares (R million) – (439) Cost price of shares held in portfolio at the end of the year – – Loans to the share trust Value of loans made to the trust at the beginning of the year (R million) – 439 Value of loans made to the trust at the end of the year (R million) – – corner 1 From December 2022, the market value of ordinary shares has been based off the 15 day VWAP of the OGL share price. 2 Transaction date is the effective date that transactions relating to the share trust wind-up took place. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 134
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Notes to the consolidated financial statements continued 30. Share based payments continued Divisional Incentive cash-settled Scheme Description and valuation methodology of the scheme With effect 1 July 2019, a Divisional Incentive Scheme (DIS) was implemented with the objective to incentivise senior management based on the success of new and emerging business units which are in the South African and Australian operations. These new and emerging business units include OUTsurance Business and OUTsurance Life. The scheme is designed to closely align management and shareholders by mirroring equity participation in these business units. Management has replaced the Youi DIS scheme, which included the Youi CTP and Youi BZI business units, with Youi ESOP instruments with the objective of simplifying the remuneration strategy considering the sale of our interest in BZI and focusing on organic growth in the core Direct channel. The replacement was effective September 2025. The scheme is designed to closely align management and shareholders by mirroring an equity participation in these business units. Upon cancellation of the Youi DIS scheme, the participants were entitled to receive an equivalent value of shares or Youi Holdings ESOP options. The conversion ratio of Youi DIS units to Youi Holdings options has been calculated as the fair value of the DIS units using a Black Scholes valuation and compared to the Black-Scholes value of a Youi Holdings ESOP option. A modification loss of R29.7 million was recognised and shares to the value of R20.5 million were issued with the settlement of the scheme. R million Youi DIS opening balance 70 Fair value movement recognised in profit or loss (30) Settlement in Youi Holdings shares (20) Settlement in cash (10) Foreign exchange adjustments (9) Youi DIS closing balance – corner The mechanics of the remaining South African DIS is as follows: • The DIS is exposed to the net economic value created by the Business Unit. This gain is calculated as the difference between increase in the valuation of the Business Unit and a capital charge levied, on a cumulative basis, on the valuation of the Business Unit on 1 July 2019. The capital charge is referenced to weighted average cost of capital and reduced for any dividend distributions deemed to have been made from the business unit. Subsequent capital contributions also attract the capital charge. • Notional Incentive Units have been created to reference individual participation in each of the Business Units. These Notional Incentive Units are valued bi-annually in accordance with the net measurement above. The eventual strike price at each of the vesting dates is variable in nature and before the scheme vested the value was calculated using a Monte Carlo simulation, which has been designed to create a normal distribution of eventual strike prices. The scheme vested as follows: • 50% of the Notional Incentive Units vest on the 5th anniversary • 25% of the Notional Incentive Units vest on the 6th anniversary • 25% of the Notional Units vest on the 7th anniversary The Scheme is now fully vested. No units have been exercised by any of the participants as at 30 June 2026. Participants may elect to defer the exercise of the vested Notional Incentive Units up to the 10th anniversary of the DIS at 30 June 2029. With the scheme reaching it vesting date, its nature changed to that of a Bermudian option where its more appropriate to measure the Notional Incentive Units, using a binomial option-pricing model, which explicitly reflects the remaining exercise optionality of the participants. Upon exercise, participants will receive OUTsurance Holdings ordinary shares depending on the gain released and their participation in the Business Units. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 135
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Notes to the consolidated financial statements continued 30. Share based payments continued Divisional Incentive cash-settled Scheme continued Description and valuation methodology of the scheme continued These shares will be held for a year before it can be disposed of at the ruling market value of the shares on date of disposal. The following conditions apply: • Minimum Group and Company normalised earnings hurdles as vesting conditions. • The DIS allows for the claw-back of vested gains where warranted by the conduct of the participants. The scheme is accounted for as a cash-settled scheme for the purposes of IFRS 2 at a Group level. This accounting approach results in the cost of the scheme being expensed through profit or loss over the lifetime thereof. A corresponding liability is recognised until settlement. The respective subsidiaries participating in the DIS are allocated the cost associated with the Business Units represented by such entities. To determine IFRS 2 charge, the following input assumptions were used for the Business Units: 2026 OUTsurance Business OUTsurance Life Youi CTP Youi BZI Risk-free rate 7.46% 7.46% – – Volatility 12.96% 18.75% – – Dividend yield 3.50% 0.00% – – Employee exit rate1 0.00% 0.00% – – corner 1 With the scheme having reached its vesting date, the exit rate has been adjusted to zero, as it is assumed that participants will exercise their units upon resignation. Upon vesting of the scheme, further refinements included a revision of the volatility assumptions that was revised to reflect the volatility of the business unit as opposed to that of the OGL shares. 2025 OUTsurance Business OUTsurance Life Youi CTP Youi BZI Risk-free rate1 7.44% – 8.47% 7.44% – 8.47% 2.60% – 4.30% 2.60% – 4.30% Volatility 22.83% 22.83% 30.00% 30.00% Dividend yield 3.50% 3.50% 0.00% 0.00% Employee exit rate 10.00% 10.00% 0.00% 0.00% 1 The vesting date that is being calculated will determine which risk-free rate is used within the disclosed range. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 136
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Notes to the consolidated financial statements continued 30. Share based payments continued Divisional Incentive cash-settled Scheme continued Description and valuation methodology of the scheme continued The following assumptions were applied in the calculation of the DIS units: 2026 Divisional Incentive cash-settled Scheme OUTsurance Business OUTsurance Life Youi CTP Youi BZI Fair value per notional unit R103.05 R146.57 – – Exercise price R585.09 R270.16 – – Remaining vesting period – – – – Remaining exercise period 3 years 3 years – – Expected volatility 12.96% 18.75% – – Risk free interest rate 7.46% 7.46% – – Dividend yield (0% yield as cost of capital charge will be reduced by dividends distributed) 3.50% 0.00% – – Annual employee turnover 10.00% 10.00% – – corner 2025 Divisional Incentive cash-settled Scheme OUTsurance Business OUTsurance Life Youi CTP Youi BZI Fair value per notional unit R560.62 R245.71 A$21.52 A$5.25 Exercise price R560.62 – R821.11 R245.74 – R359.93 A$21.52 – A$24.59 A$5.25 – A$6.00 Remaining duration 1 – 2 years 1 – 2 years 1 – 2 years 1 – 2 years Expected volatility 22.83% 22.83% 30.00% 30.00% Risk free interest rate 7.44% – 8.47% 7.44% – 8.47% 2.60% – 4.30% 2.60% – 4.30% Dividend yield (0% yield as cost of capital charge will be reduced by dividends distributed) 3.50% 3.50% 0.00% 0.00% Annual employee turnover 10.00% 10.00% 0.00% 0.00% OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 137
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Notes to the consolidated financial statements continued 30. Share based payments continued Divisional Incentive cash-settled Scheme continued Description and valuation methodology of the scheme continued 2026 OUTsurance Holdings Divisional Incentive cash-settled scheme OUTsurance Business OUTsurance Life Youi CTP Youi BZI Number of options in force at the beginning of the year 895 500 607 500 1 060 000 930 000 Number of options cancelled/ forfeited during the year (30 000) (10 000) (60 000) (80 000) Youi options converted in shares – – (245 000) (245 000) Youi options converted in cash – – (125 000) (125 000) Youi options converted in ESOP options – – (630 000) (480 000) Number of options/notional units in force at the end of the year 865 500 597 500 – – Intrinsic value per unit 2019 tranche R88.00 R158.00 A$4.72 A$2.58 2022 tranche R236.00 R182.00 – – Price per notional unit1 R103.05 R146.57 – – Number of scheme participants 39 26 – – Weighted average remaining vesting period (years) – – – – corner 2025 OUTsurance Holdings Divisional Incentive cash-settled scheme OUTsurance Business OUTsurance Life Youi CTP Youi BZI Number of options in force at the beginning of the year 898 000 770 000 930 000 960 000 Number of options/notional units granted during the year – – 150 000 – Number of options cancelled/ forfeited during the year (2 500) (162 500) (20 000) (30 000) Number of options/notional units in force at the end of the year 895 500 607 500 1 060 000 930 000 Intrinsic value per unit 2019 tranche (R11.72) R4.00 A$4.72 A$2.58 2022 tranche R85.41 (R21.00) – – Price per notional unit1 R560.62 R245.71 – – Number of scheme participants 41 27 20 15 Weighted average remaining vesting period (years) 1.00 1.00 1.60 1.08 1 The market value of ordinary shares resets six monthly on 1 July and 1 January each year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 138
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Notes to the consolidated financial statements continued 30. Share based payments continued OUTsurance Holdings Conditional Share Plan (CSP) Description and valuation methodology of the scheme A new CSP was introduced in the first half of the 2024 financial year to create long-term incentive for employees which is more aligned to shareholder value creation and appropriate in a listed environment. The CSP is designed to enable participants to share in the growth of the Group and create alignment between the interests of shareholders and participants. The intention of the incentive is to drive performance of the participants through a strong link between remuneration, financial, strategic performance and corporate sustainability. The shares are granted under the plan for no consideration and carry no dividend or voting rights. The scheme is classified as a cash-settled scheme at OHL. In OUTsurance Group Limited (OGL) the scheme is classified as equity settled because it is ultimately settled in OGL shares. The maximum number of shares issued, or treasury shares used to settle CSP awards shall not exceed 5% of the issued share capital of OGL. The maximum number of shares that can be settled to any one participant under the CSP is 0.5% of the issued share capital. The following instruments will be awarded in terms of the CSP: • Performance Shares – full value conditional share awards, which will vest on condition that participants fulfil pre-determined performance conditions and remain in the employment of the company for the duration of the performance period. Only executive directors and core senior management will receive performance shares. A separate set of performance conditions are calibrated for executives and senior management of the South African operation, which are specific to their area of influence. These are disclosed as part in the integrated report. • Restricted Shares – full value conditional share awards which are awarded based on the performance of an employee and will vest on condition that a participant remains in the employment of the company for the duration of the performance period. Restricted Shares are awarded to employees below executive committee level and to CSP participants who do not receive Performance Shares. Valuation methodology A share-based payment expense is recognised based on the measurement of the fair value of employee service received. The fair value of share options is determined at grant date and expensed over the vesting period. The fair value of options at grant date is determined by the use of the Black-Scholes option pricing model. The ‘option duration’ is 3 years which is the number of years before the options expire per the share scheme rules. Market data consists of the following: • The volatility is derived with reference to the volume weighted average share price of the OGL share price. • The ‘risk-free interest rate’ input is derived from government bonds with a remaining term equal to the term of the option being valued. Other model inputs include: • Dividend growth is based on the best estimate of expected future dividends. • The average ‘annual employee turnover’ estimates the number of participants in the option schemes that will leave before the options have vested. Performance conditions: • During the current financial year, the performance conditions applicable to the CSP performance shares, reached between 120% and 125% of the targeted requirements. An additional expense of R38.2 million (2025: R22.9 million) was recognised to account for the remeasurement of the estimated outcome. Accrual of special dividends: • The participants may receive the economic benefit of special dividends on underlying OGL shares. Following the payment of a special dividend by OGL, the Group recognised an additional share-based payment liability of R11.1 million at the reporting date, representing the accrued special dividend entitlement. Share scheme expenditure The following assumptions were applied in determining the OUTsurance Holdings CSP scheme liability: OUTsurance Holdings CSP scheme 2026 2025 Share price R76.03 R69.87 Award date price range R40.49 – R75.23 R40.49 – R53.47 Remaining duration 0.25 – 2.25 1.25 – 2.25 Expected volatility 23.23% 22.83% Risk free interest rate 7.58% 8.06% Dividend yield 3.50% 3.50% corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 139
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30. Share based payments continued OUTsurance Holdings Conditional Share Plan (CSP) continued Share options OUTsurance Holdings CSP scheme 2026 2025 Number of awards in force at the beginning of the year 6 806 799 4 700 802 Number of awards granted during the year 1 743 474 2 419 625 Range of strike prices of options granted during the year R75.23 R53.37 Number of awards cancelled/forfeited during the year (581 479) (313 628) Number of awards in force at the end of the year 7 968 794 6 806 799 Range of strike prices of awards in force at the end of the year R40.49 – R75.23 R40.49 – R53.47 Price per ordinary share R75.56 R78.85 Number of scheme participants 221 250 Average remaining vesting period (years) 0.25 – 2.25 1.25 – 2.25 corner CSP Instruments under issue OUTsurance Holdings CSP scheme 2025 tranche 2024 tranche 2023 tranche Total At issue date Number of OUTsurance Group CSP instruments issue 1 743 474 2 419 625 4 964 434 9 127 533 Restricted 451 280 807 344 3 741 102 4 999 726 Subject to performance conditions 1 292 194 1 612 281 1 223 332 4 127 807 Share price at date of issuance R75.23 R53.37 R40.49 Total participant value of CSP’s at issue date (Rand) 131 161 549 129 135 386 201 009 933 461 306 868 Number of participants – at issue 109 104 269 Current balance – 30 June 2026 Number of OUTsurance Group CSP instruments remaining in issue 1 571 285 2 099 047 4 298 462 7 968 794 Restricted 420 569 725 641 3 117 461 4 263 671 Subject to performance conditions 1 150 716 1 373 406 1 181 001 3 705 123 Current OUTsurance Group share price R75.56 R75.56 R75.56 Total participant value of CSP’s at issue date (Rand) 118 726 295 153 603 991 324 791 789 602 122 075 Number of participants – current 104 95 217 Number of years to vesting 2.25 1.25 0.25 Current balance – 30 June 2025 Number of OUTsurance Group CSP instruments remaining in issue – 2 334 867 4 471 932 6 806 799 Restricted – 767 794 3 290 931 4 058 725 Subject to performance conditions – 1 567 073 1 181 001 2 748 074 Share price at date of issuance – R53.37 R40.49 Total participant value of CSP’s at issue date (Rand) – 124 611 852 181 068 527 305 680 379 Number of participants – current – 100 231 Number of years to vesting – 2.25 1.25 Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 140
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Notes to the consolidated financial statements continued 30. Share based payments continued Youi Holdings Pty Limited equity-settled share scheme Description and valuation methodology of the scheme In terms of the plan rules, 10% of the issued share capital of the company is available under the plan for the granting of options to employees. Scheme participants currently own 5.6% (2025: 5.6%) of the issued ordinary shares of Youi Holdings Pty Limited. Valuation methodology A share-based payment expense is recognised based on the measurement of the fair value of employee services received. The fair value of share options is determined at grant date and expensed over the vesting period. The fair value of options at grant date is determined by the use of the Black-Scholes option pricing model. The ‘option duration’ is the number of years before the options expire. Market data consists of the following: • Since Youi Holdings Pty Limited is not listed, ‘expected volatility’ is derived with reference to the Australian market using the ASX volatility for Youi share prices. The volatility reflects an historic period matching the duration of the option. • The ‘risk-free interest rate’ input is derived from government bonds with a remaining term equal to the term of the option being valued. Dividend data consists of the following: • ‘Dividend growth’ is based on the best estimate of expected future dividends. • The average ‘annual employee turnover’ estimates the number of participants in the option schemes that will leave before the options have vested. The inputs to the share option pricing model to determine the fair value of Youi equity settled grants were as follows: Youi Holdings equity-settled scheme 2026 2025 Share price1 A$1.869 A$1.225 – $1.515 Exercise price A$1.869 A$1.225 Remaining duration 3 – 4 years 3 – 4 years Expected volatility 22.00% 21.86% – 22.29% Risk free interest rate 3.33% – 3.46% 3.51% – 3.84% Annual employee turnover 8.93% 3.84% Dividend yield 4.22% 4.22% corner 1 After 30 June 2026, the share price reset to A$2.22. Share options Youi Holdings equity-settled scheme 2026 2025 Number of options in force at the beginning of the year 59 100 000 64 284 000 Number of options granted during the year 30 155 915 21 200 000 Range of strike prices of options/granted during the year A$1.869 A$1.225 Number of options delivered during the year (14 900 000) (23 384 000) Number of options cancelled/forfeited during the year (739 417) (3 000 000) Number of options in force at the end of the year 73 616 498 59 100 000 Range of strike prices of closing balance A$0.644 to A$1.855 A$0.592 to A$1.225 Price per ordinary share1 A$2.01 A$0.592 to A$1.225 Number of scheme participants 38 42 Weighted average remaining vesting period (years) 1.57 1.39 corner 1 The market value for the Youi Holdings shares resets six monthly on 1 July and 1 January each year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 141
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Notes to the consolidated financial statements continued 30. Share based payments continued Youi Holdings Pty Limited equity-settled share scheme continued Youi Holdings Share Trust The Youi Holdings Share Trust holds shares to back the options in issue. The Trust’s investment in Youi Holdings for the year ending 30 June was as follows: 2026 2025 Number of treasury shares and market value Number of shares in portfolio at the beginning of the year (full number) 12 470 626 11 706 160 New Treasury shares issued by Youi to the Employee Share Trust (full number) – 5 030 000 Number of shares purchased during the year (full number) 8 767 387 13 867 000 Number of shares released during the year (full number) (12 351 190) (18 132 534) Number of shares held in portfolio at the end of the year (full number) 8 886 823 12 470 626 Market value per share held in portfolio at year-end (A$) 2.01 1.515 Market value of portfolio at year-end (A$ million) 18 19 Cost price of treasury shares Cost price of shares held in portfolio at the beginning of the year (A$ million) 16 8 Cost price of shares purchased during the year (A$ million) 16 23 Cost price of shares released during the year (A$ million) (15) (15) Cost price of shares held in portfolio at the end of the year (A$ million) 17 16 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 142
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Notes to the consolidated financial statements continued 30. Share based payments continued OUTsurance Irish Insurance Holdings Limited equity-settled share scheme Description and valuation methodology of the scheme In terms of the plan rules, 15% of the issued share capital of the company is available under the plan for the granting of options to employees. Scheme participants currently don’t hold any of the issued ordinary shares of OUTsurance Irish Insurance Holdings Limited as the first tranche of options has yet to vest. Valuation methodology The fair value of share options is determined at grant date and expensed over the vesting period. The fair value of options at grant date is determined by the use of the Black-Scholes option pricing model. A share-based payment expense is only recognised if the options issued have a positive intrinsic value, therefore, if the market value of the underlying shares is expected to rise above the strike price over the vesting period of the options, the expense is recognised. The ‘option duration’ is the number of years before the options expire. Market data consists of the following: • Since OUTsurance Irish Insurance Holdings Limited is not listed, ‘expected volatility’ is derived based on S&P Insurance Index benchmark with annualised volatility of 26%. • The ‘risk-free interest rate’ input is derived from government bonds with a remaining term equal to the term of the option being valued. The following table lists the inputs to the model used for the long term incentive plan for the year ended 30 June 2026: OUTsurance Irish Holdings equity-settled scheme 2026 2025 Share price €0.10 €0.10 Exercise price €0.13 €0.13 Remaining duration – 1 Expected volatility 31.16% 31.16% Risk free interest rate 3.05% 3.05% Annual employee turnover 0.00% 0.00% Dividend yield 0.00% 0.00% corner The following table illustrates the number and weighted average exercise prices of, and movements in share options during the year: Share options OUTsurance Irish Holdings equity–settled scheme 2026 2025 Number of options in force at the beginning of the year 269 176 471 269 176 471 Number of options granted during the year 22 588 235 – Range of strike prices of options granted during the year €0.13 – €0.15 €0.13 – €0.15 Number of options delivered during the year – – Number of options cancelled/forfeited during the year (32 000 000) – Number of options in force at the end of the year 259 764 706 269 176 471 Range of strike prices of closing balance €0.13 – €0.15 €0.13 – €0.15 Price per ordinary share €0.13 – €0.15 €0.13 – €0.15 Number of scheme participants 24 24 Weighted average remaining vesting period (years) 0.00 1.00 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 143
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Notes to the consolidated financial statements continued 31. Employee benefits Uncertainty exists relating to the timing and extent of cash flows from the leave pay provision. The outstanding balance represents the current value of leave due to employees in the employ of companies within the Group. The value of the discretionary bonus is determined through employees’ performance which is linked to a balanced scorecard that is approved by the Remuneration Committee of the Group. The balanced scorecard is determined for each business unit annually. R million 2026 2025 Leave pay liability 357 342 Non-discretionary bonus liability 36 39 Discretionary bonus liability 304 289 Total liability 697 670 Reconciliation of leave pay liability Opening balance 342 315 Charge for the year 272 180 Liability utilised (250) (145) Foreign translation difference (7) (8) Closing balance 357 342 Reconciliation of non-discretionary bonus liability Opening balance 39 42 Charge for the year 77 79 Liability utilised (80) (82) Closing balance 36 39 Reconciliation of discretionary bonus liability Opening balance 289 269 Charge for the year 314 279 Liability utilised (296) (255) Foreign translation difference (3) (4) Closing balance 304 289 corner Refer to note 38 for the current and non-current analysis of employee benefits. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 144
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Notes to the consolidated financial statements continued 32. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss relate to the preference shares issued by OUTsurance and OUTsurance Life for the profit sharing arrangements. Profits arising from these arrangements are distributed by way of bi-annual preference dividends payable bi-annually in February and August by OUTsurance and annually in August by OUTsurance Life. The preference dividend attributable to the profit-share for the financial year is recognised in profit or loss as a fair value adjustment to the liability. The portion of the unpaid preference dividend at 30 June is recognised as a financial liability at fair value through profit or loss. R million 2026 2025 Shareholders for preference dividends on profit-share arrangement 136 126 corner Refer to note 3.3.1 for a reconciliation of the opening and closing balance. Refer to note 38 for the current and non-current analysis of shareholders for preference dividends. 33. Financial liabilities at amortised costs R million 2026 2025 Movement Analysis Opening balance for the year – 774 Repayment of loan facility – (774) Closing balance for the year – – corner Group revolving credit facility The Group has a revolving credit facility (RCF) in place to assist with additional funding for strategic investments and capital support in the Group. The amount available under the RCF is R1 000 million (2025: R1 350 million) with the interest rate calculated at JIBAR plus a margin of 145bps. This will transition to a ZARONIA-based rate in the first half of the next financial year. Refer to note 3.3.2 for more information. Interest is split and payable equally to each lender participating in the RCF. A commitment fee of 50bps plus VAT is charged on the undrawn facility and interest is charged at a rate per annum compounded quarterly on the amount drawn down. During the prior financial year, the RCF balance outstanding in the amount of R774 million was settled in full. General banking facility for liquidity assessments As part of OUTsurance Life’s annual available liquidity assessment, specifically considering the cashflows arising from the Asset Liability Matching (ALM) and the forecast of operational expenditure in OUTsurance Life, an additional General Banking Facility (GBF) was taken out to support the increasing available liquidity in OUTsurance Life, should the company experience any shock events. During the current financial year, a drawdown of R30 million (2025: R nil) was made against the facility and was subsequently repaid in full. Accordingly, there were no amounts outstanding and no borrowings under the facility at the reporting date. A commitment fee of 50bps plus VAT is charged on the undrawn facility and interest is charged at a rate per annum compounded quarterly on the amount drawn down. 34. Other payables R million 2026 2025 Due to intermediaries 20 13 Trade creditors 78 162 Other payables and accruals 802 787 Indirect tax liability 138 155 Stamp duty payable 204 202 Payroll provisions and accruals 117 115 Total other payables 1 359 1 434 corner The carrying amount of other payables approximates the fair value. Refer to note 38 for the current and non-current analysis of other payables. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 145
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Notes to the consolidated financial statements continued 35. Cash generated from operations R million 2026 2025 Reconciliation of profit before taxation to cash generated from operations: Profit before taxation 8 648 7 681 Loss/(profit) on sale of held for sale assets 5 (35) Profit on sale of associates – (176) Loss on sale of property and equipment 5 1 Foreign currency movements 7 15 Equity accounted earnings (26) (189) Impairment of investments in associates/assets held for sale 42 10 Depreciation of property and equipment 155 151 Depreciation of right of use asset 107 90 Amortisation of intangible assets 51 49 Intangible assets acquired (62) (19) Movement in share-based payment liability (1 048) 761 Movement in employee benefits liability 27 44 Investment income (1 726) (1 636) Finance costs 132 174 Net fair value movements on financial assets at fair value through profit or loss (198) (568) Fair value adjustments to financial liabilities 10 13 Derecognition of retained earnings on deregistration of subsidiary – (3) Discounting of proceeds on sale of held for sale assets (3) 2 Non-cash items relating to transactions with non-controlling interests 18 109 Other non-cash items (200) 147 Change in insurance contracts 3 067 3 134 Change in reinsurance contracts (302) (658) Finance expenses from insurance contracts issued 348 452 Finance income from reinsurance contracts held – (156) Investment contracts 77 125 Changes in working capital Current receivables and prepayments 195 92 Current payables and provisions (75) 274 Cash generated by operations 9 254 9 884 corner 36. Taxation paid R million 2026 2025 Taxation payable – opening balance (349) (35) Charge to profit or loss (2 468) (2 462) Adjustment for deferred tax charge (22) (213) Taxation payable – closing balance 298 349 Other adjustments – equity 30 48 Deferred tax settled – other reserves (35) – Foreign currency adjustments 7 (2) Taxation paid (2 539) (2 315) corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 146
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Notes to the consolidated financial statements continued 37. Preference dividends paid R million 2026 2025 Preference dividends unpaid at the beginning of the year (126) (113) Preference dividend charged to the statement of profit or loss in respect of profit share arrangements (212) (211) Preference dividend unpaid at the end of the year 136 126 Preference dividend paid (202) (198) 38. Current/non-current split of amounts recognised on the statement of financial position The analysis shows the current/non-current split of assets and liabilities based on the expected contractual maturities thereof. Items classified as current have expected or contractual maturities within the next twelve months. Non-current items are expected or will legally mature in longer than twelve months. Equity instruments are considered to have no contractual maturity. R million Carrying amount Current Non- current 30 June 2026 Assets Property and equipment 1 186 – 1 186 Intangible assets 227 – 227 Right-of-use assets 378 – 378 Investments in associates 228 – 228 Deferred income tax 459 – 459 Reinsurance assets 2 599 1 951 648 Insurance assets 536 60 476 Financial assets Fair value through profit or loss 7 525 2 915 4 610 Fair value through other comprehensive income 7 995 7 995 – Measured at amortised cost 16 930 16 842 88 Derivative financial instrument 185 6 179 Other receivables 934 934 – Taxation 7 7 – Cash and cash equivalents 1 633 1 633 – Total assets 40 822 32 343 8 479 Liabilities Reinsurance liabilities 51 (2) 53 Insurance liabilities 19 311 14 162 5 149 Derivative financial instrument 140 28 112 Investment contract liability 1 940 39 1 901 Lease liabilities 430 110 320 Share-based payment liability 187 187 – Employee benefits 697 672 25 Deferred income tax 65 – 65 Financial liabilities at fair value through profit or loss 136 136 – Taxation 305 305 – Other payables 1 359 1 359 – Total liabilities 24 621 16 996 7 625 OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 147
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Notes to the consolidated financial statements continued 38. Current/non-current split of amounts recognised on the statement of financial position continued R million Carrying amount Current Non- current 30 June 2025 Assets Property and equipment 1 205 – 1 205 Intangible assets 224 – 224 Right of use assets 354 – 354 Investment in associates 258 – 258 Deferred income tax 501 – 501 Reinsurers assets 2 353 1 556 797 Insurance assets 370 49 321 Financial assets Fair value through profit or loss 6 758 2 787 3 971 Fair value through other comprehensive income 8 111 7 637 474 Measured at amortised cost 14 355 14 350 5 Derivative financial instruments 326 259 67 Other receivables 1 866 1 866 – Taxation 1 1 – Assets held for sale 102 102 – Cash and cash equivalents 1 865 1 865 – Total assets 38 649 30 472 8 177 Liabilities Reinsurance liabilities 35 12 23 Insurance liabilities 16 229 12 678 3 551 Derivative financial instrument 7 – 7 Investment contract liability 1 863 16 1 847 Lease liabilities 379 101 278 Share-based payment liability 1 454 1 447 7 Employee benefits 670 634 36 Deferred income tax¹ 158 9 149 Financial liabilities at fair value though profit or loss 126 126 – Taxation 350 350 – Other payables 1 434 1 434 – Total liabilities 22 705 16 807 5 898 1 The current deferred tax originated on profit from share-buy backs which realised in the current financial year. 39. Related party transactions The Group defines related parties as: • The principle shareholders are Remgro Limited and Royal Bafokeng Holdings Proprietary Limited (2025: Remgro Limited and Royal Bafokeng Holdings Proprietary Limited). Details of major shareholders are disclosed in the directors’ report. • Key management personnel such as the OUTsurance Group Limited Board of directors and the OUTsurance Holdings executive committee. Subsidiaries Details of investments in subsidiaries are disclosed in note 18. Transactions between OUTsurance Group Limited and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Associates Details of investments in associates are disclosed in note 19. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 148
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Notes to the consolidated financial statements continued 39. Related party transactions continued For the financial year under review, the OUTsurance Group Limited entered into arms-length transactions with related parties: R million 2026 2025 Transactions with related parties Principal shareholders Dividends paid 2 220 1 660 Key management personnel Dividends paid on OGL shares held 12 9 Associates Income statement effect: RMI Investment Managers associate Dividend received 13 146 Blue Zebra Insurance Proprietary Limited¹ Dividend received – 38 Commissions paid – (251) CloudBadger Technologies Proprietary Limited¹ Dividend received – 20 Key management personnel Remuneration Salaries and bonuses (211) (219) Non-executive directors fees (10) (9) Non-executive directors fees subsidiaries (15) (17) Other short-term employee benefits (7) (8) Share-based payments expense for the year (24) (391) (643) (644) Insurance related transactions Premiums received 2 1 Claims paid (1) (1) Year end balances with key management personnel Share-based payment liability (178) (466) Year end balances with related parties RMI Investment Managers associates Dividend receivable – 146 1 Associates derecognised as at 30 June 2025 as a result of being sold or classification to assets held for sale. Refer to notes 19 and 24 for more detail. In the prior financial year OUTsurance International (Pty) Ltd (OUTsurance International) had issued a guarantee to the Common Wealth Bank of Australia for the loan obtained by the Youi ESOP trust to fund the shares issued to employees. OUTsurance International had full recourse against employees who default on their loan repayments. As part of the guarantee OUTsurance International also provided a term deposit as collateral to the value of 20% of the loan facility amount. The value of the term deposit was R23.9 million in 2025. The guarantee was released during the current financial year and therefore had no fair value at 30 June 2026. All related party transactions are entered into on an arm’s length basis. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 149
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Notes to the consolidated financial statements continued 39. Related party transactions continued Remuneration Prescribed officers’ and directors’ emoluments for the year ended 30 June is as follows: R’000¹ Services as directors Cash package Performance related bonus Benefit derived from share incentive scheme Total 2026 Non-executive directors HL Bosman 1 707 – – – 1 707 JJ Durand² 687 – – – 687 A Kekana² 473 – – – 473 F Knoetze (alternate)³ – – – – – UH Lucht (alternate)⁴ – – – – – MM Mahlare 611 – – – 611 ET Moabi 955 – – – 955 SV Naidoo 1 009 – – – 1 009 RSM Ndlovu⁵ 1 013 – – – 1 013 K Pillay⁶ 955 – – – 955 WT Roos 553 – – – 553 JA Teeger 671 – – – 671 JE van Heerden 1 009 – – – 1 009 CPF Vosloo (alternate)⁷ – – – – – Executive directors and prescribed officers Executive directors MC Visser – 8 072 8 112 66 934 83 118 JH Hofmeyr – 6 140 6 171 54 269 66 580 Prescribed officers DH Matthee – 6 326 6 357 50 075 62 758 N Simpson – 10 549 5 584 8 546 24 679 Total 9 643 31 087 26 224 179 824 246 778 1 Directors remuneration has been rounded to R’000 to better present the fees paid to each director. 2 Directors’ fees for services rendered by Mr Durand was paid to Remgro and for Ms Kekana was paid to Royal Bafokeng for their time spent on the OGL Board. 3 Alternative to Mr Durand, resigned on 31 January 2026. 4 Alternative to Ms Kekane. 5 Appointed as chair of Remuneration Committee on 2 January 2026. 6 Resigned as chair of Remuneration Committee on 2 January 2026. 7 Alternative to Mr Durand, appointed on 1 February 2026. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 150
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Notes to the consolidated financial statements continued 39. Related party transactions continued Remuneration continued Prescribed officers’ and directors’ emoluments for the year ended 30 June is as follows: R’000¹ Services as directors Cash package Performance related bonus Benefit derived from share incentive scheme Total 2025 Non-executive directors HL Bosman 1 308 – – – 1 308 JJ Durand² 648 – – – 648 B Hanise³ 340 – – – 340 A Kekane² 438 – – – 438 F Knoetze (alternate)⁴ – – – – – UH Lucht (alternate)⁵ – – – – – MM Mahlare 438 – – – 438 GL Marx⁶ 254 – – – 254 ET Moabi 880 – – – 880 MM Morobe³ 261 – – – 261 SV Naidoo 895 – – – 895 RSM Ndlovu 816 – – – 816 K Pillay 946 – – – 946 WT Roos 498 – – – 498 JA Teeger 498 – – – 498 JE van Heerden 895 – – – 895 Executive directors and prescribed officers Executive directors MC Visser – 7 859 8 068 36 995 52 922 JH Hofmeyr – 5 979 6 138 29 269 41 386 Prescribed officers DH Matthee – 6 159 6 323 29 269 41 751 N Simpson – 9 132 6 338 33 642 49 112 Total 9 115 29 129 26 867 129 175 194 286 1 Directors remuneration has been rounded to R’000 to better present the fees paid to each director. 2 Directors’ fees for services rendered by Mr Durand was paid to Remgro and for Ms Kekana was paid to Royal Bafokeng for their time spent on the OGL Board. 3 Resigned 26 November 2024. 4 Alternative to Mr Durand. 5 Alternative to Ms Kekane. 6 Retired 12 September 2024. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 151
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Notes to the consolidated financial statements continued 39. Related party transactions continued Remuneration continued Directors’ and prescribed officers’ participation in Group share incentive schemes OUTsurance Holdings share incentive schemes Strike price rands Issue date Vesting period (years) Final exercise date Settlement type Opening balance 1 July 2025 Number of notional shares/ options Exercised during the financial year Granted in current year Closing balance 30 June 2026 Number of notional shares/ options Gain realised Rand MC Visser Group 11.95 2022/10/01 3 2025/09/01 Cash 2 901 600 (2 901 600) – – 60 643 440 DH Matthee Group 11.95 2022/10/01 3 2025/09/01 Cash 2 295 600 (2 295 600) – – 47 978 040 JH Hofmeyr Group 11.95 2022/10/01 3 2026/09/01 Cash 2 295 600 (2 295 600) – – 47 978 040 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 152
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Notes to the consolidated financial statements continued 39. Related party transactions continued Remuneration continued Directors’ and prescribed officers’ participation in Group share incentive schemes continued OUTsurance Holdings share incentive schemes continued DIS Incentive Unit OUTsurance Business OUTsurance Life Youi Commercial and BZI Youi CTP Total intrinsic value Issue date 2019-07-01 2019-07-01 2019-07-01 2019-07-01 DIS unit value at issue date R0 R0 R0 R0 Vesting term 5 – 7 years 5 – 7 years 5 – 7 years 5 – 7 years Latest exercise date 2029-07-01 2029-07-01 2029-07-01 2029-07-01 DIS intrinsic unit value at 30 June 2026 – Rand1 88.00 158.00 Executive interest – current intrinsic value MC Visser Number of units 75 000 75 000 30 June 2026 intrinsic value – Rand 6 600 000 11 850 000 18 450 000 Settlement value received – Rand 6 290 478 DH Matthee Number of units 125 000 125 000 30 June 2026 intrinsic value – Rand 11 000 000 19 750 000 30 750 000 Settlement value received – Rand 2 096 833 JH Hofmeyr Number of units 75 000 75 000 30 June 2026 intrinsic value – Rand 6 600 000 11 850 000 18 450 000 Settlement value received – Rand 6 290 478 N Simpson Settlement value received in ESOP instruments – $ A$ 563 592 corner 1 The Youi DIS scheme was cancelled during the year under review and replaced with the equivalent value of Youi Holdings ESOP options. The above individuals have been granted rights to participate in the Divisional Incentive Scheme as follows: • MC Visser – 7.5% participation in the OUTsurance Business and OUTsurance Life schemes. • DH Matthee – 12.5% participation in the OUTsurance Business and OUTsurance Life schemes. • JH Hofmeyr – 7.5% participation in the OUTsurance Business and OUTsurance Life schemes. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 153
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Notes to the consolidated financial statements continued 39. Related party transactions continued Remuneration continued Directors’ and prescribed officers’ participation in Group share incentive schemes OUTsurance Holdings share incentive schemes Conditional share scheme Strike price rands Issue date Vesting period (years) Final exercise date Settlement type Opening balance 1 July 2025 Number of notional shares/ options Forfeited in current year Granted in current year Closing balance 30 June 2026 Number of notional shares/ options MC Visser Group 40.49 2023–09–22 3 2026–09–22 Equity 286 499 – – 286 499 Group 53.37 2024–09–26 3 2027–09–26 Equity 228 876 – – 228 876 Group 75.23 2025–09–25 3 2028–09–25 Equity – – 166 754 166 754 Total Group 682 129 DH Matthee Group 40.49 2023–09–22 3 2026–09–22 Equity 230 313 – – 230 313 Group 53.37 2024–09–26 3 2027–09–26 Equity 183 991 – – 183 991 Group 75.23 2025–09–25 3 2028–09–25 Equity – 134 051 134 051 Total Group 548 355 JH Hofmeyr Group 40.49 2023–09–22 3 2026–09–22 Equity 212 480 – – 212 480 Group 53.37 2024–09–26 3 2027–09–26 Equity 169 745 (169 745) – – Group 75.23 2025–09–25 3 2028–09–25 Equity – (123 672) 123 672 – Total Group 212 480 corner OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 154
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Notes to the consolidated financial statements continued 40. Events after the reporting period, contingencies and commitments Events after the reporting period Dividend The board of directors approved the declaration of an ordinary dividend of 170.8 cents per ordinary share and a special dividend of 87.5 cents per ordinary share on 9 September 2026, payable on 5 October 2026. This is a non-adjusting event. Sale of Polar Star Management Subsequent to year-end, the Group entered into a sale agreement to dispose of its investment in Polar Star Management. This is a non-adjusting event. There are no other matters which are material to the financial affairs of the Group that occurred between the reporting date and date of the approval of the financial statements. Contingent liabilities and contingent assets The Group has no other contingent liabilities and contingent assets in place. Commitments Details of the Group’s obligations in respect of leases can be found in note 29. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 155
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies The accounting policies were consistent with that of the prior financial year, unless where stated under the relevant accounting policy. 41.1 Consolidated financial statements The consolidated financial statements include the assets and liabilities of the holding company and all its subsidiary companies. Although the OUTsurance Holdings Share Trust is consolidated, it’s in process of being wound-up and currently dormant. 41.1.1 Subsidiary companies Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. 41.1.2 Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. 41.1.3 Non-controlling interest Non-controlling interest can be measured at either: • the proportionate share in the fair value of the identifiable net assets of the subsidiary at acquisition date; or • fair value at acquisition date. This measurement choice is applied at acquisition date per business combination transaction. Non-controlling interest is presented in the group statement of financial position within equity, separately from the equity of the owners of the company. Profit or loss and each component of other comprehensive income are attributed to the owners of the group and to the non-controlling interests in proportion to their relative holdings. Non-controlling interests are treated as equity participants of the subsidiary company. Therefore, all transactions of the Group with non-controlling interests in their capacity as owners, where there is no change in control, are treated as transactions within equity. In such transactions, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non- controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity in the “Transactions with non-controlling interests” reserve and attributed to the owners of the Group. Gains and losses on disposals to non-controlling interests are also recorded in equity. 41.1.4 Separate financial statements Interests in subsidiaries and associates in the separate financial statements are shown at cost less any impairment. The carrying amounts of these investments are reviewed annually for impairment. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 156
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.1 Consolidated financial statements continued 41.1.5 Associates Associates are entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Significant influence is the power to participate in the financial and operating policy decisions of the investee, without having control. The indicators that the group use in this assessment is representation on the board of directors of the investee, participation in policy-making processes, including participation in decisions about dividends and other distributions, material transactions with the investee company, interchange of managerial personnel and provision of essential technical information. Investments in associates are accounted for using the equity method of accounting, from the effective date of acquisition to the effective date of disposal. The investment is initially recognised at cost. For acquisition of an associate in stages the Group follow a cost approach by accumulating the cost of all purchases (including transaction costs), to determine the amount of the investment. The Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss. The Group assesses at each reporting period whether there is objective evidence that an associate or joint venture is impaired. If such evidence of impairment exists, the entire carrying amount, including the goodwill, is tested for impairment in terms of IAS 36. The Group’s share of its associates’ earnings is recognised in profit or loss and its share of associates’ other comprehensive movements is accounted for in the group’s other comprehensive income. The group’s share of associates’ movement in other equity is accounted for directly in equity. The cumulative post acquisition movements are adjusted against the carrying amount of the investment. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associate. Unrealised losses are also eliminated, unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments were made to the accounting policies of associates to ensure consistency with the policies adopted by the Group. 41.1.6 Changes in ownership interest When the group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. 41.2 Insurance Contracts 41.2.1 Summary of measurement approaches Contracts Measurement approach Non-life insurance contracts Personal, business and CTP (South Africa, Australia and Ireland) PAA Non-life reinsurance contracts held Reinsurance contracts supporting PAA contracts PAA Life insurance contracts Life contracts – risk business GMM Life reinsurance contracts held Reinsurance contracts supporting GMM contracts GMM OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 157
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.2 Insurance Contracts continued 41.2.2 Definition and classification The Group applies IFRS 17: Insurance Contract to insurance contracts issued, and reinsurance contracts held. Contracts under which the Group accepts significant insurance risk from another party (the policyholder), by agreeing to compensate the policyholder or other beneficiary if a specified uncertain future event (the insured event) adversely affects the policyholder or other beneficiary, are classified as insurance contracts. The Group considers all substantive rights and obligations, including those that arise from law or regulation, in making this assessment on a contract-by-contract basis. The Group cedes risk to reinsurers in the normal course of business to limit its net loss potential through the diversification of its risks. Reinsurance arrangements do not relieve the Group from its direct obligations to its policyholders. Reinsurance expenses and reinsurance income are presented on a net basis. Only reinsurance agreements that give rise to a significant transfer of insurance risk are accounted for as reinsurance contracts. The classification of contracts is performed at the inception of each contract. The classification of the contract at inception remains the classification of the contract for the remainder of its lifetime unless the terms of the contract change to such an extent that it necessitates a change in classification. 41.3 Recognition and measurement of insurance contracts 41.3.1 Separation and combination of insurance contracts An insurance contract may contain several components. These components should be separated if they are distinct and can be offered separately from the insurance contract. The Group assessed the additional services provided as part of the insurance contract and separated the material distinct services. For services containing insurance risk, IFRS 17 is applied to the contract. The Group have insurance contracts that can also contain more than one insurance cover in one contract. Please refer to note 27 for the judgement regarding the unit of account. A contract can contain a non-distinct investment component. This is the amount an insurance contract requires the Group to repay a policyholder in all circumstances regardless of whether an insured event occurs. The Group has assessed all contracts and has determined that there are no contracts with distinct investment components. The Group does not issue any individual contracts of which the combination of two or more contracts, creates insurance risk or to the contrary eliminates the transfer of insurance risk. 41.3.2 Level of aggregation The Group identified several portfolios of insurance contracts. A portfolio is defined as insurance contracts with similar risks that are managed together. • For contracts measured under the PAA, a portfolio equals the risk class and where applicable, overlaid with distribution channel. • For contracts measured under the GMM, a portfolio equals products as there is a unique one-to-one relationship between the products and their respective underlying risks. These products are priced separately and experience analysis is performed on a product level. Portfolios are divided into groups, as follows: • Insurance contracts that are onerous at initial recognition. • Insurance contracts that have no significant possibility of becoming onerous. • All remaining insurance contracts. Management utilises reasonable and supportable information to determine the appropriate level for assessing profitability of the insurance contracts issued. These groups are determined at inception and not subsequently reassessed. The groups do not contain contracts issued more than one year apart. The Group has reasonable and supportable information to conclude the grouping of insurance contracts. Please refer to note 27.1 for the significant judgements relating to the grouping of contracts. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 158
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.2 Level of aggregation continued Reinsurance contracts held Portfolios of reinsurance contracts held are assessed based on contracts that are collectively managed and hold similar risk. The aggregation assessment is performed independently from the portfolios of the underlying insurance contracts. In the context of similar risks, it is assumed that a “risk” is an event that would cause loss on the contract. The collective management of risks considers reinsurance structures and regulatory implications. Portfolios do not include reinsurance contracts issued more than one year apart. Applying the group requirements, reinsurance contracts held are grouped within annual cohorts into three groups: • contracts for which there is a net gain at initial recognition; • contracts for which, at initial recognition, there is no significant possibility of a net gain arising subsequently; and • any remaining contracts. 41.3.3 Recognition The Group recognises a group of issued insurance contracts at the earliest of the beginning of the coverage period, the date the first payment is due or when the group becomes onerous. For the majority of contracts issued, the date of payment received and the date coverage starts are the same. Reinsurance contracts held The Group recognises a group of reinsurance contracts at the earliest of the beginning of the coverage period and the date the entity recognises an onerous underlying insurance contract if the reinsurance contract held was entered into at or before that date. However, the Group recognises proportional reinsurance contracts at the later of the beginning of the coverage period and the initial recognition of the underlying contracts. The Group only recognises insurance contracts and reinsurance contracts held that meet the recognition criteria during the reporting period. Any insurance contracts or reinsurance contracts held entered into after the reporting period are recognised in the period they were entered into. 41.3.4 Contract boundary Cash flows are within the boundary of contract if they arise from the substantive rights and obligations that exist during the reporting period in which the Group can compel the policyholder to pay premiums or the Group has a substantive obligation to provide the policyholder with services. A substantive obligation ends when the Group has the practical ability to reassess the risk of the policyholder and reprice for that risk or the practical ability to reassess the risk of the portfolio and reprice for the risk. In assessing the ability to reprice for risk, only insurance and financial risk is assessed. Risk relating to non-financial risk is not included. The Group does not include cash flows outside the insurance contract boundary. These cashflows are recognised when those contracts meet the recognition criteria. Contracts measured under the GMM OUTsurance Life’s products have a contract boundary of whole of life. Contracts measured under the PAA Insurance contracts are measured using the PAA if at the inception of the group, the Group reasonably expects that such simplification would produce a measurement of liability for remaining coverage (LRC) for the group that would not differ materially from using the GMM or the coverage period of each insurance contract in the group of insurance contracts held is one year of less. The Group’s short term products have contract boundaries that range from one to 12 months, given policy wording and “practical abilities” through the right to cancel and amend the excess. Please refer to note 27.1 for contracts that were assessed using the eligibility criteria. Reinsurance contracts held Cash flows are within the boundary of a reinsurance contract held if they arise from the substantive right and obligations that exist during the reporting period in which the Group is compelled to pay the reinsurer premiums or to receive services. A substantive obligation ends when there is a unilateral right to cancel the reinsurance contract. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 159
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.4 Contract boundary continued Reinsurance contracts measured under the GMM Reinsurance contracts associated with OUTsurance Life’s contract boundary are aligned with the underlying insurance contracts and measured using the GMM. Each reinsurance contract relates to a specific product therefore, each portfolio will consist of a specific product. This is consistent with the portfolios defined for the underlying contracts. OUTsurance Life will group reinsurance contracts of the same portfolio recognised within the same cohort into the same six monthly cohort. Reinsurance contracts measured under the PAA Reinsurance contracts are measured using the PAA if, at the group’s inception, the coverage period of each insurance contract in the group of reinsurance contracts held is one year or less, or if the asset for remaining coverage (ARC) for a group of reinsurance contracts using the GMM does not differ materially from the ARC of a group of reinsurance contracts held using the PAA. The coverage period for loss occurring contracts was determined to be twelve months and the PAA was applied. Where the coverage period for risk attaching reinsurance contracts is more than twelve months due to the underlying contracts having a twelve-month contract boundary, the Group used the eligibility criteria to measure the reinsurance contracts using the PAA. 41.3.5 Measurement Fulfilment cash flows – Direct Insurance contracts The fulfilment cash flows are the current estimates of future cash flows within the boundary of the contract. It includes premiums, claims, OUTbonuses and expenses adjusted for timing and uncertainty. The fulfilment cash flows include a risk adjustment for non-financial risks. The estimates of future cash flows are probability weighted, best estimate cash flows that are directly attributable to the insurance contract. These estimates are current, explicit and unbiased, and represent the perspective of the Group. They are based on experience, considering expected future experience where applicable. Please refer to note 27.1 for the judgements regarding the assumptions included. Cash flows within the boundary of the contract are those that relate directly to the fulfilment of an insurance contract. These include, but are not limited to, premiums, claims, acquisition costs, claims handling costs and a proportion of overheads directly related to fulfilling the obligations under the insurance contract. Costs that are not directly attributable are recognised in other marketing and administration expenses. Acquisition costs are defined as cash flows arising from the cost of selling, underwriting and starting a group of issued insurance contracts and are directly attributable. These costs are not determined at an individual insurance contract but at a portfolio level and then allocated to a group of contracts. In addition, acquisition costs are included in the assessment of onerous contracts. The estimates of future cash flows are adjusted for the time value of money and the financial risks associated with those cash flow. Please refer to note 27.1 for the determination of the discount rate. The risk adjustment adjusts the best estimate of the present value of the future cash flows to reflect the compensation that the entity requires for bearing the uncertainty regarding the amount and timing of the cash flows. Please refer to note 27.1 for the judgement regarding the risk adjustment. Risk of the Groups’ non-performance is not included in the measurement of insurance contracts issued. Fulfilment cash flows – Reinsurance Insurance contracts For reinsurance contracts held, the reinsurance risk of non-performance is included in the probability weighted estimates of the present value of future cash flows. The risk of non-performance is calculated based on the best estimate of the credit loss and other disputes of the reinsurer. The risk adjustment for non-financial risk for reinsurance contracts held represents the amount of risk being transferred by the Group to the reinsurer. The Group determines the risk adjustment for reinsurance contracts held by using the same method as used for the underlying insurance contracts. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 160
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.6 Onerous contracts The Group recognises an onerous contract if at initial recognition, the total of insurance acquisition cash flows and the fulfilment cash flows, result in a net cash outflow. Onerous contracts are recognised as a loss component of the LRC. The Group allocates the expected incurred claims and expenses, the change in the RA and the insurance finance expenses between loss component and LRC, on a systematic basis (please refer to note 27). In the event of unfavourable changes in the fulfilment cash flows allocated to the group as a result of changes in estimates of future cash flows to future services, a group of contracts can become onerous on subsequent measurement. Profitability groupings Contracts measured under the PAA are assumed to be profitable unless facts and circumstances suggest otherwise. Management monitors profitability by tracking the combined ratio of the portfolio over a period and considers pricing adequacy to determine if a risk class is onerous. For the Group, a portfolio for contracts measured under the PAA will be mostly aligned to the classes used for regulatory risk reporting. Where applicable the risk classes are split by distribution channel to ensure the portfolio is homogeneous in nature. Additionally, this division facilitates the build for the segmental classification for the purpose of financial statement disclosure. 41.3.7 Contracts measured under the GMM The GMM is the default model prescribed in IFRS 17. The Group applies the GMM to all its long-term contracts written and reinsurance contracts held in OUTsurance Life. Initial recognition On initial recognition the group of insurance contracts is measured as the fulfilment cash flows which consist of the best estimate probability weighted future cash flows adjusted for the time value of money and a risk adjustment for non-financial risk and a CSM. The CSM equals the unearned profit over the coverage period. At initial recognition the CSM is the balance of the fulfilment cash flows plus the risk adjustment and cannot be negative. If the CSM is negative, an onerous contract exists. The loss from the onerous contract is immediately accounted for in profit or loss and a loss component is established in the LRC. Reinsurance contracts held On initial recognition of reinsurance contracts held, the CSM is measured at an amount equal to the sum of: • the fulfilment cash flows; • any income recognised in profit or loss when the Group recognises a loss on initial recognition of an onerous group of underlying insurance contracts or on addition of onerous underlying insurance contracts to an existing group. However, if the net cost of purchasing reinsurance coverage relates to past events, the Group recognises such costs immediately in profit or loss. Subsequent measurement The insurance asset or liability is subsequently measured as the sum of the LRC and the LIC. The LRC consists of fulfilment cash flows relating to future services and the CSM. The LIC consists of the fulfilment cash flows related to past services. At the end of each reporting period, the fulfilment cash flows are adjusted to reflect the current assumptions using the current estimates of the amount, timing and uncertainty of future cash flows and discount rates. Changes relating to the LRC are recognised in the statement of profit or loss as follows: • Insurance revenue relating to services provided in the period. • Insurance expenses relating to losses and reversal of losses on onerous contracts. • Insurance finance income and expenses for the effect of time value of money. Changes relating to the LIC recognised in the statement of profit or loss: • Insurance service expenses relating to claims and expenses incurred in the financial year as well as any changes in the fulfilment cash flows relating to insured claims and cash flows. • Insurance finance income and expenses for the effect of time value of money. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 161
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.7 Contracts measured under the GMM continued Subsequent measurement continued The carrying amount of the CSM is also adjusted subsequently. The CSM at the end of each reporting period is calculated as follows: • The opening balance, • plus newly issued contracts added to the group in the reporting period, • plus interest accreted at the locked in rate, • plus/minus the changes in fulfilment cash flows that relate to future periods and experience adjustments, • minus the release of the CSM to profit or loss (based on coverage units). The CSM is only adjusted for changes in future services. Changes to current cash flows i.e. premiums, expenses and claims, risk adjustments and assumptions do not change the CSM. Reinsurance contracts held On subsequent recognition, the CSM is measured as: • The opening balance, • plus/minus the effect of new contracts added to the group, • interest accretion, • income recognised in profit or loss due to onerous underlying contracts, • reversals of the loss recovery component, • changes to the fulfilment cash flows to the extent that the change relates to future services (unless the change does not change the CSM as it relates to the group of underlying insurance contracts), • the release of the CSM based on the coverage period. Interest accretion on the CSM Interest is accreted on the carrying amount of the CSM and loss component at the start of the reporting period using the locked-in rate linked to the underlying insurance contract groups. OUTsurance Life utilizes six-monthly cohorts and as a result, the rate used is a weighted average based on the size of the cash flows over the lifetime of the contracts belonging to the six-monthly cohort. Please refer to note 27.11 for the determination of the discount rate. Loss component on onerous contracts The CSM and loss component balance is influenced by the fulfilment cash flows associated with future services, which are subsequently affected by changes in non-financial assumptions. Adverse changes in the cash flows associated with the provision of future services may result in an increase of the loss component. Consequently, an additional loss equal to this increase is recognised as insurance service expense for onerous contracts. For profitable contracts, the unfavourable changes result in a decrease in the CSM balance. It is possible for a CSM balance to decrease to zero. Any further decreases would result in a loss component being established and a loss being immediately recognised as an insurance service expense. Favourable changes in the fulfilment cash flows relating to future services decreases the loss component. The CSM is re-established if the loss component is completely reversed and any further decreases would result in a CSM being established. The notional loss component balance is to be completely reversed by the end of the coverage period of a particular group by allocating subsequent changes in fulfilment cash flows of the liability for remaining coverage between the loss component of the LRC and the LRC excluding the loss component on a systematic basis. The systematic basis is calculated using a systematic allocation ratio (SAR). The SAR is calculated by taking the loss component balance at the start of the financial period and dividing it with the risk adjustment at the start of the financial period summed with the present value of all future cash-outflows excluding acquisition cash flows and premiums. The impact of interest accretion, release of the expected fulfilment cash-flows and non-financial assumption updates on contracts with a loss component is systematically allocated between the loss component of the LRC and the LRC excluding the loss component. At the end of the coverage period, the loss component is zero. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 162
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.7 Contracts measured under the GMM continued Loss component on onerous contracts continued Interest is accreted on the LRC using the current rate. The calculation of the SAR involves dividing the loss component balance at the commencement of the financial period by the sum of the risk adjustment and the present value of all future cash-outflows, excluding acquisition cash flows. Interest is accreted on the loss component of the LRC using the locked-in rate. Premium and acquisition cash flows do not impact the interest accreted on the loss component balance. Loss recovery component for onerous contracts The Group establishes (or adjusts) a loss-recovery component for each group of reinsurance contracts held depicting the recovery of losses made on onerous contracts. The loss-recovery component is presented in profit or loss as a gain depicting the amount of losses the Group recovers on onerous contracts by having reinsurance arrangements in place. The Group calculates a recovery ratio linked to each group of reinsurance contracts held which is used to determine the amount of losses to be recovered from onerous contracts. The Group does not have any reinsurance contracts held measured under the GMM with underlying contracts measured under the PAA. 41.3.8 Contracts measured under the PAA The PAA is applied to insurance/reinsurance contracts with a coverage period of one year or less at inception, or where the LRC measured under the PAA is not materially different from the LRC under the GMM. At initial recognition, the LRC is calculated as the premiums received less acquisition cash flows paid (where acquisition cost is deferred, please refer to note 27). Subsequently, the liability is released over the passage of time. Reinsurance contracts held On initial recognition, the asset for remaining coverage (ARC) for the reinsurance contract held is measured as the amount of premiums paid (including ceding commissions not dependent on claims) plus broker fees paid. Subsequently the ARC is increased for ceding premiums and broker fees paid during the period and decreased for ceding premiums and broker fees recognised as reinsurance expenses for the period. Reinsurance asset for incurred claims (AIC) is adjusted for time value of money. Broker fees are recognised over the coverage period of the contract. Reinsurance commission that is not contingent on claims, is accounted for as a deduction of reinsurance premiums. The component of reinsurance commission that is contingent on claims is netted off against reinsurance income. PAA eligibility Where the coverage period is greater than one year, the contract needs to be assessed to determine if the PAA can be applied. For the Group, the majority of contracts have a coverage period ranging from 31 days to one year, with smaller risk classes with a coverage period of more than one year. The premiums received on a rolling 12-month basis for these contracts, are immaterial and therefore measured under the PAA model. The Group will continue to assess materiality of contracts with a coverage period of more than one year, to ensure PAA eligibility is assessed appropriately. PAA eligibility is assessed as follows: • The average absolute difference between evaluating a group of contracts using the LRC calculated using the GMM and the LRC using the current PAA approach adopted is assessed. • The PAA approach is adopted where the absolute difference of this assessment is immaterial based on pre-determined materiality thresholds. The Group continues to assess the contracts to ensure that pre-determined materiality levels are not breached. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 163
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.8 Contracts measured under the PAA continued Reinsurance contracts held Where the coverage period is greater than one year, the reinsurance contract held needs to be assessed to determine if the PAA can be used. For the Group, the excess of loss contracts have a coverage period of one year, however for the quota share and risk attaching reinsurance contracts held, the coverage period is more than one year. As a result, both the quota share and risk attaching contracts are assessed for PAA eligibility as follows: • The potential difference in the asset for remaining coverage is assessed between evaluating the quota share and risk attaching contracts using the GMM and the current PAA approach adopted. • The PAA approach is adopted where the absolute difference of this assessment is immaterial based on pre-determined materiality thresholds. • The Group continues to assess the contracts to ensure that pre-determined materiality levels are not breached. Acquisition cash flows The PAA allows a policy choice regarding whether to expense or defer insurance acquisition cash flows. The Group has elected to expense the insurance acquisition cash flows as incurred for contracts with a 31-day contract boundary and defer the acquisition costs over the coverage period for contracts with a contract boundary of between 31 days and 12-months. This policy choice was elected to recognise it in line with the revenue being earned under these contracts. For contracts with a 12-month boundary, acquisition costs are amortised systematically in line with revenue recognition of the underlying insurance contract as the acquisition costs do not relate to future contracts. The Group does not have any insurance acquisition assets, i.e. insurance acquisition cash flows that are recognised before the group of insurance contracts is recognised. Subsequent Measurement At the end of the reporting period, the insurance liability/asset is measured as the sum of the LRC and the LIC, which consists of the fulfilment cash flows relating to past services allocated to the group. The carrying amount of the LRC is measured as follows: • Opening balance: • plus the premiums received, • less the insurance acquisition cash flows, where deferred, • plus any amounts relating to the amortisation of any deferred acquisition cash flows, • plus any adjustment to a financing component, • minus insurance revenue for the period. Where intermediaries are used to collect premiums on behalf of the Group, premiums are deemed to be received when the policyholder’s obligation under the insurance contract is discharged. The LRC is not adjusted for time value of money. The Group recognises the following changes in the carrying amount of the LIC in the statement of profit or loss: • Insurance service expenses relating to claims and expenses incurred in the financial year as well as any changes in the fulfilment cash flows relating to insured claims and cash flows. • Insurance finance income and expenses relating to the effect of time value of money. Discount rate Contracts measured under the PAA have long-tail claim components (of more than one year) and therefore the LIC is discounted for all outstanding claims. Please refer to note 27.1 for the calculation of the discount rate. Risk adjustment The risk adjustment adjusts the estimate of the present value of the future cash flows to reflect the compensation that the entity requires for bearing the uncertainty regarding the amount and timing of the cash flows. Please refer to note 27.1 for the judgements made in the calculation of the risk adjustment. The risk of the Groups’ non-performance is not included in the measurement of insurance contracts issued. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 164
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.8 Contracts measured under the PAA continued Onerous contracts The Group assumes that no contracts measured under the PAA are onerous at initial recognition, unless facts and circumstances indicate otherwise. The following facts and circumstances may indicate that risk groups are onerous: • A new risk class that is yet to achieve scale. • A premium-weighted combined ratio of more than 100% based on three years’ of data. • Pricing and repricing strategies for marginal cases. The Group recognises an onerous contract if, at initial recognition, the total of insurance acquisition cash flows and the fulfilment cash flows result in a net cash outflow. If at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts are onerous, the Group calculates the difference between the current LRC and the LRC using the GMM. The GMM is measured as the probability weighted cash flow adjusted for time value of money and risk adjustment for non-financial risk. If the LRC calculated under the GMM exceeds the LRC calculated using the PAA, the Group recognises a loss in profit or loss and increases the LRC. Loss component The release of fulfilment cash-flows on contracts with a loss component is systematically allocated between the loss component of the LRC and the LRC excluding the loss component. As the LRC is released/earned, the loss component is also released. At the end of the coverage period, the loss component is zero. Given that the LRC measured under the PAA is not discounted, the loss component is also not discounted. Loss recovery component The Group establishes (or adjusts) a loss-recovery component for each group of reinsurance contracts held depicting the recovery of losses made on onerous contracts. The loss-recovery component adjusts the reinsurance asset for remaining coverage and is presented in profit or loss as a gain depicting the amount of losses the Group recovers on onerous contracts by having reinsurance arrangements in place. The Group calculates a recovery ratio linked to each group of reinsurance contracts held which is used to determine the amount of losses to be recovered from onerous contracts. The Group does not have any reinsurance contracts held measured under the PAA with underlying contracts measured under the GMM. 41.3.9 Modification and derecognition If the terms of an insurance contract are modified, the Group derecognises the original contract and recognises a new contract only if the modified contract: • would have been excluded from the scope of IFRS 17 at inception of the contract. • would have resulted in the Group separating components from the insurance contracts. • would have had a different contract boundary. • would have been included in a different group of contracts. If the modification meets none of the above conditions, the Group treats the modification as a change in fulfilment cash flow. When the Group recognises the new contract, it is recognised from the date of modification and re-assessed for classification, separation, aggregation and measurement. A contract is derecognised when the contract is extinguished or the above conditions are met. When the Group derecognises an insurance contract from a group of contracts, measured under the GMM, the fulfilment cash flows allocated to the group are adjusted to eliminate the present value of the future cash flows and risk adjustment for non-financial risk relating to the derecognised contract. The CSM is adjusted for the change in the fulfilment cash flows and the change in the number of coverage units. The number of coverage units are adjusted to reflect the coverage units derecognised. When the Group derecognises an insurance contract from a group of contracts, measured under the PAA, the changes in the LRC are recognised in profit or loss. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 165
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.10 Presentation and disclosure in the statement of profit or loss and other comprehensive income Insurance revenue Contracts measured under the PAA The Group recognises insurance revenue by allocating expected premiums based on the passage of time over the coverage period of a group of contracts. Expected premiums excludes any amounts that relates to transaction-based taxes collected on behalf of third parties (such as premium taxes, value added taxes and goods and services taxes) and expected credit risk. Contracts measured under the GMM The Group determines revenue as the sum of the changes in the LRC in the period that relate to the services for which the Group expects to receive consideration. The changes consist of: • insurance service expenses incurred in the period (measured at the amounts expected at the beginning of the period), excluding: – amounts allocated to the loss component of the LRC, – amounts that relate to transaction-based taxes collected on behalf of third parties (such as premium taxes, value added taxes and goods and services taxes), and – insurance acquisition expenses. • the change in the risk adjustment for non-financial risk, excluding: – changes that adjust the CSM because they relate to future services and amounts allocated to the loss component of the LRC. • the amount of the contractual service margin recognised in profit or loss in the period. The portion of premiums that relate to the recovery of insurance acquisition cash flows is calculated by using the relevant coverage units as determined for the purpose of amortising the CSM to calculate the portion of premiums that relate to the recovery of the acquisition cost. Insurance service expense Insurance service expenses consist of incurred claims, other incurred insurance service expenses, amortisation of insurance acquisition costs, changes to past services and changes to future services (i.e. changes in the fulfilment cash flows that results in onerous contracts or the reversal of losses). For contracts measured under the GMM, amortisation of the acquisition cash flows reflected in insurance service expense equals the portion recognised as revenue. For contract measured under the PAA, where acquisition cost have been deferred, acquisition cash flows are amortised in line with revenue recognition. Reinsurance The Group has elected to present income and expenses from reinsurers as a net amount on the statement of comprehensive income. Reinsurance expense For reinsurance contracts measured under the PAA, the Group recognises reinsurance premiums paid based on the passage of time over the coverage period of the group of contracts. For reinsurance contracts measured under the GMM, the Group recognises reinsurance expenses as changes in the asset for remaining coverage. Reinsurance expense consists of: • the portion of ceding premium, • other directly attributable expenses excluding amounts allocated to the loss recovery component • changes in the risk adjustment • CSM release • Experience adjustments that relates to past premiums paid. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 166
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.3 Recognition and measurement of insurance contracts continued 41.3.10 Presentation and disclosure in the statement of profit or loss and other comprehensive income continued Amounts recovered from reinsurers Amounts recovered from reinsurers consists of recoveries received on claims • less commission contingent on claims • less mandatory reinstatement premiums • less loss recovery expenses. Insurance finance income and expenses Insurance finance income and expenses consist of the following: • Changes of time value of money on the fulfilment cash flows for contracts measured under the GMM. • Effects of financial risk and the changes in financial risk. • Effect of discounting on the LIC for contracts measured under the PAA. The Group disaggregate the risk adjustment between insurance service expenses and insurance finance income and expenses. The Group accounts for all insurance finance income and expenses (PAA and GMM) in profit or loss. 41.3.11 Other At each reporting date, the Group disregards the treatment of estimates made in previous interim financial statements. At the financial year-end, the estimates are updated on a year-to-date basis. As a result, the treatment has been modified in the most recent reporting period compared to prior interim financial statements. 41.3.12 Transition The Group has determined that it has reasonable and supportable information for all insurance contracts in force at the time of transition. Therefore, the Group transitioned all insurance contracts issued and reinsurance held using the full retrospective method. Accordingly, the Group classified and measured each group of insurance contracts as if IFRS 17 has always applied. 41.4 Accounting for profit sharing arrangements A profit sharing arrangement has been entered into between OUTsurance and FirstRand Bank Limited and OUTsurance Life and Shoprite Investments Limited. In terms of this profit sharing arrangement with FirstRand, ninety percent of the operating profit generated on the homeowners’ insurance business referred by FirstRand Bank Limited businesses is paid to FirstRand Bank Limited by way of a biannual preference dividend. Operating losses incurred are for the Group’s account. The Group however, retains the right to offset such losses against future profits generated in the determination of any preference dividends to be paid to the preference shareholder. In terms of this profit sharing arrangement with Shoprite Investments Limited, a portion of the operating profit generated on the funeral insurance business distributed through the Shoprite distribution network is paid to Shoprite Investments Limited by way of an annual preference dividend. Operating losses incurred are for the Group’s account. These shareholders for preference share dividends are accounted for as a financial liability on the face of the statement of financial position. The profit attributable to the preference shareholder is the fair value movement and the payment of a dividend is treated as a partial settlement of the liability. No reference is made to future profit estimates as these profit-sharing arrangements are executory in nature, i.e. the other party has certain performance obligations to satisfy in order to share in the profit. The profitability of the profit sharing business is reviewed on a monthly basis to ensure that the Group is not exposed to uneconomical risks over which it has no day-to-day management control. The policy for the recognition and measurement of insurance contracts applied to the profit sharing arrangements is similar to the policy under 41.3 above. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 167
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.5 Segment reporting The Group’s products and services are managed by various business units along geographical lines and product categories. The segment information is presented by each distinct revenue-generating area representing groups of similar products, consistent with the way the Group manages the business. Given the nature of operations, there are no major single customers within any of the segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-makers when making operating decisions and for allocating resources and assessing performance. The chief operating decision maker has been identified as the group executive committee (“EXCO”). Segments with a majority of revenue earned from charges to external customers and whose revenue, results or assets are 10% or more of all the segments, are reported separately. Certain reporting adjustments are provided separately to reconcile to IFRS reported earnings. 41.6 Foreign currency 41.6.1 Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in South African Rand (R), which is the functional and presentation currency of OUTsurance Holdings Limited. None of the Group entities operate in a hyperinflationary environment. 41.6.2 Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities in foreign currencies are translated to South African Rand using the rates of exchange ruling at the financial year-end. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. 41.6.3 Group companies • Assets and liabilities for each reporting date presented are translated at the closing rate at the date of that statement of financial position; • income and expenses for each statement of profit or loss and other comprehensive income are translated at the average exchange rate for the financial year. If this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction date, the income and expenses are translated at the transaction date rate; • all resulting exchange differences are recognised as a separate component of other comprehensive income (foreign currency translation reserve); and • items that are recognised directly in equity are translated using the historical rate. When a foreign operation is partially disposed of or sold, and control is lost, the Group’s portion of the cumulative amount of the exchange differences that were recorded in other comprehensive income are reclassified to profit or loss when the gain or loss on disposal is recognised. For partial disposals where control is retained, the Group re- attributes the proportionate share of the cumulative exchange differences, recognised in other comprehensive income to the non- controlling interest of the foreign operation. 41.7 Property and equipment Property and equipment is carried at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of property and equipment. Gains or losses on disposals are determined by comparing sales proceeds with the carrying amount of the asset, and are included in profit or loss. Repairs and renewals are charged to profit or loss when the expenditure is incurred. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 168
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.7 Property and equipment continued Depreciation Depreciation is calculated using the straight-line method to allocate the depreciable amount, being cost less residual value, over the estimated useful lives of the assets, as follows: Building fixtures and owner-occupied property between 20 and 50 years Computer equipment 2 to 11 years Fittings and office equipment 5 to 13 years M o t o r v e h i c l e s 5 y e a r s Land is not depreciated. Annual reviews of the residual values and useful lives of the assets are conducted in order to evaluate the continued appropriateness of the above policy. The residual values of these assets are assumed to be R nil, unless there is an indicator to the contrary. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is immediately written down to its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs of disposal and value in use. The depreciation period, useful lives and the depreciation method for property,plant and equipment with a finite useful life is reviewed at least at each financial year-end. Owner-occupied properties Owner-occupied properties are held by the Group for use in the supply of services or, for its own administration purposes. 41.8 Intangible assets 41.8.1 Computer software development costs Costs that are directly attributable to identifiable software products controlled by the Group are recognised as intangible assets if certain criteria are met. These costs comprise of all directly attributable costs necessary to create, produce and prepare the asset for its intended use. Development costs are recognised as an intangible asset when all of the following criteria are met: • The technical feasibility of the development can be demonstrated. • The Group is able to demonstrate its intention and ability to complete and use the software. • It can be demonstrated how the software product will generate probable future economic benefits. • It can be demonstrated that adequate technical, financial and other resources to complete the development and to use or sell the software product are available. • The expenditure attributable to the software product during its development can be reliably measured. Development costs that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Computer software development costs are recognised as assets from the point where the recognition criteria above are satisfied, and are amortised once the asset is ready for use, on a straight line basis over the expected useful life. The carrying amount of intangible assets are assessed annually for indication of impairment. The intangibles are subsequently measured at cost less accumulated amortisation and impairment. Amortisation is calculated using the straight-line method to allocate the depreciable amount, being cost less residual value, over the estimated useful lives of the assets as follows: Purchased computer software 2 to 7 years Internally generated computer 5 to 10 years software The amortisation charge is reflected in marketing and administration expenses in profit or loss. The amortisation period, useful lives and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial year-end. The residual values of these assets are assumed to be R nil, unless there is an indicator to the contrary. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 169
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.9 Leases under IFRS 16 41.9.1 General Agreements where the counterparty retains control of the underlying asset are classified as leases. Leases are recognised as a right-of-use asset with a corresponding lease liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest (the incremental borrowing rate) on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Periods covered by an option to extend the lease is included if the Group is reasonably certain to exercise that option taking into account, among others, the remaining term of the original lease, refurbishments, changing technology and cost-saving initiatives. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Assets and liabilities arising from a lease are initially measured on a present value basis discounted using the lessee’s incremental borrowing rate. The incremental borrowing rate utilised by the Group for the various lease assets is as follows: • Properties – a risk-free rate with a market risk premium/spread added to it. • Vehicles – the prime lending rate. • Equipment – the prime lending rate. In determining the incremental borrowing rate, the expiry date of each individual lease contract is considered in setting the forward risk-free rate applicable on the date of the termination of the lease to valuation date. 41.9.2 Lease liabilities Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments, but excluding payments for service components), less any lease incentives receivable; • amounts expected to be payable by the lessee under residual value guarantees; • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease liability is measured using the effective interest method. It is remeasured: • when there is a change in future lease payments arising from a change in an index or rate; • if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or • if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. • If there is a change in the lease term. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The group accounts for a lease modification as a separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 170
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.9 Leases under IFRS 16 continued 41.9.3 Right-of-use assets Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and adjusted for: • lease payments made at or before commencement of the lease; • initial direct costs incurred; and • the amount of any provision recognised where the Group is contractually required to dismantle, remove or restore the leased asset. Depreciation Subsequent to initial measurement, a right-of-use asset is depreciated on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset should this term be shorter. However, if ownership of the underlying asset transfers to the group at the end of the lease term, the right-of-use assets are depreciated on a straight- line basis over the remaining economic life of the asset. This depreciation is recognised as part of general marketing and administration expenses. 41.9.4 Short-term leases and low-value assets The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. 41.9.5 Derecognition When the Group or lessor terminates or cancels a lease, the right-of-use asset and lease liability are derecognised. On derecognition of the right-of-use asset and lease liability, any difference is recognised as a derecognition gain or loss together with termination or cancellation costs in profit or loss. 41.10 Impairment review – Non financial assets A periodic review of the carrying amount of the Group’s assets is conducted and, where there are indications that the value of an asset may be impaired, an impairment loss is recognised. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The difference between the carrying amount and the recoverable amount is charged to profit or loss for the financial year in which the impairment is identified, to reduce the carrying amount of such impaired asset to its estimated recoverable amount. Should an event occur after the recognition of an impairment, which increases the recoverable amount of the previously impaired asset, the impairment of the asset, or a portion thereof, is reversed through profit or loss. The adjusted carrying value may not exceed what the carrying value would have been had the impairment not been recognised before. 41.11 Assets held for sale Non-currents assets are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and groups of contracts within the scope of IFRS 17 Insurance Contracts, which are specifically exempt from this requirement. Once classified as held-for-sale, assets are no longer depreciated or amortised, and any equity-accounted investee is no longer equity accounted. An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the noncurrent asset (or disposal group) is recognised at the date of derecognition. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 171
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.11 Assets held for sale continued Consideration deferred overtime, is recognised at the cash value of the deferred consideration at the date of the sale. Consideration contingent on the outcome of certain performance measures, post the sale of an asset, is initially recognised at the best estimate of the consideration at the date of the sale, and subsequently remeasured at the fair value of the consideration receivable at each reporting period. 41.12 Financial instruments 41.12.1 General The Group recognises a financial asset or a financial liability on its statement of financial position when and only when, it becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of financial assets are recognised and derecognised, as applicable, on trade-date being the date on which the group commits to purchase or sell the asset. The Group classifies its financial assets in the following measurement categories: • financial assets at fair value through profit or loss (FVPL); • financial assets at fair value through other comprehensive income (FVOCI); and • financial assets at amortised cost. Financial liabilities are classified in the following categories: • financial liabilities at fair value through profit or loss (FVPL); and • financial liabilities at amortised cost. Management determines the classification of its financial instruments at initial recognition. Financial assets are not reclassified subsequent to their initial recognition, unless the Group changes its business model for managing financial assets. In such a case, all affected financial assets are reclassified prospectively from the reclassification date. At initial recognition, the Group measures a financial asset or financial liability at its fair value plus, in the case of an asset not at fair value through profit or loss, the transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. The Group assesses the business model in which a financial asset is held at a portfolio level. Information considered in determining the applicable business model includes: • policies and objectives for the relevant portfolio; • how the performance and risks of the portfolio are managed, evaluated and reported to management; and • the frequency, volume and timing of sales in prior periods, sales expectation for future periods, and the reasons for such sales. The contractual cash flow characteristics of financial assets are assessed with reference to whether the cash flows represent solely payments of principal and interest (SPPI). Principal is defined as the fair value of the financial asset on initial recognition. However, the principal may change over time, e.g. on repayment of the principal. Interest is defined as consideration primarily for the time value of money, the credit risk of the principal outstanding, other basic lending risks and costs and a profit margin. In assessing whether contractual cash flows are SPPI compliant, contractual terms that could change the contractual cash flows so that it would not meet the condition for SPPI are considered, including: • contingent events that could change the amount or timing of cash flows; • leverage features; • prepayment and extension features; • non-recourse arrangements; and • features that modify the time value of money (e.g. periodic reset of interest rates). A prepayment feature meets the SPPI criterion if the prepayment amount substantially represents unpaid amounts of principal and interest, which may include compensation for early termination of the contract. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 172
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.12 Financial instruments continued 41.12.1 General continued For a financial asset acquired at a premium or discount to its contractual nominal amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued contractual interest (which may include compensation for early termination of the contract) is considered SPPI compliant if the fair value of the prepayment feature is insignificant on initial recognition. Equity instruments are instruments that meet the definition of equity from the issuer’s perspective i.e. instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer’s net assets. The Group subsequently measures all equity investments at fair value through profit or loss, except where the Group’s management has elected, at initial recognition, to irrevocably designate an equity investment at FVOCI. The Group’s policy is to designate equity investments as FVOCI when those investments are held for purposes other than to generate investment returns. When this election is used, fair value gains and losses are recognised in OCI and are not subsequently reclassified to profit or loss, including on disposal. Impairment losses (and reversal of impairment losses) are not reported separately from other changes in fair value. Dividends are recognised in profit or loss when the Group’s right to receive payments is established. 41.12.2 Financial instruments at fair value through other comprehensive income (FVOCI) Financial assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at FVOCI, if these financial assets are not designated at FVPL. Debt instruments Interest income calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other movements in the carrying amount are taken through OCI. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified to profit or loss. Equity instruments Other movements, including foreign exchange gains and losses in the carrying amount are taken through, OCI. When the equity instrument is derecognised, the cumulative gain or loss previously recognised in OCI is transferred within equity. Financial assets classified as FVOCI comprise various debt investments in money market and capital market instruments, including government bonds, collective investment schemes and unlisted equity. 41.12.3 Financial instruments at fair value through profit or loss (FVPL) Financial assets not classified at amortised cost or FVOCI are measured at FVPL. In addition, on initial recognition the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Net gains or losses, including any interest or dividend income and foreign exchange gains and losses are recognised in profit or loss. Financial assets classified as FVPL comprise: • Collective investment schemes • Unsecured loans • Ordinary shares • Debt instruments • NCNR preference shares • Zero coupon deposits • Derivative financial instruments • Contingent consideration receivable Financial liabilities designated at fair value through profit or loss comprise preference shares held in terms of a profit-sharing arrangements as these are managed on a fair value basis. Net gains and losses including interest expense and foreign exchange gains and losses are recognised in profit or loss, unless they arise from derivatives designated as economic hedging instruments in net investment hedges. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 173
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.12 Financial instruments continued 41.12.4 Financial instruments measured at amortised cost Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost using the effective interest method, if these financial assets are not designated at FVPL. Interest income, foreign exchange gains and losses and impairments are recognised in profit or loss. Any gain or loss arising on derecognition is recognised directly in profit or loss. Financial assets classified as amortised cost comprise: • Redeemable preference shares • Other receivables • Term deposits • Loan facility • Cash and cash equivalents A financial asset is classified as a receivable when it arises from a non-financing transaction. Typically generated from normal operating activities. The group classifies a loan as a financial asset when it arises from a formal lending arrangement. Financial liabilities are measured at amortised cost using the effective interest method. Net gains and losses including interest expense and foreign exchange gains and losses are recognised in profit or loss as part of finance cost. Any gain or loss arising on derecognition is recognised directly in profit or loss. 41.12.5 Derivatives Derivatives are initially recognised at fair value on the date on which the derivative contract is entered into and are subsequently remeasured at fair value. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Derivatives are measured at FVPL. The Group uses derivatives for the following reasons: • to offset the interest rate risk inherent in some of the life insurance products underwritten by the Group. The Group has elected not to apply hedge accounting to the asset-liability matching strategy; • to offset the exchange rate exposure inherent in certain Group cross-border transactions; and • to offset the equity price risk contained in the share based payment schemes. 41.12.6 Impairment The Group recognises loss allowances for expected credit losses (ECL) on: • financial assets measured at amortised cost • debt investments measured at FVOCI • financial guarantee contracts • loan commitments The Group measures loss allowances at an amount equal to lifetime ECL, except for the following, which are measured as 12-month ECL: • financial assets that are determined to have low credit risk at the reporting date; • financial assets where credit risk has not increased significantly since initial recognition; and • financial assets which are callable on demand or within a period of 12 months from reporting date. Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument. 12-month ECL are the portion of ECL that results from default events that are possible within the 12 months after the reporting date. In all cases, the maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 174
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.12 Financial instruments continued 41.12.6 Impairment continued At each reporting date, the Group assesses whether financial assets measured at amortised cost and FVOCI are credit impaired. The Group writes off a financial instrument when the entity has no reasonable expectation of recovery of the outstanding balance of the instrument. Determining when to write off financial assets is a matter of judgement and incorporates both quantitative and qualitative information. Evidence that a financial asset is credit-impaired includes: • significant financial difficulty of the issuer or debtor; • a breach of contract, such as a default or delinquency in payments; • a restructuring of an amount due to the Group on terms that would not otherwise be considered by the Group; • it becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation; or • the disappearance of an active market for that financial asset because of financial difficulties. A financial asset that has been renegotiated due to a deterioration in the borrower’s condition is usually considered to be credit-impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment. In assessing whether an investment in sovereign debt is credit-impaired, the Group considers the following factors: • the market’s assessment of creditworthiness as reflected in the bond yields; • the rating agencies’ assessment of creditworthiness; • the country’s ability to access the capital markets for new debt issuance; • the probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness; and • the international support mechanisms in place to provide the necessary support as ‘lender of last resort’ to the country as well as the intention, communicated in public statements, of governments and agencies to access those mechanisms, including an assessment of the depth of the mechanisms and the capacity to fulfil the required criteria. Loss allowances for ECL on financial assets measured at amortised cost is deducted from the gross carrying amount of the financial assets. Loss allowances for ECL on debt investments measured at FVOCI is recognised in OCI and does not reduce the carrying amount of the financial asset in the statement of financial position. The gross carrying amount of a financial asset is written off to the extent that there is no realistic prospects of recovery by the Group. Financial assets that are written off may still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due. 41.12.7 Derecognition The Group derecognises a financial asset: • when the contractual rights to the asset expires; or • where there is a transfer of the contractual rights to receive the cash flows of the financial asset in a transaction in which: – substantially all of the risks and rewards of ownership of the financial asset are transferred; or – the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Group derecognises a financial liability when it is extinguished, i.e. when the obligation specified in the contract is discharged, cancelled or expires. A substantial modification of the terms and conditions of an existing financial liability or part of an existing financial liability is accounted for as an extinguishment of the original financial liability and recognition of a new one. The group only considers quantitative indicators in assessing whether there is a modification or extinguishment. On derecognition, the difference between the carrying amount of the financial liability, including related unamortised costs, and the amount paid for it is included in profit or loss. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 175
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.12 Financial instruments continued 41.12.8 Modifications When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the renegotiation or modification does not result in the derecognition of that financial asset, the group recalculates the gross carrying amount of the financial asset and recognises a modification gain or loss in profit or loss. The gross carrying amount of the financial asset is recalculated as the present value of the renegotiated or modified contractual cash flows that are discounted at the financial asset’s original effective interest rate or, when applicable, the revised effective interest rate. Any costs or fees incurred adjust the carrying amount of the modified financial asset and are amortised over the remaining term of the modified financial asset. 41.12.9 Measurement of fair value The fair value of financial instruments traded in an organised financial market is measured at the closing price for financial assets and financial liabilities. The fair value of the financial instruments that are not traded in an organised financial market is determined using a variety of methods and assumptions that are based on market conditions and risk existing at reporting date, including independent appraisals and discounted cash flow methods. Fair values represent an approximation of possible value, which may differ from the value that will finally be realised. 41.13 Cash and cash equivalents Cash and cash equivalents include cash on hand and short-term deposits held with banks. All balances included in cash and cash equivalents have a maturity date of less than three months from the date of acquisition. Short-term deposits with banks are considered to be instruments which are highly liquid and have maturity dates of not more than three months from the date of acquisition. Short-term deposits which cannot be accessed within this period are classified as financial assets. 41.14 Provisions The group recognises provisions when it has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. Where applicable, a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability is used to determine the present value. 41.15 Contingent Liabilities The group discloses a contingent liability where: • it has a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise; or • a present obligation that arises from past events but is not recognised because: – it is not probable that an outflow of resources will be required to settle an obligation; or – the amount of the obligation cannot be measured with sufficient reliability. 41.16 Share capital Ordinary shares are classified as equity when there is no obligation to transfer cash or other assets. Ordinary shares and non-redeemable non-cumulative preference shares together with share premium are classified as equity. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction from the proceeds, net of taxation. Treasury shares Where the OUTsurance Holdings Share Trust purchases the Group’s equity share capital, the consideration paid is deducted from total shareholders’ equity as treasury shares until they are reissued or cancelled. Where such shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity. On consolidation, the cost of the shares acquired is deducted from equity. Subsequently, any proceeds on the re-issue or cancellation of these shares is recognised directly in shareholder’s equity. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 176
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.16 Share capital continued Treasury shares continued Any net income in relation to treasury shares is eliminated in the Group’s results. Dividends paid in respect of treasury shares are similarly eliminated in the Group’s results. Dividends paid Dividends payable on ordinary shares are recognised in equity in the period in which there is unconditional certainty that the dividend will become payable, which would include approval of the dividend declaration by the Group’s Board of directors, regardless of whether the formalities of the payment thereof have been finalised. Dividends declared after the reporting date are not recognised but disclosed as a post reporting date event. 41.17 Other reserves Other reserves recognised by the Group include: Comprehensive income reserve The Group has certain debt investments (from the segregated portfolios) measured at FVOCI. For these investments, changes in fair value are accumulated within the FVOCI reserve within equity. The accumulated changes in fair value are transferred to profit or loss when the investment is derecognised or impaired. Foreign currency translation reserve Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income, as described in the accounting policies, and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of. Share based payments reserve The share-based payments reserve is used to recognise: • the grant date fair value of options issued to employees but not exercised; • the grant date fair value of shares issued to employees; • the grant date fair value of deferred shares granted to employees but not yet vested; and • the issue of shares held by Employee Share Trust to employees. Equity accounted reserve This is the Group’s proportionate share of the associates equity reserves. Transactions with non-controlling interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of the Group. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 177
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.18 Current and deferred income tax The income tax expense for the period comprises current and deferred tax. Current tax comprises tax payable as calculated on the basis of the expected taxable income for the financial year, using tax rates substantively enacted at the reporting date. Adjustments to provisions made for tax payable in previous financial years as a result of a change in the estimated amount payable, or to the extent that actual assessments differ from the provision created in prior financial years, are charged or credited to the current financial year profit or loss. Deferred tax is provided using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss, it is not accounted for. Where a different tax rate will be applicable to the tax year in which such assets or liabilities are realised, those tax rates are used to determine deferred income tax. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Insurance liabilities are recognised in full for accounting purposes and, to the extent that accounting losses arise, deferred tax assets are created as these will be reversed upon the release of such short-term insurance provisions. Deferred tax assets relating to the carry-forward of unused tax losses are recognised in profit or loss to the extent that it is probable that future taxable income will be available against which the unused tax losses can be utilised Taxation in respect of South African life insurance operations is determined using the five fund method applicable to life insurance companies. The taxation of life insurers in South Africa was amended to introduce a separate tax fund for risk products sold in tax periods beginning on or after 1 January 2016. From 1 July 2016, OUTsurance Life has allocated all risk products except one to the risk fund. Indirect taxes comprise Value Added Tax. All transactions are accounted for net of the relevant Value Added Tax component. Tax is recognised in profit or loss except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in other comprehensive income or changes in equity. National Treasury released the Draft Taxation Laws Amendment Bill, 2022 on 29 July 2022, which was subsequently promulgated in January 2023 and enacted in December 2022. This amendment, amended section 28 of the Act to cater for the implementation of IFRS 17. The changes consist of changes in terminology and a phase-in period of six years for life insurers and three years for non-life insurers. The Group has determined that the global minimum top-up tax – which it is required to pay under Pillar two legislation – is an income tax under IAS 12. The Group has applied a temporary relief and determined that no tax is payable for the forthcoming year. However, the Group will monitor the relief requirements annually and will account for the current tax when it is incurred. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 178
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.19 Employee benefits Short-term employee benefits The undiscounted cost of all short-term employee benefits is recognised during the period in which the employee renders the related service. The provision for employee entitlements to salaries and annual leave represents the amount which the Group has as a present obligation to pay, resulting from employees’ services provided up to the reporting date. The provision is calculated at undiscounted amounts based on current salary rates. A provision for employee benefits in respect of their annual leave entitlement from past service is recognised in full. Employees may elect to adopt a remuneration structure to allow for a non-discretionary bonus. Non-discretionary bonuses are provided for at reporting date. Post-employment benefits The Group’s employees contribute to the OUTsurance Insurance Company Limited defined pension and provident contribution funds. Under defined contribution plans, the legal or constructive obligation of the Group is limited to the contributions made to the plan, thus benefits received by the employee is determined by the contributions made to the plan together with investment returns arising from the contributions. The pension plans are funded by payments from employees. The amount paid in respect of defined pension and provident contribution fund plans during the financial year is charged to profit or loss and is included in employment cost. The Group has no further payment obligations once contributions have been made. Intellectual property bonuses In terms of the intellectual property bonus plan, employees are paid intellectual property bonuses based on management’s discretion. The beneficiaries under the plan, which included executive directors, executive management, senior and middle management employed on a full-time basis, are subject to retention periods and amounts would need to be repaid should the employee be in breach of the retention period. The intellectual property bonuses are recognised as current service costs over retention periods ranging from six months to two years and are straight lined over the period of the contract. 41.20 Share-based payments The Group operates both equity and cash-settled share incentive schemes. Equity-settled share-based payment transactions The Group operates an equity-settled share-based compensation plan for employees of the Group. The Group expenses the fair value of the employee services received in exchange for the granting of the options or shares, over the vesting period of the options or shares, as employee costs, with a corresponding credit to equity. The total value of the services received is calculated with reference to the fair value of the options or shares on grant date. The fair value of the options or shares is determined excluding non-market vesting conditions. These vesting conditions are included in the assumptions of the number of options or shares expected to vest. At each reporting date, the Group revises its estimate of the number of options or shares expected to vest. The Group recognises the impact of the revision of original estimates, if any, in profit or loss, with a corresponding adjustment to equity. Amounts recognised for services received if the options or shares granted do not vest because of failure to satisfy a vesting condition, are reversed through profit or loss. The proceeds received net of any attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. Cash-settled share-based payment transactions The Group operates the following cash-settled share-based payment schemes: • a compensation plan for employees of OUTsurance, OUTsurance Life and OSS for notional shares (share appreciation rights); and • a Divisional Incentive Scheme for Notional Incentive Units to incentivise senior management based on the success of new and emerging business units which are in the South African and Australian operations. For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the liability. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit for the year. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 179
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.21 Share trust The OUTsurance Holdings share incentive scheme is operated through a Share Trust. The Share Trust is considered to be a structured entity of the Group and therefore consolidated. All shares issued to the Share Trust are issued against the Share Trust loan which is measured at fair value. 41.22 Investment income Interest Interest income is recognised in profit or loss as investment income for instruments measured at amortised cost using the effective interest method. Interest on cash and cash equivalents is recognised as earned. Dividends Dividends are recognised in investment income when the right to receive payment is legally established. This is on the ‘last day to trade’ for listed shares and on the ‘date of declaration’ for unlisted shares. In the case of certain cumulative prime rate linked preference share investments, dividends are accrued for using the effective interest method regardless of the status of their declaration. This accounting treatment is consistent with the provisions of the agreements governing such investments. 41.23 Administration and other revenue The Group derives its main source of revenue from insurance revenue as referred to in note 27. Other immaterial sources of revenue within the Group, disclosed as ‘other revenue’ in note 5, are as follows: Investment administration services Administration fees are calculated and recognised as revenue on a daily basis over time. The fees are recognised on an earned basis calculated as a percentage of the assets under management, measured at a client level. Income from contact centre services Ongoing support call centre administration fees are calculated and recognised as revenue on a daily basis over time. Government grants Grants from the Government are recognised at fair value when there is a reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants relating to costs are recognised in profit over the period necessary to match them with the costs they are intended to compensate. Commission income Commission is earned for collecting premiums on behalf SASRIA and is recognised over time. 41.24 Abbreviations CAS Contractor’s All Risk – Specific contract CSM Contractual Service Margin CTP Compulsory Third Party GMM General Measurement Model FCF Fulfilment Cash Flow LIC Liability for Incurred Claims LRC Liability For Remaining Coverage PAA Premium Allocation approach OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 180
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.25 Amendments to published standards effective in the current year During the year new accounting standards, interpretations and amendments are mandatory for the Group: Number Effective date Executive summary and impact on the Group Amendments to IAS 21 – Lack of Exchangeability Annual periods beginning on or after 1 January 2025 An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations. The Group currently only trades in currencies that are exchangeable within the normal administrative time frame, therefore no material impact. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 181
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Notes to the consolidated financial statements continued 41. Summary of material accounting policies continued 41.26 Standards, amendments, and interpretations published that are not yet effective and have not been early adopted Number Effective date Executive summary and impact on the Group Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures Annual periods beginning on or after 1 January 2026 (early adoption is available) These amendments clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system. In addition, these amendments clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion. New disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets) have been added. The amendments make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI). No material changes are expected for the Group. Amendment to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity Annual periods beginning on or after 1 January 2026 with earlier application permitted. These amendments change the ‘own use’ and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as ‘contracts referencing nature-dependent electricity.’ The Group doesn’t have any contracts referencing nature- dependent electricity. Annual Improvements to IFRS Accounting Standards – Volume 11 Annual periods beginning on or after 1 January 2026 Contains a number of narrow-scope amendments intended to clarify wording, remove inconsistencies and improve the application of existing IFRS Accounting Standards. The amendments affect IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 but do not introduce significant changes to the underlying accounting principles. No material impact on the Group. IFRS 18 Presentation and Disclosure in Financial Statements Annual periods beginning on or after 1 January 2027 IFRS 18 is a new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key concepts introduced relate to the structure of the statement of profit or loss, required disclosures for management-defined performance measures, and enhanced principles on aggregation and disaggregation applicable to primary statements and notes. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of cash flows. The Group has commenced its assessment of the impact of IFRS 18. The adoption of IFRS 18 may result in changes to the composition of operating profit due to the introduction of prescribed categories and subtotals in the statement of profit or loss. The Group will revise existing disclosures to comply with the Management Performance Measures, including reconciliations to the most directly comparable IFRS measures where required. The Group is in process of assessing what changes in the data are required to comply with the new structure changes. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 182
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Number Effective date Executive summary and impact on the Group IFRS 19 Subsidiaries without Public Accountability: Disclosures Annual periods beginning or after 1 January 2027 with early adoption possible subject to local endorsement where required. IFRS 19 Subsidiaries without public accountability: Disclosures work alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. The reduced disclosure requirements balance the information needs of the users of eligible subsidiaries’ financial statements with cost savings for preparers. The Group has assessed IFRS 19 Subsidiaries without Public Accountability: Disclosures, effective for annual periods beginning on or after 1 January 2027. The standard is not expected to have a material impact on the Group's consolidated financial statements. The Group is assessing the applicability of the reduced disclosure requirements to certain non-licensed subsidiaries in their separate financial statements. Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) Effective for annual periods beginning on or after 1 January 2027 The IASB issued Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21), effective for annual periods beginning on or after 1 January 2027. The amendments clarify the translation requirements when financial statements are presented in a hyperinflationary currency, but the functional currency of the reporting entity or a foreign operation is not hyperinflationary. Neither the Group nor any of its subsidiaries present financial statements in a hyperinflationary currency. The Group does not currently expect the amendments to have a material impact on its consolidated financial statements. Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (IAS 28) Effective for annual periods beginning on or after 1 January 2027 The IASB issued Amendments to the Fair Value Option for Investments in Associates and Joint Ventures, effective upon adoption of IFRS 18. The amendments clarify which entities are eligible to elect the fair value option for investments in associates and joint ventures under IAS 28. The Group is assessing the impact of the amendments but does not currently expect them to have a material impact on its consolidated financial statements. 41. Summary of material accounting policies continued 41.26 Standards, amendments, and interpretations published that are not yet effective and have not been early adopted continued Notes to the consolidated financial statements continued OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 183
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OUTsurance Group Limited Separate financial statements for the year ended 30 June 2026 The reports and statements set out below comprise the separate financial statements presented to the shareholders: Contents 185 Separate statement of profit or loss 185 Separate statement of comprehensive income 186 Separate statement of financial position 187 Separate statement of changes in equity 187 Separate statement of cash flows 188 Notes to the separate financial statements OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 184
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Separate statement of profit or loss for the year ended 30 June R million Notes Company 2026 Company 2025 Revenue – Investment income 4 4 370 4 303 Interest income on financial assets using the effective interest method 4 21 26 Expected credit loss expense reversed 3 26 Net income 4 394 4 355 Impairment of subsidiaries 7 – (1 248) Operating expenses 5 (16) (15) Profit before taxation 4 378 3 092 Taxation 6 (6) (6) Profit for the year 4 372 3 086 Attributable to: Equity holders of the company 4 372 3 086 corner Separate statement of comprehensive income for the year ended 30 June R million Company 2026 Company 2025 Profit for the year 4 372 3 086 Other comprehensive income for the year – – Total comprehensive income for the year 4 372 3 086 Attributable to: Equity holders of the company 4 372 3 086 corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 185
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Separate statement of financial position as at 30 June R million Notes Company 2026 Company 2025 Assets Investment in subsidiaries 7 12 532 13 100 Financial assets Measured at fair value through profit or loss 8 10 10 Measured at amortised cost 8 – 3 Taxation receivable¹ – – Cash and cash equivalents 9 57 201 Total assets 12 599 13 314 Equity Share capital and premium 10 16 293 16 229 Accumulated loss 11 (3 709) (2 927) Total equity 12 584 13 302 Liabilities Trade and other payables 12 15 12 Total liabilities 15 12 Total equity and liabilities 12 599 13 314 corner 1 The current and prior financial year amount is below R500 000. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 186
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Separate statement of changes in equity for the year ended 30 June R million Share capital1 Share premium Retained income/ (Accumulated loss) Total equity Balance as at 30 June 2024 – 15 667 (2 282) 13 385 Total comprehensive income for the year – – 3 086 3 086 Issue of ordinary shares – 562 – 562 Dividends paid – – (3 731) (3 731) Balance as at 30 June 2025 – 16 229 (2 927) 13 302 Total comprehensive income for the year – – 4 372 4 372 Issue of ordinary shares – 64 – 64 Dividends paid – – (5 154) (5 154) Balance as at 30 June 2026 – 16 293 (3 709) 12 584 Notes 10 10 11 1 Share capital of R154 723 in the current financial year (R153 754 in the prior financial year) has been excluded due to rounding. Separate statement of cash flows for the year ended 30 June R million Notes Company 2026 Company 2025 Cash flows from operating activities Cash utilised by operations 14 (13) (14) Dividends received 4 370 3 876 Interest received 21 23 Taxation paid 15 (6) (5) Net cash generated from operating activities 4 372 3 880 Cash flows from investing activities Proceeds on repayment of amortised cost assets 6 128 Proceeds on return of capital by subsidiary 663 718 Purchase of additional shares in subsidiary (31) (981) Net cash inflow/(outflow) from investing activities 638 (135) Cash flows from financing activities Dividends paid to shareholders (5 154) (3 731) Net cash outflow from financing activities (5 154) (3 731) Net (decrease)/increase in cash and cash equivalents for the year (144) 14 Cash and cash equivalents at the beginning of the year 201 187 Cash and cash equivalents at the end of the year 57 201 corner OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 187
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Notes to the separate financial statements 1. General information OUTsurance Group Limited (the Company) is a listed company incorporated and domiciled in South Africa. 2. Basis of preparation The Company’s financial statements for the year ended 30 June 2026 are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), the Financial Pronouncements as issued by the Financial Reporting Standards Council, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, JSE Listing Requirements and the Companies Act of South Africa. The financial statements are prepared in accordance with the going concern principle using the historical cost basis, except for certain financial assets and liabilities where it adopts the fair value basis of accounting. The preparation of the financial statements necessitates the use of estimates, assumptions and judgements that affect the reported amounts in the statement of financial position and the statement of profit or loss and other comprehensive income. Where appropriate, details of estimates are presented in the accompanying notes to the separate annual financial statements. All monetary information and figures presented in these financial statements are stated in millions of Rand (R million), unless otherwise indicated. 3. Financial risk management The Company is exposed to various financial risks in connection with its current operating activities, such as market risk, credit risk and liquidity risk. Market risk The risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Currency risk Currency risk is the risk that the value of the financial instrument denominated in a currency other than the functional currency may fluctuate due to changes in the foreign currency exchange rate between the functional currency and the currency in which such instrument is denominated. The Company had no exposure to currency risk at 30 June 2026 and 30 June 2025. Interest rate risk Interest rate risk is when the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The table below reflects the Company’s exposure to interest rate risk. An increase or decrease in the market interest rate would result in the following changes in the profit before taxation and equity of the Company. A 2% movement is reflective of potential changes in the interest rate in the current economic environment. The analysis assumes that all other variables are held constant. R million Company 2026 Company 2025 Cash and cash equivalents – 200 bps increase 1 4 Cash and cash equivalents – 200 bps decrease (1) (4) corner Equity risk Equity risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company’s equity investment of R10 million (2025: R10 million) is not exposed to any market related fluctuations and as a result equity risk is considered immaterial. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 188
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Notes to the separate financial statements continued 3. Financial risk management continued Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The key areas where the Company is exposed to credit risk are: • Other receivables; and • Cash and cash equivalents. Significant concentrations of credit risk, if applicable, are disclosed in the financial statements. The credit exposure to any one counterparty is managed by the board of directors and by setting transaction/exposure limits, which are reviewed at each board and audit and risk committee meeting. The creditworthiness of existing and potential clients is monitored by the board. The table below provides information on the credit risk exposure by credit ratings at year-end: R million BB Not rated Total 30 June 2026 Cash and cash equivalents 57 – 57 Total 57 – 57 R million BBB Not rated Total 30 June 2025 Cash and cash equivalents 201 – 201 Total 201 – 201 The maximum exposure to credit risk at the end of the reporting period is the carrying amount of cash and cash equivalents. Where available, the Company utilises the credit ratings per counterparty as provided by each of the major credit rating agencies to determine the credit quality of a specific instrument. Where the instrument credit rating is not available, the credit rating of the counterparty as provided by the major credit ratings agencies is utilised. In instances where the credit rating for the counterparty is not available, the Company utilises the credit rating provided by a service provider amended to take into account the credit risk appetite of the Company. The internal methodology of the service provider provides a credit rating which assesses the counterparty’s credit quality based on its financial standing. During the current financial year, the Company improved its credit rating mapping process to map credit ratings from different ratings agencies to the Company’s disclosable credit ratings, per the mapping guidance which is accepted by the Regulator and applied by the industry. This has caused movements in the credit ratings for cash and cash equivalents. The underlying credit quality of the instruments hasn’t changed. Should the service provider not provide a credit rating, the counterparty is shown as unrated. The ratings disclosed are long-term international scale, local currency ratings. Long-term investment grade BBB Good credit quality. ‘BBB’ rating indicates a low expectation of credit risk. They indicate adequate capacity for timely payment of financial commitments. Changes in circumstances or in economic conditions are more likely to impair this capacity than is the case for higher ratings. BB Speculative quality. ‘BB’ ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade. OGL has evaluated the expected credit loss (ECL) on its cash and cash equivalents and concluded that the amount is immaterial. OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 189
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3. Financial risk management continued Liquidity risk and asset liability matching Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company’s liabilities are matched by appropriate assets and it has significant liquid resources to cover its obligations. The Company’s liquidity and ability to meet such calls are monitored quarterly at the board meetings. R million Call to 6 months 7 – 12 months More than 1 year/no contractual maturity Total 30 June 2026 Assets Financial assets measured at fair value through profit or loss – – 10 10 Cash and cash equivalents 57 – – 57 Total assets 57 – 10 67 Liabilities Trade and other payables 15 – – 15 Total liabilities 15 – – 15 30 June 2025 Assets Financial assets measured at fair value through profit or loss – – 10 10 Financial assets measured at amortised cost 3 – – 3 Cash and cash equivalents 201 – – 201 Total assets 204 – 10 214 Liabilities Trade and other payables 12 – – 12 Total liabilities 12 – – 12 Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 190
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3. Financial risk management continued Financial instruments measured at fair value The table below analyses financial instruments carried at fair value, by level of fair value hierarchy. The different levels are based on the extent that quoted prices are used in the calculation of the fair value of the financial instruments. These levels are defined as follows: Level 1 – fair value is based on quoted market prices (unadjusted) in active markets for identical instruments as measured at the reporting date. Level 2 – fair value is determined from inputs other than quoted prices that are observable for the asset or liability, either directly (for example prices) or indirectly (for example derived from prices). Level 3 – fair value is determined from inputs for the asset or liability that are not based on observable market data. R million Level 1 Level 2 Level 3 Total carrying amount 30 June 2026 Financial assets measured at fair value through profit or loss Unlisted equity securities – – 10 10 Total financial assets valued at fair value – – 10 10 30 June 2025 Financial assets measured at fair value through profit or loss Unlisted equity securities – – 10 10 Total financial assets valued at fair value – – 10 10 There was no movement in the Level 3 financial assets in the current and prior financial year. The fair values of the above instruments were determined as follows: Level 3 The fair is determined based on the value of the underlying investments. The nature of the underlying investments are high risk, small- and medium sized businesses which are exposed to start-up, scale and macro-economic risk. Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 191
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4. Revenue – Investment income and Interest income on financial assets using the effective interest method R million Company 2026 Company 2025 Revenue – Investment income 4 370 4 303 Dividend income from subsidiary – Cash 4 370 3 876 Dividend income from subsidiary – Dividend in specie – 427 Interest income on financial assets using the effective interest method 21 26 Total investment income 4 391 4 329 corner 5. Operating expenses R million Company 2026 Company 2025 Expenses by nature: Professional fees and regulatory compliance cost (3) (4) Printing costs (3) (3) Audit fees (1) (1) Management fee (6) (6) Other expenses (3) (1) Total operating expenses (16) (15) External audit remuneration Financial statement audit (1) (2) Other services – 1 Total audit fees (1) (1) corner 6. Taxation R million Company 2026 Company 2025 SA normal taxation Current taxation – Current year (6) (6) Total taxation (6) (6) The taxation on the Company’s profit before taxation differs from the theoretical amount that would arise using the basic rate of taxation in South Africa as follows: Profit before taxation 4 378 3 092 % % Effective tax rate 0.14 0.19 Dividend income not subject to taxation 26.95 37.59 Other income not subject to taxation 0.02 0.26 Impairments – (10.89) Expenses not deductible due to the large portion of dividends received in a holding company structure (0.11) (0.15) Standard income taxation rate in South Africa 27.00 27.00 corner Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 192
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7. Investments in subsidiaries R million Company 2026 Company 2025 Unlisted subsidiaries Ordinary shares at cost OUTsurance Holdings Limited 12 133 12 039 RMI Treasury Company Limited 7 314 7 973 Main Street 1353 Proprietary Limited 54 58 Additiv Proprietary Limited 9 9 Total investments in subsidiaries at cost 19 510 20 079 Impairment balance Main Street 1353 Proprietary Limited (54) (55) RMI Treasury Company Limited (6 917) (6 917) Additiv Proprietary Limited (7) (7) Impairment balance at the end of the year (6 978) (6 979) Carrying value of subsidiaries at the end of the year 12 532 13 100 Reconciliation of investment in subsidiaries: Balance at the beginning of the year 13 100 13 093 Investment in: Additional shares in OUTsurance Holdings Limited – Cash consideration 31 981 – Asset-for-share transaction 64 990 RMI Treasury Company Limited – Return of capital distribution (659) (718) Main Street 1353 Proprietary Limited – Return of capital distribution (4) – RMI Asset Holdings Proprietary Limited (liquidated) – Derecognise investment at cost – (11 726) – Return of capital distribution¹ – – – Derecognise impairment balance – 11 726 Additiv Proprietary Limited – Cost of shares – 9 – Accumulated impairment balance – (7) Impairment during the year – RMI Treasury Company Limited – (1 248) – Main Street 1353 Proprietary Limited² – – Balance at the end of the year 12 532 13 100 corner 1 The prior financial year amount was below R500 000. 2 The current financial year amount is a credit below R500 000. Movement in shares and capital returns During the current financial year the Company acquired additional shares in OUTsurance Holdings Limited (OHL) through a cash-for-shares transaction valued at R31 million and a shares-for-shares transaction valued at R64 million. In the prior financial year the company acquired additional shares in OHL through a cash-for-share transaction valued at R981 million and a shares-for-shares transaction valued at R990 million. On 17 October 2025 and 15 April 2026, the Company received R190 million and R469 million respectively in cash from RMI Treasury Company Limited as a return of capital distribution. In the prior year an amount of R718 million was received in cash from RMI Treasury Company Limited as a return of capital distribution. On 30 June 2026, the Company received R3.7 million in cash from Main Street 1353 Proprietary Limited as a return of capital distribution. In the prior financial year, the Company’s investment in RMI Asset Holdings was derecognised on 15 January 2025 following the filing of the liquidation of the company. The net asset value (R7 821) comprising cash was returned to the company. This resulted in an impairment amounting to R1 876 bringing the investment to R nil. Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 193
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7. Investments in subsidiaries continued Movement in shares and capital returns continued In the prior financial year, Additiv Proprietary Limited and its 100% subsidiary Additiv Capital Proprietary Limited changed from being previously treated as an associate to a 100%-owned subsidiary as at 30 June 2025. The increase in shareholding was as a result of the acquisition of all of the shares not previously held for a nominal amount. Impairment assessment Management performs an impairment assessment of its subsidiary investments on an annual basis. Management has assessed the recoverable amount of the cash-generating unit with reference to its fair value less costs of disposal. Given that the value of the entity is primarily derived from identifiable assets and liabilities measured at fair value, net asset value is considered an appropriate basis for estimating fair value. The net asset value reflects the current fair value of the underlying assets and liabilities and is therefore considered representative of the amount that a market participant would be willing to pay for the entity, subject to any appropriate adjustments for disposal costs and other market considerations. Where the carrying value of the investment exceeds the recoverable amount, that amount is considered for impairment. OUTsurance Holdings Limited The Company’s investment in OUTsurance Holdings Limited (OHL) at current carrying value is below its recoverable amount and therefore no impairment is required for the investment in OHL. RMI Treasury Company Limited RMI Treasury Company Limited and its underlying investee companies were assessed to have a recoverable amount of R446 million which exceeds the Company’s carrying value of its investment. In the prior financial year, the net asset value of R1 056 million was below the Company’s carrying value of the investment, and this gave rise to an impairment loss of R1 248 million which was recognised in profit or loss. The adjusted net asset value of The RMI Treasury Company Limited and its underlying investee companies mainly comprises an investment in associate of R228 million (2025: R258 million), a contingent receivable measured fair value through profit or loss R84 million (2025: R74 million), and the balance of the adjusted net asset value includes instruments which approximates fair value as it is realisable within the next financial year. In the prior financial year, an investment in unlisted equities measured at fair value through other comprehensive income (R436 million net of deferred tax liability) was also included in the adjusted net asset value. The unlisted equities measured at fair value through other comprehensive income was sold during the current financial year, and the proceeds thereof is included in the R659 million return of capital distribution in cash by RMI Treasury Company Limited. The value of the investment in associate is considered by performing a discounted cash flow methodology valuation. The valuation is most sensitive to the fees and discount rate assumptions. A 30% increase or decrease in the fees assumption will result in a 28% increase or decrease in the valuation respectively. A 1 percentage point increase or decrease in the discount rate will result in a 5% decrease or 7% increase in the valuation respectively. The value of the contingent consideration is inter alia determined based on performance fees earned by certain assets disposed of over a period of three years from the date of disposal. The contingent consideration originated from the sale of shares, during the 2024 financial year, held in RMI Investment Managers Affiliates 2 Proprietary Limited and the shares held in Royal Investment Managers Proprietary Limited. In the prior financial year, at 30 June 2025, the fair value of the unlisted equity at fair value through other comprehensive income was valued at the negotiated sales price. Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 194
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7. Investments in subsidiaries continued Impairment assessment continued Main Street 1353 Proprietary Limited Following the return of capital distribution of R3.7 million in cash by Main Street 1353 Proprietary Limited on 30 June 2026, the accumulated impairment balance on the investment exceeded the cost of the shares by R384 271. As a result, a reversal of R384 271 of the impairment on investment in subsidiary was recognised in profit or loss. Additiv Proprietary Limited The Company’s investment in Additiv Proprietary Limited (Additiv) at current carrying value is below its share of Additiv’s net asset value and therefore no impairment is required for the investment in Additiv. R million Company 2026 Company 2025 OUTsurance Holdings Limited Number of shares held directly 3 526 569 014 3 523 520 226 % of equity 92.83 92.75 Principal place of business Centurion Centurion RMI Treasury Company Limited Number of shares held 27 623 27 623 % of equity 100.0 100.0 Principal place of business Centurion Centurion Additiv Proprietary Limited Number of shares held directly 835 835 % of equity 100.0 100.0 Principal place of business Centurion Centurion Additiv Capital Proprietary Limited Number of shares held indirectly 500 500 % of equity 100.0 100.0 Principal place of business Centurion Centurion Main Street 1353 Proprietary Limited Number of shares held directly 5 100 5 100 Number of shares held via OUTsurance Holdings Limited 4 900 4 900 % of equity 100.0 100.0 Principal place of business Centurion Centurion corner Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 195
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8. Financial assets R million Company 2026 Company 2025 Measured at fair value through profit or loss Equity securities Unlisted investments 10 10 Balance at the end of the year 10 10 corner The movements in the fair value of the investment in The SA SME Fund Limited with a carrying value of R10 million (2025: R10 million) were immaterial in the current and prior financial year. R million Company 2026 Company 2025 Preference share investment measured at amortised cost Balance at the beginning for the year 3 101 Unwind of modification adjustment/dividend income earned – 4 Receipts (6) (128) Expected credit loss expense reversed 3 26 Balance at the end of the year – 3 corner 9. Cash and cash equivalents R million Company 2026 Company 2025 Cash at bank and on hand 57 201 corner Cash and cash equivalents represent current accounts and a call deposit. The fair value approximates the carrying value. Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 196
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10. Share capital and share premium Number of shares Ordinary share capital R million Share premium R million Total R million Share capital and share premium as at 30 June 2024 1 537 535 862 – 15 667 15 667 Additional shares issued during the year 9 695 643 – 562 562 Share capital and share premium as at 30 June 2025 1 547 231 505 – 16 229 16 229 Additional shares issued during the year 896 387 – 64 64 Share capital and share premium as at 30 June 2026 1 548 127 892 – 16 293 16 293 Ordinary shares The total authorised number of ordinary shares is 2 000 000 000, with a par value of R0.0001 per share. The total number of issued ordinary shares increased by 896 387 during the year (2025: 9 695 643) to 1 548 127 892 as at 30 June 2026 (2025: 1 547 231 505). During the current financial year the Company issued 388 661 ordinary shares at a value of R28 million and another 507 726 ordinary shares at a value of R36 million on 17 November 2025 and 10 June 2026 respectively. These shares issued during the current financial year were in exchange for OHL shares. During the prior financial year the Company issued 12 079 169 ordinary shares at a value of R588 million, another 5 552 510 ordinary shares at a value of R339 million and 829 477 ordinary shares at a value of R63 million on 16 September, 22 November 2024 and 20 June 2025 respectively. These shares issued during the prior financial year were in exchange for 42 283 911 OHL shares. 8 765 513 ordinary shares at a value of R428 million were cancelled on 14 October 2024 following an asset distribution (OGL shares) by OHL to its shareholders. The unissued share capital is under the control of the board of directors until the forthcoming annual general meeting. Preference shares The total authorised number of cumulative, redeemable, par value preference shares is 100 000 000 with a par value of R0.0001 per share. The issued number of par value preference shares is nil (2025: nil). The total authorised number of cumulative, redeemable, no par value preference shares is 100 000 000. The issued number of no par value preference shares is nil (2025: nil). The Company created a new class of 100 000 000 authorised, cumulative, redeemable, no par value preference shares in the 2016 financial year. None of these preference shares have been issued yet. 11. Accumulated loss R million Company 2026 Company 2025 Accumulated loss 3 709 2 927 corner 12. Trade and other payables R million Company 2026 Company 2025 Trade and other payables 15 12 corner Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 197
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13 Cash utilised by operations R million Company 2026 Company 2025 Reconciliation of profit before taxation to cash generated from operations: Profit before taxation 4 378 3 092 Adjusted for: Dividend income (4 370) (3 876) Dividend in specie income – (427) Interest income (21) (26) Expected credit loss expense reversed (3) (26) Impairments – 1 248 Other non-cash income and expenses – (2) Changes in working capital Other receivables – 4 Trade and other payables 3 (1) Total cash utilised by operations (13) (14) corner 14. Taxation paid R million Company 2026 Company 2025 Taxation per statement of financial position at the beginning of the year – 1 Charge to income statement (6) (6) Taxation per statement of financial position at the end of the year – – Taxation paid (6) (5) corner 15. Dividend per share R million Company 2026 Company 2025 Total dividends paid during the year 5 154 3 731 Total dividends declared relating to the year 6 336 4 188 Number of ordinary shares in issue 1 548 127 892 1 547 231 505 Dividend declared per share (cents) Interim – Ordinary 120.7 88.6 – Special 30.3 – Final – Ordinary 170.8 149.0 – Special 87.5 33.1 Total dividend per share declared 409.3 270.7 corner Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 198
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16. Related parties Principal shareholders Details of major shareholders are disclosed in the directors’ report. The principal shareholders are Remgro Limited and Royal Bafokeng Holdings Proprietary Limited. Key management personnel Only OGL’s directors are key management personnel. Information on directors’ emoluments and their shareholding in the Company appears in note 39 to the consolidated annual financial statements and in the directors’ report respectively. Subsidiaries and associates Details of investments in subsidiaries and associates are disclosed in note 18 and note 19 of the consolidated annual financial statements. The following companies are subsidiaries of OGL: • AlphaCode Proprietary Limited (100% held via RMI Treasury Company Limited) • Additiv Proprietary Limited and Additiv Capital Proprietary Limited (100%) (was an associate prior to the prior financial year) • Main Street 1353 Proprietary Limited (51% held directly and 49% held via OUTsurance Holdings Limited) • OUTsurance Holdings Limited (92.83% actual holding) • RMI Investment Holdings Proprietary Limited (100% held via RMI Treasury Company Limited) • RMI Invest One Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Invest Two Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Invest Three Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Invest Four Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Invest Five Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Invest Six Proprietary Limited (100% held via RMI Investment Holdings Proprietary Limited) • RMI Investment Managers Affiliates 1 Proprietary Limited (100% held via RMI Investment Managers Group Proprietary Limited) • RMI Investment Managers Group Proprietary Limited (100% held via RMI Treasury Company Limited) • RMI Treasury Company Limited (100%) R million Company 2026 Company 2025 Related party transactions Transactions of OGL and its subsidiary companies with: Principal shareholders Dividends paid 2 220 1 660 Key management personnel Dividends paid on OGL shares held 12 9 Subsidiaries Effect on the statement of profit or loss: Dividends received – OUTsurance Holdings Limited 4 303 4 303 Management fee expense to OUTsurance Insurance Company Limited (6) (6) Impairment loss – RMI Treasury Company Limited (1 248) (1 248) – Main Street 1353 Proprietary Limited¹ – – Effect on the statement of financial position: Return of capital distribution against the investment – RMI Treasury Company Limited (659) (718) – Main Street 1353 Proprietary Limited (4) – corner 1 The current financial year amount is a credit below R500 000. Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 199
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17. Events after the reporting period Dividend The board of directors approved the declaration of an ordinary dividend of 170.8 cents per ordinary share and a special dividend of 87.5 cents per ordinary share on 9 September 2026, payable on 5 October 2026. This is a non-adjusting event. There are no other matters which are material to the financial affairs of the Company that occurred between the reporting date and date of the approval of the financial statements. 18. Current/non-current split of assets and liabilities R million Current Non-current Total 30 June 2026 Assets Investment in subsidiaries – 12 532 12 532 Financial assets measured at fair value through profit or loss – 10 10 Cash and cash equivalents 57 – 57 Total assets 57 12 542 12 599 Liabilities Trade and other payables 15 – 15 Total liabilities 15 – 15 30 June 2025 Assets Investment in subsidiaries – 13 100 13 100 Financial assets measured at fair value through profit or loss – 10 10 Financial assets measured at amortised cost 3 – 3 Cash and cash equivalents 201 – 201 Total assets 204 13 110 13 314 Liabilities Trade and other payables 12 – 12 Total liabilities 12 – 12 Notes to the separate financial statements continued OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 200
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As at 30 June 2026 As at 30 June 2025 Number of shareholders Shares held (000’s) % Number of shareholders Shares held (000’s) % Analysis of shareholding Remgro 1 469 449 30.3 1 469 449 30.3 Royal Bafokeng Holdings 2 196 935 12.7 2 196 935 12.7 Public Investment Corporation 14 157 778 10.2 11 148 600 9.6 Total of shareholders holding more than 5% 17 824 162 53.2 14 814 984 52.6 Other 31 640 723 966 46.8 24 971 732 248 47.4 Total 31 657 1 548 128 100.0 24 985 1 547 232 100.0 Shareholder type Corporates 666 384 43.0 666 384 43.0 Unit trusts 289 241 18.7 310 848 20.1 Pension funds 206 443 13.3 198 523 12.8 Private investors 47 307 3.1 44 052 2.9 Insurance companies and banks 56 230 3.6 33 394 2.2 Other 282 527 18.3 294 031 19.0 Total 1 548 128 100.0 1 547 232 100.0 Public and non-public shareholders Public 31 646 878 330 56.8 24 973 877 477 56.8 Non-public 11 669 798 43.2 12 669 755 43.2 – Corporates 2 666 384 43.0 3 666 384 43.0 – Directors and associates 9 3 414 0.2 9 3 371 0.2 Total 31 657 1 548 128 100.0 24 985 1 547 232 100.0 Geographic ownership South Africa 1 325 488 85.6 1 260 644 81.5 International 222 640 14.4 286 588 18.5 Total 1 548 128 100.0 1 547 232 100.0 The information above is extracted from the shareholder analysis provided by Orient Capital Limited. Shareholder information OUTsurance Group Limited Separate annual financial statements for the year ended 30 June 2026 201
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Glossary Group companies OGL OUTsurance Group Limited (formerly Rand Merchant Investment Holdings Limited) is listed on the Johannesburg Securities Exchange (JSE). OHL OUTsurance Holdings Limited, the regulated insurance holding company. Product CTP Compulsory Third-Party insurance issued only in Australia. Accounting terminology Premium allocation approach (PAA) Simplified methodology to measure insurance contracts if certain criteria are met. The Group utilises this methodology to measure its property and casualty (short-term) insurance contracts. General measurement model (GMM) The default measurement model in IFRS 17 to measure insurance contracts. The Group utilised this measurement model to measure the insurance contracts issued by OUTsurance Life. Liability For Remaining Coverage (LRC) The Group’s obligation to pay claims for insured events that have not yet occurred. It includes insurance service expenses for services not yet provided and amounts not included in the LIC. Liability for Incurred Claims (LIC) The Group’s obligation to pay claims for an incurred insured event, incurred events but not yet reported, other insurance service expenses and amounts not included in the Liability for remaining coverage (LRC). Asset for remaining coverage (ARC) The services the Group is entitled to receive from the reinsurer for in-force contracts in future periods. Asset for incurred claims (AIC) The reinsurance recoveries the Group is entitled to receive from the reinsurer for incurred insured events. Fulfilment Cash Flow (FCF) A probability weighted present value estimate of future cash in- and outflows that arises as the Group fulfils the insurance contract. It includes a risk adjustment for non-financial risks. Loss Component (LC) Losses arising from onerous contracts under IFRS 17, where the present value of outflows plus risk adjustment exceeds the present value of inflows. IFRS requirements IFRS® Accounting Standards have been defined as IFRS® Accounting Standards (IFRS Accounting Standards). Attributable expenses Expenses that are directly attributable to fulfilling the insurance contract. Non-attributable expenses Expenses that are not directly attributable to fulfilling the insurance contract. Insurance acquisition cash flows Cash flows that originate when selling, underwriting and starting a group of insurance contracts. These cash flows are directly attributable to the insurance contract. Risk adjustment for non-financial risk (RA) The compensation the Group requires to take on the insurance risk in the contract. Contractual service margin (CSM) The CSM represents the unearned profit in a group of contracts that is measured using the GMM. The CSM is a component of the LRC and is released as the insurance contract services are delivered. Insurance service expenses (ISE) ISE includes incurred claims and expenses, the change in insurance liability relating to past claims and expenses as well as losses and reversal of losses on groups of contracts. Weighted number of ordinary shares Weighted number of ordinary shares in issue during the reporting period. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 202
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Regulatory terminology Covered business Business regulated by the Prudential Authority as long-term insurance business. Own funds The net asset value adjusted for regulatory remeasurement of assets and liabilities. Represents capital that qualifies for regulatory measurement. Solvency capital requirement (SCR)/ Required capital The amount of regulatory capital required as determined by the local regulatory authorities. Management performance indicators Annualised new business premium written Annualised premium value of all new customer policies incepted during the period under review. This measure excludes the renewal of existing customer policies. Combined ratio Net claims expense including insurance finance expense (IFE) plus operating expenses (which includes both the non-attributable expenses and attributable expenses) divided by net earned premium. The ratio includes the profit share distributions to FirstRand Limited. Cost-to-income ratio Operating expenses (which includes both non- attributable and attributable expenses) divided by net earned premium. The ratio excludes the profit share distributions to FirstRand Limited. Net claims expense Insurance service expense (which includes non-claims bonus cost) plus insurance finance expense less reinsurance recoveries. Glossary continued Net claims ratio Net claims expense including insurance finance expense divided by net earned premium. Net earned premium (NEP) Insurance revenue less reinsurance premiums. Normalised earnings Normalised earnings adjustments are applied where the Group believes that certain transactions create a mismatch between the Group’s accounting and economic performance. Normalised earnings is therefore considered to most accurately reflect the Group’s economic performance. Normalised return on equity (ROE) Normalised earnings divided by average normalised ordinary shareholders equity. Underwriting result • Net earned premium • less net claims expense • add other income • less marketing and administration expenses • less profit share distribution. Comprehensive Equity terminology Comprehensive Equity (CE) A non-IFRS, management -defined measure representing the estimated value attributable to shareholders from OUTsurance Life’s in-force business and surplus assets. CE comprises IFRS net asset value, adjusted for shareholder-attributable CSM, partnership-attributable CSM under profit-sharing arrangements, and estimated tax on future profits. CE is provided as supplementary information and is not a measure defined or recognised under IFRS. Value of new business (VNB) The present value of the expected after-tax CSM arising at the point of sale in respect of new covered business contracts sold in the reporting period. OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 203
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Our corporate information OUTsurance Group Limited (OGL) Registration number: 2010/005770/06 JSE ordinary share code: OUT ISIN code: ZAE000314084 Transfer secretaries Computershare Investor Services Proprietary Limited Physical address: Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Postal address: Private Bag X9000, Saxonwold, 2132 Telephone: +27 11 370 5000 Telefax: +27 11 688 5221 Sponsor (in terms of JSE Listings Requirements) Rand Merchant Bank (a division of FirstRand Bank Limited) Physical address: 1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196 Contact: investorrelations@out.co.za Web address: https://group.outsurance.co.za/ Directors Chairman: HL Bosman Lead Independent: K Pillay Independent: N Kahlon, K Kroll, MM Mahlare, ET Moabi, SV Naidoo, RSM Ndlovu, CML Taljaard, JA Teeger, JE van Heerden, RD Werbeloff (Govender) Non-executive: JJ Durand, A Kekana, WT Roos Executive: MC Visser (CEO), JH Hofmeyr (CFO) Alternates: UH Lucht, CPF Vosloo Mr F Knoetze retired as an alternate non-executive director on 31 January 2026 and Mr CPF Vosloo was appointed as alternate non-executive director with effect from 1 February 2026. Ms K Kroll, Ms N Kahlon, Ms RD Werbeloff (Govender) and Mr CML Taljaard were appointed as independent non-executive directors on 17 August 2026. Secretary and registered office JS Human Physical address: 1241 Embankment Road, Zwartkop Ext 7, Centurion, South Africa, 0157 Postal address: PO Box 8443, Centurion, South Africa, 0046 Contact: investorrelations@out.co.za Web address: https://group.outsurance.co.za/ OUTsurance Group Limited Consolidated annual financial statements for the year ended 30 June 2026 204
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