Youi has significantly increased profit for its South African parent OUTsurance Holdings.

The division reported a profit of 231 million rand ($23.15 million) in the year to June 30, up from 3 million rand ($300,670) the previous year.

OUTsurance is majority owned by investment group Rand Merchant Insurance Holdings, which says Youi has achieved scale and is a significant driver for OUTsurance earnings.

Youi contributes 39% of OUTsurance’s turnover and 15% of its profits, from 762,000 policies.

The Australian insurer’s gross written premium grew 57% to $425 million, while fewer natural disasters helped the combined operating ratio improve to 91.6% from 103.3%.

Joint OUTsurance CEOs Willem Roos and Laurie Dippenaar expect Youi to continue showing good top-line growth and to achieve operational efficiencies.

The recently launched New Zealand operation will contribute to long-term growth.

The annual report notes OUTsurance’s interest in Youi fell from 100% to 93% because staff exercised share options, and this can dilute further to 80.8%.