Direct insurer Youi has reported a 70% rise in gross written premium (GWP) for the six months to December 31, while its South African parent has flagged plans to expand the brand into New Zealand and grow further in Australia.

GWP totalled R1.84 billion ($188 million), up from R1.08 billion ($110 million) in the corresponding period of 2012 and R109 million ($11 million) in the second half of 2009. The company launched in Australia in 2008.

Youi posted an overall loss of R2 million ($204,357) compared with a loss of R49 million ($5 million) a year earlier, according to results posted by OUTsurance, a division of Rand Merchant Insurance Holdings.

The group has allocated R450 million ($46 million) to expand the Youi business.

“The additional capital will be utilised to support the rapid growth of the Australian business as well as to facilitate the planned expansion of Youi into the New Zealand market in the next financial year,” OUTsurance said.

“The Australian business is expected to continue to penetrate the market and show strong top-line growth together with enhanced economies of scale.”

The company says its core claim ratio is a “satisfactory” 52.7%.