Youi has upped its stake in Blue Zebra, saying the underwriting agency is a vital partner to grow the insurer’s intermediary business. 

The insurer’s parent company, OUTsurance of South Africa, says in its 2023 financial report that Youi now holds a 37% interest in Blue Zebra. 

Youi previously had a 34% stake, having increased it from 4.17% after the insurer exercised its full 30% call option to have a “significant influence” in the business. 

The insurer is the primary underwriter of Blue Zebra’s personal lines and business products after establishing a partnership in the 2020 financial year. 

“The [Blue Zebra] relationship is strategically important as it provides Youi with access to the intermediated market segment which supports our growth ambitions in both the personal and business markets,” CEO Nathaniel Simpson told insuranceNEWS.com.au. 

OUTsurance says in the 2023 financial report the Blue Zebra partnership provides access to the independent broker market which is a large growth opportunity for Youi.

Blue Zebra’s attritional claims continued to improve owing to actions taken during the last financial year, the report says. 

“The profitability dynamics of the [Blue Zebra] book continued to improve.” 

OUTsurance says the Blue Zebra partnership contributed to 17.6% of Youi’s gross written premiums (GWP) in the last financial year. 

For this financial year OUTsurance says the focus is on the quality of underwriting and pricing for Blue Zebra and also to scale the underwriting agency’s commercial insurance offering. 

The OUTsurance report says Youi’s GWP increased 21.5% to $1.368 billion in the last financial year. Personal lines GWP gained 17.5% to $1.247 billion, business GWP more than doubled to $51 million and compulsory third-party surged 62.8% to $70 million. 

Youi operating profit improved sharply to $153 million from $57 million. 

“Youi delivered a pleasing financial and operational result for the year as strong premium growth continued and favourable weather conditions supported the significant increase in profitability,” OUTsurance says.