NobleOak Life (NOL) H1 2025 earnings summary

Executive summary

• Achieved 20% year-over-year growth in in-force premiums to $423 million, with underlying NPAT up 11% to $8.7 million and market share rising to 3.7% as of June 2024, driven by disciplined underwriting and expense management.

• Continued investment in technology, digital transformation, analytics, and omnichannel customer experience, including AI for improved underwriting and customer insights.

• Acquisition of RevTech Media's trailing commission and FiftyUp Club platform for $11 million, expected to add over $1.5 million annual profit and access to 480,000 new members.

• Maintained strong capital position with a regulatory capital adequacy multiple of 194% and surplus capital above target.

• No dividend declared, with capital reinvested to support growth and future dividend potential as capital position strengthens.

Financial highlights

• In-force premiums grew 20% year-over-year to $423 million; new business sales up 15% to $30.4 million.

• Underlying NPAT increased 11% to $8.7 million; underlying EPS at 9.7 cents fully diluted.

• Net insurance premium revenue up 19% to $58.2 million; underlying gross insurance margin stable at 11.6%; administration expense ratio at 7.3%.

• Regulatory capital adequacy multiple at 194%, with surplus capital above target.

• Investment returns (pre-fees) increased to $6.0 million, with average return on invested assets at 4.6%.

Outlook and guidance

• Expects to outperform industry and achieve approximately 15% annual in-force premium growth for FY25, versus market growth of 5%.

• Ongoing investment in brand, digital, and alliance partnerships to drive direct channel growth and customer retention.

• Strategic partner channel to benefit from new products, improved pricing, and expanded advisor network.

• Higher interest rates and inflation-linked premiums expected to support margins and offset inflationary pressures.

• Regulatory changes (CPS 230, FAR) and industry reforms anticipated to benefit the direct model and open new opportunities.