NobleOak Life (NOL) H2 2024 earnings summary

Executive summary

• Achieved strong growth in FY 2024, with in-force premiums up 22% to AUD 387 million and new business up 18% to AUD 54.4 million, exceeding guidance and industry growth rates.

• Underlying NPAT increased 19% to AUD 15 million, driven by disciplined underwriting, expense management, and higher interest rates.

• Market share in in-force premiums rose to 3.3%, with direct channel share at 8.7% and strategic partner channel at 2.7%; new business market share reached 12.8%.

• Recognized as Australia's most awarded direct life insurer for the fifth consecutive year.

• Reached a significant milestone by generating free cash flow for the first time, supporting future growth and potential dividends.

Financial highlights

• In-force premium grew 22%, surpassing the 15%-20% guidance range, and new business increased 18% to AUD 54.4 million.

• Underlying earnings per share was AUD 0.1697 on a fully diluted basis; reported diluted EPS at 10.49cps.

• Net insurance premium revenue rose 27% to AUD 98.6 million; investment return improved to 1.6% of insurance premium.

• Capital base at 30 June 2024 was AUD 42.2 million, with a capital adequacy of 193% and a surplus of AUD 8.7 million above internal targets.

• Lapse rate at 11.0%, about 4.0ppts below industry average.

Outlook and guidance

• Expects to outperform the market in FY 2025 with above-market in-force premium growth and continued market share gains.

• Plans to invest further in omni-channel experience, marketing, technology, and digital transformation to drive growth and customer retention.

• Strategic partner channel to focus on product and pricing improvements, leveraging analytics and AI for efficiency.

• Free cash flow generation to support organic and potential inorganic growth, as well as possible future dividends.