NobleOak Life (NOL) H2 2024 earnings summary

Executive summary

• In-force premiums grew 22% year-over-year to AUD 387 million, exceeding guidance and industry growth rates, with new business up 18% to AUD 54.4 million.

• 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%.

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

• Achieved free cash flow generation for the first time, supporting future growth and potential dividends.

Financial highlights

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

• Underlying earnings per share was AUD 0.1697 on a fully diluted basis; reported diluted EPS at AUD 0.1049.

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

• Lapse rate at 11.0%, about 4 percentage points below industry average; capital adequacy multiple at 193% with AUD 8.7 million surplus above target.

• Direct channel underlying NPAT up 48% to AUD 5.9 million; strategic partner channel underlying NPAT up 6% to AUD 8.3 million; Genus segment NPAT at AUD 0.8 million.

Outlook and guidance

• Expects to outperform the market in FY 2025 with above-market in-force premium growth and margin stability.

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

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