NobleOak Life Ltd · ASX:NOL
NobleOak Life — Shareholder Meeting (November 2019)
34 slides from NobleOak Life's shareholder meeting presentation, Nov 27, 2019
Slide 1: 2019 Annual General Meeting
2019 Annual General Meeting Presented by Stephen Harrison – Chairman Anthony R Brown – Chief Executive Officer 27 November 2019
Slide 2: Welcome to NobleOak
Welcome to NobleOak 1. Chairman’s Address 2. CEO’s Report 3. 2019 Year in Review 4. Formal Proceedings 5. Q&A 2
Slide 3: Chairman's Address
Chairman’s Address Stephen Harrison - Chairman 3
Slide 4: Directors
Directors Mr Stephen Harrison Chairman and Non-Executive Director Mr Anthony R Brown CEO and Director – For Re-election Mr Emery Feyzeny Deputy Chairman and Non-Executive Director Mr Kevin Hamman Non-Executive Director Mr Martin Edwards Non-Executive Director – For Re-election 4
Slide 5: Management
Management Mr Anthony Brown CEO and Director Mr Scott Pearson Chief Financial Officer Mr Matthew Wilson Chief Risk Officer Mrs Patricia Priest Chief Operating Officer Mr Phil Hill Chief Underwriter Mr Matthew Minney Head of Claims and Operations 5
Slide 6: 2019 Highlights
2019 Highlights Growth during depressed market • Total in-force premium growing by over 60% • ‘’Core’’ direct business growing over 30% • Partnership business growing over 150% Profitability growth • • Underlying PBT grew by over 70% to $5.0m Underlying EBITDA grew by over 80% to $4.5m Capital mai
Slide 7: CEO's Report
CEO’s Report Anthony R Brown - CEO 7
Slide 8: COHOACNGGOES © ,§
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Slide 9: A year of disruption in Life Insurance Industry
A year of disruption in Life Insurance Industry • Regulatory oversight • ASIC Review of Direct Life Insurance • Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry • Financial Services Council • Parliamentary Joint Committee Report • Westpac case - super •
Slide 10: The transformation of the life industry strengthens NobleOak's value proposition
The transformation of the life industry strengthens NobleOak’s value proposition Focus Areas NobleOak position on core direct business Possible banning of We do not offer up front commissions on core business commissions Information for regulatory analysis not requested of Focus on claims payout rat
Slide 11: The transformation of the life industry strengthens NobleOak's value proposition
The transformation of the life industry strengthens NobleOak’s value proposition Focus Areas NobleOak position on core direct business NobleOak’s product suite offers comprehensive fully Product Design underwritten cover and has never offered a range of low value products (e.g. accidental death/inju
Slide 12: Life Insurance Sales – Super and Ordinary (direct and retail)
Life Insurance Sales – Super and Ordinary (direct and retail) Despite a very poor 2018/19 and 2019/20, sales are expected to recover. Source: DEXXR - July 2019 Financial Services Industry Report –Based on data as at 31 December 2018 12
Slide 13: The Life Insurance Market Size (Inforce Premium)
The Life Insurance Market Size (Inforce Premium) Growing contestable market - the life insurance industry exhibits steady growth. Australia - Total Inforce Annual Premiums ($m) Growth rate: 5% CAGR Retail - 70% of risk market is “Retail”, NobleOak’s contestable market MARKET DATA SOURCE: 2019 – Delo
Slide 14: NobleOak Positioning
NobleOak Positioning Our essence and values connect even more with the market ESSENCE Integrity Courageous PERSONALITY Human Perceptive Devoted The financially comfortable and TARGET AUDIENCE financially confident. They thrive on making smart decisions and primarily are people looking to switch insu
Slide 15: 2019 Year in Review
2019 Year in Review A Year of Growth 15
Slide 16: Product Revenue Diversification
Product Revenue Diversification NobleOak has a diversified revenue stream of Partnership and Genus businesses to support our core direct offering. NobleOak Core Business NobleOak' s Core Direct business High growth product line Partnership Business Genus Business NobleOak' s non-core tailored produc
Slide 17: 2019 was driven by the following key pillars
2019 was driven by the following key pillars Delivering on the growth and profitability ambitions Investing in core capabilities of people, brand and infrastructure 2 Selective growth in our partnership network 3 4 Industry and Customer recognition to build reputation 17
Slide 18: A successful year across key metrics
A successful year across key metrics Reported Results $m 2017 2018 2019 Gross Premium Revenue 33.1 55.1 69.0 Reinsurance Premium Expense (19.9) (34.1) (42.1) Net Insurance Premium 13.2 21.0 26.9 Net Premium increased by 28% Other Income Investment Income 0.1 0.6 1.1 Fees Income and other Income 3.5
Slide 19: A healthy balance sheet to support growth
A healthy balance sheet to support growth Balance Sheet $m 2018 2019 Assets Cash and Investment 28.9 24.5 Gross Policy Liabilities Ceded 15.5 19.5 Receivables 3.2 6.1 Other Assets 4.1 3.0 Total Assets 51.8 53.1 Liabilities Accounts Payables 8.6 13.7 Provisions 0.4 1.7 Policy Liabilities - Insurance
Slide 20: High Performance Culture
High Performance Culture • Staff numbers increased by 114% across critical parts of the business – due to Genus. • Strengthening of capabilities across all functions with key appointments of: • Operations Manager • Head of Digital • Client Service & Retention Consultants • Head of IT • Senior Busine
Slide 21: Awards and Recognition
Awards and Recognition • Canstar Outstanding Value Awards (2016,2017,2018 and 2019) for Life and Income Protection • Feefo Gold trusted Service Awards (2017, 2018, 2019) • Finder Award – best Life Insurance (2019) • Mozo Experts Choice Awards – Life Insurer of the Year 2019 • Plan for Life Excellenc
Slide 22: Direct Model – Marketing and Distribution
Direct Model – Marketing and Distribution NobleOak still distributes its core products through a growing number of marketing and distribution alliances 22
Slide 23: Digital Growth
Digital Growth • Continued Digital investment and capabilities building. • Increased growth in Finder platform • Invested in Conversion Rate Optimisation program to deliver ongoing material growth. • Launched Online ‘Quick Quote’ Tool with improved conversion rates. FY18/19 vs FY17/18 Website Traffi
Slide 24: 2020 Key Areas of Focus
2020 Key Areas of Focus Deliver on Growth and Profitability ambitions Continued investment in core capabilities to better systemize NobleOak Further development of a high performance culture Stable capital position to support growth Support partnership growth Industry recognition for servi
Slide 25: Formal Proceedings
Formal Proceedings Stephen Harrison 25
Slide 26: Annual Report, Director's Report and Auditor's Report
Annual Report, Director’s Report and Auditor’s Report 26
Slide 27: Shareholder Resolutions
Shareholder Resolutions 27
Slide 28: Resolution 1 – Re-election of Directors
Resolution 1 – Re-election of Directors (Updated to reflect proceedings at the meeting) a. “Mr Anthony Ross Brown who retires by rotation in accordance with Clause 12.4 of the Company’s Constitution, and being eligible, offers himself for re-election, be re-elected as a Director of the Company.“ b.
Slide 29: Resolution 2 – Remuneration of Non Executive Directors
Resolution 2 – Remuneration of Non Executive Directors (Updated to reflect proceedings at the meeting) “That the aggregate maximum sum available for the remuneration of non-executive Directors’ be increased from $400,000 per annum to $700,000 per annum and that the Board of Directors be authorised t
Slide 30: Resolution 3 – Directors Options
Resolution 3 – Directors Options Resolution 3. This resolution was withdrawn by the Chair of the meeting. 30
Slide 31: Share Registry: Automic
Share Registry: Automic 31
Slide 32: Further Shareholder Information
Further Shareholder Information 32
Slide 33: Questions
Questions 33
Slide 34: Slide 34