Nobleoak Life Ltd · ASX:NOL
Nobleoak Life — FY2022 Earnings Presentation
36 slides from Nobleoak Life's earnings presentation, Aug 31, 2022
Slide 1: NobleOak Life Limited FY22 Financial Results
NobleOak Life Limited Australia’s fastest growing life insurer FY22 Financial Results 31 August 2022
Slide 2: Agenda and presenters
Agenda and presenters 1 FY22 highlights 2 Financial results 3 Business update Anthony Brown 4 Trading update & outlook Chief Executive Officer 5 Q&A 6 Appendix Scott Pearson Chief Financial Officer 2
Slide 3: FY22 Highlights
1 FY22 Highlights 3
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Slide 5: FY22 highlights
FY22 highlights Continued outperformance as the market emerges from a challenging period Strong growth in premiums and profits continues Exceeded key Prospectus forecasts Remained operationally resilient Minimised disruption to our customers and people Disciplined growth strategy execution Continue
Slide 6: Financial highlights
Financial highlights Strong growth in premiums and profits No. of Active Net Insurance In-force Premiums1 New Business Underlying NPAT Policies1 Premium Revenue 103k+ $254.6m $60.9m $63.7m $9.5m +33% +40% -12% +37% +35% vs. FY21 vs. FY21 vs. FY21 vs. FY21 vs. FY21 9% ahead of 8% below Prospectus 13%
Slide 7: Operational and strategic highlights
Operational and strategic highlights Delivering our growth strategy while maintaining high customer satisfaction and employee engagement Most awarded Launched new IDII products Maintained high Direct Life Insurer 2021-2022 ahead of APRA deadline customer satisfaction New white labelled products New
Slide 8: Outperforming in a changing market
Outperforming in a changing market NobleOak continues to take market share Australian life insurance market trends Sales outperformance driving market share gains NobleOak new business market share1 Impacts of regulatory change 16.4% Market sales down 30% since launch of 15.3% 1 new IDII products. R
Slide 9: Financial Results
2 Financial Results 9
Slide 10: Group financial performance
Group financial performance Key financial metrics Commentary FY22 ▪ In-force premium the key value driver for $m/% FY22 FY21 Var Prospectus Var NobleOak, up 40% and 9% ahead of Prospectus forecast, supported by continued low lapse rates In-force premiums (ex-Genus) at period 254.6 182.1 40% 233.4 9%
Slide 11: Direct Channel
Direct Channel In-force premiums ($m) Commentary +8% vs. Prospectus ▪ Policy count increased by 19% to over 40,000, with in-force premiums in Direct Channel growing by 20% to be 8% ahead of Prospectus forecast 57.4 69.2 64.3 45.7 ▪ New business sales impacted by reduced market activity post-launch o
Slide 12: Strategic Partner Channel
Strategic Partner Channel In-force premiums ($m) Commentary +10% vs. Prospectus ▪ In-force premiums grew by 49%, 10% ahead of Prospectus forecast, driven by continued low lapse rates. 185.4 169.1 124.7 ▪ New business sales were down 12% to be 5% 63.9 below the Prospectus forecast due to reduced FY20
Slide 13: Genus
Genus Key metrics Commentary $m / % FY22 FY21 Variance ▪ In-force premiums under management reduced materially due to completion of Freedom In-force premiums under management 25.5 32.2 (21%) portfolio conduct remediation program in April 2022 Administration Expenses 6.1 6.3 (3%) ▪ Expected decline i
Slide 14: Capital efficient model supports growth
Capital efficient model supports growth Well capitalised following successful IPO Capital base Capital adequacy Assets in excess of multiple1 target capital $41.8m 316% $17.5m Strong capital position above regulatory requirement Notes: 1. Multiple of capital base above the minimum level of assets re
Slide 15: Business Update
3 Business Update 15
Slide 16: Most awarded direct life insurer 2021-2022
Most awarded direct life insurer 2021-2022 We continue to be recognised for doing the right thing by our customers Recent award wins Canstar Outstanding Value Plan For Life Overall Direct Life Feefo Gold Trusted Feefo Platinum Trusted Awards Insurance Excellence Award Service Award Service Award 201
Slide 17: Direct Channel alliances
Direct Channel alliances Continuing to add new Alliance Partners in Direct Channel with strong pipeline ahead Direct Channel Alliance Partnerships New white labelled products launched with RAC WA and Budget Direct driving good growth New alliance agreement with Heritage Bank signed in July 2022 Stro
Slide 18: Building a strong brand
Building a strong brand Investing in the NobleOak brand to grow Direct market share ▪ Continued targeted investment in brand building activity to increase market awareness ▪ New advertisements to launch in October 2022 will further support our value proposition of: ▪ Competitive price ▪ Personal ser
Slide 19: Strategic Partner Channel
Strategic Partner Channel Supporting our Strategic Partners with product, pricing and governance Market reshaped following introduction of new IDII products New IDII products launched and working with PPS and Neos to ensure product features and market positioning meets their respective risk appetite
Slide 20: Introducing our ESG framework
Introducing our ESG framework 10 ESG focus areas linked to UN SDGs1, with key metrics to be further refined and finalised in FY22/23 ESG focus area Key metrics Target(s) UN SDGs Climate change Carbon emissions Net zero by 2030 13, 15 Environment Recycling Recycling our office waste 50% reduction in
Slide 21: Trading update & outlook
4 Trading update & outlook 21
Slide 22: Trading update and industry outlook
Trading update and industry outlook Well positioned in uncertain economic environment Subdued industry activity • Customer purchasing activity remains subdued, impacting new business continues sales but benefiting lapse rates • Green shoots appearing – market in-force premium grew by 5% over 12 mont
Slide 23: Looking ahead
Looking ahead Building a platform for long-term sustainable growth Continuing to outperform market Above-market growth in premiums and profits to continue Staying true to our values Doing the right thing by our customers and our people Investing for long-term growth Continue to invest in people and
Slide 24: Q&A
5 Q&A 24
Slide 25: Appendix
6 Appendix 25
Slide 26: Consolidated income statement
Consolidated income statement Statutory and Underlying results Variance $’000 FY22 FY21 % Insurance premium revenue1 248,401 169,932 46% Reinsurance expense2 (184,700) (123,321) 50% Net insurance premium revenue 63,701 46,611 37% Investment income 181 (207) na Net commissions3 15,097 13,046 16% Fees
Slide 27: Reconciliation: Statutory NPAT to Pro Forma Underlying NPAT
Reconciliation: Statutory NPAT to Pro Forma Underlying NPAT Using the pro forma adjustment methodology outlined in the Prospectus $’000 Direct Strategic Partners Genus Consolidated Commentary Year ended Year ended Year ended Year ended ▪ Pro forma adjustments are non-IFRS adjustments made 30/06/22 3
Slide 28: Financial strength
Financial strength Strong capital position above regulatory requirements and well positioned for growth Statutory balance sheet at 30 June 2022 Commentary $m 30 Jun 2022 30 Jun 2021 Financial assets Assets ▪ Primarily held in short term deposits and Cash and cash equivalents 30.3 31.8 floating rate
Slide 29: Senior Leaders
Senior Leaders Anthony was appointed CEO in July 2012, and a Director in July 2013. Anthony has approximately 30 years of experience in general Mr Anthony R Brown management, finance strategy, operations, marketing and distribution. Anthony was previously COO at AMP Capital, Head of CEO and Director
Slide 30: Senior Leaders
Senior Leaders Mr Anand Sundaraj Anand is a corporate lawyer with over 20 years’ experience, specializing in advising on mergers & acquisitions and capital raising for Joint Company Secretary both publicly listed and privately held entities. He is currently the company secretary of a number of ASX-l
Slide 31: Board of Directors
Board of Directors Stephen was appointed a Director January 2011 and as chair of the Company in November 2018. Stephen has over 36 years of experience in financial services, funds management, private equity and accounting. Stephen is currently the Chair of IncentiaPay Mr Stephen Harrison Limited, an
Slide 32: Who is NobleOak?
Who is NobleOak? An independent Australian life insurer and challenger brand with a strong focus on delivering high-value, easy to understand and competitive products • Challenger brand life insurer with diversified strategy and differentiated distribution model Who we are • 144-year history as frie
Slide 33: NobleOak's business lines
NobleOak’s business lines Diversified portfolio with long-term growth prospects Direct business NobleOak-branded policies marketed and distributed by NobleOak, including Agile player in a large through Alliance Partners and without personal financial advice and disrupted industry Direct Channel A di
Slide 34: UN Sustainable Development Goals (UN SDGs)
UN Sustainable Development Goals (UN SDGs) 34
Slide 35: Important notice and disclaimer
Important notice and disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Forward-looking statements This presentation may contain statements that are, or may be deemed to be, forward-looking statements. Such statements can generally be identified by the use of words such as 'may', 'will
Slide 36: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Presentation of information The financial data in this presentation is provided on a statutory basis but in a non-statutory presentation format (unless otherwise stated). ▪ Currency: all amounts in this