Slide 1: FY24 Financial Results
FY24 FINANCIAL RESULTS AUSTRALIA’S FASTEST-GROWING DIRECT LIFE INSURER NobleOak Life Limited 30 August 2024
Slide 2: Agenda and presenters
Agenda and presenters 01 FY24 highlights 02 Financial results Anthony Brown Chief Executive Officer 03 Business update 04 FY25 outlook 05 Q&A Scott Pearson Chief Financial Officer 2
Slide 3: FY24 highlights
R se ee Ol | FY24 highlights
Slide 4: Who is NobleOak?
Who is NobleOak? Australia’s fastest-growing and most awarded direct life insurer High growth life insurer Strong financial discipline rapidly gaining market share delivering stable margins $11bn market with Unique culture and structural tailwinds customer-focused favouring Direct value proposition
Slide 5: Market share gains driving growth in premiums and profits
Market share gains driving growth in premiums and profits In-force premium provides strong annuity stream revenue Strong sales driving market share growth in Direct market1 Strong growth in in-force premiums2 Stable margins delivering strong profit growth 20.0% 387 17.0% 17.0% 18.0% 16.3% 15.8% 15.4
Slide 6: FY24 highlights
FY24 highlights Ongoing outperformance and strategic delivery Strong sales performance and low lapse rates drives in-force premium growth ahead of guidance Continued market share growth in direct and advised markets Australia’s most awarded Direct Life Insurer for the fifth consecutive year Investin
Slide 7: FY24 financial highlights
FY24 financial highlights Strong growth in premiums and profits In-force premiums1 New business Lapse rate1 Underlying NPAT2 $387.0m $54.4m 11.0% $15.0m +22% vs. FY23 +18% vs. FY23 ~4.0ppts below industry +19% vs. FY23 In-force premium market share3 New business market share3 Regulatory capital mult
Slide 8: Financial results
02 Financial results 8
Slide 9: Group financial performance
Group financial performance Key financial metrics2 Commentary $m/% FY24 FY23 Var ▪ Active policies up 14% to over 137,000, driving strong In-force premiums at period end (ex-Genus) 387.0 315.9 +22% 22% in-force premium growth ahead of guidance New business 54.4 46.2 +18% (15-20%) Lapse rate 11.0% 8.
Slide 10: Direct Channel
Direct Channel In-force premiums ($m) Commentary ▪ Direct policy count up 10% to almost 50,000, driving strong in-force premium growth 80.3 91.6 ▪ Continuing to gain market share – now 8.7% of industry in-force premium ▪ Maintained strong new business market share of FY23 FY24 17.0%1, well above our
Slide 11: Strategic Partner Channel
Strategic Partner Channel In-force premiums ($m) Commentary ▪ Active policies up 16% to over 87,000, driving strong 25% in-force premium growth 295.2 235.6 ▪ Contemporary products, quality service and partnerships with NEOS and PPS continue to drive market share gains – now 2.7% of industry in-force
Slide 12: Genus
Genus Key financial metrics Commentary $m / % FY24 FY23 Var ▪ In-force premiums under management stabilised Restated following conclusion of Freedom remediation In-force premiums under management 24.6 24.7 (1%) program Underlying Administration expenses ▪ A favourable lapse experience drove in-force
Slide 13: Capital position strengthened
Capital position strengthened Reached inflexion point of net capital generation Commentary • Assets above target increased over the year • The business delivered positive capital generation on Capital base Capital adequacy Assets above an underlying basis multiple target • A number of larger items o
Slide 14: Business update
03 Business update 14
Slide 15: Direct Channel / Strategic Partner Channel
Direct Channel Strategic Partner Channel Brand, service and distribution driving growth Partners continue to outperform the market Australia's most awarded direct life insurer five years running Advised market share up to 2.7%, driven by 12% share of sales Alliance partner sales +30% FY23 to FY24 Ne
Slide 16: FY24 progress on key strategic initiatives
FY24 progress on key strategic initiatives DIRECT LIFE LEADER STRATEGIC PARTNERS GROWTH CAPTURE SCALE ADVANTAGES Build on our position as Australia’s Build and support our network of Optimise the business to achieve leading direct life insurer adviser partners economies of scale New features Pricing
Slide 17: Continued progress on our ESG commitments
Continued progress on our ESG commitments ESG Measure Key Metrics & Target/s By When UN SDG Comments Climate change Carbon emissions – Net zero by 2030 30 Jun 2030 13, 15 Purchased 1263 ACCUs for 2022/2023 and 1280 VERs to be Environment certified as Carbon Neutral (for business operations) by Clima
Slide 18: FY25 outlook
04 FY25 outlook 18
Slide 19: FY25 key strategic initiatives
FY25 key strategic initiatives DIRECT LIFE LEADER STRATEGIC PARTNERS GROWTH CAPTURE SCALE ADVANTAGES Build on our position as Australia’s Build and support our network of Optimise the business to achieve leading direct life insurer adviser partners economies of scale Organic growth Refine pricing Im
Slide 20: FY25 outlook
FY25 outlook Continued market share gains driven by execution of growth strategy ✓ Market share growth Expect to continue to outperform in an improving market ✓ Margin stability Maintaining strong financial disciplines while investing for growth ✓ Digital enhancement Ongoing enhancement of the new o
Slide 21: Q&A
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Slide 22: Appendix
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Slide 23: Consolidated income statement
Consolidated income statement Statutory and Underlying results reconciliation (using management Analysis) Management Analysis Variance Restated $’000 FY24 % FY23 Insurance premium 376,576 330,336 14% Reinsurance premium (277,944) (252,699) 10% Net insurance premium 98,632 77,637 27% Net claims expen
Slide 24: Financial strength
Financial strength Sound capital position above regulatory requirements Statutory balance sheet at 30 June 2024 Commentary Restated $m 30 Jun 2024 30 Jun 2023 Financial assets Assets Cash and cash equivalents 64.0 50.4 ▪ Primarily held in term deposits and floating rate fixed interest funds Receivab
Slide 25: Impacts of AASB 17 for NobleOak
Impacts of AASB 17 for NobleOak No change to underlying business economic fundamentals or strategy Creation of Deferred Tax Asset (DTA) of $27m Balance sheet Increased policy liabilities – (write down of opening deferred acquisition costs) Lower net assets at transition (1 July 2022) $64m No change
Slide 26: Profit or loss format
04|Profit or loss format AASB 17 P&L presents a different approach to analysing financial performance Key features of AASB 17 statutory income statement • Insurance revenue represents the premium recognised as relating to FY24 AASB 17 statutory income statement Gross view of revenue/ service provide
Slide 27: Management analysis and purpose
04|Management analysis and purpose Management analysis to be presented for discussion and analysis of metrics Statutory Management analysis AASB 17 statutory income statement Analysed as Insurance metrics Insurance revenue A Insurance premium Insurance service expenses B Reinsurance premium Reinsura
Slide 28: Management result
04|Management result Introducing NobleOak’s management reporting framework AASB 17 Statutory Profit and Loss Statement Management For the Year Ended 30 June 2024 $m Insurance Revenue 366.8 Highlights Insurance Service Expenses (296.7) • Statutory and Management Analysis to be provided together Reins
Slide 29: 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 30: 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