NobleOak Life Ltd · ASX:NOL
NobleOak Life — H1 FY2024 Earnings Presentation
24 slides from NobleOak Life's earnings presentation, Feb 28, 2024
Slide 1: HY24 Financial Results
For personal use only HY24 FINANCIAL RESULTS AUSTRALIA’S FASTEST-GROWING DIRECT LIFE INSURER NobleOak Life Limited 28 February 2024
Slide 2: Agenda and presenters
Agenda and presenters For personal use only 01 HY24 highlights 02 Financial results Anthony Brown Chief Executive Officer 03 Business update 04 FY24 outlook 05 Q&A Scott Pearson Chief Financial Officer 2
Slide 3: HY24 highlights
For personal use only 01 HY24 highlights 3
Slide 4: HY24 highlights
HY24 highlights Strong growth in premium and profits; FY24 in-force guidance affirmed For personal use only Strong in-force premium growth driven by above market sales and lapse outperformance NPAT growth driven by margin stability, with favourable net claims experience and financial discipline Tail
Slide 5: HY24 financial highlights
HY24 financial highlights Market share gains driving strong growth in premiums and profits For personal use only In-force premiums1 New business Active policies1 Underlying NPAT2 $351.4m $26.5m 128,000+ $7.8m +24% vs. HY23 +23% vs. HY23 +15% vs. HY23 +16% vs. HY23 +11% vs. Jun-23 In-force premium ma
Slide 6: Financial results
For personal use only 02 Financial results 6
Slide 7: Group financial performance
Group financial performance Key financial metrics1 Commentary For personal use only $m/% HY24 HY23 Var ▪ Active policies up 15% to over 128,000, driving strong 24% in-force premium growth In-force premiums at period end (ex-Genus) 351.4 283.3 +24% New business 26.5 21.6 +23% ▪ Continuing to gain mar
Slide 8: Direct Channel
Direct Channel In-force premiums ($m) Commentary For personal use only ▪ Direct policy count up 12% to almost 48,000, +16% driving strong in-force premium growth 74.3 85.9 ▪ Sales up 4% driven by alliance partnerships, with 63.7 market share of direct sales 15.8%1 ▪ Lapse rates continue to normalise
Slide 9: Strategic Partner Channel
Strategic Partner Channel In-force premiums ($m) Commentary For personal use only ▪ Advised policy count up 17% to over 80,000, +27% driving strong in-force premium growth 265.5 ▪ Contemporary products, quality service and 162.8 209.0 partnerships with NEOS and PPS grow market share of advised busin
Slide 10: Genus
Genus Key financial metrics Commentary For personal use only $m / % HY24 HY23 Var ▪ In-force premiums under management stabilised Restated following conclusion of Freedom remediation In-force premiums under management 24.5 24.9 (1%) program Underlying Administration expenses ▪ Expect to return to mo
Slide 11: Capital position
Capital position Strengthened capital position Commentary For personal use only • One-off change in prudential standards that reduce prescribed capital amount (PCA) • Increase investment income in line with higher interest rates • Lower tax payments, following recognition of deferred tax loss asset
Slide 12: AASB implementation
AASB 17 implementation New global accounting standard for insurance contracts For personal use only Introduces consistent accounting NobleOak to report on AASB 17 for all types of insurance contracts basis from 1 July 2023 Enhanced comparability with NobleOak to restate comparative non-insurance rep
Slide 13: Impacts of AASB for NobleOak
Impacts of AASB 17 for NobleOak No change to underlying business economic fundamentals or strategy For personal use only 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
Slide 14: Business update
For personal use only 03 Business update 14
Slide 15: Direct Channel and Strategic Partner Channel update
Direct Channel Strategic Partner Channel Brand, service and distribution driving growth Partners continue to outperform the market For personal use only Advised market share up to Australia's most awarded Launching market-leading Claims and lapse experience 2.5%, driven by 12.5% share direct life in
Slide 16: Digital transformation
Digital transformation Leading omnichannel customer experience to be launched in April 2024 For personal use only Key deliverables System upgrade Self service portal Front-end integration and data Omnichannel experience warehouse Moving to new secure Online customer portal enables Leading omnichanne
Slide 17: FY24 outlook
For personal use only 04 FY24 outlook 17
Slide 18: FY24 outlook
FY24 outlook Market share growth to deliver 15-20% in-force premium growth in FY24 For personal use only ✓ Market sales improving Industry sales volumes expected to continue to improve ✓ Financial disciplines retained Disciplined approach to keep margins stable while investing for growth ✓ Enhanced
Slide 19: Q&A
For personal use only 05 Q&A 19
Slide 20: Appendix
For personal use only 06 Appendix 20
Slide 21: Consolidated income statement
Consolidated income statement Statutory and Underlying results reconciliation (using management Analysis) Management Analysis Variance For personal use only Restated $’000 HY24 % HY23 Insurance premium revenue 181,241 164,310 10% Reinsurance expense (132,518) (125,895) 5% Net insurance premium reven
Slide 22: Financial strength
Financial strength Sound capital position above regulatory requirements Statutory balance sheet at 31 December 2023 Commentary Restated $m 31 Dec 2023 30 Jun 2023 Financial assets For personal use only Assets Cash and cash equivalents 45.9 50.4 ▪ Primarily held in term deposits and floating rate fix
Slide 23: Important notice and disclaimer
Important notice and disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY For personal use 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 word
Slide 24: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY For personal use 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). ▪ Currenc