NobleOak Life Ltd · ASX:NOL
NobleOak Life — H1 2023 Earnings Presentation
27 slides from NobleOak Life's earnings presentation, Feb 28, 2023
Slide 1: HY23 Financial Results
For personal use only HY23 FINANCIAL RESULTS AUSTRALIA’S FASTEST-GROWING LIFE INSURER NobleOak Life Limited 28 February 2023
Slide 2: Agenda and presenters
Agenda and presenters For personal use only 01 HY23 highlights 02 Financial results Anthony Brown 03 Business update Chief Executive Officer 04 FY23 outlook 05 Q&A Scott Pearson Chief Financial Officer 2
Slide 3: HY23 highlights
For personal use only 01 HY23 highlights 3
Slide 4: HY23 highlights
HY23 highlights Trusted challenger brand continuing to outperform and gain market share For personal use only 1 NobleOak continues to deliver strong in-force premium growth and gain market share 2 Strength of diversified distribution model shines through despite lower industry sales activity 3 Execu
Slide 5: Financial highlights
Financial highlights Strong growth in premiums and profits continues For personal use only Net insurance In-force premiums1 New business Active policies1 premium revenue $283m $22m 111k $38m +25% -46% +18% +25% vs. HY22 vs. HY22 vs. HY22 vs. HY22 In-force premium New business Lapse rate1 Underlying
Slide 6: Operational and strategic highlights
Operational and strategic highlights Making progress on key strategic initiatives and delivering on our ESG commitments For personal use only Most awarded Maintained high Carbon neutral certification Direct Life Insurer 2021-2022 customer satisfaction from Climate Active Preparing for further regula
Slide 7: Australian Life Insurance market
Australian Life Insurance market Navigating ongoing regulatory change as market conditions improve For personal use only Market adjusting to regulatory change Significant opportunity ahead Significant regulatory intervention Industry profitability improving 1 Market settling after introduction of ne
Slide 8: Continuing to outperform
Continuing to outperform NobleOak continues to gain market share For personal use only Growing new business share as others contract1 Driving in-force premium market share growth1 Total market new business sales ($m) NobleOak market share (%) Market in-force premium ($bn) NobleOak market share (%) 2
Slide 9: Financial results
For personal use only 02 Financial results 9
Slide 10: Group financial performance
Group financial performance Key financial metrics Commentary For personal use only $m/% HY23 HY22 Var ▪ In-force premium up 25% as NobleOak continues to gain market share – 2.5% at Jun-22 (Jun-21: In-force premiums (ex-Genus) 283.3 226.5 25% 1.9%)1 at period end New business 21.6 40.2 (46%) ▪ First
Slide 11: Direct Channel
Direct Channel In-force premiums ($m) Commentary For personal use only ▪ Direct policy count up 15% to 43,000 with in-force +17% premiums growing 17% to $74.3m 63.7 74.3 ▪ Market share increased to 0.7% from 0.4% in 51.4 20191, with sustained investment in brand, technology and distribution driving
Slide 12: Strategic Partner Channel
Strategic Partner Channel In-force premiums ($m) Commentary For personal use only ▪ In-force premiums grew by 28% with NobleOak +28% continuing to gain share in advised market 209.0 ▪ As in Direct, lower market activity impacted new 162.8 90.9 business volumes, down 52% to $16.8m HY21 HY22 HY23 ▪ La
Slide 13: Genus
Genus Key metrics Commentary For personal use only $m / % HY23 HY22 Variance ▪ In-force premiums under management reduced in line with expectations to $24.9m following In-force premiums under management 24.9 30.8 (19%) conclusion of Freedom portfolio conduct remediation program in April 2022 Adminis
Slide 14: Capital position
Capital position Well capitalised for growth For personal use only Capital base Capital adequacy Assets in excess of multiple1 target capital $43.1m 252% $14.6m Sound capital position above regulatory requirement Managing capital in line with regulatory requirements which will be updated as we imple
Slide 15: Business update
For personal use only 03 Business update 15
Slide 16: Making progress on sustainability
Making progress on sustainability Growing sustainably, guided by our ESG strategy and Net Zero by 2030 commitment For personal use only • Relocated to new Sydney office with 5-star NABERS rating, enhancing our ability to measure and contribute to sustainability initiatives • Achieved carbon neutral
Slide 17: Direct Channel
Direct Channel Strong brand and diversified distribution driving growth For personal use only Building a platform for long-term growth Market share gains driving in-force growth Direct market new business sales ($m) New partnerships up and running and NobleOak market share of Direct sales (%) showin
Slide 18: Strategic Partner Channel
Strategic Partner Channel Continued market share growth and strong underlying performance For personal use only Industry new business activity remains subdued in advised market New IDII products launched and refined to meet market expectations and risk appetites Retention on PPS book increased as we
Slide 19: FY23 outlook
For personal use only 04 FY23 outlook 19
Slide 20: FY23 outlook
FY23 outlook Expect continued outperformance and market share growth while investing for the long-term For personal use only Market conditions • New business volumes below historical levels but improving, as is industry improving profitability • NobleOak continues to achieve above market in-force pr
Slide 21: Q&A
For personal use only 05 Q&A 21
Slide 22: Appendix
For personal use only 06 Appendix 22
Slide 23: Consolidated income statement
Consolidated income statement Statutory and Underlying results For personal use only Variance $’000 HY23 HY22 % Insurance premium revenue1 164,310 114,485 44% Reinsurance expense2 -125,895 -83,640 51% Net insurance premium revenue 38,415 30,845 25% Investment income 1054 94 1021% Net commissions3 7,
Slide 24: Financial strength
Financial strength Strong capital position above regulatory requirements and well positioned for growth For personal use only Statutory balance sheet at 31 December 2022 Commentary $m 31 Dec 2022 30 Jun 2022 Financial assets Assets ▪ Primarily held in short term deposits and floating Cash and cash e
Slide 25: NobleOak's ESG framework
NobleOak’s ESG framework 10 ESG focus areas linked to UN SDGs1 with key metrics to be further refined in FY23 For personal use only 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 t
Slide 26: 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 27: 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