Nobleoak Life Ltd · ASX:NOL
Nobleoak Life — FY2023 Earnings Presentation
30 slides from Nobleoak Life's earnings presentation, Aug 31, 2023
Slide 1: FY23 Financial Results
FY23 FINANCIAL RESULTS AUSTRALIA’S FASTEST-GROWING DIRECT LIFE INSURER NobleOak Life Limited 31 August 2023
Slide 2: Agenda and presenters
Agenda and presenters 01 FY23 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: 01 FY23 highlights
01 FY23 highlights 3
Slide 4: FY23 highlights
FY23 highlights In-force premiums ahead of guidance Strong in-force premium growth ahead of FY23 guidance H1 sales were impacted by lower market activity, with improvement in H2 Underlying gross insurance margin of 11%, with claims and lapse experience ahead of industry Financial discipline retained
Slide 5: FY23 financial highlights
FY23 financial highlights Continued growth in premiums and profits In-force premiums1 New business Active policies1 Net insurance premium revenue $315.9m $46.2m 120,000+ $77.6m +24% vs. FY22 -24% vs. FY22 +16% vs. FY22 +22% vs. FY22 In-force premium market share3 New business market share3 Lapse rat
Slide 6: Operational and strategic highlights
Operational and strategic highlights Strong progress on key strategic initiatives and delivering on our ESG commitments Australia’s most awarded Market-leading Continued progress direct life insurer customer satisfaction on ESG commitments IT and data transformation to New alliance partnerships Deve
Slide 7: 02 Financial results
02 Financial results 7
Slide 8: Group financial performance
Group financial performance Key financial metrics Commentary $m/% FY23 FY22 Var ▪ Active policies up 16% to over 120,000, driving strong in-force premium growth ahead of FY23 guidance In-force premiums at period end (ex-Genus) 315.9 254.6 +24% New business 46.2 60.9 (24%) ▪ H1 sales impacted by lowe
Slide 9: Direct Channel
Direct Channel In-force premiums ($m) Commentary ▪ Direct policy count up 13% to over 45,000, driving +16% strong in-force premium growth 69.2 80.3 ▪ Sales improved in H2 to finish ahead of FY22 after 57.4 a slow H1 for the market FY21 FY22 FY23 ▪ Market share growth continues to be driven by invest
Slide 10: Strategic Partner Channel
Strategic Partner Channel In-force premiums ($m) Commentary ▪ Advised policy count up 18% to over 74,000, +27% driving strong in-force premium growth 235.6 ▪ Contemporary products, high quality service and 185.4 124.7 strategic partnerships continue to deliver market share gains and in-force growth
Slide 11: Genus
Genus Key financial metrics Commentary $m / % FY23 FY22 Variance ▪ In-force premiums under management reduced by less than expected due to favourable lapse In-force premiums under management 24.7 25.5 (3%) experience Administration Expenses 5.2 6.1 (15%) ▪ Material lapse improvement since Freedom po
Slide 12: Capital position
Capital position Sound regulatory capital position Capital base Capital adequacy Assets in excess of multiple1 target capital $40.3m 191% $7.7m Notes: 1. Multiple of capital base above the minimum level of assets required to be held in the Company, prescribed by the solvency standard referred to in
Slide 13: Reinsurance asset concentration
Reinsurance asset concentration ACRC mitigation actions successfully implemented Action Description Quantum Financial impacts Claims settlement Funds from reinsurers provided on ‘claims $12 million No investment returns on assets arrangements reserved’ rather than ‘claims paid’ basis Deposit back Re
Slide 14: AASB 17 implementation
AASB 17 implementation Accounting standard designed to improve transparency & comparability between insurers AASB 17 application date for NobleOak FY23 results Investor information session NobleOak HY24 results all insurers reported under AASB 1038 detailing AASB 17 impacts reported under AASB 17 Ja
Slide 15: 03 Business update
03 Business update 15
Slide 16: Direct Channel
Direct Channel Unique brand, market-leading service and diversified distribution driving growth Australia's most awarded Named #1 sales contact 2 -year project roadmap to Brand investment driving direct life insurer centre in Australia by GRIST enhance Direct experience increased recognition Strong
Slide 17: Strategic Partner Channel
Strategic Partner Channel Partners continue to outperform the advised market New products and pricing drove Multiple awards for products and Claims and lapse experience in-force market share up to 2.2% service for PPS and NEOS remains ahead of industry Final stage of PPS reinsurance PPS grew its add
Slide 18: IT transformation
IT transformation Revolutionising the way customers interact with our products and services Key deliverables System upgrade Self service portal Front-end integration and data Omnichannel experience Moving to new secure Online customer portal enables warehouse Delivering a leading edge cloud-based pl
Slide 19: Continued progress on our ESG commitments
Continued progress on our ESG commitments ESG focus area Key metrics Target(s) By when FY23 progress Climate change Carbon emissions Net zero by 2030 30 Jun 2030 Purchased 2609 ACCUs for 2021/2022 to be Carbon Neutral (for business operations) by Climate Active Environment Recycling Recycling of our
Slide 20: 04 FY24 outlook
ee, Ow OA Fy24 outlook 20
Slide 21: FY24 strategic priorities
FY24 strategic priorities Priorities 1 2 3 Build on our position Build and support Optimise the business as Australia’s leading our network of to achieve direct life insurer adviser partners economies of scale Focus areas Acquisition Lapse and Digital Alliance Enhancing Optimising People & Digital U
Slide 22: FY24 strategic initiatives
FY24 strategic initiatives 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 • Launch new Direct features including live • Reprice products to maintain • IT digitalisation project to
Slide 23: FY24 outlook
FY24 outlook Expect to continue to gain market share Market sales improving Above market in-force premium growth to continue as market sales volumes improve Claims and lapse Expect to outperform market as economic outlook remains cautious outperformance Inflation beneficiary Improved investment retu
Slide 24: Why NobleOak?
Why NobleOak? Australia’s fastest-growing direct life insurer High growth life insurer Strong financial discipline gaining market share delivering stable margins Unique culture and Significant market opportunity customer-focused with structural tailwinds value proposition Direct distribution model a
Slide 25: Q&A
05 Q&A 25
Slide 26: Appendix
06 Appendix 26
Slide 27: Consolidated income statement
Consolidated income statement Statutory and Underlying results Variance $’000 FY23 FY22 % Insurance premium revenue1 330,336 248,401 33% Reinsurance expense2 (252,699) (184,700) 37% Net insurance premium revenue 77,637 63,701 22% Investment income 3,823 181 2012% Net commissions3 18,248 15,097 21% F
Slide 28: Financial strength
Financial strength Sound capital position above regulatory requirements Commentary Statutory balance sheet at 30 June 2023 $m 30 Jun 2023 30 Jun 2022 Financial assets Assets ▪ Primarily held in term deposits and floating rate fixed interest funds Cash and cash equivalents 50.4 30.3 Receivables 26.3
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