Nobleoak Life Ltd · ASX:NOL
Nobleoak Life — H1 FY22 Earnings Presentation
34 slides from Nobleoak Life's earnings presentation, Feb 28, 2022
Slide 1: HY22 Financial Results Presentation
For personal use only NobleOak Life Limited HY22 Financial Results Presentation 28 February 2022
Slide 2: Agenda and presenters
Agenda and presenters For personal use only 1 Who is NobleOak? 2 HY22 highlights 3 Financial results Anthony Brown 4 Business update Chief Executive Officer 5 Q&A 6 Appendix Scott Pearson Chief Financial Officer 2
Slide 3: Who is NobleOak?
For personal use only 1Who is NobleOak? 3
Slide 4: 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 For personal use only • Challenger brand life insurer with diversified strategy and differentiated distribution model Who we are • 14
Slide 5: NobleOak's business lines
NobleOak’s business lines Diversified portfolio with long-term growth prospects For personal use only 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 indust
Slide 6: Values-led approach to ESG
Values-led approach to ESG ESG framework developed in line with UNSDGs, targets to be disclosed at year-end For personal use only Our values are embedded in our business ESG focus areas Staff are aligned to our cultural values Environment Climate change Recycling Nobility Simplicity We use simple, c
Slide 7: HY22 Highlights
For personal use only 2HY22 Highlights 7
Slide 8: Financial highlights
Financial highlights Strong growth in premiums and profits continues; Outperformed H1 FY22 Prospectus forecasts For personal use only No. of Active Net Insurance New Business In-force Premiums1 Underlying NPAT Policies1 Premium Revenue 94k+ $40.2m $226.5m $30.8m $4.6m +54% +27% +59% +45% +47% Growth
Slide 9: Operational highlights
Operational highlights Operationally resilient and continuing to deliver our strategy For personal use only Operationally resilient Maintained High Customer Launched New IDII Product Through first period as listed Satisfaction Levels Ahead of 1 October deadline company and COVID-19 Award wins contin
Slide 10: Impact of industry sustainability measures
Impact of industry sustainability measures Positive in the long-run for nimble players like NobleOak For personal use only Good for Lower lapses long-term Income Protection sustainability Delivered new Less customer switching Individual Disability since launch of new Regulatory change positive Incom
Slide 11: Financial Results
For personal use only 3Financial Results 11
Slide 12: Strong growth in premiums and profits continues
Strong growth in premiums and profits continues In-force premiums and underlying NPAT ahead of Prospectus forecasts For personal use only In-force premiums (ex-Genus) ($'000) Underlying NPAT ($'000) 4,580 +11% ahead 226,472 +12% ahead of Prospectus of Prospectus 555 forecast forecast 3,032 3,107 1,4
Slide 13: Key financial metrics
Key financial metrics In-force premiums (ex-Genus) ($’000) Commentary For personal use only Key HY22 Prospectus forecasts achieved, reaffirming FY22 Prospectus profit forecasts 226,472 In-force premium the key value driver for 142,389 NobleOak, up 59%, driven by strong sales and 78,184 continued
Slide 14: Direct Channel
Direct Channel Key metrics Commentary For personal use only Variance Policy count increased by 23%, with in-force premiums in Direct Channel growing by 24% to $’000 / % HY22 HY21 % / bps be 7% ahead of Prospectus forecast In-force premiums at period end 63,696 51,444 +24% New business sales impa
Slide 15: Strategic Partner Channel
Strategic Partner Channel Key metrics Commentary For personal use only Variance In-force premiums grew by 79%, 15% ahead of Prospectus forecast, driven by strong sales and $’000 / % HY22 HY21 % / bps continuing low lapse rates. In-force premiums at period end 162,776 90,945 +79% New business sal
Slide 16: Genus
Genus Key metrics Commentary For personal use only Variance In-force premiums under management decreased materially following commencement $’000 / % HY22 HY21 % / bps of Freedom portfolio conduct remediation In-force premiums under management 30,771 33,317 -8% program – scheduled to complete in Ap
Slide 17: Capital
Capital Strong capital position above regulatory requirements and well capitalised for growth For personal use only Capital adequacy $’000 31 December 2021 30 June 2021 Capital base (a) 39,759 18,609 Prescribed capital amount (b) 10,180 9,533 Capital adequacy multiple % (a)/(b) 390.6% 195.2% Target
Slide 18: Business Update
For personal use only 4Business Update 18
Slide 19: Direct Channel distribution
Direct Channel distribution Continuing to add new Alliance Partners in Direct Channel with strong pipeline ahead For personal use only Direct Channel Alliance Partnerships Partnerships launched with Qudos Bank and RAC WA bring access to over 1.1 million customers New distribution agreements with Ill
Slide 20: Building a strong brand
Building a strong brand Investing in the NobleOak brand to grow Direct market share For personal use only 20
Slide 21: Optimising the customer experience
Optimising the customer experience Evolving our omnichannel platform to optimise customer experience and improve sales conversion For personal use only 1 2 3 4 ` Stages Lead Initial quote Application Underwriting Sale Renewal Claim 1 2 3 4 Customer receives Customer Customer or Website Customer Cust
Slide 22: Strategic Partner Channel
Strategic Partner Channel Continuing to support Strategic partners with product, pricing and governance For personal use only Market reshaped following introduction of new IDII products Working with Avant to assess options with reinsurer support for a new product PPS, NEOS contract reviews underway
Slide 23: Trading update and outlook
Trading update and outlook For personal use only In-force premiums expected to be ahead of FY22 Prospectus forecast, with profit forecasts reaffirmed On track for FY22 Higher sales in H1 expected to be offset for FY22 to finish in line with Prospectus forecasts Prospectus forecast, with lapse rates
Slide 24: Second half priorities
Second half priorities Remain focused on capturing opportunities and managing risks For personal use only Strategy People Governance • Continue to take share in Progress to employer of Navigate ongoing a disrupted market • Target new organic and choice in the industry regulatory change inorganic opp
Slide 25: For personal use only
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Slide 26: Appendix
For personal use only 6 Appendix 26
Slide 27: Consolidated income statement
Consolidated income statement Statutory and Underlying results For personal use only Variance $’000 HY22 HY21 % Insurance premium revenue1 114,485 73,652 55% Reinsurance expense2 (83,640) (52,346) 60% Net insurance premium revenue 30.845 21,306 45% Investment income 94 140 (33%) Net commissions3 7,1
Slide 28: Reconciliation: Statutory NPAT to Pro Forma Underlying NPAT
Reconciliation: Statutory NPAT to Pro Forma Underlying NPAT The table below reconciles the statutory NPAT to the pro forma Underlying NPAT, using the pro forma For personal use only adjustment methodology outlined in the Prospectus $’000 Direct Strategic Partners Genus Consolidated Commentary Half-y
Slide 29: Consolidated balance sheet
Consolidated balance sheet Strong balance sheet with no debt For personal use only Statutory balance sheet at 31 December 2021 Commentary $’000 31 Dec 2021 30 Jun 2021 Financial assets Assets Primarily held in short term deposits ($10m Cash and cash equivalents 42,910 31,842 held in fixed interest
Slide 30: Senior Leadership Team
Senior Leadership Team For personal use only 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 Cap
Slide 31: Senior Leadership Team
Senior Leadership Team For personal use only Moana has over 12 years’ experience managing and leading sales teams within the financial services sector. Prior to NobleOak, Moana Ms Moana Kolesi gained extensive outsourced contact centre experience managing multi product programs for Macquarie bank, W
Slide 32: Board
Board 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 For personal use only Mr Stephen Harrison Li
Slide 33: 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 34: 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