Nobleoak Life Ltd · ASX:NOL
Nobleoak Life — FY2021 Earnings Presentation
33 slides from Nobleoak Life's earnings presentation, Aug 31, 2021
Slide 1: Full Year 2021 Financial Results Presentation
For personal use only NobleOak Life Limited Full Year 2021 Financial Results Presentation 31 August 2021 Presenters: Anthony R. Brown – CEO Scott Pearson – CFO
Slide 2: 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 3: 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
Slide 4: Proud to deliver a strong maiden result in publicly listed environment
For personal use only Proud to deliver a strong maiden result in publicly listed environment 4
Slide 5: Agenda and presenters
Agenda and presenters For personal use only FY21 Highlights 6 1 Overview of NobleOak 9 2 Financial Results 16 Anthony Brown 3 Business Update 22 Chief Executive Officer 4 Q&A 27 5 Appendix 28 Scott Pearson Chief Financial Officer 5
Slide 6: FY21 financial highlights
FY21 financial highlights We are pleased to announce that we have exceeded key FY21 Prospectus forecast measures and are tracking well toward our FY22 Prospectus forecast For personal use only No. of Active Insurance Premium New Business In-force Premium1 Underlying NPAT Policies1 Revenue 77k+ $69.0
Slide 7: FY21 operational highlights
FY21 operational highlights FY21 was a transformational year for NobleOak, with a number of operational milestones being met For personal use only Most Awarded Australian Bolstered Our Team Continued High Customer Direct Life Insurer Total FTEs of 113, up c.12% Satisfaction Levels 2020-21 year-on-ye
Slide 8: Strong, disciplined growth
Strong, disciplined growth NobleOak has a demonstrated track record of strong, disciplined growth For personal use only In-force Premiums ($’000) New Business ($’000) Group Underlying NPAT ($‘000) 80,000 200,000 80,000 8,000 180,000 70,000 70,000 7,000 160,000 60,000 60,000 6,000 140,000 50,000 50,0
Slide 9: Overview of NobleOak
For personal use only 1 Overview of NobleOak 9
Slide 10: Who is NobleOak?
Who is NobleOak? NobleOak is an independent Australian life insurer and a challenger brand to industry incumbents with a strong focus on delivering high-value, easy to understand and competitive products For personal use only • 144-year history as friendly society, and demutualised in 2011 • APRA-re
Slide 11: Culture is paramount for NobleOak
Culture is paramount for NobleOak A values-led approach has been entrenched in NobleOak since the very beginning – our focus on culture today helps create a business with high employee engagement and customer satisfaction For personal use only NobleOak’s beginnings Our values are embedded in our bus
Slide 12: Direct Channel: most awarded direct life insurer
Direct Channel: most awarded direct life insurer (2020, 2021) NobleOak’s market-leading value and service in the Australian life insurance industry has been well For personal use only recognised in the years since its demutualisation Recent awards Canstar Outstanding Value Strategic Insight Overall
Slide 13: Why NobleOak succeeds in the sector?
Why NobleOak succeeds in the sector? NobleOak’s business model and value proposition seeks to capitalise on key opportunities in the life risk industry For personal use only Industry dynamics have created opportunities for a NobleOak’s notable strengths player like NobleOak Diversified revenue strea
Slide 14: Simple business with diversified revenue
Simple business with diversified revenue NobleOak focuses on delivering contemporary life insurance products through various distribution channels For personal use only Direct Channel Strategic Partner Channel Genus Description Affordable and accessible life Tailored life insurance products Purely a
Slide 15: Further growth opportunities
Further growth opportunities NobleOak has significant opportunities to unlock further growth going forward For personal use only Risk retention Organic Inorganic Seek to increase the amount of Value creation and continuous Assessment of opportunities to insurance risk retained by optimisation of the
Slide 16: Financial Results
For personal use only 2Financial Results 16
Slide 17: Key financial metrics
Key financial metrics Key metrics (consolidated level) Commentary For personal use only Variance ▪ FY21 results ahead of prospectus expectations across key measures $’000 / % FY21 FY20 % / bps In-force premiums (ex-Genus) at period end 182,077 109,547 66% ▪ Growth has come from all Channels, driven
Slide 18: Key financial metrics (by segment)
Key financial metrics (by segment) Key metrics (by segment) Segment split For personal use only Direct Channel Direct Strategic Genus Variance Channel Partner Channel $’000 / % FY21 FY20 % / bps In-force premiums (ex-Genus) at period end 57,414 45,654 26% FY20 FY21 New business 11,084 10,020 11% Ins
Slide 19: Consolidated balance sheet
Consolidated balance sheet Strong balance sheet with no debt For personal use only Statutory and pro forma balance sheet at 30 June 20211 Commentary 30 June Pre-Offer Offer Offer Pro Forma Financial Assets $’000 2021 Dividend Proceeds Costs 30 Jun 2021 Assets ▪ Primarily held in short term deposits
Slide 20: Capital base
Capital base Strong capital position above regulatory requirements and capitalised for growth For personal use only Capital adequacy: NobleOak Life Limited – Company Only (not consolidated) Statutory Net Offer Pro Forma $’000 Pre-Offer Dividend 30 June 2021 Proceeds1 30 June 20212 Capital base (a) 1
Slide 21: 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 Commentary Reconciliation ▪ These pro forma adjustments are non-IFRS
Slide 22: Business Update
For personal use only 3Business Update 22
Slide 23: New Distribution Agreements
New Distribution Agreements NobleOak has entered into Distribution Agreements with Auto & General and separately, The Royal For personal use only Automobile Club of Western Australia (RAC) Auto & General Distribution Agreement RAC Distribution Agreement Partnership with leading Australian challenger
Slide 24: Recap of acquisition: Auto & General Portfolio
Recap of acquisition: Auto & General Portfolio On 22 July 2021, NobleOak entered into a binding agreement to acquire the administration rights from Auto & For personal use only General for a run-off portfolio of Budget Direct and Ozicare branded life insurance policies Estimated earnings from Auto &
Slide 25: Operational update
Operational update NobleOak remains operationally resilient amid the latest COVID-19 restrictions For personal use only 1 NobleOak swiftly mobilised to enable all staff to work from home. IT and systems performance remains robust Impact on staff and customers has been minimal, with customer service
Slide 26: Trading update and outlook
Trading update and outlook Strong start to FY22 with high levels of new business and low lapse rates; reaffirming FY22 Prospectus profit forecast For personal use only 1 Discussions well advanced with a global reinsurer pertaining to the Avant book 2 Commence provision of products to Budget Direct a
Slide 27: For personal use only
<x rs) ©) + AjuoO esn feuosied JOS 27
Slide 28: Appendix
For personal use only A Appendix Supporting information 28
Slide 29: Direct Channel: omnichannel client journey
Direct Channel: omnichannel client journey NobleOak’s omnichannel fulfilment platform is designed to deliver a consistent customer journey regardless of lead channel, while also supporting sales conversion and underwriting quality For personal use only 1 2 3 4 ` Stages Lead Initial quote Application
Slide 30: Strategic Partner Channel: tailored products
Strategic Partner Channel: tailored products NobleOak’s Strategic Partners are leading product developers and distributors in the intermediated channel For personal use only Overview of current Strategic Partners Core competencies of meeting customer and adviser needs in an evolving market and displ
Slide 31: Genus overview
Genus overview NobleOak’s administration business generates incremental margin for the Company For personal use only – Background Annual premiums ($m) NobleOak enters into a strategic alliance with Freedom 55.8 As the underlying benefit funds are 2013 Insurance to be its product issuer closed to new
Slide 32: Claims management and reinsurance
Claims management and reinsurance NobleOak manages claims risk through its robust claims management approach and reinsurance strategy For personal use only Claims management that seeks to be effective The majority of claims risk is currently ceded and compassionate NobleOak maintains strong relation
Slide 33: Consolidated income statement
Consolidated income statement Statutory and Underlying results For personal use only Variance $’000 FY2021 FY2020 % Insurance premium revenue1 169,932 105,568 61% Reinsurance expense2 (123,321) (68,930) 79% Net insurance premium revenue 46,611 36,638 27% Investment income (207) 580 (136%) Net commis