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    NOL   AU0000161580

NOBLEOAK LIFE LIMITED

(NOL)
  Report
Delayed Australian Stock Exchange  -  02:10 2022-09-29 am EDT
1.885 AUD   -0.26%
08/30Transcript : NobleOak Life Limited, 2022 Earnings Call, Aug 31, 2022
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08/30NobleOak Life Limited Reports Earnings Results for the Full Year Ended June 30, 2022
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07/27NobleOak Life Limited Appoints Anand Sundaraj as Joint Company Secretary, Alongside Suzanne Barron
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NobleOak Life : Appendix 4D

02/27/2022 | 05:12pm EDT

For personal use only

Appendix 4D

For the half-year ended 31 December 2021

NobleOak Life Limited

ACN 087 648 708

For personal use only

Appendix 4D

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Consolidated

31 December

31 December

2021

2020

Movement

Movement

$'000

$'000

$'000

%

In force premiums (ex Genus) at period end

226,472

142,389

84,083

59%

New business Sales (annualised premium)

40,177

31,645

8,532

27%

Net insurance premium revenue

30,845

21,306

9,539

45%

Net profit after tax

1,978

2,673

(695)

(26%)

Underlying net profit after tax

4,580

3,107

1,473

47%

Earnings Per Share

Consolidated

Movement

31 December

31 December

2021

2020

%

Basic earnings per share (cents)

2.62

4.49

(42%)

Diluted earnings per share (cents)

2.56

4.38

(42%)

Underlying Basic earnings per share (cents)

6.07

5.22

16%

Underlying Diluted earnings per share (cents)

5.92

5.09

16%

Dividends

Franked

Amount per

amount per

ordinary

ordinary

share

share

Dividend paid

$0.12

$0.12

During FY21, the Directors resolved to determine the payment of a dividend of $0.12 per share franked to 100%. The dividend was paid out of the Company's pre‑existing cash reserves (prior to the IPO) on 20 July 2021. The aggregate dividend amount of $8.2 million was paid to holders of ordinary shares in the Company as at the Record Date of 9 June 2021. (HY21: Nil)

No interim dividend has been declared.

NobleOak Life Limited Appendix 4D

1

For personal use only

Appendix 4D Continued

Net Tangible Assets Per Share

31 December

31 December

Consolidated

2021

2020

Net tangible assets per share:

$1.37

$1.36

Further detailed information is provided in the sections that follow and in the Directors' Report and Operating and Financial Review in the accompanying Condensed Consolidated Financial Report for the half‑year ended 31 December 2021.

RESULTS OF OPERATIONS

NobleOak's strong growth continued over the last six months. As at 31 December 2021, NobleOak had over 94,000 (30 June 2021: 77,000) active Life Insurance policies (excluding Genus), representing over $226 million (30 June 2021: $182 million) of annual in force premiums.

NobleOak has developed a trusted brand in the Australian life risk insurance market, combining contemporary Life Insurance products with a digital technology platform and service‑driven business model. During the half year Noble Oak announced new direct distribution partner arrangements which will see its products marketed and distributed to more than 2.2 million potential customers Australia‑wide. The new partners are:

  • Royal Automobile Club of Western Australia (RAC WA), which was launched ahead of schedule in October 2021,
  • Budget Direct, which was launched in February 2022, and
  • Qudos Bank, launched in December 2021.

Across the business, underwriting performance remains strong with no material claims deterioration, and while expenditure was elevated in the first half of the year due to investment in new Individual Disability Income Insurance (IDII) product development and onboarding new partnerships, this is not expected to continue beyond the short‑term. The half year results also included IPO related expenses which have been excluded from the underlying results, this allows the users of financial information to better assess the underlying performance of the business.

Following its successful Initial Public Offering (IPO) in July 2021, NobleOak has strengthened its balance sheet and capital adequacy levels significantly, and is strongly positioned to continue its growth trajectory as well as meet its obligations to its policyholders and other stakeholders.

NobleOak Life Limited Appendix 4D

2

For personal use only

Appendix 4D Continued

NobleOak achieved the following results for the half year ended 31 December 2021:

31 December

31 December

$'000

2021

2020

Variance $

Variance %

Insurance premium revenue

114,485

73,652

40,833

55%

Reinsurance expenses

(83,640)

(52,346)

(31,294)

60%

Net insurance premium revenue

30.845

21,306

9,539

45%

Investment income

94

140

(46)

(33%)

Net commissions

7,173

6,358

815

13%

Fees and other income

2,128

1,913

215

11%

Claims expense (net of reinsurance recoveries)

(3,982)

(2,399)

(1,583)

66%

Policy acquisition costs

(21,793)

(17,577)

(4,216)

24%

Change in net policy liabilities

(before discount rate movement)

3,193

3,505

(312)

(9%)

Change in net policy liabilities

(discount rate movement)

(910)

(619)

(291)

47%

Administration expenses

(10,954)

(8,759)

(2,195)

25%

IPO expenses

(2,807)

-

(2,807)

n/a

Operating profit

2,987

3,868

(881)

(23%)

Lease interest expense

(29)

(49)

20

(41%)

Profit before tax

2,958

3,819

(861)

(23%)

Income tax expense

(980)

(1,146)

166

(14%)

NPAT

1,978

2,673

(695)

(26%)

Impact of policy liability discount

rate changes (post tax)

637

434

203

47%

Impact of IPO expenses (post tax)

1,965

-

1,965

n/a

Underlying NPAT 1

4,580

3,107

1,473

47%

1 Underlying NPAT is a non‑IFRS financial measure, defined as net profit after tax excluding the impact of changes in policy liability discount rates and IPO expenses. Movements in the discount rate are driven by external economic market conditions and can generate volatility in statutory profits, disclosing an underlying measure of profits, which excludes the impact of changes in discount rates and non‑recurring costs such as those pertaining to the IPO, allows the users of financial information to better assess the underlying performance of the business (as is contemplated by ASIC RG 230 Disclosing non‑IFRS financial information).

Underlying net profit after tax grew to $4.6 million (HY21: $3.1 million) an increase of 47% on the prior corresponding period and 12% ahead of the HY22 Pro‑forma (Underlying) Prospectus forecast of $4.1 million.

After allowing for the impact of changing interest rates on the valuation of policy liabilities and

non‑recurring costs pertaining to the IPO, NobleOak's Reported NPAT increased by 0.4% to $2.7 million (HY21: $2.7 million).

The Company is pleased with the performance of all business segments, each of which has contributed positively during the period and exceeded its respective HY22 Pro‑forma (Underlying) Prospectus forecasts.

NobleOak Life Limited Appendix 4D

3

For personal use only

Appendix 4D Continued

Consolidated

Consolidated

Variance

Variance

After Tax Results by Segment $'000

HY22

HY21

$

%

Direct

2,576

1,693

883

52%

Strategic Partners

1,449

730

719

98%

Genus

555

684

(129)

(19%)

Group Underlying NPAT

4,580

3,107

1,473

47%

KEY METRICS

Consolidated

$'000 / %

31 Dec 21

31 Dec 20

In‑force premiums (ex Genus) at period end

226,472

142,389

New business Sales (annualised premium)

40,177

31,645

Net insurance premium revenue

30,845

21,306

Net insurance premium revenue growth

45%

28%

Underlying gross insurance margin

15%

18%

Underlying Administration expense ratio

10%

12%

Investment return

0.1%

0.2%

Underlying NPAT

4,580

3,107

Underlying NPAT growth

47%

IN‑FORCE PREMIUM AND NEW BUSINESS

In‑force premiums are the key value driver of NobleOak's business, and the Company was pleased to deliver strong in‑force premium growth of 59% on the prior corresponding period to $226.5 million, which is 12% ahead of the Prospectus forecast. This growth was driven by a good sales performance, particularly in the Strategic Partner Segment and continued low lapse rates across both the Direct and Strategic Partner Segment.

New business sales for the six months were $40.2 million, up 27% on the prior corresponding period, as NobleOak continued to achieve strong market share gains in both the direct and intermediated channels. In HY22, sales also benefited from heightened customer activity in the lead up to the 1 October 2021 deadline by which all insurers were required to launch new IDII products in accordance with new regulatory standards. This effectively brought insurance sales forward.

Customer insurance purchasing activity has decreased across the industry since the introduction of the new IDII products. For NobleOak, this has resulted in a reduction in new business sales, which has been offset by a continuation of lower lapse rates. While the outcome for the IDII market is not yet clear, NobleOak anticipates sales in the second half of FY22 to be lower than its Prospectus forecasts which will likely offset the above prospectus forecast sales in the first half of FY22. Importantly, however, the Company expects in-force premiums to be above its Prospectus forecast due to a continuation of lower than expected lapse rates. The Company will remain nimble in its approach until market activity normalises, ensuring it is competitive while managing within its risk appetite.

NobleOak Life Limited Appendix 4D

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

NobleOak Life Ltd. published this content on 27 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2022 22:11:09 UTC.


© Publicnow 2022
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Financials
Sales 2023 97,9 M 63,1 M 63,1 M
Net income 2023 11,8 M 7,60 M 7,60 M
Net Debt 2023 - - -
P/E ratio 2023 14,0x
Yield 2023 -
Capitalization 162 M 104 M 104 M
Capi. / Sales 2023 1,65x
Capi. / Sales 2024 1,50x
Nbr of Employees -
Free-Float 67,6%
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Mean consensus BUY
Number of Analysts 2
Last Close Price 1,89 AUD
Average target price 2,75 AUD
Spread / Average Target 45,8%
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Managers and Directors
Anthony R. Brown Chief Executive Officer & Executive Director
Robert Scott Pearson Chief Financial Officer
Stephen James Harrison Chairman
Matt Minney Head-Claims & Operations
Emery Feyzeny Director