NobleOak’s Underlying Profit Climbs 11% as Premiums Surge 19%

Strong Underlying Profit Growth Amid Statutory Challenges

NobleOak Life Limited has delivered a solid financial performance for the half-year ended 31 December 2025, with underlying net profit after tax (NPAT) increasing by 11% to $9.6 million. This growth reflects the company’s successful expansion in in-force premiums, which rose 19% to $505 million, significantly outpacing the broader Australian life insurance market’s modest growth.

Despite this strong underlying result, statutory NPAT declined by 23% to $6.3 million. The drop is largely attributed to recurring and non-recurring costs, including increased provisions for a potential Victorian stamp duty exposure and expenses related to the company’s ongoing corporate transactions and transition from a Friendly Society to a Life Company.

Market Share Gains and Operational Highlights

NobleOak’s market share improved across both its Direct and Strategic Partner segments. The company’s total market share of in-force premiums rose to 4.4% as of June 2025, up from 3.7% the previous year. New business sales also grew by 11%, supported by strong performance in the Strategic Partner segment, although the Direct segment experienced a slight dip due to internal sales function changes now expected to stabilise.

Operationally, NobleOak maintained a disciplined approach to expense management, reducing its underlying administration expense ratio to 6.7%. The company also reported a lower lapse rate of 12.4%, outperforming the industry average by nearly three percentage points, indicating strong customer retention.

Segment Performance and Customer Recognition

The Direct segment saw a remarkable 49% increase in underlying NPAT, driven by the repurchase of the RevTech trail commission and favourable claims experience. Meanwhile, the Strategic Partner segment experienced a 12% decline in underlying NPAT, impacted by higher-than-expected claims, particularly on Total and Permanent Disability products, and the reversal of prior favourable claims experience.

NobleOak’s commitment to customer service and product quality continues to be recognised, with the company securing Australia’s most awarded direct life insurer title for the seventh consecutive year and multiple industry accolades including Canstar’s Outstanding Value Award and ANZIIF’s Life Insurance Company of the Year.

Capital Position and Dividend Decision

The company’s capital adequacy ratio remains robust at 174%, comfortably within its target range of 140-190%. However, reflecting the need to support ongoing growth opportunities and the pending Life Company transition, the board has decided not to declare a dividend for this period. This cautious capital management approach aims to ensure NobleOak is well-positioned for accelerated growth while maintaining financial resilience.

Looking ahead, NobleOak’s strategic investments in new product development, such as the Wealth Maximiser, and its focus on digital capabilities are expected to underpin future growth and operational efficiencies.