NobleOak’s Embedded Value Rises 9% as Premiums Surpass $538 Million

• Embedded Value up 9% year-on-year to $2.34 per share
• In-force premiums grew 16% to $538 million, beating FY26 target
• Excluding Victorian stamp duty, EV growth would be 13%
• Transition to Life Company structure underway for capital efficiency
• AI investments and digital platform support scalable growth

Embedded Value Growth Signals Strong Market Position

NobleOak Life Limited (ASX:NOL) reported a 9% increase in Embedded Value (EV) to $2.34 per share as of 31 December 2025, reaching a total of $217.7 million. This growth reflects the insurer’s profitable expansion and continued market share gains in Australia’s direct life insurance sector. The EV figure, calculated using an 8.5% discount rate, implies a significant premium to NobleOak’s current share price, underscoring potential upside for investors.

Stripping out a one-off Victorian stamp duty provision, the EV growth would have been approximately 13%, highlighting the underlying strength of the business despite regulatory headwinds.

Premium Growth Exceeds Guidance with $538 Million In-Force

As of 31 May 2026, NobleOak’s in-force premiums surged 16% year-on-year to $538 million, comfortably surpassing its FY26 guidance of more than 15% growth. This premium base provides a stable annuity-like revenue stream, supporting predictable cash flows and earnings. The company’s growth has been fueled by a diversified strategy that includes direct-to-consumer products and white-labelled offerings via strategic partners.

The insurer’s new business market share stood at 14.1% for the year ending December 2025, well above its in-force premium market share of 4.7%, indicating robust momentum in attracting new customers and expanding its footprint.

Strategic Transition to Life Company Structure

NobleOak is progressing a significant structural transition from a Friendly Society to an APRA-regulated Life Company. This move aims to consolidate multiple benefit funds into a single statutory fund, enhancing capital efficiency, governance, and product flexibility. The Life Company structure is expected to better align NobleOak with industry practices and support faster product innovation without requiring APRA approval for changes.

The transition is projected to take two years with a $6 million investment and a payback period of three to four years. During this period, capital is likely to be retained and reinvested to fuel growth initiatives.

Technology and Operational Efficiency Drive Growth

Investments in AI and digital platforms are central to NobleOak’s strategy, enabling faster underwriting, improved operating efficiency, and enhanced customer experience. The company’s minimal legacy systems have allowed it to adopt a human-centred AI approach, which it positions as a competitive advantage in the evolving insurance landscape.

These technological advancements support NobleOak’s ambition to reach $1 billion in in-force premiums, with a clear pathway underpinned by scalable digital infrastructure and disciplined capital management.

Outlook and Next Steps

NobleOak will release its full FY26 financial results on 28 August 2026, providing further detail on profitability and cash flow performance. Given the strong premium growth and embedded value gains reported, the market will be watching how these translate into bottom-line earnings amid the ongoing Life Company transition and regulatory environment.

Bottom Line?

NobleOak’s solid Embedded Value growth and premium expansion reflect a maturing direct insurer poised for scalable growth, but the Life Company transition and regulatory provisions remain key factors to monitor.

Questions in the middle?

• How will the Life Company transition impact NobleOak’s capital efficiency and product innovation timeline?
• Can NobleOak sustain its new business market share gains amid increasing competition?
• What are the implications of the Victorian stamp duty dispute on future pricing and profitability?