NobleOak Life delivered robust FY26 results with in-force premiums climbing 18% to $549.2 million and underlying NPAT up 15%, driven by strong market share gains and operational efficiency.
- In-force premiums up 18% to $549.2 million
- Underlying NPAT rises 15% to $21.1 million
- Reported NPAT nearly doubles to $14.1 million
- Regulatory capital adequacy remains strong at 183%
- Embedded Value per share increases 9% to $2.34
Robust Growth Outpaces Market
NobleOak Life (ASX:NOL) has once again outperformed the Australian life insurance market, posting an 18% increase in in-force premiums to $549.2 million for FY26, well ahead of the industry’s modest 2% growth. New business sales rose 9% to $69.2 million, underscoring the company’s ability to attract customers despite a competitive landscape. The insurer’s market share climbed to 4.7% as at December 2025, up from 4.1% the previous year, reflecting sustained momentum in both its Direct and Strategic Partner channels.
Profitability and Capital Strength
Underlying net profit after tax (NPAT) grew 15% to $21.1 million, exceeding the company’s guidance of 10%. Reported NPAT nearly doubled to $14.1 million, a swing largely attributable to a lower base in FY25, which included significant one-off costs such as the tax impact of the RevTech trail commission acquisition, brand boost advertising, and transition expenses related to the impending Life Company restructure. Earnings per share also improved markedly, with underlying diluted EPS up 11% to 22.04 cents.
NobleOak maintained a solid regulatory capital adequacy multiple of 183%, comfortably within its 140% to 190% target range. This strong capital position provides the insurer with flexibility to support organic growth and invest in strategic initiatives, including its transition from a Friendly Society to an APRA-aligned Life Company, scheduled for completion by December 2027.
Segment Performance and Operational Efficiencies
The Direct segment, which includes NobleOak-branded policies sold directly to consumers, saw in-force premiums rise 8% to $108.2 million and underlying NPAT increase 20% to $10.8 million. This growth was supported by a reduction in lapse rates to 12.7%, outperforming the industry by approximately 2.5 percentage points. The repurchase of the RevTech trail commission has reduced commission expenses by around $3.7 million since December 2024, contributing to an improved underlying insurance margin of 32.4%.
Meanwhile, the Strategic Partner segment, which delivers white-labelled products through adviser networks, experienced 21% growth in in-force premiums to $440.9 million and 11% underlying NPAT growth to $9.7 million. The segment’s underwriting margin was slightly pressured by increased Total and Permanent Disability (TPD) claims, a trend affecting the wider industry. NobleOak’s conservative risk retention and reinsurance arrangements have mitigated this volatility, and product redesign and repricing initiatives are underway to address ongoing claims experience.
The Genus administration business, managing run-off portfolios, saw a marginal decline in in-force premiums and a 10% decrease in underlying NPAT to $0.6 million, with higher expenses offset by fee income from partner portfolio transfers.
Embedded Value and Market Valuation
NobleOak’s Embedded Value (EV), a key measure of long-term shareholder value, increased 9% year-on-year to $2.34 per share as at 31 December 2025, or $217.7 million in total. Excluding a one-off provision for Victorian Stamp Duty exposure, EV growth would have been approximately 13%. The company trades at a significant discount to its EV, suggesting potential upside as the market re-rates its growth prospects.
Strategic Focus and Outlook
Looking ahead to FY27, NobleOak plans to build on its growth trajectory with guidance for in-force premium growth exceeding 12% and underlying NPAT growth above 10%. The company will accelerate growth in its higher-margin Direct book through enhanced sales capabilities, AI-driven automation, and expanded strategic partnerships including nib and Costco. Investment in AI and technology remains a priority to improve productivity, customer engagement, and operational scalability.
The Life Company transition remains on track, promising greater capital efficiency and strategic flexibility. Meanwhile, the company continues to prudently manage regulatory risks, including the Victorian Stamp Duty exposure, where it has secured in-principle ex gratia relief for premiums paid in early 2025, potentially reducing its provision.
NobleOak’s CEO Anthony Brown highlighted the company’s disciplined underwriting, technology investment, and customer focus as pillars of its success, positioning NobleOak well for the next phase of growth.
Bottom Line?
NobleOak’s FY26 results reinforce its position as a fast-growing challenger in Australian life insurance, but the success of its Life Company transition and product redesigns will be key to sustaining momentum.
Questions in the middle?
- How will NobleOak navigate ongoing TPD claims challenges across its Strategic Partner portfolio?
- What impact will the Life Company transition have on capital efficiency and product innovation?
- Can AI-driven sales and automation initiatives deliver sustained improvements in new business growth?