NobleOak Boosts Underlying Profit 22% Amid Market Share Gains and Strategic Growth
NobleOak Life Limited reported a robust 22% increase in underlying net profit after tax for FY25, driven by strong premium growth and expanding market share. Despite a statutory profit dip due to one-off costs, the insurer plans to reinvest cash flows to fuel future growth and transition to a Life Company structure.
- Underlying NPAT rises 22% to $18.3 million
- In-force premiums grow 20% to $464.2 million
- Market share increases to 4.1% overall, 12.8% in new business
- Statutory NPAT falls 23% due to provisions and one-off expenses
- No dividends declared; focus on reinvestment and Life Company transition
Strong Underlying Profit Growth
NobleOak Life Limited has delivered a solid financial performance for the year ended 30 June 2025, with underlying net profit after tax (NPAT) climbing 22% to $18.3 million. This growth outpaces the broader Australian life insurance market, reflecting the company’s successful strategy of expanding its in-force premiums and new business sales.
In-force premiums, a key indicator of the company’s business value, rose 20% to $464.2 million, while new business sales increased 17%, both significantly ahead of industry averages. These gains translated into a market share increase to 4.1% overall and an impressive 12.8% share in new business, underscoring NobleOak’s growing footprint in both direct and strategic partner channels.
Statutory Profit Impacted by One-Off Costs
Despite the strong underlying results, NobleOak’s statutory reported NPAT declined 23% to $7.1 million. This drop is largely attributed to several non-recurring factors, including a general provision for potential Victorian Stamp Duty exposure, tax impacts related to the acquisition of RevTech trail commissions, changes in economic assumptions affecting policy liabilities, and one-off expenses tied to product development and brand campaigns.
These adjustments, while weighing on reported profits, do not detract from the company’s operational momentum and strategic positioning. Management emphasizes that the underlying profit measure provides a clearer view of ongoing business performance.
Capital Position and Reinvestment Strategy
NobleOak maintains a strong capital adequacy multiple of 186%, slightly down from 193% the previous year but still well above regulatory requirements. This capital strength has enabled the company to fund acquisitions such as the FiftyUp Club and RevTech trail commission assets, and to support ongoing growth initiatives.
The board has decided against declaring dividends for FY25, opting instead to reinvest operating cash flows into the business. This reinvestment will support the company’s growth trajectory and the pending transition from a friendly society structure to a Life Company, a move expected to unlock further strategic opportunities.
Operational Highlights and Market Position
Operationally, NobleOak continues to outperform with lapse rates remaining well below industry averages, reflecting strong customer retention. The company’s underwriting margins improved, particularly in the direct channel, supported by disciplined expense management and investments in digital marketing and product innovation.
Customer satisfaction remains high, with NobleOak receiving multiple industry awards and strong ratings on platforms such as Feefo and Google. The company’s strategic partnerships with NEOS and PPS have also contributed to market share gains in the advised business segment.
Looking Ahead
As interest rates are expected to moderate, investment returns may soften, but NobleOak’s low-risk, short-duration portfolio is designed to weather such shifts. The company’s focus on capital discipline, product development, and brand enhancement positions it well for sustained growth.
Investors will be watching closely how the Life Company transition unfolds and how the company manages regulatory and economic challenges, including the Victorian Stamp Duty exposure. NobleOak’s commitment to reinvestment signals confidence in its growth prospects and market strategy.
Bottom Line?
NobleOak’s strong underlying growth and strategic reinvestment set the stage for a pivotal transition and future expansion.
Questions in the middle?
- How will the transition to a Life Company impact NobleOak’s capital and operational structure?
- What is the potential financial impact and resolution timeline of the Victorian Stamp Duty provision?
- How will NobleOak sustain growth amid expected lower investment returns and evolving market conditions?
