Company Interview / Strong roots & rising returns for NobleOak

NobleOak Life (ASX: NOL) has reported another strong year, with Anthony Brown highlighting 20% growth in in-force premiums for FY24 and a 22% y-o-y rise in net profit. Brown says the success is due to growth in both the direct-to-market life insurance product, which have outperformed market averages. Brown says that organic growth remains the primary strategy, maintaining over 12% market share in new business across the industry, and sets a target of reaching $1 billion in in-force premiums within a decade.

Despite a slight increase in lapse rates, attributed in part to affordability challenges and a newer customer portfolio, Brown expresses confidence that Noble Oak can keep lapse rates below industry averages due to strong products and effective client service strategies. Investment in technology and AI continues, with Brown explaining that the integration of AI in quality assurance has created efficiency gains, and the business’s cloud-based platform allows rapid adoption of new digital tools.

Regarding dividends, Brown says the current focus remains on reinvesting for growth and transitioning the structure to a more capital-efficient life company. Brown points to low market liquidity as a barrier to share price growth for but expects rising awareness and trading activity to unlock value.

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