NobleOak backs itself on direct life

Life insurer NobleOak Life Limited is promoting itself as Australia’s “fastest growing direct life insurer” and on Friday announced a 23% decline in net profit after tax to $7.1 million but a 22% increase in underlying NPAT to $18.3 million.

The insurer said in-force premium grew by 20% year-on-year to $464.2 million exceeding guidance by around 15% and that the company’s market share had increased to 4.1% driven by new business growth.

The company’s announcement to the Australian Securities Exchange (ASX) noted that it was transitioning to a Life Company structure to improve capital efficiency, streamline governance and support long-term strategic growth.

The company said its 23% decline in net profit was due to the impact of a general provision for potential Victorian Stamp Duty exposure, the tax impact upon acquisition of RevTech trail commissions and economic assumption changes.

It said that due to recent legislative changes in Victoria, NobleOak is clarifying its stamp duty exemption status.

“Depending upon the outcome of this assessment, we may be required to charge higher premiums for Victorian policyholders in the future, impacting member outcomes,” the announcement said. “To manage the transition cost risk, NobleOak has provisioned $2.3 million in FY25.”

Looking ahead, the company said the life insurance and wealth sector is undergoing significant transformation with industry sales volumes improving and regulatory reforms driving higher standards in governance, risk management and customer outcomes.

“Demand for high-quality, transparent and digitally enabled insurance and wealth solutions continues to grow, particularly as consumers seek trusted brands and value for money,” it said.

“NobleOak’s ongoing focus on growth in its direct and strategic partner channels, in addition to its disciplined expansion into strategic adjacencies provides a clear pathway to $1 billion of in-force premium,” it said.