NobleOak Life (ASX:NOL) reported continued growth in in-force premiums and earnings for the first half of fiscal 2026, supported by strong sales momentum, retention performance, and operating leverage, according to comments from CEO Anthony Brown and CFO Scott Pearson during the company’s results presentation.
Management also reaffirmed full-year guidance, pointing to ongoing benefits from scale, automation, and recent product and partnership launches, including a new direct alliance with nib and a new product, Futura, launched with NEOS.
In-force premiums pass $500 million milestone
Pearson provided more detail, stating in-force premiums at December 2025 were AUD 504.8 million, up 19% year over year and 9% higher than June. New business grew 11% over the six-month period to AUD 33.8 million, with management stating the company continued to take “over 10% of market sales.”
While lapse rates increased as the portfolio matures, Pearson said they remained below the industry average at 12.4%.
Underlying profit rises; statutory result affected by stamp duty provision
Underlying net profit after tax (NPAT) increased 11% to AUD 9.6 million in the half, which management attributed to stable margins, operating leverage, and cost management. Pearson said underlying NPAT growth was “in line with guidance.”
Statutory NPAT was AUD 6.3 million, which Pearson said was impacted by an increase in the provision for potential Victorian stamp duty exposure to AUD 6.5 million. He added that total exposure is now capped at approximately AUD 8.5 million.
Pearson said margin stability was supported by improved operating leverage and insurance margins, which he said continued to benefit from the company’s “conservative risk retention.”
Channel performance: direct reaches $100 million; partner channel grows amid TPD claims pressure
In the direct segment, in-force premiums increased to AUD 103.5 million, surpassing AUD 100 million for the first time. Pearson said the company made changes to its direct sales function during the half to improve performance and scalability and to accelerate AI adoption. He noted these structural changes affected new business performance in the short term but were intended to build momentum in the second half and beyond, supported by the new nib partnership.
Direct lapse rates reduced to 13.5%, which Pearson said was around 2% below the total industry average. He also highlighted the repurchase of the RevTech Trail Commission in December 2024, which reduced commissions paid by approximately AUD 2.5 million over the first 12 months and contributed to margin expansion. Underlying NPAT in the direct channel rose 49% in the half, which Pearson described as “a very strong result.”
In the strategic partner channel, in-force premiums grew 23% to AUD 401.3 million, driven by partnerships with NEOS and PPS. Pearson said the new Futura product, launched in October, was already building market awareness.
However, underwriting margins in the partner channel were impacted by higher total and permanent disability (TPD) claims experience. In the Q&A session, management described the increase as an industry-wide development primarily driven by mental health claims across the sector. Brown said NobleOak was seeing the experience in each channel, but that strategic partners had a higher proportion of TPD than the direct book, which is where the experience was coming through. He also said the increased TPD claims had not had a significant impact on the aggregate result due to NobleOak’s lower risk retention in those segments.
Capital position and life company transition
NobleOak reported a regulatory capital multiple of 174%, which management said remained within the company’s target range. Pearson said the net capital movement in the half reflected benefits from the RevTech Trail Commission repurchase and the utilization of tax losses, offset by the Victorian stamp duty provision increase.
Brown also referenced a “transition towards an APRA-aligned life company structure,” which he said would enhance capital efficiency and flexibility over the long term.
Partnership launches, AI initiatives, and reaffirmed FY26 guidance
Brown highlighted the launch of a new nib product range, which he said would provide access to more than 1 million nib members through a fully digital nib-branded life insurance product set. During Q&A, he said the partnership had only been live for a few weeks, but that nib was an “engaged partner” and that the companies were aligned culturally and on targets. Brown said there was a sale on the first day and early traction, while “active marketing” was expected to start in the next couple of months, with more clarity anticipated in the second half of the fiscal year.
Brown also said the Futura product on the NEOS platform targets a different market segment and complements existing advised products. He said Futura had delivered “good early growth since December” and that the company expects benefits in coming periods.
On technology, Brown said the company continues to embed AI “in a very practical and disciplined way,” including deploying an AI underwriting tool to automate data analysis and triage. He said the tool frees underwriters to focus on more complex risks and improves speed, consistency, and quality of decisions. Brown added that over 90% of staff now use AI tools in daily activities, supporting efficiency and scalable productivity.
For the full year, management reaffirmed guidance for in-force premium growth of more than 15% and underlying NPAT growth of more than 10%, citing continued sales momentum, disciplined underwriting, and further benefits from scale and automation.
About NobleOak Life (ASX:NOL)
NobleOak Life Limited manufactures and distributes life insurance products in Australia. The company offers term death, total and permanent disability, trauma, and income protection and business expenses insurance products. It sells its products through direct-to-market and alliance partners, as well as strategic partner channels. NobleOak Life Limited was founded in 1861 and is headquartered in Sydney, Australia.
