Thank you. Good morning, welcome to NobleOak's financial year '26 presentation.

I'm joined by our CFO Scott Pearson. I'll start with the year's highlights, um, and then Scott will cover some of the financial results.

Then I'll then return to discuss the strategy and the FY '27 outlook before we open up for questions. NobleOak remains one of Australia's fastest-growing and most awarded direct life insurers.

We are an APRA regulated friendly society with predictable annuity-like revenue. In August '26, we were named the AFA Life Insurance Company of the Year for the second year running.

As a challenger brand, we are very pleased with that accolade. Uh just turning to slide 4, our purpose is to protect Australian lives and more with integrity.

We offer term life, TPD, income protection, and trauma and business expenses cover through these three channels. Direct is our higher-margin channel with around 57,000 policies.

Strategic Partners is our high-growth advised portfolio with more than um uh uh sorry more than uh 115,000 policies supported by Neos, PPS, and now Futuro protection. Genus is our smaller administration business and continues to support portfolios in run-off.

It was another year of substantial growth. In '26, in-force premiums grew 18% to $549 million.

That was supported by strongly business and lapse rates which were well below industry. New business rose 9% to $69 million.

Across direct and strategic partner segments, our new business market share was just over 14%. Underlying NPAT grew 15% to over $21 million, and that was supported by disciplined insurance and expense management across the business.

Before we cover the results in a bit more depth, let me briefly explain what sets NobleOak apart. NobleOak has a clear pathway to $1 billion in in-force premium, and we are on track to achieve it.

This path is supported by a predictable in-force premium revenue, an experienced team, a scalable digital platform, and growing economies of scale. As a high challenger high-growth challenger with multiple levers to expand and diversify earnings, our customer-first culture, limited legacy, and pragmatic application of AI will really support this growth and efficiency.

Our move to the life company structure will improve capital efficiency and flexibility while we continue to support long-term growth. Together, these things support growing cash flow, disciplined capital management, and greater options as we scale.

Slide 6 really shows our growth in side terms. It highlights the strength of our performance across three key measures.

On the left is the sales market share. Uh in the middle is our in-force premium growth, and underlying NPAT is on the right.

Together, these metrics really demonstrate the scale of growth we've achieved and the momentum that we've built across the business over the last 10 years. This value has been a result of above-market new business growth and below-market lapse rates, which drive market share and in-force premium growth, while stable margins and scale support our underlying NPAT growth.

In fact, in-force premium premiums grew from $4 million to $549 million over the last 10 years. Over the same period, underlying NPAT increased from $1.3 million to $21.1 million.

As the portfolio matures, we expect scale and operating leverage to further support this earnings growth. Just turning to slide 7, uh just want to spend a moment on what we believe is one of the most important aspects of the current NobleOak investment case.

Since our IPO, our EV, or embedded value, per share has grown by 53% from $1.24 sorry $1.53 to $2.34, while the share price has fallen by around 40% over that same period, reflecting a pattern seen across many micro and small cap stocks. As a result, NobleOak today trades at more than a 50% discount to embedded value despite continued growth in premiums, profits, and market share.

We believe good execution, increasing market awareness, and continued growth provide a very compelling journey for that gap to narrow materially over time. Turning to slide 4, importantly, the team has remained focused on scaling the business for both short and long-term success.

Strong sales growth and continued lapse outperformance drove momentum across both direct and strategic partners. Market share in total increased from 4.1 to 4.7%, the highest it's ever been, while active policies grew 12% to more than 173,000.

We also launched a new direct alliance with nib and introduced a new Futuro protection product with our Neos partners. Our capital position remains strong, and Scott will touch on that shortly.

We've continued to embed AI in a practical way that improves efficiency, enhances customer outcomes, and supports growth. We're also making good progress on our transition to life company, which remains on track for completion by December '27.

Overall, we're really happy with how these [unclear] have progressed. I'll now hand over to Scott for some of the financials.

Thank you, Anthony. Good morning, everyone.

Um FY '26 was a strong year again for NobleOak, as clearly reflected in the financial highlights on this slide. We're pleased to report our in-force premium and underlying NPAT both exceeded guidance, driven by disciplined execution and strong retention rates.

In-force premium grew 18% to $549 million, while new business increased 9% to $69 million. Lapse rate was 12.5%, about 2.7 percentage points better than industry average.

Looking at profit, underlying NPAT rose 15% to $21.1 million, and reported NPAT increased by 98% to $14.1 million, mainly because the prior year included a number of one-off costs. Looking at profit per share, underlying diluted EPS increased by 11% to 22 cents, and reported diluted earnings per share increased by 91% to 14.77 cents.

Embedded value rose 9% to $2.34 per share, or 13% if you exclude the one-off impact of the stamp duty Victorian stamp duty provision. This growth underscores the long-term value we're continuing to build for shareholders.

Our regulated capital multiple was 183%, at the top end of our target range, as our capital base continues to grow. This strong capital position will support both growth and provides a prudent buffer ahead of our life company transition.

At this stage, we continue to retain capital to support growth, but we plan to review our capital management framework, including the potential for distributions, upon the completion of the life company transition. I will now cover our group financial performance in a little more detail.

In-force premium rose 18% to $549 million, supported by strong sales and policy retention rates. New business grew 9% to $69 million, ahead of the market, which grew by about 4%, helped by our new nib alliance and the new Futuro product launch.

Lapse rates increased slightly to 12.5% as the portfolio matured, but remained better than the in- industry average. Underlying gross insurance margin reduced by 1 percentage point to 10.6% due to higher TPD claims in the Strategic Partner segment.

We're managing this industry-wide trend through conservative risk retention and market pricing actions. Importantly, increases in direct margins partly offset the impact of the this impact, which was helped by the RedRec trail commission purchase and favorable claims in the Direct segment also.

Underlying administration ratio improved 0.6 percentage points to 6.6% as we benefited from economies of scale. This improvement and the strong direct margin helped offset the claims pressures in the Strategic Partner segment.

Underlying NPAT rose 15%, as I mentioned, to 21.1% and, again, reported NPAT increased by 98% to $14.1 million. Importantly, stable margins and better operating leverage continue to support our business going forward.

Turning to slide 13 and the Direct segment. Direct in-force premium rose 8% to $108 million, while active policies increased 7% to more than 57,000.

As flagged at the half year, we made some changes in the direct sales function to improve performance, uh with new business remaining at tense $10 million in FY '26. Pleasingly, momentum recovered in the second half of FY '26, and we have started FY '27 in a strong position, with sales up over 10% in the month of July compared to the prior year.

Lapse rates improved in the Direct segment to 12.7% from 14.6%, about 2.5 percentage points better than industry average. Again, noting the RedRec trail commission re- repurchase has reduced commissions by about $3.7 million since acquisition in December '24.

Together with favorable claims experience, this has uplifted our underlying gross insurance margin by 1.2% to 32.4%. The adminis- administration expense ratio held at 19.8% despite the half year brand boost campaign costs.

As a result of all these factors, the direct underlying NPAT rose 20% to $10.8 million. In the Strategic Partner segment, in-force premium grew 21% to 40 100 $440 million, and new business increased 10% to $59 million, again, ahead of the market growth, which was about 4%.

Both partners, Neos, PPS, and Futuro, drove this growth. Lapse rates in this segment was 12.5%, which remains better than the industry average of about 15.2%.

In this segment is where higher TPD TPD claims reduced our margins. As a As guided, this is a market-wide trend.

Our conservative risk retention and pricing actions have limited the impact, and we've also been reviewing TPD product designs in FY '27. The administration expense ratio improved 0.3 percentage points to 3.3%, benefiting from scaling.

Pleasingly, underlying NPAT in the Strategic Partner segment increased 11% to $9.7 million including the TPD experience. Turning to slide slide 15, NobleOak remains well capitalized with a capital adequacy ratio of 183%, at the top of our target range.

Capital benefited from the RedRec trail commission repurchase and the use of tax losses that and was partially offset by Victorian stamp duty provision. It's important to note, though, the stamp duty exposure has now been capped, with an in-principle discharge relief received, which has reduced the final impact of this transition.

A strong capital position gives us flexibility for the future to fund growth, invest in the business, and progress the life company transition. As noted earlier, we plan to review our capital management framework, including the potential for distributions upon completion of that life company transition.

Results are very pleasing, and with that, I'll hand back to Anthony.

Thanks, Scott. While we understand AI remains a developing technology and many companies are yet to benefit from it, we are pleased that we've seen some measurable benefits from pretty modest investments in AI across NobleOak.

We thought um it'd be good to provide an example of how we're creating value from AI and automation. We'll focus this update today on one particular area of the business, direct sales.

We consolidated our sales and customer data into one single platform, Microsoft Fabric, and we've made several improvements across our CRM platform, our analytics, and our automated phone system called the dialer. This has improved customer insights and has automated quite a lot of manual processes.

We're also starting to use predictive models to improve how we manage our leads as well as workforce planning and customer journeys. The results have been very clear so far.

Every call through the sales team is quality checked through an AI platform. Contact rates are up more than 15% through 2026, and our conversion rates have also improved.

With less agents and lower CAC, cost of acquisition, we have maintained sales levels. This is helping us grow without substantially increasing headcount, making it a real driver of efficiency, scale, and future earnings for the business.

Just turning to slide 18 and then 19. For FY '27, we target in-force premium growth above 12% and underlying NPAT growth above 10%.

This is supported by the full-year contribution from nib and Futuro and some automation gains. Our path to $1 billion is supported by three key priorities: market growth, embedded value growth, AI and technology, capital discipline, and, of course, the life company transition that we spoke about, which remains on track.

Overall, we're really pleased with the year. We hope we hope you are um as well.

I'd like to thank the NobleOak team for their work this year, and thank you very much for your continued interest and support. I'll hand back to the operator for questions.

Thanks very much.

Good day, guys. Just a quick question around the the lapse rates.

It would look like that's come down a bit from where they were in the previous year. Just any observations around that and maybe do you think that's sustainable or is it is there something kind of transitory going on that might tend to increase into the next year?

Thanks, Nick. Um, uh in aggregate across the portfolio, they've they've they've gone up a bit, but the key reduction we've seen by uh 2 points is in the Direct segment where we did we have seen, I guess, the these peak pressures and the economic um factors sort of flatten out, and actually see the their their lapse rates dialed back in that direct segment.

We'll con- um So, that's that is very pleasing. Um we'll be monitoring that again as we see peak-to-peak price exchange in the marketplace over the over the next 12 12 months, but that what we what we've definitely seen um the lapse rates sort of peak in the market and start to come back.

Cool. Um that's helpful to understand.

Um I think new policy sales in the direct business have kind of averaged $10 million a year now for quite a while. Is that is that kind of the natural run rate that you think exists in the market?

Obviously, peddling hard with new um partnerships and alliances to get back, but is that is that the kind of number that you think is uh sustainable or is there is there upside um to that over time? Hi,

Nick. It's Anthony here.

It's a it's a good question. Um as I mentioned, we did put a bit of time and resource into kind of readjusting the sales team and some of the tools and systems that they use, including the dialer, and we've actually rebuilt the team so we could actually move above move above that $10 million level.

I'm pleased that we are actually tracking around 10% above this time last year. We're starting to see the benefits of that work come through.

That's really coming through through better conversion rates um and uh better contact rates. In short, we are expecting some uplift uh, Nick, and we've got a couple of new partners that we talked about as well.

Uh but we've always got the cost of acquisition that we have to manage. We're very disciplined about keeping that, at bay as well.

Okay. Then with some of the proposals that the government made last week around um, yeah, what advice within super could look like, my understanding is potentially life is included in that.

How do you think about your ability to provide, just you know uh, I don't know what you'd call it, general or maybe mildly more specific advice to the people that you are speaking to in that direct channel?

We're really supportive of those of those changes, Nick, um and we think we'd be really well-positioned. If there is this sort of um new type of advisor introduced, that would allow us to provide advice more in-depth advice in relation to life insurance.

A lot of people do ask questions that would help them take out policies that were unable to answer in a general advice capacity. Uh but these changes would would actually help our direct business, we believe, quite quite substantially.

You think that the people that you've got in the team are kind of equipped with the right um skill set to provide quote, unquote, advice, or there's a small amount of training to get them to the point where they could improve the conversion um for people that maybe are asking questions that you can't answer at the moment?

I think both of those things are true. We've um we've got some good quality people in there that uh when you look at the new class of advisor, we we believe a number of those, would would be capable of delivering that.

Of course, there would have to be training, quite um substantial training, because it it still sets within our our license. We have to make sure the quality of what we deliver is, 100% like we currently do now.

We don't think it's a huge transition. Uh we see a lot more opportunity, and we've been looking forward to this reform reform, we really hope that they do go through as planned.

All right. Thanks for that.

I'll let someone else ask a question.

Hi, guys. Uh thanks for taking the question.

Done on a strong result. Just on the um margin trajectory, and I might start with Direct on slide 13, um strong improvement um over the last 2 years, FY '24 to FY '26.

A touch under an impact margin of 10.6. Is this as good as it gets, or can you squeeze a little bit further?

Uh if you if you go out 5 years, what sort of potential figure could you target? Um

the margin in Direct has actually improved quite a deal over the last uh 2 years um, Phil. Um uh with a significant driver being the the we we have the acquisition of the RedRec trail commission.

Um, um so that of which has actually improved the insurance margin line. We will be and so so so um that um transition obviously will continue into the future, with the margins remaining at at the higher levels as a result of that.

The key driver and the benefits we should see going forward in the direct channel is actually the economies of scale as we grow the business. We we should be able to see that expense ratio, which is 19.8% in the in the year, come down further.

Right. Um and then if you touch on uh Strategic Partners has gone the other way.

Um you talked about TPD, but other than pricing, um admin ratio was a little bit better a couple of years ago. Can you can you improve with with scale in the admin expense ratio, or is uh is 3.3%?

Is that you know 3.3% um appropriate going forward?

Thanks, Phil. I think um the key benefits we we should be able to see in the in the Strategic Partner segment is actually will will be driven by the underlying underlying insurance margin line as we reprice the broader portfolios.

2.3 0.3% it might be challenging to continue to get economies of scale out of the Strategic Partner business, but there but but though I wouldn't expect that that ratio um uh to be increasing in future. It we should see it stabilized.

It could keep coming downwards as the book grows.

Thanks. Uh that was all.

Done on a good result.

Thanks, Phil.

just two questions for me, thanks. I was just wondering um is it roughly about 5 years it would take you to get to $1 billion in in-force premium at your current growth rate?

If you're going to get If that's double market share, is there any um time when the other players look at you as a competitive threat and make it more difficult?

Hi Hi, Michelle. It's Anthony.

There's no way we're going to commit to a timing [laughter] over the phone. No, you Look, you're right.

We are trajectoring well to the $1 billion. We do expect to get in the in the next few years.

We're already on the um on the competitors' radar because we've got 14% new business market share now. Uh so, um that We can't really see that that change.

Because while um we're not expecting a huge uplift in percentage of new business each year from here, because we're achieving around 14%, our in-force market share will naturally increase. It's currently 4.7%.

We're we're aiming to get that to over 10%, which is equivalent to the $1 billion.

I

I guess that's the sure way of saying we're on the trajectory if we keep around the over 10% uh new business uh share. Um and um, we will we will get to that level.

We don't believe that that will change the um competitor landscape, as we're already at that 14% new business share.

Thanks for that. Then just a um uh a admin-type question or an accounting-type question.

The Victorian stamp duty provision that's on the balance sheet for $5 million, um do we assume that that is actually the amount owing um ex the relief that you've got from the Commission and that's just going to be paid out of cash um in the future, but you've already provided for it? Uh

thanks, Michelle. Scott here.

The answer to that is is is yes. That's um We put a prudent provision in the accounts.

We do not expect any future uh provisions required. We think we hope that it's conservative.

Thank you. That's it from me.

Thanks.

Good day. Um can you just help us through the how you go from um 12% in-force growth to 10% profit growth?

Is that conservatism, or have you assumed that your admin ratio um kind of isn't isn't as strong as it was in '27 as it was in '26?

Thanks, Nick. Um obviously, last year, we had 15% uh on top line and 10% on the bottom line.

Um and as as uh as we grow, that percentage um growth target uh uh uh with the same level of dollar growth, that percentage target always come down. We're actually um So, the 12% in-force growth we've um and and 10% margins are our commitments going forward.

I think the key is we we uh we had did see some pricing increases in FY '26, which actually saw in-force growth a little bit higher than the then then anticipated. I guess the key for for the for the you and the market Nick is that we uh we'd like to set targets that we know you can be confident in and we're going to achieve, and and and we'll and we'll um and we aim to to exceed those in FY '27.

Cool.

Thank you. Thank you for your questions and for your continued support.

It's it's been a really strong year, and we're looking forward to having another strong year in '27 as well. On behalf of the board and management, just a huge thanks to our passionate team, partners, advisors, and, of course, the shareholders.

Look forward to updating you on progress throughout the year. Thank you very much.