NobleOak Hits $500M In-Force Mark as Profits Jump 11% on Path to $1B Target

NobleOak crosses $500m in-force milestone as profits climb 11%

NobleOak Life Ltd (ASX: NOL) has crossed the $500m mark in its H1 FY26 results, reaching $504.8m in in-force premiums, representing 19% growth on the prior corresponding period. The NobleOak $500m In-Force Milestone positions the life insurer at the halfway point toward its stated $1bn in-force target, validating the growth trajectory investors are backing. Underlying NPAT climbed 11% to $9.6m, whilst market share now sits at 4.4%, up from 3.7% at June 2024.

The company’s lapse rate of 12.4% remains approximately 2.8 percentage points below industry average, reflecting strong customer retention. New business market share reached 13.8%, sitting 3.8 percentage points above the long-term target and demonstrating accelerating momentum in both direct and advised channels.

Key performance metrics for H1 FY26:

• In-force premiums: $504.8m (+19%)
• Underlying NPAT: $9.6m (+11%)
• Market share: 4.4%
• Lapse rate: 12.4%
• New business market share: 13.8% (3.8ppts above target)

The $500m milestone demonstrates execution toward the $1bn goal, providing investors with tangible evidence that the platform is scaling as management outlined.

What is in-force premium and why does it matter?

In-force premium represents the total annual premium value from all active policies on NobleOak’s books. This metric functions as an annuity-style revenue base, providing predictable recurring income that compounds over time without requiring continuous new sales to maintain revenue levels.

Each dollar of in-force premium generates ongoing revenue streams, creating visibility for investors assessing the company’s earnings trajectory. When combined with NobleOak’s strong lapse performance (which means keeping customers rather than losing them to cancellations), the value of the in-force book compounds as the business retains premium-paying policyholders.

This metric is the primary driver of NobleOak’s valuation and revenue visibility. Crossing the NobleOak $500m In-Force Milestone indicates the platform is scaling successfully, with the recurring revenue base now large enough to support margin expansion as fixed costs are spread across a larger premium pool.

Channel performance shows direct business accelerating

The Direct Channel delivered underlying NPAT growth of 49%, rising from $3.2m to $4.7m. The result was driven by the repurchase of RevTech trail commissions, which delivered $2.5m in savings during the first 12 months. In-force premiums in the direct channel reached $103.5m, up from $96.2m, whilst the lapse rate improved to 13.5%, approximately 2% below industry average.

Management noted that sales performance is expected to improve in H2 as the new team and processes embed. The RevTech buyback is delivering tangible margin improvement, demonstrating disciplined capital allocation that directly enhances profitability.

Direct channel key metrics:

• Underlying NPAT: $4.7m (+49%)
• In-force premiums: $103.5m
• RevTech trail repurchase savings: $2.5m (first 12 months)

Strategic Partner Channel maintains growth trajectory

The Strategic Partner Channel recorded in-force premiums of $401.3m, up from $326.8m in the prior period. Underlying NPAT came in at $4.4m (prior period $5.0m), with the margin impacted by industry-wide TPD (Total and Permanent Disability) claims experience. However, NobleOak’s conservative risk retention strategy and lower TPD exposure across its portfolio mitigated the impact relative to peers.

Growth in the Strategic Partner Channel was driven by partnerships with NEOS and PPS, alongside the launch of the new Futura product. The underlying gross insurance margin for this channel stood at 4.1%.

nib partnership and Futura product expand growth runway

NobleOak launched a new alliance partnership with nib, one of Australia’s largest private health insurers, in February 2026. The partnership combines nib’s wellbeing focus with NobleOak’s award-winning, fully underwritten cover spanning life, TPD, trauma, and income protection. The offering is available to nib’s Australian customer base and new members, with nib-branded products leveraging the digital-first strategies of both organisations.

In December 2025, NobleOak launched the Futura product on the NEOS platform. Futura includes life, TPD, critical illness, child, and income protection cover, targeting a distinct market segment. The product complements NobleOak’s existing advised offerings and extends the company’s longstanding partnership with NEOS, which has generated strong early growth.

Both initiatives extend distribution reach without requiring NobleOak to build direct sales infrastructure. Multiple new distribution channels de-risk the growth strategy and provide optionality beyond organic direct sales, giving investors confidence in diversified revenue pathways.

AI investment targeting operational efficiency

NobleOak is deploying an AI strategy to drive operational efficiency and competitive advantage. The company has deployed an automated underwriting solution that analyses data, enabling underwriters to focus on complex risks rather than routine assessments. A project is underway to deliver end-to-end automated policy issuance, targeting faster and more accurate service delivery.

Management frames the AI investment as a competitive advantage, positioning the business to scale without proportional cost increases. This supports margin expansion as the in-force book grows, with technology absorbing operational workload that would otherwise require headcount additions.

Capital position and FY26 outlook

NobleOak reported a capital adequacy multiple of 174%, within the target range of 140-190%. Assets above target stood at $6.4m, providing a buffer for reinvestment whilst maintaining regulatory compliance.

Statutory NPAT of $6.3m was impacted by a $6.5m (before tax) provision for potential Victorian Stamp Duty exposure. The potential exposure is capped at $8.5m, with discussions ongoing. Excluding this provision, underlying financial performance remained robust.

Management reaffirmed FY26 guidance, targeting in-force premium growth of >15% and underlying NPAT growth of >10%.

FY26 outlook metrics:

• Capital adequacy multiple: 174% (within 140-190% target range)
• Assets above target: $6.4m
• Victorian Stamp Duty provision: $6.5m (before tax, capped at $8.5m)
• FY26 guidance: In-force growth >15%, underlying NPAT growth >10%

The strong capital position within the target range supports continued reinvestment in growth initiatives whilst maintaining a regulatory buffer, giving management flexibility to deploy capital opportunistically.

Pathway to $1 billion in-force

NobleOak outlined its strategic roadmap toward $1bn in-force premiums, which represents approximately 10% market share of the $11bn individual life risk market. The growth phases are:

1. Establish a platform for growth (completed)
2. Scale in core markets (current phase)
3. Diversify into wealth adjacencies
4. Leading challenger in life and wealth

The company is undergoing a Life Company transition from its current Friendly Society structure. The transition involves a two-year implementation period, a $6m investment, and an expected 3-4 year payback period. The Life Company structure will provide greater capital efficiency and product flexibility, removing the requirement for APRA approval on future product changes.

Clear articulation of these growth phases gives investors visibility on how management expects to double the business from current levels. The NobleOak $500m In-Force Milestone validates the strategy’s execution to date, with the company positioned at the halfway mark toward its $1bn target.

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