NobleOak Life says in-force premium is “the key value driver” of its business, fuelling a 35% rise in full-year underlying net profit after-tax to $9.5 million.

In-force premium surged 40% to $254.6 million for the year to June 30, driven primarily by strong sales across the direct and strategic partner segments, with continued low lapse rates the primary driver of the performance.

The life insurer says the 35% jump in underlying earnings and in-force premium growth exceeded by 4.9% and 9.1% the targets set out in its public listing prospectus. NobleOak Life listed on the Australian Securities Exchange in July last year.

The direct channel achieved a 50% rise in underlying net profit to $5.4 million and the strategic partner segment a 52% increase to $3.2 million.

“In FY22, we delivered another year of strong growth in in-force premiums and underlying profits across our three channels, exceeding our key prospectus forecasts,” CEO Anthony Brown said.

“While new business continues to be impacted across the whole industry by reduced buying activity, as the market adjusts following the introduction of new, more sustainable, individual disability income insurance policies, we continue to increase our market share.

“Our lapse rates remain materially below the market and will continue to support strong in-force premium growth over the medium-term.”

New business fell 11.7% to $60.9 million, NobleOak Life says, as activity has remained relatively subdued as expected as many existing policyholders retain their pre-existing cover.

The industry launched new individual disability income insurance (DII) products by October 1 last year, the deadline set by the Australian Prudential Regulation Authority (APRA).

“Whilst conditions are yet to fully normalise, NobleOak anticipates a level of improvement over the next 12 months, with lower lapse rates than historical levels to partially offset reduced new business activity,” the life insurer said.

“The company will remain disciplined in its pursuit of new business, ensuring its products remain competitive while appropriately operating within its risk appetite.”