With a focus on profitable growth
FY24 Life Insurance Underlying NPAT up 23% to $39.5m; Underlying Life NPAT margin of 11.0% - AASB 17 basis
400 FY26 Target Life Insurance Underlying NPAT Margin 11%-13%
Underlying NPAT margin of life insurance business: • Improved margin between periods reflects interest rate changes, strong business momentum and performance (benefits of transformation program) • FY24 Underlying NPAT margin of 11.0% - impacted by TPD and income protection claims • Claims assumptions updated to reflect increased TPD and income protection claims costs 2 • Further phase of the gross premium repricing cycle in CY25 to cover the increased claims and (if applicable) reinsurance costs across these products 3 • The above has been allowed for in FY26 target margin range of 11% - 13% • Improving target margin range (over time) driven by scale benefits, increased exposure to underwriting risk for new business (from 1 October 2023) and operational efficiency savings from IT investment (FY26)
Life Underlying NPAT ($m) and Margin (%)
FY24: 11.0%
21.00%
325.2 FY23: 9.9% 1
358.1
19.00%
350
17.00%
300
15.00%
250
13.00%
200
180.1
178
11.2%
165.2
11.00%
160
10.5% 10.9%
150
9.2%
9.00%
100
7.00%
39.5
50
32.1
5.00%
20.1
19.4
17.4
14.7
3.00%
0
FY23 1H FY23 2H FY24 1H FY24 2H
FY23
FY24
Gross Premium
Life Insurance Underlying NPAT
Underlying NPAT margin
1.2H FY24 Underlying NPAT margin restated to 10.5% (from 10.1%) to remove impacts on Underlying NPAT from changes in claims assumptions in FY23 to ensure consistency between periods. FY23 total margin restated to 9.9% (from 9.7%) 2.FY24 claims assumption changes include updates to the incurred but not reported claims delay assumptions, in particular in relation to TPD claims 3.Ability to change premium rates (subject to competitor and customer pricing risks) to allow for any change in assumptions and reinsurance costs (if applicable)
15
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