FY25 outlook
Focus on Life Insurance
Continue Transformation
Financial Outlook
• Implementation of IT transformation strategy • Enhancement and build out of technology platform has progressed significantly with Phase 1 of back-end functionality now completed • Phase 2 now underway for migration of existing in-force onto new functional platform to achieve scale and efficiency benefits of technology investment (FY26) • Workflow and portal in development
• Life insurance business performance expected to continue to support double digit Underlying NPAT growth 1 as previously communicated • FY26 target Underlying NPAT margin range of 11% -13% • Introduction of interim dividend in HY24 after period of transformation and investment (paid March 2024) • FY24 final fully franked dividend of 1.7 cps - represents 60% payout ratio at top end of target payout ratio • Dividend range to be uplifted post completion of IT transformation investment and wealth management exit (reflects capital generation position)
• Business simplification leads to core focus on life insurance • Continue market outperformance in profitable segments including further market share gains (in a growing market) • Increased exposure to underwriting risk (for new business only), thereby improving margin (over time)
• Complete exit from wealth management business expected by Q3 FY25
• Continue capability uplift - new leaders across key business areas
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1. Subject to achieving the assumptions set in relation to claims, expenses and lapse experience in Board approved FY25-27 business plan.
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