ClearView earnings up 14% following separation of financial advice arm
ClearView Wealth Limited has reported operating earnings after tax of $13.9 million, up 14% on the previous corresponding period, following the sale of its financial advice arm to Centrepoint Alliance.
Reporting its half yearly results to 31 December 2021, ClearView said its underlying net profit after tax (NPAT) moved up 5% to $12.7 million, following the sale of its financial advice business to Centrepoint Alliance on 1 November, 2021.
The firm highlighted improving industry performance, steady improvements in life insurance claims, lapse experience and resilience to COVID-19 as key reasons for their positive results.
ClearView managing director, Simon Swanson, said: “ClearView continues to drive transformational change through the delivery of key projects and out significant investment in technology, processes and people will underpin our medium to long term growth.
“With the pace of regulatory and structural change easing, and COVID-19 seemingly having reached its peak in Australia, our focus is on accelerating growth and the business is well positioned to take advantage of the projected rebound in the life insurance market.”
Total funds under management increased by 19% to $3.6 billion as the firm highlighted a more targeted focus on life insurance and wealth management following the sale of its financial advice businesses.
Life insurance gross premium income increased 7% to $147.6 million with life insurance operating earnings up 8% to 13.4 million. New business writeups to life insurance moved up 24% to $10.4 million.
Meanwhile, wealth management operating earnings after tax jumped by 95% to $1.1 million.
The life insurance and wealth management business drew attention to its launch of a new life insurance product series, ClearView ClearChoice, with more sustainable margins in line with regulatory and structural change.
ClearView’s balance sheet showed a net surplus capital position of $19.2 million, backed by net cash and investments of $385.1 million.
It said embedded value sat at $651 million or 97.3 cents per share, as at 31 December, 2021 and that it had a strategic 24.5% holding in Centrepoint Alliance.
“ClearView’s strong balance sheet and capital base supports the group’s ability to meet its obligations to policymakers, customers and regulators,” the firm said.
ClearView said its Strategic Review, which had been announced in September and delayed due to COVID-19, had formally commenced this month. The review would aim to maximise shareholder value, determine the optimal future of the company and enhance customer and policyholder outcomes.
AUTHOR
Liam Cormican
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