ClearView prioritises wealth management exit
ClearView has said it expects to completely exit wealth management by the third quarter of FY25.
In its full-year results for FY24, the firm said its wealth management businesses incurred an underlying operating loss of $4.7 million during the year. Total funds under management were $3.5 billion.
It has stated it is now seeking to exit from wealth management due to its “lack of scale and limited growth options” and will instead focus on life insurance.
A full exit of financial advice has already been completed via the sale of a 24.4 per cent interest in Centrepoint Alliance in November 2023.
During the year, the firm disposed of its investment management business to Human Financial and the retirement of the ClearView trustee. In progress is the unwinding of life investment contracts upon the successor fund transfer.
“Significant progress has been made on the exit including completion of the sale of the funds management business, ClearView Financial Management Ltd, to Human Financial in January 2024. The superannuation fund trustee, ClearView Life Nominees Pty Ltd, retired as the trustee of the ClearView Retirement Plan in December 2023, with the simultaneous appointment of Equity Trustees Superannuation Ltd in its place.
“The final milestone remaining is the completion of the trustee’s successor fund transfer that will result in the de-recognition of the group life investment contracts and related assets from the balance sheet.
“This is in train and expected to occur in FY25. Once this occurs, ClearView will have no residual wealth exposure resulting in a simpler, less complex business focused on life insurance only.”
Group underlying net profit after tax was $35.3 million, up 25 per cent from the previous year.
Managing director Nadine Gooderick said: “The group’s results are underpinned by a sound strategy to focus on simplification and its core Life Insurance business, ongoing investment in technology and transformation, and disciplined execution.
“This year has been all about growth – our market share, results, and capabilities – I’m so proud of what the team has achieved. Business simplification and transformation remain key strategic priorities and we have achieved significant milestones this year. The business has demonstrated strong performance, it has a solid balance sheet and capital position, and is on track to achieve its FY26 targets.”
ClearView declared a final fully franked dividend of 1.70¢ per share.
AUTHOR
Laura Dew
Recommended for you
VBP consultant Sue Viskovic has warned advisers thinking of going self-licensed that they need to act “from a business head, not an adviser head” when it comes to scaling up their practice.
An inquiry is due to probe the collapse of Dixon Advisory and its impact on the Compensation Scheme of Last Resort.
A report has highlighted a growing appetite among high-net-worth individuals for private market investments, creating a significant opportunity for advisers.
The two firms have announced a new online development program to support career changers, advice support staff and university graduates in joining the financial advice profession.
