Insignia reports $17m NPAT loss in 1H25
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results.
However, the firm said this is an improvement from a loss of $50 million in the prior corresponding period thanks to cost optimisation measures enacted during the period.
Average funds under management and administration (FUMA) increased by $25 billion to $320 billion, an increase of 8.6 per cent. Net revenue was up 1.5 per cent driven by strong markets.
Its optimisation program delivered net cost reductions of $36 million on the prior corresponding period and are on track to deliver full year savings of $60-65 million ahead of schedule. This included a new operating structure, the IT separation of MLC and pricing changes on its Master Trust to improve retention.
In its advice division which covers Bridges and Shadforth, advice net revenue increased 4.4 per cent on the first half of FY24 to $78 million thanks to strong new client growth and higher asset-based fee income. Adviser numbers stabilised at 200 – down from 211 – post planned optimisation and natural attrition, it said.
In asset management, net revenue increased by 6.2 per cent from $105.4 million to $111.9 million due to an increase in private equity and alternatives performance fees and market growth, partially offset by the divestment of the IOOF bond business.
Net flows rebounded from outflows of $1.8 billion in the first half of FY24 to inflows of $2.1 billion thanks to growth in its MLC managed account solution, institutional client rebalancing and a large institutional mandate win.
Insignia chief executive, Scott Hartley, said: ““It’s pleasing to report a 30 per cent increase in our underlying net profit after tax to $124 million which has been driven by market growth and a continued reduction in operating expenses as we see the benefits of our optimisation program.
“We remain on track to achieve our strategic priorities for the second half of FY25 including, meeting our operating cost reduction target, preparing for the Master Trust servicing transition to SS&C and refreshing the MLC brand to launch in market in 1H26.”
The firm’s dividend remains paused “to maintain balance sheet flexibility and fund initiatives that deliver long term value”.
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