Insignia reports 39% NPAT rise

insignia financial renato mota financial advice

24 August 2023
| By Laura Dew |
image
image
expand image

Insignia has announced net profit after tax (NPAT) of $51.2 million for FY23, a rise of 39 per cent from the previous year. 

In its full year FY23 results, the licensee said this year's NPAT sum compared to $36.8 million in the year to 30 June 2022. 

This was driven by gains of $43.2 million on the sale of Australian Executor Trustees (AET) which it sold to Equity Trustees in a $135 million transaction last year and was partially offset by lower revenue and higher transformation and integration expenses. 

In its advice division, where it recently announced a move to create a new ownership model called Advice Services Co, it said the firm has 1,413 advisers in its network and 461 practices.

ASC will be a partnership ownership model for self-employed licensees comprising RI Advice Group, Consultum Financial Advisers and TenFifty.

The total number of advisers was down from 1,600 in June 2022 which Insignia attributed to regulatory change, the closure of the Lonsdale licensee, the departure of two member practices and the reshaping of the Bridges business. 

The total was divided by 686 advisers in its adviser services division, 485 who were self-licensed and 242 in professional services. 

It is also supporting 20 graduate advisers through their Professional Year and has another 42 underway.

Funds under management and administration (FUMA) was $295 billion, down from $297 billion in FY22 which was driven by $16.1 billion in outflows associated with AET and JANA and $2.9 billon of pension payments, offset by $15.8 billion in favourable market performance and $0.7 billion in net flows. 

The firm announced a strategic refresh which is focused on improving clients’ financial wellbeing, deepening its partnerships with advisers and employers, simplifying the business and building a safe and trusted business. 

This new 'client wellbeing' division will prioritise pre-retirees via intra-fund advice and proactive engagement, it said, to enable continued engagement through the client lifecycle. This has the "ambition to create financial wellbeing for every Australian".

Chief executive, Renato Mota, said: “The past financial year saw us reach important milestones in the integration of MLC, the transformation of our business and the creation of Insignia Financial, providing the foundation for unlocking future growth.

"FY23 was a year of achievement. A year of delivering on our promises – evidenced by our net funds flow outcomes, simplification, product improvements, and exemplified by a number of awards and client outcomes.

“We are two years into our journey to creating Australia’s leading financial wellbeing organisation, and it is our achievements to date including the accelerated delivery of benefits that created the opportunity for us to refresh our strategy to drive focus and position us to deliver on our ambition.

“While the result was impacted by lower average FUMA following investment market falls in 4Q22 as well as strategic repricing decisions, our reduction in operating expenses highlights the benefits of deliberate strategic decisions, and the achievement of our net positive inflow target demonstrates the strength of our go-forward proposition.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 21 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

6 days 3 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 4 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 6 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

5 days 1 hour ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

4 days 4 hours ago