Life insurance drives 54% rise in ClearView’s NPAT
Underlying net profit after tax (NPAT) at ClearView was up 54% to $22.7 million in FY21, driven almost entirely by life insurance, as the firm undergoes a simplification of its wealth management division.
Operating earnings were up 83% to $23.9 million with 98% of this coming from its life insurance division. The life insurance strength was driven by strong underlying claims and improved lapse performance and the firm intended to launch a new product series in October which would be called ClearChoice.
The firm said it had reported an 80% decrease in operating earnings in its wealth management division which reflected a decline in fee income and changes to the business mix. Underlying NPAT was $0.7 million which was down 79%.
However, there was an increase in funds under management by 22% to $3.4 billion and the firm highlighted the use of ClearView model portfolio and platform funds on the HUB24 platform had been a key driver.
Targets had been set for the simplification of the wealth segment including cost base reductions and the digitisation of the front-end technology to drive customer engagement and inflows.
Financial advice operating earnings were down 58% to $0.9 million and the firm announced the sale of the financial advice business to Centrepoint Alliance.
It would pay out a fully franked cash dividend of 1 cent per share.
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.