Clearview Wealth has announced in its annual results that it will now solely focus on life insurance, opting for a simplified business model that will step away from its financial advice and wealth management offerings.
In the year to 30 June 2023, it reported underlying net profit after tax (NPAT) was up 41 per cent to $36.5 million.
It cited strong momentum following its life insurance focus, achieving 11 per cent new business market share in Q4 FY23. Gross premiums were up 9 per cent to $325.1 million and in-force premiums were up 11 per cent to $305.9 million.
Claims and lapse underwriting experienced profits and life underlying NPAT margin was 12.4 per cent.
Clearview stated that divestment of its wealth management business will improve cost structure and reduce regulatory risk. It also highlighted the exit was underway given lack of growth and scale options.
It is expected to complete within FY24 while the trustee considers options for its superannuation fund that will inform the roadmap and timing.
“Our decision to re-set and transform the business in early 2020 by simplifying and investing in our systems, processes, and technology, as well as expanding our people capability, is starting to deliver benefits and growth through efficiencies, productivity gains and scale benefits,” said Nadine Gooderick, Clearview managing director.
“The group’s refreshed strategy is focused on leveraging our competitive advantage in life insurance to achieve our goal of becoming a top player in the Australian market.”
The firm’s FY26 life insurance goals are 12-14 per cent new business market share, gross mediums of $400 million, and life insurance underlying NPAT margin of 11-13 per cent.
Clearview has already exited direct ownership of financial advice through a deal with Centrepoint Alliance, that acquired Clearview Financial Advice in 2021. It shifted from 100 per cent ownership of dealer groups (circa 230 authorised representatives) to 24.4 per cent holding in scale operation with over 500 ARs and support services to a further 190 self-licensed adviser practices.
Former ClearView managing director, Simon Swanson, has today (23 August) been announced as the new chair of Centrepoint Alliance. He left ClearView at the end of June after 12 years.
