Publicly-listed life insurance-focused financial services company, Clearview Wealth Limited has signalled the transition from its “build” phase with the announcement of a strong result to the Australian Securities Exchange (ASX) today.
The company announced total operating earnings net profit after tax of $13.9 million, up 40 per cent on the prior comparable period.
Commenting on the result, ClearView managing director, Simon Swanson said he believed the firm had now established a strong platform to drive momentum and had started to convert its strategic positioning into material earnings growth.
“ClearView is implementing a high growth strategy with the goal of attaining five per cent of the life insurance profit pool, building a material wealth management business and a high quality financial advice business. We are well positioned, notwithstanding recent market volatility, thanks to our Life Insurance and Wealth Management divisions which offer complementary products and services over the economic cycle,” he said.
Swanson used the results announcement to point to the benefits of changes to the life insurance regulatory environments saying ClearView remained focused on driving towards fairer competition in the life insurance market, and in particular, “the opening of approved product lists, or APLs currently restricted by vertically controlled institutions”.
“The proposed regulatory reforms that the government is currently considering has the potential to significantly decrease the barriers to ClearView selling through the non-aligned channels, which is consistent with the government’s focus on clients best interest outcomes,” he said.
Swanson said the company remained in a strong position to continue growth, given the complementary nature of life insurance and wealth management products over the economic cycle, with a particular focus on gaining from market disruption around life insurance reforms with a potential stepped change in distribution profile, especially if the Federal Government implements some of the proposed reforms to the life insurance industry;
The ASX announcement outlined the key outcomes for ClearView as having been:
• Life Insurance Operating NPAT of $12.1 million, up 66 per cent on the prior comparable period, reflecting growth in the underlying in-force portfolios.
• Wealth Management Operating NPAT of $1.3 million, up 18 per cent on the prior comparable period, resulting from the positive impacts on net fee income.
• Financial Advice Operating NPAT of $0.7 million, down 63 per cent on the prior comparable period, following a reallocation of part of the dealer group support costs that were previously absorbed by the Life Insurance segment coupled with the further investment in adviser support services to support a larger adviser base.
