ClearView boosts planner numbers but reports profit drop
ClearView has boosted its planner numbers from 70 to 102 in the past financial year, but reported a significant decrease in profits.
Net profit after tax fell from $22.3 million in 2012 to $1.9 million in 2013 as a result of costs associated with the amortisation of ongoing acquisition intangibles of $7.5 million, and costs of $4.5 million related to the takeover bid of CCP Bidco. It had also faced restructure costs of $600,000 and the effect of increasing long-term discount rates on policy liability over the year, costing $1.6 million.
Despite the downturn in profit, ClearView stated that its wealth management business continued to grow and had increased its funds under management by 11 per cent to $1.53 billion over the same period, establishing a further 53 distribution agreements with third party dealer groups and lifting that number to 80 in total.
ClearView also added $19.4 million in new life insurance sales - up from $5.2 million in the previous financial year. It stated this was predominantly driven by LifeSolutions - the suite of life advice products and services rolled out in late 2011.
At the same time its platform, WealthSolutions - also launched in late-2011 - reached funds under management of $226 million, up from $36 million in the 2012 financial year.
ClearView board chair Gary Weiss said that despite the positive growth figures posted by ClearView, the cost of the Future of Financial Advice (FOFA) reforms had increased compliance costs and required the shifting of key resources to ensure the changes were implemented.
Weiss stated that ClearView, as a vertically integrated structure, was “well positioned to take advantage of any opportunities that may arise out of these changes”.
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