ClearView has reported a 39% increase in operating earnings after tax to $13.1 million for the first half of 2021, underpinned by strong claims performance, while its underlying net profit after tax (NPAT) saw a 27% growth to $13 million.
At the same time, the firm’s board announced plans to reinstate its FY21 dividend, in line with its dividend policy, and subject to its capital position and 2H21 performance.
The group also updated its underlying NPAT guidance of $21 million to $25 million for FY21, given that its business was “on track to meet its medium and long-term performance improvement objectives”.
ClearView continued to enact transformational change through the delivery of key milestones including a new life insurance policy administration system and life insurance product series as well as enhanced superannuation and investment offerings to accelerate the growth of the group’s wealth management business.
Its life insurance operating earnings after tax was up 55% during the first six months and amounted to $12.4 million. During the same period, funds under management (FUM) passed $3 billion.
At the same time, the group reiterated its commitment to personal financial advice, given its strategic investment in compliance and technology to help drive efficiencies in financial advice which resulted in 28 practices joining LaVista Licensee Solutions since its launch (91 financial advisers), it said.
“While challenging market conditions persist, this result reflects the impact of initiatives to improve claims management outcomes, boost customer loyalty and strengthen our relationships with professional financial advisers,” ClearView managing director, Simon Swanson, said.
According to Swanson, the complex tax and regulatory environment combined with ageing population and rising debt levels underpinned the need for strategic advice and fit-for-purpose products.
“COVID-19 has only heightened awareness of the need for sound financial advice and relevant products like life insurance,” he added.