Aus Unity net profit down 71.8%
Australian Unity has posted a net profit after tax of $15 million for FY20, down 71.8% on the prior year.
In an announcement to the Australian Securities Exchange (ASX), Australian Unity said the reduction in profit was from direct and indirect impacts of the COVID-19 pandemic.
The impacts included the implementation of extraordinary measures to seek to protect aged care residents, home care customers, and the employees who supported them, the provision of hardship relief for health insurance and banking customers, and the effect of tightened economic circumstances, and the equity market downturn on the financial position of many invested with the firm.
The group’s total revenue and other income decreased to $1.41 billion, compared to $1.6 billion in FY19.
While the operating businesses generated overall revenue growth, up $10.4 million on the prior year, lower investment returns were down $18.9 million, and there was a $187.5 million decrease in benefit fund revenue, principally due to reduced benefit fund investment earnings.
On the advice side, the number of advisers decrease by eight to 176, and funds under advice grew to $7.1 billion, up from $6.2 billion. Personal life insurance premiums in-force were up $69 million from $61 million.
Its advice business revenue increased 3.6% to $60.4 million, and its separately managed investment accounts grew in funds under management to $392 million from $201 million.
Commenting, Australian Unity group managing director, Rohan Mead, said: “Moving forward, the group will seek to maintain balance sheet resilience and operational flexibility as it continues to pursue the development of our business portfolio and the realisation of strategic ambitions.
“It will also continue the important work of refining and delivering value to members, customers, employees, and the broader community.”
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.