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.”
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