ClearView boosts adviser numbers
Financial services group ClearView has boosted its number of advisers as a result of recent growth in its life insurance business.
According to the company’s half-yearly business progress report, total in-force life insurance premiums grew 36 per cent over the 11-month period to 31 May 2013, while its funds under management increased by 12 per cent to $1.54 billion over the same period.
Related to this growth, the company said it continued to recruit financial advisers into the ClearView dealer group.
“The number of authorised financial advice representatives in the ClearView dealer group have increased from 70 at 30 June 2012 to 102 at 31 May 2013, up 45 per cent,” the company said in a progress report published on the Australian Securities Exchange.
ClearView, which reported an $8.5 million underlying net profit after tax, said the modest result was due to the payment of dividends related to the CCP Bidco takeover, claims experience loss, and significant investment to revitalise its direct life insurance business.
The company hired a new head of the direct business who has restructured the team and refocused the direct distribution approach.
“This has led to some additional short-term impacts, which are forecast to create shareholder value in the medium term,” ClearView stated. It also highlighted that the nature of life insurance and wealth management businesses was that they “incur significant expenditure in acquiring customers ahead of the future multi-year revenues those customers provide”.
“ClearView is currently in an investment period that it expects to create material shareholder value in the medium term,” the company said. “The board is supportive of this long-term investment approach and is pleased with the growth that has been achieved to date.”
The company expects the full-year FY 2013 underlying net profit after tax to be in the range of $15 million to $16 million.
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