ClearView push into life insurance, wealth management
Favourable insurance claims saw Clearview Wealth produce an underlying profit after tax of $19.2 million for the last financial year and a net profit after tax (NPAT) of $22.3 million.
The company said that while its underlying profit was in line with last year's results, favourable insurance claims were partially offset by insurance lapse losses which picked up in the second half of the financial year.
Life insurance sales increased by 540 per cent over the first half period and accelerated in the last quarter of the financial year, ClearView said.
NPAT represented a 158 per cent increase on the 2011 financial year, which ClearView attributed to a positive impact on the life insurance contract liabilities from a reduction in long-term discount rates over the financial year.
Embedded value increased by $6 million to $265 million over the year despite $7.7 million paid in dividends, lower funds under management levels and insurance lapse losses.
ClearView said it had $66 million of surplus capital above its internal benchmarks prior to its dividend payout, of which $19 million will fund new business growth.
It had extended its distribution of products and services into the broader financial adviser market by recruiting experienced advisers to its dealer group and establishing distribution agreements with third party dealer groups including independent financial advisers, it said.
New products had allowed ClearView to compete in 66 per cent of the total $10.6 billion life insurance market compared to 12 per cent previously. Its reach into the wealth management industry grew from 16 per cent to approximately 50 per cent of the $433 billion industry over the financial year, it said.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
