Life-focused ClearView posts higher earnings, ‘strategic’ review commences – Life Insurance – Insurance News


ClearView Wealth says its core life arm performed strongly in the December half, lifting overall operating earnings after tax 14% higher to $13.9 million from a year earlier.

Underlying net profit after tax on continued operations, following the sale of ClearView’s Financial Advice business to Centrepoint Alliance last November, increased 5% to $12.7 million for the half year.

The listed financial services group also provided an update on a previously announced plan for a strategic review of its business.

ClearView Wealth says the review, first announced last September, formally commenced this month after it was put on hold because of the Omicron outbreak late last year.

“The review aims to maximise shareholder value, determine the optimal future of the company and enhance customer and policyholder outcomes,” ClearView Wealth said in a half-year earnings market release last week.

“As part of the process, the Board will assess ClearView’s strategic options to unlock and enhance value for shareholders, including potential change of control transactions.

“There are no assurances that the ClearView Board will pursue any transaction or that any transaction will result from the review.”

For now, ClearView Wealth says it is focused on pushing ahead with plans to grow its life insurance business, which makes up 96% of group operating earnings.

The life arm achieved an 8% rise in operating earnings after-tax to $13.4 million as gross premium income surged 7% to $147.6 million and new business volumes improved 24% to $10.4 million.

Continued improvement in claims performance and positive lapse experience also supported the life arm’s results during the period.

The first half also saw ClearView Wealth achieving a number of milestones including the successful launch of the group’s new flexible life insurance product series, ClearView ClearChoice, and new life insurance technology platform.

The ClearView ClearChoice product suite, launched last October, includes a variety of sustainable offerings containing features that are appropriately priced to earn a long-term target return on capital.

“With the pace of regulatory and structural change easing, and Covid-19 seemingly having reached its peak in Australia, our focus is on accelerating growth and the business is well positioned to take advantage of the projected rebound in the life insurance market,” MD Simon Swanson said.

ClearView Wealth says the life insurance industry is “fundamentally attractive” as it is focused primarily on risk-only products, with flexible contract structures that allow repricing and supportive public policy settings with strong underlying demand.

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