Life insurer ClearView Wealth expects to do better this financial year after posting a drop in 2024-25 earnings.

Group underlying net profit from continuing operations fell 8% to $32.3 million, affected by claims volatility related to its legacy LifeSolutions portfolio in the first quarter.

Gross premium income grew 10% to $393.7 million and in-force premium was also up 10% to $412.9 million.

Its life business made an underling net profit of $37.7 million, down 5%.

ClearView says actions to reprice the LifeSolutions portfolio – which stopped taking new business in October 2021 – and other measures to strengthen operations pave the way for “future growth acceleration, notwithstanding the short-term impacts from the adverse [first-quarter] claims experience”.

Earnings improved in the second half, with life insurance underlying net profit up 12% to $22.5 million and the margin moving to 11.1% from 8% in the preceding half.

“While we experienced claims volatility at the beginning of the financial year; this experience normalised,” chair Geoff Black said.

“Following the exit this year from wealth via the successor fund transfer of our superannuation business, we removed a considerable costly regulatory and compliance burden.

“We are now a core life insurance business with a laser-like focus on competing in a market where we have a meaningful market presence and competitive advantage.”

This financial year, ClearView is aiming for gross premium income of $435-$440 million; group underlying net profit of $42-$47 million; and life underlying net profit of $47-$52 million.

“The key risks to the achievement of the financial guidance include repricing, claims experience, execution of key technology programs, lapse experience and interest rates,” ClearView said.

“The group continues to monitor lapse experience closely, particularly in light of the recent repricing and market conditions.”