ClearView Wealth says life business on ‘right trajectory’
ClearView Wealth says its core life business continues to perform well, registering strong growth in new business since July 1, the start of its new 2023/24 financial year.
New business sales in the first quarter went up 67% to $9.2 million from a year earlier, Chairman Geoff Black told shareholders at last week’s annual general meeting (AGM).
“This momentum has the business on the right trajectory to achieve the 2026 objectives we disclosed to the market,” he said.
“The life new business premium volumes continue to demonstrate the strong support from advisers…this is further evidenced by our market share of new business which increased to 9% during the year.”
ClearView Wealth released its 2022/23 financial results in August and said it was aiming to grow its share of the life market. The business wants to achieve a market share of 12-14% and gross premiums of $400 million by FY2025/26.
The core life division grew its underlying net profit by 38% to $40.4 million and gross premium gained 9% to $325 million, giving the listed life insurer a 9.2% share of the retail market.
At the AGM Mr Black informed shareholders of a change in a previously announced agreement in February to sell its managed investments business to Human Financial.
He says the agreement has been amended so that ClearView will get $5 million and will no longer be acquiring a 40% interest in Human Financial as part of the transaction. In the previous agreement ClearView Wealth was to also have receive $1.3 million.
“The decision was taken after considerable analysis and research, and we ultimately believe ClearView’s future is best served focusing on life insurance,” Mr Black said.
He says the exit is progressing and expects to finalise the process some time in this financial year.