ClearView Wealth says its life insurance arm “remains the group’s main profit driver” after the business achieved a 22% rise in overall full-year underlying net profit from continued operations to $26.4 million.

The life insurance arm’s operating earnings after tax increased 23% to $28.9 million in the year to June 30, underpinned by steady growth in in-force premiums to $311.4 million from $289.9 million in the prior fiscal period.

Underlying net profit after-tax gained 22% to $29.2 million while gross life premiums grew 8% to $299.6 million.

The life division’s robust results helped cushion the poor performance of the wealth management arm, which made an underlying net loss of $100,000.

“Life insurance remains the group’s main profit driver,” ClearView Wealth said.

“The continued improvement in life insurance profitability… is driven by the strong momentum in the business including overall positive underlying claims and lapse performance alongside the successful launch of the new ClearView ClearChoice product range at sustainable margins.”

ClearView Wealth says the Australian life insurance market is showing “strong resilience” during a difficult period and is “now seeing growth accelerating through an improved regulatory outlook and return to industry profitability, driven by structural reforms focused on sustainability”.

“There has been material industry and regulatory focus to address issues with income protection products,” ClearView Wealth said.

“These have included regulatory actions including capital charges, product changes including the banning of some product categories and re-pricing of portfolio.

“The Australian life insurance market 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.”

ClearView says the strategic review of the overall business, which commenced in February, is still ongoing.

“Discussions are continuing with interested parties in relation to the acquisition of the share capital of the company,” the business said.

“There are no assurances that the ClearView Board will decide to pursue any transaction, nor that any transaction will result from the negotiations.”