In This Article:
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Life Insurance Underlying Impact: $15.2 million, down 22%.
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Group Underlying NAT: $12.5 million, down 28%.
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Claims Loss: $6.2 million in the first quarter, considered an outlier.
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Underlying Life Insurance Impact Margin: 8% for the half year, restored to 11% in the second quarter.
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Inforced Premiums: $387.2 million, with market share up to 3.8%.
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Gross Premiums Growth: 8% increase.
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Embedded Value: $525.7 million, up 9.5%.
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New Business Sales: $16.3 million for the half year.
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Net Assets: $362.7 million or $0.01 per share.
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Surplus Capital Position: $7.1 million post capital release from wealth management.
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Embedded Value Per Share: $0.81 excluding franking credits, $0.94 including franking credits.
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FY25 Gross Premiums Guidance: $395 million to $400 million.
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FY26 Gross Premiums Target: Updated to $444 million.
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Share Buyback: Up to 10% of share capital over the next 12 months.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ClearView Wealth Ltd (CVWLF) achieved a gross premium growth of 8% in the half-year period, with enforced premiums reaching $387.2 million.
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The company's market share in the IFA new business market remained stable at 10-11%, with a goal to increase to 12-14% by FY26.
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ClearView Wealth Ltd (CVWLF) is on track with its business simplification and technology transformation program, expected to enhance efficiency and flexibility.
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The company plans a share buyback of up to 10% of share capital over the next 12 months, which is seen as a better use of surplus capital compared to dividends.
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ClearView Wealth Ltd (CVWLF) has a strong presence and reputation in the IFA market, supported by robust advisor relationships and the Clear Choice product.
Negative Points
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ClearView Wealth Ltd (CVWLF) reported a 22% decrease in life insurance underlying impact to $15.2 million and a 28% decrease in group underlying NAT to $12.5 million.
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The company experienced a significant claims loss of $6.2 million in the first quarter, which negatively impacted margins.
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There is an increased trend in lapse rates due to high interest rates and cost of living pressures, affecting retention.
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The wealth management exit is still in progress, with completion expected by the end of the financial year.
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ClearView Wealth Ltd (CVWLF) faces competition in the market, with some competitors engaging in upfront discounting and lowering underwriting standards.
Q & A Highlights
Q: Will all the costs associated with the wealth management business be completed by the end of financial year 2025, or will there be ongoing costs? A: Athol Chiert, Chief Financial Officer, confirmed that all costs, including the decommissioning of systems, will be completed by June 30, 2025.