ClearView has recorded a drop in net underlying profit after tax (NPAT) as a result of adverse insurance claims over the second half of 2012.
ClearView's NPAT decreased by 7 per cent, down from $9.1 million at 31 December 2011 to $8.5million at the end of 2012.
"There were a number of reasons for the decrease . the most significant is adverse claims volatility which led to an experience loss of $1.1 million in the first half [of the 2013 financial year]," ClearView's managing director, Simon Swanson, said.
"On ClearView's current insurance portfolio, claims experience is volatile period to period; nonetheless, it is anticipated to average out over time at actuarial best estimate assumptions.
"It is important to note that our claims experience volatility can be driven by a small number of lump sum life insurance claims."
The adverse result was also impacted by the loss of investment earnings from a lower cash rate and the pay-out of cash as dividends as well as a higher effective tax rate.
Despite the decrease in NPAT, ClearView saw funds under management (FUM) grow by 4 per cent over the six-month reporting period, from $1.38 billion in the previous year to 1.43 billion.
FUM net outflows improved to $33 million, down from $62 million in the previous six-month reporting period and from $90 million as of 31 December 2011.
As of 31 December 2012, WealthSolutions FUM accounted for $114 million, or 8 per cent, of ClearView's total.
ClearView, meanwhile, says the company will continue to follow its business plan for the full financial year, which is focused on building on life solutions, recruitment, expanding on the take-up of ClearView products on approved product lists (APLs) and making minor changes to WealthSolutions.
"We have done all of that in the first half of the financial year, which was demonstrated by our strong life solutions sales encouraging net flows for WealthSolutions and a significant rise in aligned advisers and the number of APLs with ClearView products," Mr Swanson said.
"We are now clearly a growing business and continue to be focused on executing our strategy."
