The group’s underlying net profit after tax (NPAT) was $16 million, in line with the estimate of $15 million to $16 million that ClearView managing director Simon Swanson provided to InvestorDaily in June.
The underlying NPAT was hit by a claims experience loss of $1.9 million after tax, higher lapse rates leading to a loss of $0.8 million, and the payment of $17.8 million in dividends out of the capital base of ClearView in the first half of 2012/2013, related to the CCP Bidco takeover bid.
The wealth management firm’s reported NPAT has all but evaporated, sitting at $1.9 million for the year ended 30 June 2013 – down 92 per cent on the previous year.
According to a ClearView, the reported profit was affected by “ongoing acquisition intangibles amortisation of $7.5 million, the CCP Bidco takeover bid related costs of $4.5 million, restructure costs of $0.6 million, and the effect of increasing long-term discount rates on the policy liability over the year, resulting in a loss of $1.6 million”.
Funds under management (FUM) on the WealthSolution platform increased by 11 per cent over 2012/2013 to $1.53 billion. Funds under management and advice (FUMA) increased by 22 per cent to $3.7 billion.
Life insurance sales (annual written premiums) were up 273 per cent on the previous financial year to $19.4 million, and in force premiums increased by 41 per cent to $62.1 million.
The number of authorised representatives operating within ClearView’s financial planning business increased by 46 per cent over the financial year to 102 – up from 70 at 31 June 2012.
The board has maintained a final dividend of 1.8 cents per share for 2013.
In his Chairman’s Letter, Dr Gary Weiss noted that the life and wealth management industries are likely to face “continued pressure from uncertain economic conditions [lapses and claims] and volatile investment markets, coupled with significant regulatory changes”.
“ClearView remains well positioned relative to the industry issues, given that our historical life insurance portfolio has very limited income protection business [less than one per cent],” said Dr Weiss.
“Further, ClearView has no group life insurance business, which has also been the cause of recent underperformance in the industry,” he added.
