Clearview Wealth (CVW) H1 2025 earnings summary

Executive summary

• Half-year 2025 life insurance underlying NPAT was $15.2m, down 22% year-over-year, with Q1 at $4m and Q2 at $11m; group underlying NPAT was $12.5m, down 28% year-over-year.

• Group reported NPAT was $15.9m, reversing a prior loss, driven by normalized claims in Q2 and improved investment income.

• A significant claims loss of $6.2m in Q1 was an outlier, with claims performance normalizing in Q2.

• Board announced intention to conduct a share buyback of up to 10% of share capital over the next 12 months, in lieu of dividends, due to share price discount to Embedded Value.

• Business simplification and technology transformation are progressing, with wealth management exit on track for completion by June 30, 2025, and technology upgrades expected to complete in 1H FY26.

Financial highlights

• Gross premiums grew 8% to $191.4m; in-force premiums also up 8% to $387.2m; new business sales were $16.3m, representing 4.8% of average in-force premium.

• Embedded Value (excluding franking credits) increased 9.5% to $525.7m (80.7 cps); including franking credits, Embedded Value was $612.5m, up 9.7%.

• Net assets at 31 Dec 2024 were $362.7m (55.1 cps); surplus capital of $7.1m post-wealth management capital release.

• Cost to income ratio for life insurance was 19.6%.

• Reported NPAT from continuing operations increased to $19.2m (HY24: $7.9m); reported EPS up 138% to 2.95c.

Outlook and guidance

• FY25 guidance: gross premiums of $395m–$400m, life insurance underlying NPAT margin of 9%–10%.

• FY26 targets: gross premiums upgraded to $440m, underlying NPAT margin of 11%–13%, new business market share of 12%–14%, and in-force premium market share of 4%.

• Share buyback of up to 10% of share capital planned, subject to surplus capital.

• New Tier 2 capital issuance under consideration, subject to regulatory approval and market conditions.

• Ongoing focus on repricing, claims management, and retention activities.