Clearview Wealth (CVW) H1 2025 earnings summary

Executive summary

• Half-year 2025 underlying NPAT was AUD 12.5 million, down 28% year-over-year, with life insurance underlying NPAT at AUD 15.2 million, down 22%; Q1 claims loss of AUD 6.2 million was an outlier, with claims normalizing in Q2.

• Group reported NPAT was AUD 15.9 million, reversing a prior period loss, driven by improved investment income and normalized claims.

• Strategic transformation, including technology upgrades and business simplification, is progressing, with completion expected in 1H FY2026.

• Wealth management exit is in its final stages, targeted for completion by June 30, 2025.

• Board intends to conduct a share buyback of up to 10% of share capital over 12 months, replacing dividends, due to share price discount to Embedded Value.

Financial highlights

• Gross premiums grew 8% to AUD 191.4 million; in-force premiums also up 8% to AUD 387.2 million.

• Embedded value (excluding franking credits) increased 9.5% to AUD 525.7 million, or AUD 0.807 per share.

• Net assets at December 31, 2024, were AUD 362.7 million (AUD 0.551 per share); surplus capital of AUD 7.1 million post-wealth management exit.

• Life insurance underlying NPAT margin was 8% for the half-year, restored to 11% in Q2 after Q1 claims spike.

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

Outlook and guidance

• FY2025 guidance: gross premiums of AUD 395–400 million, life insurance underlying NPAT margin of 9–10%.

• FY2026 targets: gross premiums of AUD 440–444 million, 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.