Clearview Wealth (CVW) H2 2024 earnings summary

Executive summary

• Group underlying net profit after tax (NPAT) rose 25% to AUD 35.3 million under AASB 17, reflecting strong business momentum and favorable market conditions.

• Strategic focus sharpened on life insurance, with full exit from financial advice and wealth management businesses completed or in progress.

• Transformation program and technology investment underpin scalable growth and operational efficiency, with migration to a new cloud-based platform on track for 1H FY26.

• Market share gains in a growing retail life insurance market, supported by product innovation and adviser channel consolidation.

• FY24 marked by strong new business momentum, improved margins, and continued capital generation.

Financial highlights

• Gross premiums reached AUD 358.1 million, a 10% increase year-over-year, with new sales up 34% to AUD 33.7 million and new business market share rising to 11%.

• Life insurance underlying NPAT increased 23% to AUD 39.5 million, with margin improving to 11% from 9.9% in the prior year.

• Total FY24 dividend of 3.2 cents per share, at the top end of the payout range, with DRP reinstated.

• Net assets stand at AUD 353.2 million, backed by cash and highly rated securities.

• Embedded Value at 30 June 2024: AUD 591.1 million (including franking credits), up 9.4%.

Outlook and guidance

• Targeting new business market share of 12%-14%, in-force market share of ~4%, gross premiums of AUD 400 million, and underlying NPAT margin of 11%-13% by FY26.

• Expecting continued double-digit underlying NPAT growth and margin accretion from scale, underwriting risk, and technology investments.

• Dividend payout range to be uplifted to 50–70% of underlying NPAT post IT transformation and wealth exit.

• Full exit from wealth management targeted by Q3 FY25; technology migration to complete in 1H FY26.

• Further premium repricing planned in 2025 to address increased claims costs.