Notes to the Financial Statements
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of long term employee benefits are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date. See section 4.3 for more detail.
Termination benefit
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring cost. 3.3 Investments
Consolidated
Company
30 June 2024 30 June 2023 $'000 $'000 $'000 $'000 30 June 2023 30 June 2024
Growth investments Investment in Group Companies
—
— 413,822 425,778
Equity investments
1,681,778 1,708,780 — 1,681,778 1,708,780 413,822 425,778 —
Interest-bearing investments 1,2 Investments in subordinated debt
—
— 30,000 30,000
Short-term money
1,147
5,403
— — — —
— — —
Government and semi-government bonds
182,091
165,322
Corporate bonds Floating rate notes
140,085 117,828 92,059 81,884
— 415,382 370,437 30,000 30,000
Non-interest bearing investments Short-term discount securities
161,258 184,266 161,258 184,266 (1,834,709) (1,868,598)
— —
— —
Included in assets held for sale (see section 8.5(d))
— (11,956)
423,709 394,885 443,822 443,822
Total investments
1 ClearView has contracted PIMCO to assist it with asset liability management. The mandate is to manage the shareholder funds that match the insurance liabilities (including inflation), claims and capital reserves and surplus capital in the life company. At 30 June 2024 an investment of $429.0 million including $422.3 million in interest securities and $6.7 million in cash (30 June 2023: $413.4 million including $393.7 million in interest securities and $19.7 million in cash) was held in the PIMCO funds. 2 On 5 November 2020, the Company issued $75 million subordinated, unsecured notes to wholesale investors. These are unsecured, subordinated debt obligations of the Company. Interest accrues on at a variable rate equal to the three-month Bank Bill Swap Rate (‘BBSW’) plus a margin of 6% per annum, until maturity, payable quarterly in arrears. The Company utilised $30 million of the proceeds of the Notes for regulatory capital purposes for its regulated life insurance entity (ClearView Life). ClearView Life pays the Company interest on the $30 million subordinated on the same terms as outlined above.
Financial instruments
Recognition and derecognition of financial assets and liabilities Financial assets and financial liabilities are recognised at the date the Group becomes a party to the contractual provisions of the instrument. At initial recognition, financial assets are classified as and subsequently measured at fair value through profit or loss and amortised cost. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire, or are transferred. A transfer occurs when substantially all the risks and rewards of ownership of the financial asset are passed to an unrelated third party. Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.
107
ClearView Wealth Limited
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