Notes to the Financial Statements
The following table reflects the shareholder financial assets with credit risk exposure monitored by the CIC. It excludes policyholder financial assets and therefore represents shareholder assets invested in interest bearing securities at the balance date.
Consolidated
Company
2024 2023 $'000 $'000 $'000 $'000 2023 2024
Cash and cash equivalents, term deposits and investments Rating AAA
304,204 298,096 148,223 134,861 41,190 48,787 30,034 28,941
—
—
AA
13,593 13,929
A
— —
— —
BBB
523,651
510,685 13,593 13,929
In addition to the credit risk exposures above, the Group’s balance sheet as at 30 June 2024 reflects a $147.8 million (30 June 2023: $118.5 million) exposure to Swiss Re Life & Health Australia Ltd in relation to reinsurer’s share of contract liabilities. Credit risk associated with receivables is considered low. The main receivables balance is in relation to loans receivable and prepayments. The concentration of other receivables is spread across the various debtors except for the other premium receivable of $17.1 million from HUB24 Super Fund (30 June 2023: 15.0 million) and related party receivables. Further details on the related party receivable recoverability is outlined in section 8.3. d) Liquidity risk Liquidity risk is primarily the risk that the Group will encounter difficulty in meeting its obligations due to an inability to realise some or all of its assets in order to fund its cash flow needs, including the payment of amounts to its policyholders, members and clients. A secondary risk relates to the risk of the illiquidity of the external funds clients invest in, which may result in restricted fee flows to the Group and/or reputational damage via association. The primary risk is managed by investing the Group’s funds, excluding those that are invested at the direction of the client, in accordance with the liquidity policy. This requires assets to be invested in vehicles that are highly liquid and readily convertible into cash. In addition, the Group maintains suitable cash holdings at call and an appropriate overdraft facility. The Group’s cash flow requirements are reviewed and forecast on a regular basis. This assessment takes into account the timing of expected cash flows, the likelihood of significant benefit outflows over the short term and known significant one-off payments. Under the terms of the Group’s products (issued via ClearView Life) the payment of unit fund redemptions to policyholders may be delayed, if necessary, until funds are available. To date no such delays have been imposed.
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ClearView Wealth Limited
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