Notes to the Financial Statements
Shares under the Dividend Reinvestment Plan ( DRP ) will be issued at a fixed price of $0.59, which is consistent with ClearView’s DRP rules. 10/12 limit on market buy back ClearView does not currently have a Board approved 10/12 limit on market buy-back program in place. The current share buy-back program expired on 19 December 2022, and no shares were bought back and cancelled under the program in the year ended 30 June 2023. Since January 2014, the total number of shares bought back and cancelled under the scheme was 1,208,824 . Employee buy-back of Executive Share Plan shares In the year ended 30 June 2024 , there were a further 8,523,505 Executive Share Plan ( ESP ) shares held by employee participants that have been forfeited and bought back in accordance with the rules of the plan (30 June 2023: 1,500,000 ESP shares from employee participants were in the process of being bought back and cancelled at 30 June 2023 and these were completed in FY24).
A FY23 fully franked final cash dividend of $19.8 million, equating to 3 cents per share was paid on 22 September 2023. This represented an increase of 50% on the prior year. A FY24 fully franked interim cash dividend of $9.9 million, equating to 1.5 cents per share was paid on 22 March 2024, the first time an interim dividend has been paid. The Board has declared (on 22 August 2024), a fully franked FY24 final dividend of $11.1 million, equating to 1.7 cents per share, with a record date of 5 September 2024 (FY24 final dividend is payable on 20 September 2024). The total dividends paid in respect of the FY24 financial year is therefore 3.2 cents per share, up 7% on the prior year and represents a dividend yield of 5.5% based on a 90 day VWAP share price at 30 June 2024 of $0.5772 per share. The FY24 total payout ratio is 60% of Underlying NPAT – at the top end of the target payout ratio range. The Company’s DRP (Dividend Reinvestment Plan) will be reinstated and operate for the FY24 final dividend in accordance with the DRP rules below: • Shareholders will have the opportunity to reinvest into the growth ambitions of the Company while retaining capital within the Group; • Given the current liquidity of ClearView’s share trading, it is not considered appropriate to minimise the dilutive impact of the DRP through the on-market purchase of the number of shares to satisfy the DRP participation; and • It is also not the intention to seek support for any shortfall in shareholder participation by underwriting the shortfall to maintain the capital base within the group given that the Group is now in a net capital generation position.
1 Underlying NPAT (from continuing operations) continues to be adopted by the Board as its key measure of Group profitability and basis for dividend payment decisions. It is used as a non IFRS measure of earnings that excludes the impacts of market and interest rate volatility, with the definition updated to reflect the application of AASB 17. Underlying NPAT (from continuing operations) has been defined as the consolidated profit after tax excluding the effects of economic changes on both the AASB 17 insurance contract liability and the incurred income protection disabled lives reserves, the (non-cash) impairment of the asset for acquisition cash flows (AIACF), changes in the loss component that is predominantly driven by the level premium business, current year timing impacts of assumption changes on the contractual services margin and any costs considered unusual to the Group’s ordinary activities. Underlying NPAT includes the amortisation of capitalised software and leases, underlying investment income (the portfolio carry yield on the investment portfolio and interest rate earned on physical cash holdings), costs associated with the incurred claims reinsurance treaties and interest costs associated with corporate debt and Tier 2 Capital.
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ClearView Annual Report 2024
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