Notes to the Financial Statements
Industry and regulatory compliance investigations
of employees who were previously employed by MBF Holding Pty Limited ( Bupa Australia ). The Company in the ordinary course of business has provided a letter of financial support to its subsidiary ClearView Administration Services, the centralised administration entity of the Group. Other than the above, the Directors are not aware of any other contingent liabilities in the Group at the year end. 9.3 Leases The main type of right of use asset recognised by the Group relates to property leases. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less, leases that expire within 12 months of initial application and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
ClearView is subject to review from time to time by regulators. ClearView’s principal regulators are APRA, ASIC and AUSTRAC, although other government agencies may have jurisdiction depending on the circumstances. The reviews and investigations conducted by regulators may be industry-wide or specific to ClearView and the outcomes of those reviews and investigations can vary and may lead, for example, to enforcement actions and the imposition of charges, penalties, variations or restrictions to licences, the compensation of customers, enforceable undertakings or recommendations and directions. Letter of credit ClearView was the beneficiary of a $70 million irrevocable letter of credit issued by Australia and New Zealand Banking Group Limited ( ANZ ) on behalf of Swiss Re Life and Health Australia (Swiss Re). The letter of credit is applied across both lump sum and income protection incurred claims treaties with Swiss Re to support CLAL’s Asset Concentration Risk Charge under APRA’s regulations. Off balance sheet items – ESP loans In accordance with the provisions of the ESP, as at 30 June 2024, key management, members of the senior management team have acquired 6,109,927 (30 June 2023: 16,633,432) ordinary shares. Shares granted under the ESP carry rights to dividends and voting rights. Financial assistance amounting to $4,965,282 (30 June 2023: $11,765,742) was made available to these participants to fund the acquisition of shares under the ESP, of which $2,153,886 (30 June 2023: $9,040,738) is held as an off balance sheet receivable. Given the non-recourse nature of the loans and the current CVW share price, some of the off balance sheet loan may not be recoverable as at 30 June 2024. Operational event loans to EQT Aligned to the transition of trustee of the CRP from CLN to ETSL, CWL has entered into arrangements with EQT to provide funding reflective of the ORFR to EQT for an amount of $3.5 million, until the successor fund transfer of the CRP is completed. Under the terms of the agreement, if an operational risk events occur, CWL will be required to provide an operational event loan up to $1.5 million to EQT and CWL will release and forgive obligations of EQT to repay this loan. Other The Company has guaranteed the obligations of one of its subsidiaries in respect of employee entitlements
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentive received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight- line basis over the lease term or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right- of- use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payment that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties.
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ClearView Annual Report 2024
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