Directors’ Report
Key highlights of the business simplification, disciplined execution and growth focus that were achieved in the financial year are as follows: • Exit of the ownership of financial adviser networks - the minority equity stake in Centrepoint Alliance (acquired through the merger with the ClearView financial advice businesses in November 2021) was sold in November 2023 allowing for the full exit from financial advice. • Divestment of the wealth management business - significant progress has been made on the exit including completion of the sale of the funds management business, ClearView Financial Management Limited ( CFML ) to Human Financial Pty Limited ( Human Financial ) in January 2024. The superannuation fund trustee, ClearView Life Nominees Pty Limited ( CLN ) retired as the trustee of the ClearView Retirement Plan ( CRP ) in December 2023, with the simultaneous appointment of Equity Trustees Superannuation Limited ( ETSL ) in its place. The final milestone remaining is the completion of the trustee’s successor fund transfer ( SFT ) that will result in the derecognition of the group life investment contracts and related assets from the Balance Sheet. This is in train and expected to occur in FY25. Once this occurs, ClearView will have no residual wealth exposure resulting in a simpler, less complex business, focused on life insurance only. • Winning share in a growing retail life insurance market - the sales momentum and growth of ClearView ClearChoice has continued in FY24 with the new business market share up to 11% and new business up 34% to $33.7 million. ClearView is gaining new business share in a growing (advised life insurance sales) market. ClearView has established a diversified distribution network with circa 1,000 dealer groups comprised of over 4,000 advisers and remains well positioned to continue to increase its new business market share. • Technology transformation - the enhancement and build out of the back end of the technology platform has further progressed in the financial year, with the successful completion of Phase 1 of the project. The focus has now shifted to the migration of the in-force policies onto the new technology platform (for policies issued prior to 1 October 2021), with a targeted completion date in 1H FY26. The achievement of the operational efficiencies and additional scale benefits are expected to start flowing through from completion of the migration. • Investment in people and processes - this included the continued investment in capabilities and people, with a data and analytics focus to assist deeper insights and decision making. A significant capability uplift is ongoing with new leaders appointed across key business areas; and • Increased underwriting risk for new business - from 1 October 2023, ClearView’s exposure to underwriting risk for new business has been increased, thereby increasing the sum insured retained that (subject to actual claims experience) should result in higher new business profit margin over time (as new business is written from that date). The confidence to increase the underwriting risk exposure for new business is due to the increased size of the in-force portfolios, improved Group capital position and product sustainability measures seen in the Group’s recent financial performance. The simplification program and core focus on life insurance is driving the operating results and growth.
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ClearView Wealth Limited
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