ClearView Annual report 2024

Directors’ Report

FY26 goals ClearView has in place its FY26 financial goals that remain unchanged from those previously communicated to the market:

New Business Market Share 1 12-14 %

Gross Premiums $ 400m

In-force Premium Market Share 1 ~4 %

Life Insurance Underlying NPAT 4 Margin 2 11-13 %

Dividend Policy

FY26 Goals 3

40-60 %

ClearView remains on track to achieve its FY26 goals: • New Business target market share 12-14% - the current sales trajectory and product and channel focus (data driven outcomes-based approach) are driving growth and the increased new business market share with continued market outperformance in profitable segments. • In-force target market share ~4% - the new business growth, retention strategies (lapse management), benefit indexation, further repricing of the in-force portfolios to realign pricing to risk and experience, product and streamlined channel engagement are driving the increase, aligned to the FY26 goal of in-force premiums exceeding ~$400m. • Life insurance Underlying NPAT target margin range of 11% - 13% – the back-office investment and operational efficiencies from the new platform form a key part of the FY26 targets. The operational efficiency benefits of technology investment are anticipated to be achieved post completion of the migration of the (pre 1 October 2021) in-force policies onto the new platform. The scale benefits, increased exposure to underwriting risk for new business, and operational efficiency from the back office and technology investment support margin accretion (over time). Experience assumption changes have been allowed for in the FY26 target margin range of 11% - 13%. The further (medium term) growth opportunities for the business to be considered, include but are not limited to: • Entering into new customer channels to support its core IFA market channels; • New products and services to further help Australians and their families achieve peace of mind about their future; and • Other opportunities that support this overall life insurance focused strategy.

1 ClearView calculations based on NMG Risk Distribution Monitor Reports for Retail Advice New Business and In-force Analysis – NMG Market analysis includes total of 'Retail' consistently applied (that is, IFA, Bank Advice and Aggregator channels). 2 Is calculated as Life Insurance Underlying NPAT divided by Gross Premium Income. 3 FY26 goals based on AASB 17 FY25-27 business plan forecasts approved by the Board on 16 July 2024. 4 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.

ClearView Annual Report 2024