Directors’ Report
FY24
FY23 (restated)
%
After Tax Profit by Segment, $M
$M
$M Change 4
Life Insurance
39.5 (4.2) 35.3
32.1
23% 10% 25%
Listed/Group costs
(3.9) 28.2
Group Underlying NPAT from continuing operations 1,2,3 Financial advice – interest in Centrepoint Alliance Wealth management – discontinued operation
2.8
0.7
Large Large
(4.6) 33.5 (12.2) (2.2)
(2.7) 26.2 (4.6)
28%
Group Underlying NPAT Change in loss component
Large Large Large
Economic assumption impact on AASB 17 liability
3.0
Net economic assumption impact on disabled lives reserves ( DLR )
0.8
(2.3)
Changes in AIACF impairment
(16.4)
(10.0)
64% NM NM 31% NM
Current year timing impacts from assumption changes on CSM
2.3
—
Wealth Management exit
(14.9) (3.4) (12.5)
(0.8) (2.6)
Costs considered unusual to ordinary activities
8.9
Reported NPAT
FY24
FY23
%
Key financial metrics
$M
$M Change 4
New business
33.7
25.2
34% 10% 10%
In-force premiums 5
373.9 358.1 11.0%
339.3 325.1
Gross premium income
Life Underlying NPAT margin (%) 6 Net underlying investment income Reinsurance premium expense
9.9% 110bps
4.0
2.8
43%
(130.2) (48.2) (69.2)
(123.2) (37.9) (64.9)
6%
Net claims expense Operating expenses
27%
7%
Reported diluted EPS (cps) (continuing operations) 7 Underlying diluted EPS (cps) (continuing operations) 7
0.65 5.50
1.88
(65)%
4.40
25%
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. 2 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. 3 From continuing operations; Underlying NPAT includes Life Insurance business unit and the listed segment; excludes the wealth management business (discontinued operation), the equity accounted earnings of Centrepoint Alliance from the date of completion (1 November 2021) and the profit on sale of the shares in Centrepoint Alliance in November 2023. No adjustments have been made in each relevant period for stranded costs or other internal charges as a result of the exit of the financial advice and wealth management businesses. 4 % change FY23 to FY24. 5 In-force premiums are the annualised premium in-force at balance date for the advice products (LifeSolutions and ClearChoice) and the closed direct products no longer marketed to new customers. 6 Is calculated as Life Insurance Underlying NPAT divided by Gross Premium Income. 7 FY23 restated given change to AASB 17
27
ClearView Wealth Limited
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