Directors’ Report
FY24 Results segment analysis
Life Insurance result
The Life Insurance result is outlined in the tables below:
2023 (restated)
2024
%
12 Months to June 2024 ($M) 1 Gross life insurance premiums
1H 2H FY23 160.0 165.2 325.1
1H 2H FY24 Change 2
178.0 180.1
358.1 12.6 (3.1)
10% 26% 15% 33% 35%
Interest income
4.2
5.8
10.0 (2.7)
6.4
6.2
Interest expense on Tier 2 Claims incurred (gross) Reinsurance recoveries
(1.3)
(1.4)
(1.5)
(1.6)
(66.2) (66.6) (132.8) 46.6 48.3 94.9
(84.1)
(91.9) (176.0)
61.5 66.3 127.8
Reinsurance premium expense Commission & other variable costs
(61.3) (33.4) (30.5)
(61.9) (123.2)
(64.1) (41.0) (34.1)
(66.1) (130.2)
6%
(35.3) (33.2)
(68.7) (63.7)
(41.3) (33.8)
(82.3) (67.9)
20%
Operating expenses
7%
Movement in insurance contract liability Income tax (expense) / benefit Life Insurance Underlying NPAT
2.9
3.9
6.8
6.5
10.9
17.4 Large
(6.3) 14.7
(7.4)
(13.7)
(8.3)
(8.6)
(16.9)
23% 23%
17.4 32.1
19.4 20.1
39.5
Life Insurance Underlying NPAT increased by 23% to $39.5 million (FY23: $32.1 million) and Underlying NPAT margin increased to 11.0% (FY23: 9.9%). The business has continued to deliver above system growth in market share and in-force premiums. Other key drivers of the strong FY24 result include: • benefits from inflation linked premiums; • overall positive underlying lapse performance relative to expectation; • continued repricing of the LifeSolutions in-force portfolios to take into account the impacts of experience and prior period changes in reinsurance costs;
• benefits of the transformation strategy starting to flow through; and • an increased interest rate environment (relative to the prior year).
1 Inter-segment revenues/expenses are not eliminated in the managements view. 2 % change represents the movement from FY23 to FY24.
36
ClearView Annual Report 2024
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