ClearView Annual report 2024

Directors’ Report

ClearView continues to focus on its financial disciplines to achieve its target Underlying NPAT margin range:

Chart 4: Life Insurance Underlying NPAT profit growth

FY26 Target 3

Life Insurance Underlying NPAT 1 ($m) Margin 2 (%)

Life Insurance Underlying NPAT margin 2 11-13%

358.1

325.2

180.1

178

160

165.2

11.2%

10.9%

FY23: 9.9% 4

FY24: 11.0%

10.5%

9.2%

39.5

32.1

20.1

19.4

17.4

14.7

FY23 1H

FY23 2H

FY24 1H

FY24 2H

FY23

FY24

Underlying NPAT margin

Gross Premium Life Insurance Underlying NPAT

1 Life Insurance Underlying NPAT has been defined as the life insurance 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. 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 2H FY24 Underlying NPAT margin restated to 10.5% (from 10.1%) to remove impacts on Underlying NPAT from changes in claims assumptions in FY23 to ensure consistency between periods. FY23 total margin restated to 9.9% (from 9.7%)

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ClearView Wealth Limited

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