Directors’ Report
Capital position The following table reflects the net capital position of the Group as at 30 June 2024:
APRA Regulated Entities
NOHC 3 /
Life Wealth Other $M $M $M 372.9 8.5 0.4 — — — 372.9 8.5 0.4
Other Group
$M
$M $M
Net assets at 30 June 2024 1 Intangible adjustments 2
381.8
(28.6)
353.2
— (20.3) (20.3)
381.8 (49.0)
332.8
Net assets after intangible adjustments
Capital Base Adjustment: Insurance contract liability
(239.2)
— — (239.2)
— (239.2)
DTA adjustments
(37.4)
(2.3)
—
(39.8) 30.0 132.8 (24.4) 108.5 (62.6)
(4.2) (43.9) 45.0 75.0
Tier 2 Capital 4
30.0
— —
126.3 6.2 0.4
(8.2)
124.7
Regulatory Capital Base Prescribed Capital Amount Available Enterprise Capital
(20.6)
(3.7)
—
— (24.4)
105.6 2.4 0.4
(8.2)
100.3
Risk Capital
(60.4)
(2.3)
—
(10.6) (73.2)
45.3 0.2 0.4
45.8
(18.8)
27.1
Net capital position
The net surplus capital position of the Group above internal benchmarks is $27.1 million and represents a decrease of $0.4 million since the prior year, predominantly driven by: • the payment of the FY23 final and HY24 interim cash dividends (-$29.7 million): • the capital benefit from the sale of the investment in Centrepoint Alliance (+$5.2 million); • the release of capital from the sale of CFML (+$5.9 million); • given the simplicity and core focus of the business on life insurance, a reduction in the target risk capital and related items (+$20.3 million); and • The net impact of the capital generation, underlying regulatory and target capital increases due to the growth in the business and costs considered unusual to the ordinary course of business (-$2.1 million). The capital position is stated prior to any further capital release or costs from the exit of the wealth management business due to the unwind of the life investment contracts on completion by ETSL of the SFT of the CRP or any cash component of the FY24 final dividend. Subsequent to its retirement as the trustee of the CRP, CLN is no longer an operating entity and is therefore no longer required to hold the capital previously held by it (Operating Risk Financial Requirement - ORFR). Aligned to the transition of the trustee, the listed entity has entered into arrangements with the EQT group to provide ORFR funding of $3.5 million to ETSL until the SFT is completed ($3.25 million has been drawn down by ETSL under the terms of the agreement).
1 Net Assets as at 30 June 2024 excluding Employee Share Plan Loans. Net assets includes the asset for insurance acquisition cash flows ( AIACF ) component of insurance contract liabilities and right of use asset arising from leases. 2 Intangible adjustments relate to goodwill and capitalised software (excluding 50% of the capitalised software held in the administration entity). It also includes the removal of $0.5 million of capitalised costs in relation to the Tier 2 capital raising. 3 NOHC is a non operating holding company regulated by APRA under the Life Insurance Act. 4 ClearView raised $75m of Tier 2 subordinated notes in November 2020.
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ClearView Wealth Limited
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