Directors’ Report
ClearView’s distribution footprint expanded with a material increase in the number of relationships with top-tier and mid-tier adviser groups, and positioning on the approved product list of all major advice groups. ClearView’s share of the new business wallet from top tier advisers grew from 11.5% 2 in June 2023 to 15.8% in March 2024. We have observed a slight uptick in lapses and claims incidence that often go hand-in-hand with household budget stress. However, as many ClearView customers purchase their insurance through superannuation the immediate cost of living impact is not felt, which importantly enables them to retain cover. In addition, ClearView continued to undertake a number of proactive initiatives through FY24 to assist customers through difficult times. As I flagged in last year’s address, FY24 saw the introduction of a new accounting standard AASB 17 – ‘Insurance Contracts ’. This new standard, while not changing the underlying economics of life insurance, has had a material impact on the timing and recognition of profit. The FY23 comparatives have been adjusted to reflect the different methodology. ClearView’s preferred measure of performance remains Group Underlying NPAT (from continuing operations) and was $35.3 million for FY24 (FY23: $28.2 million). This is a strong result, particularly given the primary focus was to execute on the strategic transformation program, and was driven by the growth in new business while offset by increased claims. Simplification and transformation Excellent progress was made on the wider transformation initiatives, although final execution of the wealth exit has taken a little longer than originally planned. In respect of the wealth exit, key milestones included the completion of the sale of CFML, our responsible manager, and exit from the superannuation trustee business. The final milestone remaining is the completion of the trustee’s successor fund transfer ( SFT ) that will result in the derecognition of the group life investment contracts and related assets from the Balance Sheet. This is in train and expected to occur in FY25. Once this occurs, ClearView will have no residual wealth exposure resulting in a simpler, less complex business, focused on life insurance only. Phase 1 of the Policy Administration System implementation was completed during FY24 and migration of our legacy policies on to the new platform has commenced. The migration is expected to complete in 1H FY26. On completion, ClearView will have all policies on one administrative platform,
resulting in both a better customer experience and significant efficiency benefits. During the year ClearView sold its interest in Centrepoint Alliance enabling the business to position itself as a pure life insurer. Sustainability and Resilience ClearView has continued to enhance its product development processes with the completion of the Phase 1 IDII review. A more mature data analytics capability is providing insights into the insurance portfolio to enable a more proactive management. This capability, and a maturing risk management culture will support sustainable growth in the future. In line with industry trends, ClearView has observed an uptick in claims, in particular relating to Total and Permanent Disability policies. We are monitoring this trend and continue to invest heavily in this area. The threat of cyber-attacks and data breaches remain a key risk for businesses, and we have taken important steps to uplift our Cyber Security rating to further safeguard the privacy of our customer information. There continues to be a significant amount of regulatory reform, including the introduction of CPS230 Operational Risk Management which will be effective 1 July 2025, and the Financial Accountability Regime ( FAR ) that will be effective for ClearView from March 2025. The implementation of these major standards will strengthen both the operational resilience of ClearView and accountability from Executives and Directors. Dividend and capital During the year the Board declared and paid an interim fully franked dividend of 1.5cps. A final dividend of 1.7cps has been declared by the Board taking the full year dividend to 3.2cps for FY24 (3cps in FY23). This represents a 6.7% increase and is at the top end of the Board’s target payout ratio of 40% to 60% of Underlying NPAT. The Board has reintroduced the dividend reinvestment program for the final FY24 dividend. ClearView continues to maintain a strong capital position and future growth plans will be funded by the positive capital generation from the Group’s in- force portfolio. In FY25 ClearView will complete the exit from wealth and progress the completion of the Group’s new Policy Administration System across the whole organisation. Achievement of these milestones will continue to strengthen the Group’s capital position.
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ClearView Wealth Limited
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