Notes to the Financial Statements
2. Results for the year
a) Life Insurance (‘protection’ products)
2.1 Segment performance AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The information reported to the Group’s Board of Directors, being the chief operating decision maker, for the purpose of resource allocation and assessment of performance is focused on the products and services of each reporting segment. ClearView offers life insurance, superannuation and investment products and services under the ClearView brand through two business segments, namely Life Insurance and Wealth Management (discontinued operations - see detail in section (b) below). ClearView acquired a 24.5% holding (48 million shares) in Centrepoint Alliance Limited (Centrepoint Alliance) on 1 November 2021 as part of the consideration for the sale of ClearView’s financial advice businesses to Centrepoint Alliance. On 17 November 2023, ClearView announced the sale of approximately 39.56 million shares in Centrepoint Alliance to COG Financial Services Limited ( COG ), at a share price of 33 cents per share representing total consideration of $13.05 million. The sale shares represented approximately 19.9% of Centrepoint Alliance’s total issued capital at that time. The remaining 8.44 million shares were subsequently sold on the market from 17 November 2023, at an average exit price of circa 27 cents per share, representing total consideration of $2.2 million. ClearView has fully divested the investment in Centrepoint Alliance as at 30 June 2024. ClearView’s holding in Centrepoint Alliance was until its disposal, accounted for under the equity accounting method. The Listed/Other segment represents the investment earnings on the cash and investments held in the listed and central services entities and in the shareholders fund of ClearView Life, and the equity accounted earnings of Centrepoint Alliance until its sale, less the costs associated with maintaining a listed entity and interest expense on corporate and subordinated debt. The Group manages capital at the listed entity level in accordance with its ICAAP policy. Further details on the the principal activities of the Group’s two business reportable segments under AASB 8, are provided in more detail below.
The Life Insurance business offers advised life insurance products and also has an in-force (closed) portfolio of non-advised life insurance products. As at 30 June 2024, ClearView had combined in-force life insurance premiums of $373.9 million (30 June 2023: $339.3 million). ClearView provides life insurance protection products through its wholly owned subsidiary ClearView Life. These products are designed to allow policyholders to receive (in the case of an eligible claim) either a one off payment (lump sum products) or recurring benefits (ongoing monthly payments) over a specified period, typically a certain number of years, or up to a specific age (income protection products). The products provided by ClearView Life include: • LifeSolutions was launched in December 2011 and includes term life, permanent disability, trauma and critical illness benefits, child cover, accident covers, income protection and business expense covers. Policies can be issued directly or via the HUB24 Super Fund as superannuation. The LifeSolutions product, was until 1 October 2021, the single, contemporary product series for retail customers that was available for sale through financial advisers. It has subsequently been closed to new business from that date. • ClearView ClearChoice, the new life protection product series, was launched in October 2021 and includes term life, accidental death, permanent disability, trauma, child cover, income protection and business expense cover. These products include significant changes to income protection product design and pricing to improve both premium affordability and sustainability of the product. Policies can be issued directly or via the HUB24 Super Fund. • An in-force portfolio of Non-Advice life protection products that were previously sold through direct marketing, and related channels. Products include term life, accidental death, injury covers, trauma and critical illness and funeral insurance. These products are no longer marketed to customers. The direct life insurance business was closed in May 2017.
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ClearView Annual Report 2024
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