Notes to the Financial Statements
b) Wealth Management (‘investment’ products) - discontinued operations
The Wealth Management business offers products through various structures (see commentary below) and as at 30 June 2024, had total FUM of $3.5 billion (30 June 2023: $3.4 billion). The Board has reset and simplified the business with the ambition of retaining its core focus on being a life risk insurance provider. The Board continues to be committed to the exit of the wealth management business given its lack of scale and limited growth options, with significant progress made during the year. ClearView entered into a share sale agreement (on 22 February 2023) for the sale of CFML to Human Financial, subject to the completion of certain conditions precedent. In November 2023 and January 2024, ClearView signed revised sale agreements with Human Financial. Under the terms of the revised sale agreements, the proceeds have a cash component of $5 million, with no allowance for an equity interest in Human Financial. Prior to the sale, in January 2024, ClearView received a pre-completion dividend of $0.75 million that does not result in CFML’s net tangible assets being less than $5 million. Completion of the sale occurred on 31 January 2024, with a deferred consideration of $4.85 million (net of $0.15 million completion payment) received on 28 February 2024. The superannuation fund trustee, ClearView Life Nominees Pty Limited ( CLN ) retired as the trustee of the ClearView Retirement Plan ( CRP ) in December 2023, with the simultaneous appointment of Equity Trustees Superannuation Limited ( ETSL ) ( DORA ). The completion of these actions clears the way for ClearView to now fully exit the wealth management segment in the shorter term. 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. In accordance with AASB 5 Non-Current Assets Held for Sale and Discontinued Operations, the wealth management segment continues to meet the criteria to be classified as held for sale in the consolidated financial statements for the year ended 30 June 2024. As such it is reported as a discontinued operation. Refer to section 8.5 for detail. Asset segment information has not been disclosed because the allocation of assets is not used for evaluating segment performance and deciding the allocation of resources to segments. Asset segment information is critical to the performance of each company and their respective regulatory obligations and is managed at a company level. Information regarding these segments is provided below.
The accounting policies of the reportable segments are the same as the Company’s accounting policies.
Total Revenue 1
Inter-Segment Revenue Consolidated Revenue
2024 2023 $'000 $'000 $'000 $'000 $'000 $'000 2023 2024 2023 2024
(Restated)
Segment revenue Life Insurance Listed entity/Other
353,653 303,288
— —
— 353,653 303,288
1,371
912
—
1,371
912
Consolidated segment revenue from continuing operations
355,024 304,200
—
— 355,024 304,200
1 Total revenue includes insurance revenue, investment income and fee and other revenue.
95
ClearView Wealth Limited
Powered by FlippingBook