The review, aimed at maximising ClearView’s shareholder value by exploring options for a restructure, was decided upon following discussions with its largest shareholder, Crescent Capital Partners.
ClearView said its transformational 2021 makes it an opportune time to conduct such a review, highlighting milestones including its solid business performance despite COVID-induced challenges.
According to the company, FY21 was particularly successful and allowed the board to execute several key decisions including a cash dividend of 1cp, the separation of the dealer group and financial advice business from the ClearView Group, and the launch of a multi-year life insurance transformation project.
Heading into the review, ClearView clarified that customer and policyholder interests will be front of mind throughout the process and that there is no guarantee that any transaction will result from the review’s findings.
BofA Securities has been appointed as the exclusive financial adviser, with Gilbert + Tobin assigned to take on the role of legal adviser in relation to the review.
The review comes shortly after the announcement of the company’s 2021 financial year results which indicated a change of direction for the firm.
Despite a group increase in underlying NPAT, its wealth management business reported this at only $0.7 million, down by 79 per cent from 2020. ClearView stated that it would seek to simplify this business to reduce the cost base.
It was also said that the business would focus on acquisitions and new business activity when looking to 2022.
Crescent capital have been trying to offload their majority for years. I’m guessing they finally have some interest
That is usually code for putting yourself up for sale. Will TAL or AIA buy them as well?