ASX-listed company ClearView Wealth has reported an operating net profit after tax of $13.9 million for half-year ending 31 December 2015, pointing to its insurance arm as the "key profit driver".
Reporting its half-year financial results to the ASX yesterday, ClearView posted a 40 per cent increase in profit for the period, up from $9.9 million in the previous corresponding period and an underlying net profit after tax of $13.4 million.
ClearView highlighted that a "key profit driver" for the business was its life insurance business which posted an operating net profit after tax of $12.1 million, up 66 per cent.
Managing director Simon Swanson said the company has had "strong growth" in its new advised insurance business which is "significantly above the market growth rate".
"A key focus, more recently, has been on the broadening out of the distribution of our life product suite with the number of APLs on which our life products are placed increasing to almost 250 – which is up 54 per cent," Mr Swanson said.
"As a consequence, just under 60 per cent of our advised life insurance new business was generated from non-aligned advisers which is up 35 per cent on the prior comparable period."
In addition, ClearView said in-force premium is up 30 per cent to $132 million with new business written up seven per cent to $18.2 million.
Across the company's financial advice arm, ClearView reported its funds under management and advice had increased nine per cent to $8.1 billion, but its financial advice net profit after tax was down 63 per cent on the previous corresponding period.
Mr Swanson said the company's strategy going forward will be to place its focus on "broadening" its distribution to the "wider IFA market" in both life insurance and wealth management.
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