ClearView’s financial advice division has recorded an operating net profit after tax of $1.5 million, a decrease of 66 per cent from the previous financial year.
In a statement to the ASX, Clearview said the financial advice segment profit result was driven by a reallocation to the segment of some of the dealer group support costs, which were previously absorbed by the life insurance segment.
Higher costs were also incurred through additional investment in the strategic advice model and compliance given increased regulatory focus.
ClearView’s wealth management division recorded an operating net profit after tax of $2.7 million, an increase of 50 per cent on last year, while its life insurance segment had an operating net profit after tax of $24.5 million, an increase of 60 per cent on last year.
It also increased total operating earnings after tax by 35 per cent to $28.2 million, and increased overall underlying net profit after tax by 33 per cent to $27.2 million.
ClearView managing director Simon Swanson said the company has established a strong foundation for sustained growth.
“ClearView remains well positioned for robust growth over the medium to long term by virtue of our life insurance and wealth management business units that offer complementary products and services over the economic cycle,” Mr Swanson said.
“We are delighted with this result that reflects our industry disrupter strategy of winning market share within profitable segments by delivering innovative products and a high level of service.”
Several firms have been impacted by the corporate regulator’s action.
Super funds must now have a retirement income strategy in place.
Vanguard has called for a complete overhaul of the advice industry.
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