The listed wealth management group reported strong improvements in its advice and life insurance businesses for the six months to December as it boosted investment in claims management and compliance.
In its half-year results presentation on Wednesday, ClearView reported an $800,000 after tax profit in its advice business for the six months to December, up 66 per cent from $500,000 in the prior corresponding period.
After tax profits in the group’s life insurance arm had also shot up 55 per cent, from $8 million in the first half of the 2020 financial year to $12.4 million in the first half of the 2021 year.
The group said while its life business was likely to be challenged by declining adviser numbers, in the medium term the transformation of the sector was likely to lead to “better quality business from professional and client focused advisers”.
ClearView reported an overall net profit after tax of $13 million for the six months to December 2020, up 27 per cent on the prior corresponding period.
The group said it was “making good progress towards achieving strategic projects and priorities” and had implemented “strategic investments in compliance and technology to drive efficiencies in advice”.
ClearView said 28 practices representing 91 advisers had joined its offering for self-licensed advisers, LaVista Licensee Solutions.
“While challenging market conditions persist, this result reflects the impact of initiatives to improve claims management outcomes, boost customer loyalty and strengthen our relationships with professional financial advisers,” ClearView managing director Simon Swanson said.
“Fundamental demand for the quality products and services offered by ClearView has not changed. Australia’s complex tax and regulatory environment, ageing population and rising debt levels underpin the need for strategic advice and fit for purpose products to help people achieve their financial goals, manage risk and retire with confidence.”
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