Clearview Wealth Limited · ASX:CVW
Clearview Wealth — Investor Presentation (February 2023)
32 slides from Clearview Wealth's investor presentation, Feb 23, 2023
Slide 1: ClearView Results HY23 Investor Presentation
ClearView Results HY23 31 December 2022 Investor Presentation 23 February 2023 Simon Swanson Athol Chiert Managing Director Chief Financial Officer
Slide 2: HY23 Highlights
HY23 Highlights
Slide 3: HY23 Highlights
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix HY23 Highlights Strong HY23 result - clear strategy, simplified business model and a focus on Life Insurance Strong growth in premiums and underlying profit with a focus on high quality earnings HY23 result reflects benefits of tra
Slide 4: HY23 Financial Highlights
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix HY23 Financial Highlights Life insurance remains the key profit driver and focus. In-force portfolios should trend to higher new business share which underpins the growth profile Underlying NPAT New Business In-force Premiums1 Net
Slide 5: HY23 result
HY23 result
Slide 6: HY23 Group result
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Financials HY23 Group result Commentary Strong growth in HY23: 1 7 4 • New Business up 9% to $11.3m Underlying After Tax Profit by Segment, $M HY23 HY22 %Change • In force premiums8 up 11% to $290.9m Life insurance 19.4 13.3 46% •
Slide 7: Life Insurance HY23 result
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Life Insurance HY23 result Life Insurance Underlying NPAT Gross Premium Income ($M) ($M) ◦ Recurring revenue base up 8% to $160m Gross Premiums ◦ HY23 Underlying NPAT of $19.4m up 46% up 8% ◦ Increased new business market share Und
Slide 8: ClearView continues to be a challenger in an improving market environment
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix ClearView continues to be a challenger in an improving market environment Regaining market share with a focus on high quality earnings - in-force portfolios should trend to higher new business share which underpins the growth profi
Slide 9: Balance sheet strength
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Balance sheet strength Net assets are backed by cash and highly rated securities - balance sheet provides strong downside protection due to its high level of net tangible assets Net Assets ($m) Group Capital Position ($m) 476.7 $47
Slide 10: EV at December 2022
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix EV at 31 December 2022 Risk margin over risk free rate2: ($M), 3% dm 4% dm 5% dm ◦ The Life Insurance EV increased by 5.2% over the (unless otherwise stated) half year period to $570m, including franking Life insurance 501.3 469.7
Slide 11: Key business highlights
Key business highlights
Slide 12: ClearView Life Insurance today
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix ClearView Life Insurance today The life insurance growth strategy is focused on capturing a double-digit market share (with a focus on high quality earnings) by delivering competitive products and service primarily to the IFA marke
Slide 13: Investing for profitable growth
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Investing for profitable growth ClearView is well-positioned to capture future growth. This is supported by a high quality in-force book ClearView ClearChoice Staggered in-force repricing Recent product updates to improve product p
Slide 14: Divestment from Wealth
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Divestment from Wealth Two-part reorganisation of wealth management business to enable more efficient delivery of these products, while improving investment and service outcomes – leads to divestment of business 1. Investment Manag
Slide 15: Our approach to ESG
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Our approach to ESG Our vision is to support Australians to achieve their financial and wellbeing goals, and be a positive force for our staff, community and the environment. This vision lies at the heart of our Corporate Social Re
Slide 16: Outlook
Outlook
Slide 17: Business Outlook
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Business Outlook ClearView remains well positioned to take advantage of industry structural changes post a period of investment and simplification of the business Increasingly attractive life insurance market with improving margins
Slide 18: Financial Outlook
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Financial Outlook Strong HY23 result - reflective of business momentum. Revised (upward) FY23 guidance to Underlying 1 NPAT of $30m - $32m HY23 result reflects improving margins and benefits of transformation strategy and investmen
Slide 19: Glossary
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Glossary AFSL Australian Financial Service Licence; AR is an authorised representative Underlying NPAT Underlying NPAT consists of consolidated profit after tax excluding amortisation, the effects of changing discount rates on poli
Slide 20: For further information, please contact:
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix For further information, please contact: Investor inquiries Media inquiries Trevor Franz Leng Ohlsson Principal, Catapult Partners Head of Corporate Affairs M: 0406 882 736 M: 0409 509 516 E: trevorfranz@catapultpartners.com.au E:
Slide 21: Appendix Additional Financial Information
Appendix Additional Financial Information
Slide 22: Consolidated FY22 results: Reconciliation of Underlying NPAT to Reported NPAT
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Consolidated FY22 results: Reconciliation of Underlying NPAT to 1 Reported NPAT 2020 2021 2022 2023 % 6 Months to December 2022 ($M)¹ 1H 2H FY20 1H 2H FY21 1H 2H FY22 1H Change2 Gross life insurance premiums 129.0 131.0 260.0 138.4
Slide 23: Life insurance
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Life insurance 2020 2021 2022 2023 % 6 Months to December 2022 ($M)¹ 1H 2H FY20 1H 2H FY21 1H 2H FY22 1H Change2 Gross life insurance premiums 129.0 131.0 260.0 138.4 139.8 278.2 147.6 152.1 299.6 160.0 8% Other income — — — — 0.2
Slide 24: Wealth Management
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Wealth Management 2018 2019 2020 2021 %2023 6 Months to2018 December 2020 ($M)¹ 2020 2021 2022 % 2019 2020 2021 Change² 6 Months to December 2022 ($M)¹ 1H 2H 1H FY20 2H FY18 1H 1H 2H 2H FY19% FY21 1H 1H 2H FY20 2H 1H FY22 1H Change
Slide 25: Listed/Group Segment
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Listed/Group Segment 2020 2021 2022 2023 % 12 Months to June 2022 ($M)¹ 1H 2H FY20 1H 2H FY21 1H 2H FY22 1H Change2 Other income — — — — — — — 0.7 0.7 — NM Operating expenses (0.6) (0.7) (1.4) (0.7) (0.4) (1.2) (0.7) (0.8) (1.6) (0
Slide 26: Balance Sheet, Embedded value and capital position at December 2022
Balance Sheet, Embedded value and capital position at 31 December 2022
Slide 27: Balance sheet as at 31 December 2022
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Balance sheet as at 31 December 2022 Commentary2 Consolidated Balance Sheet (shareholder view)1 HY23 FY22 Assets Net Asset and Capital Position Cash and cash equivalents 88.6 119.0 • Net assets (pre-ESP loans) of $476.7m, net of $1
Slide 28: Embedded Value movement analysis
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Embedded Value movement analysis Restatement of wealth 1,2 Embedded Value Waterfall: FY22-HY23 ($M) management EV to net assets 604.9 18.1 0.1 1.3 0.9 0.7 2.9 590.4 583.5 572.7 91.8 (19.2) (1.3) (5.0) (6.9) (13.0) 91.8 90.6 91.8 8.
Slide 29: EV movement analysis @ 4% DM by segment at December 2022
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix EV movement analysis @ 4% DM by segment at 31 December 2022 MOVEMENT ANALYSIS @ 4% dm Life Wealth Other Total EV - 30 June 2022 @ 4% dm (As Published) incl Franking Credits and ESP Loans 541.9 46.1 17.0 605.0 Restatements/modeling
Slide 30: EV sensitivity analysis @4% DM
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix 1 EV sensitivity analysis @4% DM EV Sensitivity Analysis - Life @ 4% dm ($mil) Inflation -0.5%;+0.5% -2.6 4.2 Risk-free rate +1%;-1% -20.8 23.2 Expenses +10%;-10% -11.9 11.9 Discontinuance Rates +1%;-1% -17.7 19.8 Claims +10%;-10%
Slide 31: Disclaimer
HY23 Highlights HY23 Result Key Business Highlights Outlook Appendix Disclaimer Important notice and disclaimer Summary information Pro-forma financial information This investor presentation (Presentation) contains summary information about ClearView Wealth ClearView uses certain measures to manage
Slide 32: End
End
ClearView Wealth — Investor Presentation (February 2023) on 6ix