Slide 1: ClearView Results Half Year ended 31 December 2021
ClearView Results Half Year ended 31 December 2021 Investor presentation 24 February 2022 Simon Swanson Athol Chiert Managing Director Chief Financial Officer
Slide 2: Executive summary
Executive summary 1
Slide 3: Executive summary
Executive summary Highlights Operating Earnings2: • Strong HY22 life insurance result - reflective of positive $13.9m Up 14% business momentum 2 • Business remained resilient to COVID-19 impacts Underlying NPAT : • Improving industry performance $12.7m Up 5% • Overall positive claims and lapse exper
Slide 4: Overview and HY22 result
Overview and HY22 result 1
Slide 5: ClearView Operating Divisions
ClearView Operating Divisions ClearView’s business comprises life insurance and wealth management HY22 Revenue : $163.6m¹ ( 6%) HY22 Operating Earnings After Tax : $13.9m¹ ( 14%) HY22 Underlying NPAT¹ : $12.7m¹ ( 5%) 2 Embedded Value : $651.0m (97.3 cents per share) Life Insurance Wealth Management
Slide 6: Financials HY22 Group result
Financials HY22 Group result HY22 HY21 2HY21 % After Tax Profit by Segment, $M Change1 Key Observations $M $M $M Life Insurance5 13.4 12.4 11.1 8% • Group Operating Earnings up 14%; Underlying NPAT up 5%; Life Insurance Wealth Management 1.1 0.6 0.1 95 % contributes 96% to Group Operating Earnings L
Slide 7: Life Insurance HY22 result
Life Insurance HY22 result • Recurring revenue base up 7%; New Life Insurance Operating Earnings Gross Premium Income ($M) business volumes increased 24% to (after tax) ($M) $10.4m in HY22 Gross premiums Operating up 7% • Continued improvement in Life earnings up Insurance profitability in HY22 8% •
Slide 8: Wealth Management HY22 result
Wealth Management HY22 result • FUM up 19%, driven by positive net Wealth Management FUM ($B) flows and investment performance Operating Earnings (after tax) ($M) • Fees up 3% given margin compression, transition of wrap business to HUB24 3.3 3.3 and reduction of FUM in model portfolios 3.63 0.16 (n
Slide 9: Sale of Financial Advice Business
Sale of Financial Advice Business Exit of direct ownership of adviser networks in November 2021 Centrepoint Alliance Post Acquisition ◦ Significant operating leverage and scale ◦ Immediate synergies from operating expense reductions ◦ Creation of platform and capability to further consolidate market
Slide 10: Balance sheet strength
Balance sheet strength Net Assets • Asset concentration risk addressed in medium term1 • Includes APRA supervisory adjustment as part of IDII HY19 HY20 HY21 HY22 sustainability measures Net assets ($m) 446.8 449.4 462.2 472.4 Net assets per share • Capital backed by net cash and investments of $385m
Slide 11: Key investment highlights
Key investment highlights
Slide 12: Key investment highlights
Key investment highlights Attractive life insurance • The Australian life insurance market is fundamentally attractive market with improving • Improving industry profitability driven by structural reforms focused on sustainability 1 returns and a strong growth • Significant underinsurance gap outloo
Slide 13: The Australian Life Insurance Industry is a Fundamentally Attractive Market
The Australian Life Insurance Industry is a 1 Fundamentally Attractive Market The Australian Life Insurance Market is fundamentally attractive as it is focused primarily on risk-only products, with flexible contract structures (that allow repricing) and supportive public policy settings with strong
Slide 14: Market Consolidation in the Life Insurance Sector
2 Market Consolidation in the Life Insurance Sector There has been material consolidation in the sector. This period of market consolidation has created some shorter term focus for certain industry participants Life Insurance Landscape (June 2015) Life Insurance Landscape (June 2021) • Period of con
Slide 15: Well-positioned for Future Growth Through Business Transformation
3 Well-positioned for Future Growth Through Business Transformation ClearView is well positioned for a potential market rebound due to its material investment in a business transformation program to drive customer outcomes, experiences and loyalty Initiative Description Implication • Investment in a
Slide 16: Recent Market Improvements: Income Protection Product Initiatives
3 Recent Market Improvements: Income Protection Product Initiatives There have been material industry and regulatory focus to address issues with income protection products. These have included regulatory actions (including capital charges), product changes (including the banning of some product cat
Slide 17: Actionable Growth Strategy
4 Actionable Growth Strategy ClearView is well-positioned to capture future growth underpinned by recent investments in technology, processes and people. This is supported by a fundamentally strong in-force book • Comprehensive / contemporary • ClearView’s strategy of simplified products and product
Slide 18: ClearView's Net Assets are Highly Liquid
5 ClearView’s Net Assets are Highly Liquid ClearView’s balance sheet provides strong downside protection due to its high level of net tangible assets (including cash and cash like assets of ~A$475m) Net Assets as at 31 December 2021 ($m) $472m Net Assets Investment in highly liquid A- • In total Cle
Slide 19: Outlook
= ; ; ~~ ial. ¥t 7/ é <Q’ ” Outlook
Slide 20: Business outlook
Business outlook We continue to have a set of clear targets for the continued transformation of our life insurance business in FY22, with outcomes determined by the successful implementation of the new IT platform, launch of ClearChoice and risks associated with the repricing of the LifeSolutions Au
Slide 21: Financial outlook
Financial outlook Strong HY22 result - reflective of strong business momentum. Any upward movement in rates positively impacts underlying earnings. Forecast capital Strong Balance Surplus capital generation allows Ultra low interest Embedded Value Solid growth in Strategic review Sheet and capital p
Slide 22: Glossary
Glossary AFSL Australian Financial Service Licence; AR is an authorised representative Operating Earnings or Operating Earnings (after tax) represents the Underlying NPAT of the business segments before underlying investment Operating Earnings After Tax income and interest costs associated with corp
Slide 23: For further information, please contact:
For further information, please contact: Investor inquiries Media inquiries Trevor Franz Leng Ohlsson Principal, Catapult Partners Head of Marketing and Corporate Affairs M: 0406 882 736 T: (02) 8095 1539 M: 0409 509 516 E: trevorfranz@catapultpartners.com.au E: leng.ohlsson@clearview.com.au 23
Slide 24: Appendix Additional Financial Information
Appendix Additional Financial Information
Slide 25: Consolidated HY22 results: Shareholder view
Consolidated 6 Months to December 2021 ($M) Gross life insurance premiums ¹ 1H 120.5 2019 2H 122.6 FY19 243.1 1H 129.0 2020 2H 131.0 FY20 260.0 1H 138.4 2021 2H 139.8 FY21 278.2 2022 147.6 % 1H Change2 7% HY22 results: Fund management fees Other Income Gross Income 17.7 — 138.2 16.7 — 139.3 34.4 277
Slide 26: Life Insurance
Life Insurance 2019 2020 2021 2022 % ¹ 6 Months to December 2021 ($M) 1H 2H FY19 1H 2H FY20 1H 2H FY21 1H Change2 Gross life insurance premiums 120.5 122.7 243.1 129.0 131.0 260.0 138.4 139.8 278.2 147.6 7% Other income — — — — — — — 0.2 0.2 — NA Net claims incurred (17.0) (18.9) (35.9) (22.6) (35.5
Slide 27: Wealth Management
Wealth 6 Months to December 6 Months 2021 to December Fund management fees 2020($M) ($M)¹ ¹ 1H 2018 2H 1H FY18 17.7 2019 1H 2H 16.7 2019 FY19 2H34.4 FY19 1H 16.7 2020 2H 1H 15.7 2020 FY20 1H 2H 32.5 FY20 15.5 2021 2021 1H 2H % FY21 Change² 15.5 31.0 2022 1H Change2 16.0 3% % Management Other income
Slide 28: Listed/Group Segment
Listed/ 2019 2020 2021 2022 % Group 6 Months to December 2021 ($M) Operating expenses ¹ 1H (0.7) 2H (0.6) FY19 (1.2) 1H (0.6) 2H (0.7) FY20 (1.4) 1H (0.7) 2H (0.4) FY21 (1.2) 1H Change2 (0.7) —% Segment BU Operating NPBT (0.7) (0.6) (1.2) (0.6) (0.7) (1.4) (0.7) (0.4) (1.2) (0.7) —% Income tax (expe
Slide 29: Balance Sheet, Embedded value and capital position at December 2021
Balance Sheet, Embedded value and capital position at 31 December 2021 29
Slide 30: Balance sheet as at 31 December 2021
Balance sheet as at 31 December 2021 Commentary2 Consolidated Balance Sheet (shareholder view)1 Net Asset and Capital Position HY22 FY21 • Net assets (pre-ESP loans) of $472.4m, includes uplift from sale of financial Assets advice businesses Cash and cash equivalents 116.5 158.7 • Surplus capital ab
Slide 31: Capital position at 31 December 2021
Capital position at 31 December 2021 Commentary Group Capital Position Bridge - $m 472.3 • Net capital position above internal benchmarks of $19.2m (32.5) • Intangible adjustment includes the removal from the capital position of goodwill ($12.5m), intangibles ($12.3m), CRP receivable ($6.4m) and Tie
Slide 32: Embedded Value as at 31 December 2021
Embedded Value as at 31 December 2021 Risk margin over risk free rate2: ($M), 3% dm 4% dm 5% dm 701.1 (unless otherwise stated) 624.1 661.9 31.0 672.6 643.4 640.4 651.0 31.6 32.8 Life insurance 507.6 473.4 443.2 Wealth management 42.1 40.0 38.1 533.3 541.9 518.2 529.6 Value of In Force (VIF) 549.6 5
Slide 33: Embedded Value movement analysis
Embedded Value movement analysis • Key movements in the EV between FY21 and HY22 are as follows: Embedded Value1,2 Waterfall: FY21-HY22 ($M) • FY21 final cash dividend paid in September 2021 11.0 15.3 0.5 1.7 651.0 • Uplift from the sale of the Financial Advice businesses 640.3 2.8 643.1 0.2 (2.5) (
Slide 34: EV movement analysis @ 4% DM by segment at 31 December 2021
EV movement MOVEMENT ANALYSIS @ 4% dm Life Wealth Advice Other Total EV - 30 June 2021 @ 4% dm (As Published) incl Franking Credits and ESP Loans 548.0 55.8 11.4 25.2 640.3 analysis @ 4% DM Restatements/modeling difference EV - 30 June 2021 @ 4% dm (Restated) 2.2 550.2 0.5 56.3 — 11.4 — 25.2 2.8 643
Slide 35: EV sensitivity analysis @4% DM
EV sensitivity analysis @4% DM 1 EV Sensitivity Analysis - Total @ 4% dm ($mil) Inflation -0.5%;+0.5% -2.7 2.7 Risk-free rate +1%;-1% -17.1 19.6 FUMA -10%;+10% -4.0 4.0 Expenses +10%;-10% -16.2 16.2 Discontinuance Rates +1%;-1% -22.3 25.8 Claims +10%;-10% -27.9 28.7 -30 -20 -10 0 10 20 30 EV Sensiti
Slide 36: Group net assets and capital analysis at 31 December 2021
Group net assets and capital analysis at 31 December 2021 Group Capital Position as at Life Wealth Other APRA Wealth ASIC All Regulated NOHC⁶/ Other Group 31 December 2021 ($M) Regulated Regulated Entities Entities Entities Net assets at 31 December 2021 451.8 11.1 4.3 467.2 8.7 8.7 476.0 (3.7) 472.
Slide 37: Impact of ESP Shares
Impact of ESP Shares
Slide 38: Impact of Employee Share Plan (ESP) shares
Impact of Employee Share Plan (ESP) shares Per share calculations Half year ended 31 December 2021 HY22 • Accounted for as an option in accordance with AASB 2 Number of shares on issue (m) 631.8 • Limited recourse loan not reported as a receivable on Balance Sheet ESP shares on issue (m) 37.5 • Loan
Slide 39: Disclaimer
Disclaimer Important notice and disclaimer Summary information Pro-forma financial information This investor presentation (Presentation) contains summary information about ClearView ClearView uses certain measures to manage and report on its business that are not Wealth Limited (ACN 106 248 248) and
Slide 40: End
= ial. ¥t 7/ é <Q’ ” End