Slide 1: ClearView Results Year ended 30 June 2022
ClearView Results Year ended 30 June 2022 Investor presentation 24 August 2022 Simon Swanson Athol Chiert Managing Director Chief Financial Officer
Slide 2: Executive summary
Executive summary
Slide 3: Executive summary
Executive summary Highlights • Strong FY22 life insurance result Operating Earnings1: • Positive business momentum $28.0m Up 22% • Life insurance new business written up 24% • Gross premium income up 8% Underlying NPAT1: • Underlying claims2 and lapse experience profit $26.4m Up 22% • Upward movemen
Slide 4: Overview and FY22 result
Overview and FY22 result
Slide 5: ClearView Operating Divisions
ClearView Operating Divisions ClearView’s business comprises life insurance and wealth management FY22 Revenue : $330.2m4 (+7%) FY22 Operating Earnings After Tax : $28.0m¹ (+22%) FY22 Underlying NPAT : $26.4m¹ (+22%) Embedded Value : $605m2 (92.2 cents per share) Life Insurance Wealth Management Fin
Slide 6: Financials FY22 Group result
Financials FY22 Group result Key Observations After Tax Profit by Segment, $M FY22 FY21 % $M $M Change11 • Strong growth in FY22: Life Insurance 28.9 23.5 23 % • Gross Revenue up 7% to $330.2m Wealth Management (0.1) 0.6 (112)% • Life New Business up 24% to $20.2m • In force premiums growth up 7% to
Slide 7: Life Insurance FY22 result
Life Insurance FY22 result • Recurring revenue base up 8%; New business volumes increased 24% to $20.2m Life Insurance Operating Earnings Gross Premium Income ($M) (after tax) ($M) • FY22 Operating Earnings After Tax up 23% Gross premiums to A$28.9m Operating up 8% • Positive momentum in business dr
Slide 8: Wealth Management FY22 result
Wealth Management FY22 result • FUM down 4%; fee income down 4% - impacted by mix of business and investment Wealth Management FUM ($B) performance Operating Earnings • Margin compression due to transition of (after tax) ($M) wrap business to HUB24, transfer of Master Trust super/ allocated pensions
Slide 9: Sale of Financial Advice Business
Sale of Financial Advice Business Exit of direct ownership of adviser networks in November 2021 Centrepoint Alliance Post Acquisition ◦ Significant operating leverage and scale ◦ Immediate synergies from operating expense reductions ◦ Creation of platform and capability to further consolidate market
Slide 10: Balance sheet strength
Balance sheet strength Net Assets • Asset concentration risk addressed in medium term1 • Includes APRA supervisory adjustment as part of IDII FY19 FY20 FY21 FY22 sustainability measures Net assets ($m) 439.1 452.7 459.4 481.1 Net assets per share • Capital backed by net cash and investments of $414m
Slide 11: EV at 30 June 2022
Material EV at 30 June 2022 change in assumptions Includes increase in risk free rate to 3.5% Risk margin over risk free rate2: ($M), 3% dm 4% dm 5% dm (unless otherwise stated) 99.4 95.3 95.7 92.2 Life insurance 487.4 456.9 429.8 Wealth management 36.3 34.4 32.7 Value of In Force (VIF) 523.8 491.3
Slide 12: Key business highlights
Key business highlights
Slide 13: Key business highlights
Key business highlights The Australian Life • Focused primarily on risk-only products, with flexible contract structures 1 insurance market is • Supportive public policy settings with strong underlying demand from customers fundamentally attractive • Significant underinsurance gap compared to intern
Slide 14: 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 15: Structural Changes: Income Protection Product Initiatives
2 Structural Changes: 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 categories)
Slide 16: ClearView has been investing for growth during period of uncertainty
3,4 ClearView has been investing for growth during period of uncertainty 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 • Staggered p
Slide 17: Net Assets are backed by cash and highly rated securities
5 Net Assets are backed by cash and highly rated securities 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$504m) Net Assets as at 30 June 2022 ($m) $481.1m $481.1 Net Assets $119.0 Investment in hi
Slide 18: Strategic Review
Strategic Review
Slide 19: Strategic review
Strategic review Following an evaluation of its future capital structure and discussions with its major shareholder, ClearView announced the commencement of a strategic review process Strategic Review Process Outcome to date Appointment of Bank of America (BofA) in September 2021. Given the Omicron
Slide 20: Outlook
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Slide 21: Business outlook
Business outlook Clear set of targets for continued growth of life insurance business in FY23, with outcomes determined by successful further development of new IT platform, increased market acceptance of ClearChoice product and risks associated with continued repricing of in-force portfolios • Infl
Slide 22: Financial outlook
Financial outlook Strong FY22 result - reflective of strong business momentum. Any upward movement in rates positively impacts underlying earnings. Final FY22 fully franked dividend of 2 cents per share • Strong Balance Sheet • Forecast capital • FY22 performance • The strategic review and capital b
Slide 23: Glossary
Glossary AFSL Australian Financial Service Licence; AR is an authorised representative Operating Earnings or Operating Earnings (after tax) represents the Underlying NPAT of the business segments before underlying investment Operating Earnings After Tax income and interest costs associated with corp
Slide 24: For further information, please contact:
For further information, please contact: Investor inquiries Media inquiries Trevor Franz Leng Ohlsson Principal, Catapult Partners Head of Marketing and Corporate Affairs M: 0406 882 736 T: (02) 8095 1539 M: 0409 509 516 E: trevorfranz@catapultpartners.com.au E: leng.ohlsson@clearview.com.au 24
Slide 25: Appendix Additional Financial Information
Appendix Additional Financial Information
Slide 26: Consolidated FY22 results: Shareholder view
Consolidated 12 Months to June 2022 ($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 1H 147.6 2022 2H 152.0 FY22 299.6 % Change2 8% FY22 results: Fund management fees Other Income Gross Income 17.7 — 138.2 16.7
Slide 27: Life Insurance
Life Insurance 2019 2020 2021 2022 % ¹ 12 Months to June 2022 ($M) 1H 2H FY19 1H 2H FY20 1H 2H FY21 1H 2H FY22 Change2 Gross life insurance premiums 120.5 122.7 243.1 129.0 131.0 260.0 138.4 139.8 278.2 147.6 152.1 299.6 8% Other income — — — — — — — 0.2 0.2 — — — Large Net claims incurred (17.0) (1
Slide 28: Wealth Management
Wealth 12 Months to June 6 Months 2022 ($M) to December Fund management fees ¹ 2020 ($M)¹ 1H 1H 17.7 2019 2018 2H 2H 16.7 FY19 FY18 34.4 1H 1H 16.7 2020 2019 2H 2H15.7 FY20 FY19 32.5 1H 1H 15.5 2021 2020 2H FY21 2H 15.5 FY2031.0 2021 1H 1H % 2H 2022 Change² 16.0 13.9 FY22 Change2 29.9 % (4%) Managem
Slide 29: Listed/ Group Segment
Listed/ 2019 2020 2021 2022 % Group 12 Months to June 2022 ($M) Other income ¹ 1H 2H FY19 1H 2H FY20 1H 2H FY21 1H 2H 0.7 FY22 Change2 0.7 Large Segment Operating expenses (0.7) (0.6) (1.2) (0.6) (0.7) (1.4) (0.7) (0.4) (1.2) (0.7) (0.8) (1.6) 35 % BU Operating Earnings (before tax) (0.7) (0.6) (1.2
Slide 30: Balance Sheet, Embedded value and capital position at June 2022
Balance Sheet, Embedded value and capital position at 30 June 2022
Slide 31: Balance sheet as at 30 June 2022
Balance sheet as at 30 June 2022 Commentary2 Consolidated Balance Sheet (shareholder view)1 Net Asset and Capital Position FY22 FY21 • Net assets (pre-ESP loans) of $481.1m, includes uplift from sale of financial Assets advice businesses Cash and cash equivalents 119.0 158.7 • Surplus capital above
Slide 32: Capital position at 30 June 2022
Capital position at 30 June 2022 Commentary Group Capital Position Bridge - $m • Net capital position above internal benchmarks of $25.8m 481.1 • Intangible adjustment includes the removal from the capital position of goodwill ($12.5m), intangibles ($17.4m), CRP receivable ($2.9m) and Tier 2 capital
Slide 33: Embedded Value movement analysis
Includes: Embedded Value movement analysis • Net impact from increase in risk free rate to 3.5% (-$18.8m) • Change in claims (including COVID-19 allowances), shock lapse assumptions (-$3.5m) • PV of expense overruns aligned to system timeline (-$5.3m) Embedded Value1,2 Waterfall: FY21-FY22 ($M) 26.8
Slide 34: EV movement analysis @ 4% DM by segment at 30 June 2022
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 25.2 640.4 analysis @ 4% DM Restatements/modeling difference Sale of Financial Advice Business 1.2 — 0.5 — — (10.6) — 20.9 1.7 10.3 by seg
Slide 35: EV sensitivity analysis @4% DM
EV sensitivity analysis @4% DM 1 EV Sensitivity Analysis - Total @ 4% dm ($mil) Inflation -0.5%;+0.5% -3.4 2.7 Risk-free rate +1%;-1% -19.0 21.1 FUMA -10%;+10% -3.4 3.4 Expenses +10%;-10% -14.1 14.1 Discontinuance Rates +1%;-1% -17.7 19.8 Claims +10%;-10% -22.4 22.4 -30 -20 -10 0 10 20 30 EV Sensiti
Slide 36: Group net assets and capital analysis at 30 June 2022
Group net assets and capital analysis at 30 June 2022 Group Capital Position as at Life Wealth Other APRA Wealth ASIC All Regulated NOHC5/ Other Group 30 June 2022 ($M) Regulated Regulated Entities Entities Entities Net assets at 30 June 20221 458.1 10.9 4.3 473.3 7.8 7.8 481.1 — 481.1 Intangible ad
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 Year ended 30 June 2022 FY22 • ESP loans are a limited recourse loan that is accounted for as an option and not reported as a receivable on the Balance Sheet as at the reporting Number of shares on issue (m) 642.9 date • There are 18.
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
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