Clearview Wealth Limited · ASX:CVW
Clearview Wealth — Investor Presentation (May 2024)
24 slides from Clearview Wealth's investor presentation, May 9, 2024
Slide 1: ClearView Wealth Limited Market Release
ClearView Wealth Limited Market Release 09 May 2024 Morgans Investor Presentation Please find attached a presentation to be given by Ms Nadine Gooderick, Managing Director and Mr Athol Chiert, Chief Financial Officer, at ClearView Wealth Limited, to investors attending the Morgans Investor Conferenc
Slide 2: ClearView – Morgans Investor Presentation
ClearView – Morgans Investor Presentation 9 May 2024 Nadine Gooderick Athol Chiert Managing Director Chief Financial Officer
Slide 3: ClearView Overview and Strategy
ClearView Overview and Strategy
Slide 4: ClearView is a dynamic challenger with significant momentum
ClearView is a dynamic challenger with significant momentum Increasingly attractive Life Insurance market • Industry returning to growth and profitability following structural and regulatory changes • Positive outlook for Retail market is supported by market consolidation via exit of banks and stabi
Slide 5: ClearView is now strategically focused on what it does best: Life Insurance
ClearView is now strategically focused on what it does best: Life Insurance Core Focus Life insurance Life insurance business is now positioned to: • Support double digit Underlying NPAT growth off AASB 17 FY24 base2 • Dividend policy of 40%- 60% of Underlying NPAT - range to be reviewed post comple
Slide 6: The Australian Life Insurance Market
The Australian Life Insurance Market
Slide 7: Life insurance at a glance
Life insurance at a glance – overall market is an $18B market 24 life insurers (including 7 15 million Australians were covered by life $11.2 billion onshore reinsurers) and insurance in 2022, protecting in life insurance claims paid to 10 friendly societies. Down from 29 insurers and 12 friendly so
Slide 8: Australian Life Insurance is fundamentally attractive, particularly Retail
Australian Life Insurance is fundamentally attractive, particularly Retail ClearView operates in the retail segment which is a c.$10bn Market Life insurance in-force premiums by channel (AUD bn, June 2023 – 23E) ClearView currently solely focuses on the Impact of Royal retail segment Commission, adv
Slide 9: Recent Structural & Regulatory Changes have supported a return to growth
Recent Structural & Regulatory Changes have supported a return to growth The life insurance market is increasingly attractive Retail market life insurance new business premium underpinned by structural / regulatory changes that have ($m) addressed underlying issues Capital changes APRA imposed capit
Slide 10: The ClearView Growth Story
The ClearView Growth Story
Slide 11: ClearView is gaining new business market share in a growing market
ClearView is gaining new business market share in a growing market 55% growth in new business in HY24 with 11% market share Challenger in IFA market • Sales momentum and growth continued in HY24 IFA New Business ($m) and Market Share (%) FY26 Target: • New sales of $17.5m and 55% growth on pcp (run
Slide 12: ClearView market positioning – top of 'mid tier'
ClearView market positioning – top of ‘mid tier’ ClearView remains well positioned to continue to increase its new business share and to broaden its product offerings to adjunct products New business sales: July – December 2023 • The retail advice life industry continues to ‘settle’ after years of u
Slide 13: ClearView sales momentum has continued into Q3 FY24
ClearView sales momentum has continued into Q3 FY24 ClearView continues to increase its new business, noting that Q3 is seasonally slower for sales (January/February period) Comparison of Q3 of FY24 v Q3 of prior periods ($’000) Q3 FY24 sales update • Sales growth has continued into Q3 FY24, 7,070 n
Slide 14: Consistent YoY growth of in-force premium since entry in IFA market
Consistent YoY growth of in-force premium since entry in IFA market In-force portfolios should trend to higher new business share (over time) which underpins the growth profile Strong track record of in-force premium growth since entry into retail market in FY12 FY26 Target: ~4.0% market • ~$18B lif
Slide 15: Financial highlights and FY26 goals
Financial highlights and FY26 goals New Business Gross In-force Premium Life Fully franked Market Share Premiums Market Share Insurance interim dividend FY23 $325.1m $339m Underlying NPAT 3.0cps Margin Actual 54% of 9.2% +9% 3.2% 9.7% Underlying NPAT New Business Gross In-force Premium Life Fully fr
Slide 16: Market and ClearView drivers
Market and ClearView drivers Increasingly Simplified Strong growth in Structural Inflation-linked Strong balance attractive life business model premiums, changes and premiums sheet and insurance market with core focus market share and transformation broadly offset capital position – on life insuranc
Slide 17: Q3 Trading Update and Outlook
Q3 Trading Update and Outlook
Slide 18: Q3 Trading Update and Business Outlook
Q3 Trading Update and Business Outlook Q3 trading update – 31 March 20243 • YTD business is trading broadly in line with expectation (consistent with half year result): • Performance driven by strong new business volumes, inflation linked premiums, higher interest rate environment and positive lapse
Slide 19: FY24 outlook
FY24 outlook Focus on Life Insurance Continue Transformation Enhance Customer Experience • Business simplification leads to core • Implementation of IT transformation • Enhance customer experience – focus on life insurance strategy data driven, automation improvements, tele-claims, • Enhancement and
Slide 20: Key Risks
Key Risks Cyber Risk Cyber risk involves external factors such as cyber-attacks and data security events that can result in the unavailability or loss of critical systems or third parties obtaining customer and corporate data. Claims Risk Insurance claims experience is a significant risk to ClearVie
Slide 21: Key Risks Continued
Key Risks Continued Accounting Risk While accounting standards do not directly impact on ClearView Group’s underlying business economics, they can raise risks in terms of business perception, profit reporting and regulatory positions. Changes to accounting standards therefore involve risks. In parti
Slide 22: Glossary
Glossary Underlying NPAT: Underlying NPAT (from continuing operations) is used as a non IFRS measure of earnings that excludes the impacts of market and interest rate volatility, with the definition updated to reflect the application of AASB 17. Underlying NPAT (from continuing operations) has been
Slide 23: Disclaimer
Disclaimer Important notice and disclaimer Summary information Pro-forma financial information This presentation contains summary information about ClearView Wealth Limited (ACN 106 248 248), its ClearView uses certain measures to manage and report on its business that are not recognised under subsi
Slide 24: End
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