Clearview Wealth Limited · ASX:CVW
Clearview Wealth — Investor Presentation (February 2025)
38 slides from Clearview Wealth's investor presentation, Feb 27, 2025
Slide 1: ClearView HY25 Investor Presentation
ClearView Results HY25 Investor Presentation 27 February 2025 Nadine Gooderick Athol Chiert Managing Director Chief Financial Officer
Slide 2: Executive Summary
Executive Summary ClearView achieved HY25 Life Insurance Underlying NPAT of $15.2m (Q1: $4m, Q2: $11m) Intention to conduct a share buyback of up to 10% of share capital over the next 12 months (in lieu of dividends) HY25 Financial Performance Operational Performance Outlook Life Insurance Underlyin
Slide 3: HY25 result
ClearView HY25 result
Slide 4: HY25 result by segment
HY25 result by segment HY25 result impacted by short period of elevated claims in Q1 Gross In-force Premiums Premiums Underlying NPAT by Segment, $m 1H25 1H24 %1 2H24 (Revenue for 6 months) (Recurring annual revenue) Life insurance 15.2 19.4 (22%) 20.1 $191.4m $387.2m Listed/Group costs (2.7) (2.1)
Slide 5: Claims normalised in Q2
Claims normalised in Q2 Claims in Q2 reverted to the long-term average. Q1 claims loss considered an outlier (at 66% higher than average for past 14 quarters) Q1 FY25 claims ✓ Gross claims loss ratio of 88% of gross premiums Q2 FY25 claims ✓ Gross claims loss ratio of 56% of gross premiums ✓ Q2 clai
Slide 6: Q1 claims had short term impact on HY25 margin
Q1 claims had short term impact on HY25 margin Q1 claims loss had an adverse 3.2% impact on Life Underlying NPAT margin, reducing it to 8% in HY25. Q2 Life Insurance Underlying NPAT margin was 11%, back in line with FY24 actual and FY26 target FY26 Target HY25 Life Underlying NPAT ($m) and Margin (%
Slide 7: Strong track record of top line growth
Strong track record of top line growth Consistent YoY growth of in-force premium since entry in IFA market (remains key driver of growth). Gross premiums for a period broadly reflects average in-force premiums. FY26 gross premium target upgraded to $440m (from $400m previously). In-force market shar
Slide 8: Balance sheet and capital position
Balance sheet and capital position Net assets of $362.7m (55.1 cps); surplus capital position of $7.1m post capital release from wealth management business. Life Insurance HY25 capital generation impacted by Q1 claims loss (considered an outlier) Net Capital Position - $m Net Assets - $m $362.7 $107
Slide 9: EV reflects long-term nature of life insurance business
EV reflects long-term nature of life insurance business ‘Embedded Value’ (EV) is the generally accepted valuation metric used to value a life insurance business. ClearView has an EV of $0.807/share (excluding franking credits) or $0.94/share (including franking credits) ✓ Group Embedded Value of $52
Slide 10: ClearView transformation strategy
ClearView transformation strategy
Slide 11: Execution of transformation strategy on track to deliver FY26 target outcomes
Execution of transformation strategy on track to deliver FY26 target outcomes ClearView’s strategic execution of its transformation program of work remains on track Repricing of in-force portfolio ✓ Impacts historical book (pre- Oct 2021 advice products only – no impact on new products) ✓ Repricin
Slide 12: Execute on distribution strategy: on track
Execute on distribution strategy: on track ClearView has retained its new business market share at between 10% and 11% in a growing market (margin focus) with growth to accelerate in 2H Retail life insurance market is growing FY26 Target IFA New Business ($m) and Market Share (%) ✓ Overall market
Slide 13: Technology transformation: on track
Technology transformation: on track Technology transformation is on track to complete in 1H FY26, with efficiencies expected to flow through progressively thereafter 2025 Insurance Policy Administration System ✓ Commencement of transition of in-force portfolio onto new Policy Administration 2021 2
Slide 14: Wealth management exit: on track
Wealth management exit: on track Wealth management exit is on track to complete by 30 June 2025 including the removal of its cost base, completing the strategic transition to the core life insurance business December 2023 December 2024 June 2025 2H 2024 ✓ Sale of investment management business to
Slide 15: FY25/26 Outlook
ClearView Co) x No Tome) <= LO
Slide 16: ClearView overview and strategy
ClearView overview and strategy 16 1. SFT relates to the successor fund transfer of the ClearView Retirement Plan and related unwind of the life investment contracts.
Slide 17: Strategic Outlook
Strategic Outlook Our goal is to be the best at Life Insurance, moving from a mid-tier to top-tier player Complete transformation and Amplify differentiation Accelerate growth business simplification • Wealth management exit in 2H FY25 • Dynamic challenger • Continue to execute distribution • Techno
Slide 18: Financial Outlook
Financial Outlook Intention to conduct a share buyback of up to 10% of share capital over the next 12 months (in lieu of dividends) FY25 Guidance FY26 Target Outcomes: on track Gross Life Insurance Gross Life Insurance New Business In-force Dividend Policy Premiums Underlying Premiums Underlying M
Slide 19: Glossary
Glossary Underlying NPAT Underlying NPAT is used as a non IFRS measure of earnings and has been defined as the consolidated profit after tax excluding the effects of economic changes on both the AASB 17 insurance contract liability and the incurred income protection disabled lives reserves, the (non
Slide 20: For further information, please contact
Investor inquiries Trevor Franz Managing Director, Lancaster Grove Capital E trevor.franz@lgcapital.com.au For further Media inquiries information, Emma Hawke please contact: Head of Communications E emma.hawke@clearview.com.au
Slide 21: Appendix: Additional Financial Information
Appendix Additional Financial Information
Slide 22: AASB 17 Financial Information (Management View)
AASB 17 Financial Information (Management View)
Slide 23: Consolidated HY25 results (AASB 17): Reconciliation of Underlying NPAT to Reported NPAT
Consolidated HY25 results (AASB 17): Management View - Reconciliation of Underlying NPAT to Reported NPAT1 2023 2024 2025 % Consolidated Profit or Loss¹ 1H 2H FY23 1H 2H FY24 1H Change2 Gross life insurance premiums 160.0 165.2 325.1 178.0 180.1 358.1 191.4 8% Interest and other income3 4.6 6.4 10.9
Slide 24: Non-IFRS Financial Information
Non-IFRS Financial Information Underlying NPAT is Board’s key measure of profitability and basis on which dividends are determined – considered to be a non-IFRS measure given that it excludes certain items not considered relevant to Group’s performance or are considered unusual to ordinary activitie
Slide 25: HY25 Result (AASB 17) - Life insurance management view
HY25 Result (AASB 17) - Life insurance management view 2023 2024 2025 Life Insurance Profit or Loss2 1H 2H FY23 1H 2H FY24 1H Change1 Gross life insurance premiums 160.0 165.2 325.1 178.0 180.1 358.1 191.4 8% Interest Income 4.2 5.8 10.0 6.4 6.2 12.6 7.1 11% Interest on Tier 2 (1.3) (1.4) (2.7) (1.5
Slide 26: HY25 Result - Life insurance key statistics
HY25 Result - Life insurance key statistics 2021 2022 2023 2024 2025 Key Statistics And Ratios ($M) 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H FY24 1H New Business (Advice) 8.4 7.9 16.3 10.4 9.8 20.2 11.3 13.9 25.2 17.5 16.2 33.7 16.3 In-Force - Total 282.0 289.8 289.9 297.3 311.4 311.4 325.1 339.3 339.
Slide 27: In-force premiums remains key driver of growth
In-force premiums remains key driver of growth ✓ In-force premiums of $387.2m, up 8% ✓ The movement of in-force premium period to period is driven by the net impact of: ✓ + New business ✓ + Age based/ CPI price changes; ✓ + Repricing; ✓ - Lapses in the relevant period ✓ Gross premium income broadly
Slide 28: In-force portfolio break down
In-force portfolio break down Advice products make up 92% of the in-force portfolio, with ClearChoice the new product that was launched in October 2021 in line with regulatory changes in the industry. ClearChoice is now 24% of the in-force portfolio. % of Total in-force % of Total in-force 8% 15% 17
Slide 29: HY25 Result - Listed/Group management view
HY25 Result - Listed/Group management view 2021 2022 2023 2024 2025 Listed Profit or Loss 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H FY24 1H Change1 Interest Income 0.1 0.0 0.1 0.1 0.9 1.0 0.4 0.6 0.9 0.8 0.6 1.4 0.7 (17%) Interest on debt & facility fees (1.0) (1.8) (2.8) (1.9) (2.0) (3.8) (2.6) (2.8)
Slide 30: HY25 Result – Management View Wealth Management – Discontinued Operation
HY25 Result – Management View Wealth Management – Discontinued Operation 2021 2022 2023 2024 2025 Wealth Management Profit or Loss1 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H3 FY24 1H3 Change2 Fund management fees 15.5 15.5 31.0 16.0 29.9 10.9 10.5 21.3 10.0 6.4 16.4 5.7 (43%) 13.9 Interest Income 0.1 0
Slide 31: Balance Sheet, Embedded Value at 31 December 2024
Balance Sheet, Embedded Value at 31 December 2024
Slide 32: Balance sheet as at 31 December 2024 (AASB 17)
Balance sheet as at 31 December 2024 (AASB 17) Consolidated Balance Sheet (shareholder view)1 31 Dec 2024 30 Jun 2024 Assets Net Asset Position Cash and cash equivalent 107.8 101.3 ✓ Net assets of $362.7m or 55.1cps, post $6.3m FY24 Investments 433.6 422.3 final cash dividend Receivables 44.2 31.4 C
Slide 33: Embedded value at 31 December 2024
Embedded value at 31 December 2024 Embedded value (EV) represents the discounted cash flow of in-force portfolio – no new business is included in the calculations EV has been prepared on a consistent basis - allowance has now been made in future projections for changes to tax cash flow given changes
Slide 34: Embedded Value movement analysis
Embedded Value movement analysis Embedded Value1 Waterfall: FY24 – HY25 ($M) 34 1. Embedded Value at 4% discount rate margin, including a value for future franking credits, accrued franking credits and Employee Share Plan (ESP) loans. Risk free rate of 4% adopted in HY25 (FY24: 4%)
Slide 35: EV movement analysis @ 4% DM by segment at 31 December 2024
EV movement analysis @ 4% DM by segment at 31 December 2024 Movement Analysis @ 4% dm Life Wealth Other Total EV - 30 June 2024 @ 4% dm (As Published) incl. Franking Credits and ESP Loans 608.1 3.1 (20.1) 591.1 Dividends paid - - (6.3) (6.3) Restatements/modelling differences 12.2 - - 12.2 Capital t
Slide 36: EV sensitivity analysis @4% DM
EV sensitivity analysis @4% DM1 EV Sensitivity Analysis - Life @ 4% dm ($m) 36 1. Does not include the impact of management actions in response to sensitivities (for example, premium rate changes), or reinsurer response to sensitivities (for example, reinsurer rate changes). “dm” represents the disc
Slide 37: Disclaimer
Disclaimer Important notice and disclaimer Summary information Pro-forma financial information This investor presentation (Presentation) contains information about ClearView Wealth Limited (ACN ClearView uses certain measures to manage and report on its business that are not recognised 106 248 248)
Slide 38: End
ClearView End
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