Slide 1: ClearView Results FY24 Investor Presentation
ClearView Results FY24 Investor Presentation 22 August 2024 Nadine Gooderick Athol Chiert Managing Director Chief Financial Officer
Slide 2: ClearView is a dynamic challenger with significant momentum
ClearView is a dynamic challenger with significant momentum ClearView’s strategic execution is tracking to plan – achieved through simplification (focus on life insurance), progressing transformation program, enhancing adviser accessibility and being easy to do business with Increasingly attractive
Slide 3: Financial highlights and FY26 goals
Financial highlights and FY26 goals Group Underlying NPAT (from continuing operations) up 25% to $35.3m in FY24 under new accounting standard AASB 17; final FY24 dividend of 1.7cps (total of 3.2cps) New Business Gross In-force Premium Life Insurance Fully franked Market Share Premiums Market Share U
Slide 4: ClearView has adopted AASB 17 for first time
ClearView has adopted AASB 17 for first time FY24 are the first results that ClearView is providing under the new accounting standard AASB 17 – it does not impact the economics of the business, financial strength, claims paying ability or dividend capacity – it impacts the timing of recognition of i
Slide 5: Simplified business focused solely on life insurance
Simplified business focused solely on life insurance Our Strategy Key Highlights Support FY26 Target Outcomes • Depth of life insurance expertise across organisation • IT and back-office investment and operational efficiencies from new Simplified • Increased exposure to underwriting risk for new bus
Slide 6: ClearView is gaining new business market share in a growing market
ClearView is gaining new business market share in a growing market New business up 34% to $33.7m in FY24 with 11% market share FY26 Target Challenger in IFA market New Business • Sales momentum and growth continued in FY24 Market Share IFA New Business ($m) and Market Share (%) • New sales of $33.7m
Slide 7: 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 FY26 Target since entry into retail market in FY12 In-force Premium • ~$18B
Slide 8: ClearView overview and strategy
ClearView overview and strategy
Slide 9: ClearView overview and strategy
ClearView overview and strategy 9 1. SFT relates to the successor fund transfer of the ClearView Retirement Plan and related unwind of the life investment contracts.
Slide 10: How do we achieve growth – next phase
How do we achieve growth – next phase Our goal is to be the best at Life Insurance, moving from a mid-tier to top-tier player How will we achieve this ambition? NON-CORE CONTINUE START Horizon 1 Horizon 2 1 2 3 4 5 6 Wealth Strategic Build Strong Execute Amplify Retail Diversify business Transformat
Slide 11: ClearView objectives
ClearView objectives To support the corporate vision, ClearView has articulated its key focus objectives aligned to purpose, people and performance Customer Community People Business Earnings / Capital Outcomes impact Outcomes partner Return on adequacy outcomes capital Be a trusted brand to Support
Slide 12: FY24 result
Rj ClearView FY24 result
Slide 13: FY24 Group result – AASB 17 basis
FY24 Group result – AASB 17 basis FY24 result reflects increased rates, strong revenue growth and positive business momentum. Life insurance business performance expected to continue to support double digit Underlying NPAT growth as previously communicated Underlying NPAT by Segment, $M FY24 FY234 %
Slide 14: Strong track record of top line growth
Strong track record of top line growth FY24 gross premiums up 10% to $358.1m - driven by market share gains (new business flows) and inflation linked premiums, with lapses largely in line with expectation. Gross premium for the period broadly reflects average in-force premiums FY26 Target Gross Prem
Slide 15: With a focus on profitable growth
With a focus on profitable growth FY24 Life Insurance Underlying NPAT up 23% to $39.5m; Underlying Life NPAT margin of 11.0% - AASB 17 basis FY26 Target Life Underlying NPAT ($m) and Margin (%) Underlying NPAT margin of life insurance business: Life Insurance Underlying FY24: NPAT Margin 11.0% • Imp
Slide 16: 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 17: Balance sheet strength
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. Transition to AASB 17 (1 July 2022) resulted in a reduction in net assets of $83.6m (after tax) and creation of a deferre
Slide 18: Capital generation
Capital generation The life insurance in-force portfolios generate significant capital which is subsequently reinvested into new business generation Life Insurance Underlying Before Tax3 Capital Generation1 - $m ClearView continues to generate capital from 86.2 its in-force portfolios1 prior to rein
Slide 19: Embedded value at 30 June 2024
Embedded value at 30 June 2024 Embedded value (EV) represents the discounted cash flow of in-force portfolio – no new business is included in calculations. EV has been prepared on a consistent basis - no allowance in future projections for changes to tax cash flow given changes to timing of profit r
Slide 20: Outlook
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Slide 21: FY25 outlook
FY25 outlook Focus on Life Insurance Continue Transformation Financial Outlook • Business simplification leads to core • Implementation of IT transformation • Life insurance business performance focus on life insurance strategy expected to continue to support double digit Underlying NPAT growth1 as
Slide 22: Glossary
Glossary Underlying NPAT Underlying NPAT 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 has been defined as the consolidated profit after tax excluding the
Slide 23: For further information, please contact:
For further information, please contact: Investor inquiries Media inquiries Trevor Franz Emma Hawke Principal, Catapult Partners Head of Communications E: trevorfranz@catapultpartners.com.au E: emma.hawke@clearview.com.au 23
Slide 24: Appendix Additional Financial Information
Appendix Additional Financial Information
Slide 25: AASB 17 Financial Information (Management View)
AASB 17 Financial Information (Management View)
Slide 26: Consolidated FY24 results (AASB 17): Reconciliation of Underlying NPAT to Reported NPAT
Consolidated FY24 results (AASB 17): Management View - Reconciliation of Underlying NPAT to Reported NPAT1 2023 2024 % Consolidated Profit or Loss¹ 1H 2H FY23 1H 2H FY24 Change2 Gross life insurance premiums 160.0 165.2 325.1 178.0 180.1 358.1 10% Interest and other income3 4.6 6.4 10.9 7.2 6.8 14.0
Slide 27: FY24 Result (AASB 17) - Life insurance management view
FY24 Result (AASB 17) - Life insurance management view 2023 2024 % Life Insurance Profit or Loss2 1H 2H FY23 1H 2H FY24 Change1 Gross life insurance premiums 160.0 165.2 325.1 178.0 180.1 358.1 10% Interest Income 4.2 5.8 10.0 6.4 6.2 12.6 26% Interest on Tier 2 (1.3) (1.4) (2.7) (1.5) (1.6) (3.1) 1
Slide 28: FY24 Result - Life insurance key statistics
FY24 Result - Life insurance key statistics 2021 2022 2023 2024 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H FY24 Key Statistics And Ratios ($M) 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 In-Force - Total 282.0 289.8 289.9 297.3 311.4 311.4 325.1 339.3 339.3 359.2 373.9
Slide 29: FY24 Result - Listed/Group management view
FY24 Result - Listed/Group management view 2021 2022 2023 2024 % Change1 Listed Profit or Loss 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H FY24 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 56% Interest on debt & facility fees (1.0) (1.8) (2.8) (1.9) (2.0) (3.8) (2.6) (2.8) (5.4) (3.4)
Slide 30: FY24 Result – Wealth Management Discontinued Operation
FY24 Result – Management View Wealth Management – Discontinued Operation 2021 2022 2023 2024 % Wealth Management Profit or Loss1 1H 2H FY21 1H 2H FY22 1H 2H FY23 1H 2H3 FY24 Change2 Fund management fees 15.5 15.5 31.0 16.0 13.9 29.9 10.9 10.5 21.3 10.0 6.4 16.4 (23%) Interest Income 0.1 0.3 0.4 0.0
Slide 31: Balance Sheet, Embedded Value at 30 June 2024
Balance Sheet, Embedded Value at 30 June 2024
Slide 32: Balance sheet as at 30 June 2024 (AASB 17)
Balance sheet as at 30 June 2024 (AASB 17) Consolidated Balance Sheet (shareholder view)1 30 Jun 2024 30 Jun 2023 Restated Commentary2 Assets Net Asset and Capital Position Cash and cash equivalent 101.3 116.9 • Net assets of $353.2m, post $9.9m HY24 interim cash dividend and FY23 Investments 422.3
Slide 33: Embedded Value movement analysis
Embedded Value movement analysis Embedded Value1 Waterfall: FY23 - FY24 ($M) Cash dividends paid in FY24 has a -$29.7m impact 33 1. Embedded Value at 4% discount rate margin, including a value for future franking credits, accrued franking credits and Employee Share Plan (ESP) loans. Risk free rate o
Slide 34: EV movement analysis @ 4% DM by segment at 30 June 2024
EV movement analysis @ 4% DM by segment at 30 June 2024 MOVEMENT ANALYSIS @ 4% dm Life Wealth Other Total EV - 30 June 2023 @ 4% dm (As Published) incl. Franking Credits and ESP Loans 558.6 17.0 11.4 587.0 Dividends paid - - (29.7) (29.7) Capital transfers (3.0) (2.9) 5.9 - EV - 30 June 2023 @ 4% dm
Slide 35: EV sensitivity analysis @4% DM
EV sensitivity analysis @4% DM1 EV Sensitivity Analysis - Life @ 4% dm ($mil) 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 disco
Slide 36: AASB 17 Implementation
Rj ClearView AASB 17 Implementation
Slide 37: No change to underlying business economics
No change to underlying business economics What is NOT changing Differences • Product cash flows and ability to generate capital to invest in • Accounting for groups of insurance contracts rather than related product future growth remains unchanged groups within insurance entities • No change to our
Slide 38: Asset for insurance acquisition cash flows (AIACF)
Asset for insurance acquisition cash flows (AIACF) ClearView’s underlying (gross) yearly renewable term (YRT) stepped premium business contract boundary is materially shortened from a long-term, natural expiry contract boundary under AASB 1038 to a 12-month contract boundary under AASB 17. This appl
Slide 39: AASB 17 Glossary
AASB 17 Glossary Contractual Service Margin A liability which is established at the outset of a contract to offset new business profits at issue. The CSM liability is gradually amortised as services are (CSM) provided. Fulfilment cash flows (FCF) An explicit, unbiased, and probability weighted estim
Slide 40: Disclaimer
Disclaimer Important notice and disclaimer Summary information Pro-forma financial information This investor presentation (Presentation) contains summary information about ClearView Wealth Limited ClearView uses certain measures to manage and report on its business that are not recognised under (ACN
Slide 41: End
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