Clearview to exit wealth management
Clearview has made clear its exit from financial planning, using its full-year results to declare that it will be solely focused on being a life insurer.
In an investor briefing accompanying the release of its results to the Australian Securities Exchange (ASX) Clearview said that that it was exiting its wealth business holdings “given lack of scale and growth options” and expected to have completed the exercise by the end of the 2024 financial year.
It said that following the divestments it expected enhanced scale, reduced regulatory risk and the removal of drag on earnings.
ClearView had already exited ClearView Wealth via transaction with Centrepoint but had retained a strategic 24.4% holding.
The announcement came as ClearView reported a strong result with a 41% increase in underlying net profit after tax of $36.5 million on the back of a an 11% increase in in-force premiums.
The directors declared a final cash dividend of three cents per share.
Yes, but are they still going to offer ‘general advice’ sales over the phone? If they are then they are just becoming a general insurer and I would then question their move to not providing advice when in fact they are but doing it by circumventing the law.
I believe they exited general advice/direct sales several years ago.
Only after they were found to have mis sold the product. They’ll be back.
Perhaps a recognition that high quality insurance sold via licensed advisers is dead, and the future will be basic products only, sold without professional advice.
FSC, ASIC, APRA, O’Dwyer and Hume have done a great job in reducing Australians’ access to good quality personal insurance.
I thought Life Insurance was part of managing wealth. Why can’t the industry align and promote the same messaging?