Insignia half proves value of hard yards

Mike Taylor

Managing Editor/Publisher, Financial Newswire

21 February 2025

At the same time as it fields takeover bids from private equity players, Insignia Financial has reported a solid first half notwithstanding a statutory net loss after tax of $17 million.

Importantly for the company, the net loss represented an improvement over the prior corresponding period and belied a 30% increase in underlying net profit after tax to $124 million.

The company’s dividend remains paused “to maintain balance sheet flexibility and fund initiatives that will deliver long term value”.

Insignia is currently the subject of competing bids from PE players Bain Capital and CC Capital and the half-year result will have done little to deter them, particular cost-savings which have been achieved and the value likely to be extracted from largely outsourcing the master trust business to SS&C.

That arrangement will see around 1,400 employees transferring to SS&C.

In similar fashion to AMP Limited, Insignia’s balance sheet reflected the costs of exiting a substantial portion of its advice business via the establishment of Rhombus Advisory, however its retained licenses, Bridges and Shadforth, grew nt revenue, revenue per adviser and revenue per client.

Insignia’s commentary said advice net revenue increased 4.4% primarily as a result of strong new client growth and higher asset-based fee income.

Commenting on the result, Insignia chief executive, Scott Hartley pointed to the 30% increase in underlying NPAT which he said had been driven by market growth and a continued reduction in operating expenses.

Looking ahead, he said the company remained on track to achieve its strategic priorities for the second half of FY25 including meeting its operating cost reduction target, preparing for the Master Trust servicing transition to SS&C and refreshing the MLC brand to launch in market in the first half of 2026.