ClearView Wealth Limited delivered a robust second half in FY25, overcoming early claims volatility to restore margins and grow premiums. The company’s FY26 guidance signals confidence in continued growth, underpinned by a major technology platform migration and capital management initiatives.
- Double-digit growth in Life Insurance Underlying NPAT in 2H25
- 10% increase in gross and in-force premiums for FY25
- Surplus capital position of $29.2 million supports resumed share buy-back
- Technology-led transformation on track with cloud platform migration in 1H26
- FY26 guidance projects 11%-12% Life Insurance NPAT margin and $42-$47 million Group Underlying NPAT
Strong Second Half Rebounds from Early Claims Impact
ClearView Wealth Limited closed FY25 with a compelling turnaround story. After a challenging first quarter marked by an outlier spike in claims, the company’s Life Insurance Underlying Net Profit After Tax (NPAT) surged 12% in the second half, restoring margins to 11.1%. This rebound was driven by claims normalising to long-term averages and a disciplined repricing strategy, which helped lift gross premiums by 10% to $393.7 million and in-force premiums to $412.9 million.
The company’s focus on core life insurance operations, following its exit from wealth management and financial advice businesses, has sharpened its growth trajectory. ClearView’s embedded value; a key long-term valuation metric for life insurers; stood at $524.4 million excluding franking credits, reflecting the enduring value of its in-force portfolio despite short-term claims volatility.
Technology Transformation to Drive Competitive Edge
ClearView is leveraging a major technology investment to underpin its growth ambitions. The migration to a modern, cloud-based core insurance platform is on track for completion in the first half of FY26. This platform promises a seamless digital experience for advisers and customers, real-time analytics including AI capabilities, and operational efficiencies that should lower costs and improve agility.
The ClearView Platform is expected to enable multi-channel expansion and product innovation, positioning the company as a technology-led pure-play life insurer. The transformation and simplification initiatives completed in FY25 set the foundation for operating leverage to emerge as revenue growth outpaces the cost base.
Capital Management and Shareholder Returns
ClearView’s capital position remains robust with a surplus of $29.2 million after accounting for reserves related to Tier 2 note redemptions. The company has announced the resumption of its 10/12 on-market share buy-back program immediately following the release of FY25 results, aiming to capitalise on the significant discount of its share price to embedded value.
While dividends were paused in FY25 in favour of buy-backs, the Board is considering recommencing dividends in FY26, contingent on the extent of shares repurchased and prevailing market conditions. The dividend policy remains a payout ratio of 40%-60% of Group Underlying NPAT, balancing capital return with funding needs.
FY26 Outlook, Growth with Cautious Optimism
Looking ahead, ClearView projects gross premiums between $435 million and $440 million, with Life Insurance Underlying NPAT margins improving to 11%-12%. Group Underlying NPAT is forecast in the range of $42 million to $47 million, representing a meaningful uplift from FY25’s base, which was affected by the early claims spike.
The company acknowledges key risks including claims experience, lapse rates, and execution of technology programs but remains confident that its streamlined operations and technology investments will drive sustainable growth and profitability.
Bottom Line?
ClearView’s FY25 recovery and technology-led strategy set a promising stage for FY26 growth, but execution risks and claims volatility remain watchpoints.
Questions in the middle?
- How will ClearView manage claims volatility risks in FY26 and beyond?
- What impact will the new cloud platform have on customer acquisition and retention?
- To what extent will share buy-backs versus dividends shape shareholder returns this year?