ClearView Posts 11% NPAT Growth in 2H25, Guides $42-47m for FY26

Strong Second-Half Performance

ClearView Wealth Limited (ASX – CVW) has delivered a robust finish to FY25, reporting a Group underlying net profit after tax (NPAT) of $32.3 million for the full year, with an 11% increase in the second half to $19.9 million. This marks a notable rebound following a challenging first quarter marked by claims volatility, which normalised from the second quarter onwards, allowing margins to recover.

The life insurance segment, ClearView's core business, saw its underlying NPAT margin rise to 11.1% in the second half, up from 8.0% in the first half. This improvement was driven by a return to trend in the gross claims loss ratio, reflecting better-than-expected claims experience in the latter part of the year.

Premium Growth and Market Position

Gross premiums for FY25 increased by 10% to $393.7 million, while in-force premiums, the recurring revenue stream, also grew by 10% to $412.9 million. Particularly striking was the 52% surge in ClearChoice in-force premiums, reaching $112 million, underscoring the success of targeted product offerings. Despite a disciplined approach to new business, which totalled $31.5 million, ClearView maintained steady market share at 3.9%, focusing on sustainable, quality growth rather than volume alone.

Strategic Simplification and Technology Transformation

FY25 was a pivotal year for ClearView’s strategic transformation. The company completed its exit from the wealth management business, streamlining its focus exclusively on life insurance. This simplification is complemented by a major technology overhaul, with migration to a modern core insurance platform scheduled for the first half of FY26. The new platform, coupled with an integrated front-end digital experience, is expected to enhance multi-channel distribution and customer engagement, positioning ClearView as a technology-led pure-play insurer.

Managing Director Nadine Gooderick highlighted the company’s commitment to leveraging technology to drive accelerated growth and improve adviser and customer experiences. The transformation is anticipated to unlock operational efficiencies and competitive advantages in a rapidly evolving insurance landscape.

Outlook and Capital Management

Looking ahead, ClearView has provided FY26 guidance projecting gross premium income between $435 million and $440 million, life insurance underlying NPAT margin of 11% to 12%, and Group underlying NPAT ranging from $42 million to $47 million. These targets reflect confidence in the company’s growth trajectory, though they remain subject to risks including claims experience, lapse rates, and successful execution of technology initiatives.

On capital management, the Board intends to resume its 10/12 on-market share buy-back program immediately following the annual results release. Dividend payments are under active consideration but will depend on the extent of shares repurchased and other financial factors. The preference appears to lean towards share buy-backs as the primary method of returning capital to shareholders in the near term.