ClearView Wealth has posted weaker first-half-earnings and says repricing of its LifeSolutions product is a focus after the legacy portfolio caused a claims loss in the first quarter.

Group underlying net profit after tax (NPAT) from continuing operations slumped 28% to $12.5 million in the December half.

The core life insurance business suffered a 22% decline in underlying NPAT to $15.2 million.

ClearView says elevated claims in the first quarter dented the first-half performance. Last November, the insurer said a first-quarter claims loss of $6.2 million was driven by the LifeSolutions portfolio, which stopped taking new business in October 2021.

Repricing of LifeSolutions’ in-force policies began last month and will continue for a year in line with the policies’ renewal cycle.

ClearView says it wants to “align pricing with the cost of the reinsurance premium rate increases. As part of the repricing process, a parallel retention strategy is in place, taking into consideration the impact on consumers and affordability concerns (including retention offers to transition to the new, less expensive product or to adjust benefits).”

It says the $6.2 million claims loss was considered “an outlier” and second-quarter claims experience has normalised to a gross loss ratio of 56%, near the long-term average of 53%.

“Life insurance claims volatility can occur from time to time ... a short period of elevated claims is not necessarily an indication of any longer-term trend,” ClearView says. 

The group’s 2025-26 goals remain largely unchanged from previous targets. But it has raised its gross premium target to $440 million from $400 million to reflect the net impact of new business momentum, repricing activities and retention management.

MD Nadine Gooderick said: “ClearView today is a simplified business focused solely on life insurance. Significant progress has been made on the key strategic imperatives of our wealth exit and technology transformation in the first half of 2025 as part of our business simplification, and both are on track.

“Our exit from wealth will be complete by the June 30 2025, including the removal of its cost base. We remain focused on being the best at life insurance.”