Clearview lost $600,000 for the December half compared to a profit of $12.2 million for the corresponding period a year earlier.

The diversified financial services company says these results are due mainly to $3.9 million in costs associated with its 80% takeover late last year, $3.8 million in amortisation of goodwill from previous acquisitions and falling interest rates.

However, the picture was far rosier from the viewpoint of underlying net profit, which the Clearview board regards as the key performance measure. This yardstick sees profit at $8.5 million, down 7% on a year earlier with the dip due to $1.1 million in claims above actuarial assumptions.

MD Simon Swanson says he is happy with the result and “excited to see Clearview enter a new stage in its development”. He says the firm is “attacking the life insurance and wealth management businesses”.

The life business was the standout performer, with inforce premiums jumping 33% to $53.5 million, mainly driven by LifeSolutions, the suite of advised life products introduced 14 months ago. 

New life business was $9.9 million for the half compared to $800,000 for the corresponding period last year.

The distribution channel is growing, with 25 new internal advisers recruited along with the signing up of 27 independent financial planners. Mr Swanson says the new advisers are high-quality professionals. “I personally meet every adviser before they join Clearview,” he said.

Embedded value was 5% better at $261 million and the life business contributed a profit of $4 million. Mr Swanson says the $1.1 million claims shock is the result “of a small number of lump sum claims from old policies” and that such volatility is to be expected.

The claims experience “is anticipated to average out over time at actuarial best estimate assumptions”, he said.

Mr Swanson said management is “reviewing reinsurance arrangements predominantly around the old non-advice book” but “will not be capping the upside on new business”.

“We expect our sales growth to continue at current levels,” he said.