ClearView has reported a 102% jump in net after-tax profit to $26.5 million for the year to June 30.

The life insurer recorded net operating revenue of $413.4 million, up from $395.9 million the previous year.

After-tax profit for ClearView’s life business was up 5% to $26.1 million.

Gross life insurance premium grew to $215.2 million from $177.7 million, and inforce premium increased to $224.8 million from $189.5 million.

ClearView MD Simon Swanson says this was achieved despite claims volatility and lapses.

There was an adverse claims experience of $5.5 million for the year, compared with $1.9 million the previous year. Net claims incurred totalled $32.9 million, up from $25 million.

“Adopting a longer-term view, overall net adverse claims performance is mainly attributed to the income protection portfolio, with the lump sum portfolio having a net neutral experience during the same five-year period,” Mr Swanson said.

“Claims assumptions have been updated for the income protection portfolio at June 2018, with the expectation that overall claims performance will fit within best-estimate claims assumptions during the longer term. Due to the small size and nature of the portfolio, volatility has a material short-term impact on profitability.”

Lapses were static at $2 million in the year to June 30.

The financial advice business recorded a 20% fall in after-tax profit to $1.8 million. Financial advice fees grew to $17.4 million from $16.9 million.

There was 3% growth in net financial planning fees and a 6% increase in operating expenses, driven by operational, compliance and strategic advice investment.

Premium under advice in the dealer groups reached $270 million, up 14%.   

“Despite the pressure on profits, the prospects for financial advice remain sound as the group looks to expand its service and revenue base within the financial advice segment,” Mr Swanson said. “With mounting pressure on the current licensing regime, utilising the group’s strengths to launch a dealer-to-dealer option targeting self-licensed practices is expected to be a positive move.”

The number of advisers in Matrix Planning Solutions and ClearView Financial Advice dropped to 233 from 243.