ClearView Wealth has reported a 158% rise in net profit, to $22.34 million, following a fall in discounting on its life insurance products, growth in new business and lower claim levels in the year to June 30.

However, underlying net profit, on which the company judges its performance, was flat at $19.24 million. The measure is adjusted for amortisation and the effects of changing insurance discount rates.

ClearView MD Simon Swanson says the company’s result is “solid” in a “weak and volatile market with hesitant investor sentiment”.

“ClearView has reached an inflection point where it is now well positioned to participate in the growth of the life and wealth sectors, building on the momentum evidenced in the results,” he said.

Embedded value grew by $6 million to $265 million, or 64.2 cents a share, after a $7.7 million dividend payment. It was 63 cents a year earlier.

The measure is an important value indicator on the 50 cents-a-share takeover bid for ClearView by private equity group Crescent Capital – which 47.8% shareholder GPG says is below market. The company’s share price is now about 60 cents.

KPMG says a fair valuation range for ClearView is between 68c and 74c.

ClearView life insurance performed well, with new business for the year of $5.2 million, compared with less than $2 million last year. Much of the growth was through the new LifeSolutions product suite. This was released during the year, with two-thirds of it written in the last quarter.

Some growth was counteracted by the lapsing of older policies, while inforce premiums grew $4 million to $44 million.

ClearView’s capital position is strong, with the company carrying no debt and holding $66 million in capital above its internal benchmark, which itself is higher than regulatory capital requirements.

Mr Swanson says the launch of a new product range has allowed ClearView to expand its presence in the adviser market, while it has the capacity to compete in 66% of the $10.6 billion life market, compared with 12% previously.

The funds management side of the business was hit by soft markets and an outflow of funds, with funds under management standing at $1.4 billion, down from $1.5 billion the previous year.

The board is recommending shareholders reject the Crescent offer.

It describes the offer as “highly opportunistic” in its timing and says it is “inadequate and substantially undervalues your shares”.