Second-tier life insurer ClearView Wealth has reported a net profit after tax of $8 million for the financial year ending June 30.

The life insurance business delivered a $688,000 profit for the 12 months on annual inforce premiums of $40 million.

Clearview MD Simon Swanson says the company is now focused on growing the profitable life business.

“We have a distribution strategy of approaching our health fund members which will provide access to 2.9 million potential customers,” he told insuranceNEWS.com.au.

“Our other distribution push will be through credit unions, which have a membership base of 800,000.”

Mr Swanson says the company plans to approach independent financial advisers later this year.

Costs in the old MMC Contrarian business, which changed its name to ClearView on acquisition of the Bupa life insurance and wealth management business last year, have been reviewed.

“We have identified some overlying efficiencies which we expect to deliver $6 million before tax in the next 12 months,” he said.

“We have identified ways to streamline the back office and distribution channels, but we don’t have to deal with any legacy issues like our established competitors.”

Another area the company is focusing on is referral management and Mr Swanson said with technology upgrades, this is expected to increase inflows to the life business.