ClearView has reported a 316% increase in net profit after tax to $12.2 million for the six months ending December 31. This compares to $2.9 million in the previous corresponding half year.

MD Simon Swanson says the results are good in the current economic climate.

The life insurance business reported $5.5 million profit for the half year compared to $5 million for the corresponding half in 2010/11.

Net premiums for the 12 months ending December 31 were $18.1 million, compared to $18.7 million in the previous corresponding half-year.

This was offset by a fall in net claims, down from $7.1 million in the previous half-year to $4.1 million in the six months ending December 31.

The bulk of the premiums (55%) were from life policies, with 34% coming from group life premiums.

Mr Swanson told insuranceNEWS.com.au the company is concentrating on growing its individual life business at the expenses of the group business.

“The aim is to become a 100% retail (life) company,” he said. “When the margins improve in group life insurance then we will come back and look at it again.”

Mr Swanson says ClearView will look at expanding its existing credit union distribution channels to include life insurance products while also pushing to be added to independent advisers’ approved product lists.

LifeSolutions, the new life insurance product introduced last December, has already been added to six dealer group lists, giving it access to more than 1000 independent advisers.

The company’s own dealer group, ClearView Financial Planners, now has 57 advisers. But that business reported a $600,000 loss for the six months ending December. This compared to a $400,000 loss in the 2010 first-half.

Inforce life premiums for the dealer group were $11 million in the six months ending December 31.

Mr Swanson says the financial aim for the dealer group is to break even each year, “but it will never become a profit centre”.

On a positive note, Mr Swanson says the life insurance business is forecast to grow in the second half of this financial year.

“Growth in life insurance inforce premium is forecast to commence in the second half of the 2012 financial year from the LifeSolutions rollout and related penetration into the independent adviser market,” he said. 

“Rollouts to the Bupa member base will focus on key channels and start to include the HBA/Mutual Community member bases.”