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Rise in life profit drives up Clearview’s earnings

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ClearView has reported a 35% rise in underlying net profit to $6.9 million for the first quarter, underpinned by solid contributions from its life insurance division.

The life insurance unit, its biggest income generator, made a profit of $6.69 million in the three months to September, up from $4.9 million a year earlier, the business said in an update last week.

Wealth management and financial advice, its other divisions, made $405,000 and $232,000 respectively during the quarter.

Overall operating earnings after-tax increased to $7.1 million from $5.2 million a year earlier.

ClearView has maintained its earnings guidance of $20-24 million in underlying net profit for this financial year in light of the strong trading results from the first quarter.

The business says the first-quarter results reflected the 8% rise in in-force life premiums to $276 million and material improvement in profitability driven by strong performance in the division.

Looking ahead, ClearView reiterated its expectation that the economic impact of the pandemic will drive further increases in individual income protection claims across the industry.