ClearView Wealth has posted higher first-half earnings, driven partly by stronger results from its life business.

Group underlying net profit after-tax in the six months to December 31 increased 27% to $13 million from a year earlier while operating earnings after-tax surged 39% to $13.1 million.

“The [first-half] is a strong result in a challenging environment, with the increase in profitability predominantly driven by a strong underlying claims performance in the life insurance segment,” ClearView Wealth said.

“This is reflective of improved claims management outcomes and limited COVID-19 claims impacts to date.”

ClearView says the overall business has proven resilient to the health and economic impacts of the pandemic to date.

The life insurance division recorded $13 million in underlying net profit after-tax during the period, up 50% from a year earlier. Gross life insurance premiums grew 7% to $133.3 million and net claims incurred declined 16% to $19.1 million. The claims experience improved to a positive $3.2 million from a $12.5 million deficit.

For the financial advice unit, underlying net profit after-tax grew 66% to $900,000 as a 30% fall in operating expenses cushioned the fallout from weaker planning fees. Net planning fees slumped 19% to $7.1 million during the period.

ClearView says the first-half results mean the business remains on track to achieve underlying net profit after-tax of $21-25 million.

“While challenging market conditions persist, this result reflects the impact of initiatives to improve claims management outcomes, boost customer loyalty and strengthen our relationships with professional financial advisers,” MD Simon Swanson said.

“Fundamental demand for the quality products and services offered by ClearView has not changed.

“Australia’s complex tax and regulatory environment, ageing population and rising debt levels underpin the need for strategic advice and fit-for-purpose products to help people achieve their financial goals, manage risk and retire with confidence.

“COVID-19 has only heightened awareness of the need for sound financial advice and relevant products like life insurance.”