ClearView Wealth has reported a 260% jump in its after-tax profit to $8.7 million for the year ending June 30.

“We’re pleased with the profit for the year as we turn into a fully integrated life insurance and wealth management company,” MD Simon Swanson told insuranceNEWS.com.au.

“Our underlying profit of $19.3 million equates to a 14% after-tax return on the capital employed in the business and our surplus capital has increased to $53 million above internal target requirements.”

This year’s figures compared to a $2.4 million after-tax profit in 2010 and an underlying loss of $1 million in the same period.

Mr Swanson says the acquisition of the life insurance and wealth management business from Bupa Australia has driven the strong operating figures.

“The first half of the year was focused on successfully integrating that business and extracting cost synergies,” he said.

ClearView’s life insurance business saw premium revenue of $40.3 million for the 12 months. It delivered net premium income of $36.5 million after reinsurance costs.

This compared to gross premium revenue of $2.6 million and a net premium income of $2.3 million for the previous financial year.

Claims for the 12 months ending June 30 this year were $17.5 million compared to $912,000 in the 2010 corresponding period.

This year’s profit for the insurance division was $8.6 million compared to $4.5 million last year.

Mr Swanson says lapse rates for life insurance rose during the year, but he declined to give any details.

“We have seen rates increase but I believe that’s because we are over-exposed to the NSW and Queensland economies,” he said. “We are confident this was a one-off event, and our lapse rates are below the industry average.”

During the next 12 months ClearView aims to increase distribution of its insurance products through the independent adviser market.

Mr Swanson says the company is also planning to launch a “white label” investment platform that will eventually include an insurance offering.