ClearView Wealth (ASX:CVW) reported a sharply higher profit for the first half of FY2026, alongside stronger sales momentum and improved efficiency metrics, as management highlighted the completion of a multi-year simplification and technology transformation program. The company’s briefing also followed a market announcement that it has entered into a Scheme Implementation Deed under which Zurich has agreed to acquire 100% of ClearView via a scheme of arrangement.
Zurich scheme proposal outlined
Managing Director Nadine Gooderick opened the call by summarizing the transaction terms disclosed earlier in the week. Under the proposed scheme, shareholders would receive a cash consideration of AUD 0.65 per share on the record date, subject to potential adjustments under the Scheme Implementation Deed. Those adjustments may include permitted dividends paid prior to implementation and a “ticking fee” if the scheme’s effective date is delayed beyond a specified date.
Gooderick said the offer represents an approximately 21.5% premium to the last closing share price prior to the announcement and implies a 1.2x book value multiple. For shareholders eligible to utilize franking credits, the company said the total value could be up to AUD 0.67 per share if the full permitted dividend is paid before any ticking fee is applied. ClearView currently anticipates the scheme meeting will be held in the second half of the calendar year, subject to regulatory approval timing, with further details to come via a scheme booklet.
Half-year profit and margin lift
Turning to operating performance, ClearView reported group underlying NPAT from continuing operations of AUD 22.1 million, up 77% for the half year. Fully diluted underlying EPS rose 84% to AUD 0.035 per share.
The life insurance business generated underlying NPAT of AUD 24.1 million, up 59%, with an underlying margin of 11.2%. Management noted this was within its target range of 11%–12%.
Chief Financial Officer Athol Chiert said the result reflects “progressive benefits” from the simplification and transformation strategy, and noted that group underlying NPAT has grown at a 20% compound rate from AUD 12.7 million in the first half of FY2023 to AUD 22.1 million in the first half of FY2026.
Sales, market share, and product mix
Management pointed to continued top-line growth, with both gross premium income and in-force premium up 13% over the period. ClearView also reported improved new business momentum in the independent financial adviser (IFA) channel, describing itself as a “successful challenger brand” with a rolling 12-month new business market share broadly stable in the 10%–11% range.
The company said the overall IFA new business market grew about 12.2% year-on-year to roughly AUD 356 million of new sales. ClearView generated AUD 21 million of new business sales over the half, a 29% increase from the prior corresponding period, including AUD 11.4 million in the December quarter, which it said equated to about a 12% market share for that quarter. In-force market share increased to above 4% during the half-year period.
Chiert highlighted strong growth in ClearChoice, described as the company’s flagship product. ClearChoice grew 45%, with in-force premiums reaching AUD 135 million, representing around 30% of overall in-force premiums.
Technology program completion and next phase
Gooderick said ClearView’s transformation program is now complete following the exit from the wealth management business and the migration of all closed products onto the company’s modern core life insurance platform. She said every product is now administered on a single cloud-based platform, which management expects will reduce complexity and duplication and support operating efficiency and agility.
The company’s next phase is the implementation of a new front-end digital experience intended to integrate with the core platform. Gooderick said the first release is on track for the second half of FY2026 and is expected to support multi-channel growth, new digital capabilities, and a more streamlined experience for customers and advisers, including a “single holistic view of the customer.”
Claims, lapses, capital position, and guidance
On claims, Chiert said experience was broadly in line with expectations, with a gross claims loss ratio of 51%, near the long-term average of 52%. Relative to assumptions adopted in the period, the portfolio recorded an underlying claims experience loss of AUD 0.5 million after tax. Management noted positive claims experience on advanced lump sum products, including positive TPD clearance, offset by adverse experience in advanced income protection and non-advanced products. ClearView also said long-term actuarial assumptions for income protection and TPD claims on the closed LifeSolutions portfolio will “further strengthen in FY2025,” and that TPD experience continues to be monitored closely given broader industry trends.
Lapse rates increased during the half year, which the company attributed to cost-of-living pressures and repricing of the LifeSolutions product. Management said the current phase of the repricing cycle was completed on 1 February 2026, and that affordability risks are mitigated by the target market and premium funding from superannuation, alongside retention strategies.
ClearView reported net assets of AUD 348.4 million, or AUD 0.559 per share, and a surplus capital position of AUD 11.3 million. The company’s cost-to-income ratio improved to 17.9% from 19.6%. Chiert said surplus capital was impacted during the half by a AUD 10.3 million on-market buyback (in lieu of an interim dividend) and AUD 7.3 million of IT transformation and Tier 2 overlap costs, which are expected to cease from the end of the financial year.
Gooderick reiterated the company’s dividend policy target payout ratio of 40%–60% of group underlying NPAT from continuing operations, while noting the board has opted for buybacks in lieu of dividends due to the prevailing share price. Under the Zurich deed, the company is permitted to pay dividends up to AUD 0.005 per share prior to implementation, and subject to the scheme becoming effective the board currently intends to determine to pay a fully franked special dividend up to the permitted maximum, though it emphasized there is no certainty any dividend will be paid.
Management said FY2026 guidance remains unchanged, with key items including:
- Gross premium income: AUD 435 million to AUD 440 million
- Life insurance underlying NPAT margin: 11% to 12%
- Life insurance underlying NPAT: AUD 47 million to AUD 52 million
- Group underlying NPAT: AUD 42 million to AUD 47 million
ClearView said risks to achieving guidance include claims experience, execution of technology programs and related efficiencies, lapse outcomes, and interest rate movements. During Q&A, management said repricing impacts were largely reflected through the half-year result and embedded in the gross premium income guidance, and reiterated that it assesses claims performance over longer periods given month-to-month volatility. The company also said it was “too early to tell” how the independent expert will assess the transaction, with the report to be included in the scheme booklet.
About ClearView Wealth (ASX:CVW)
ClearView Wealth Limited engages in life insurance business in Australia. The company offers life insurance protection products, including trauma and critical illness benefits, child cover, total and permanent disability, and business expense covers through financial advisers. ClearView Wealth Limited was founded in 1976 and is headquartered in Sydney, Australia.
