ClearView has announced a proposed merger with dealer group Matrix Planning Solutions, hot on the heels of the wealth manager’s reported 23% rise in profit.
Over the weekend, the groups announced they had entered into merger talks, with ClearView proposing to acquire 100% of Matrix by October. If the merger takes place, the combined group will boast $148 million in premiums under advice, and over 200 financial planners.
Matrix’s Board has unanimously recommended that shareholders accept the offer. ClearView stated that it intends to retain the Matrix brand.
“This transaction, combined with our recent results, will provide further momentum in ClearView’s goal of building Australia’s best financial advice and financial services business,” ClearView’s Managing Director, Simon Swanson, said.
The Matrix Board is fully committed to ClearView’s goal
Matrix Chairman, Pieter Franzen, added: “The Matrix Board is fully committed to ClearView’s goal of establishing the highest quality financial advice businesses in Australia with significant solutions in both life insurance and wealth management. The quality of ClearView’s business is self-evident from its recent results.”
Last week, ClearView reported it had achieved an underlying net profit after tax of $19.7 million, representing growth of 23% year on year. In-force life insurance premiums were up 41%, delivering a rise in underlying net profit after tax of 29%.
ClearView said the significant investment it made in its direct life insurance business had shown signs of early success, with new business premiums increasing by 48%. Growth in sales of its retail insurance product, LifeSolutions, also continued in the current financial year, with new business premiums increasing to $23.6 million (an increase of 40% on FY13).
Adviser numbers were also up (15%) and premiums under advice grew by 30%.
ClearView also announced plans to launch a mid-market product, targeted at smaller account balances, coupled with a life insurance cross-sell opportunity. The group reported that the implementation of this new product (to be called ClearView WealthFoundations) is well underway, with the launch targeted in the first half of FY15.
