ClearView Wealth Ltd (CVW.AX), a financial services organisation providing life insurance, wealth management, and financial advice solutions, is poised to benefit from ongoing market consolidation, particularly following reports that NEOS Protect was seeking buyers. According to a recent analysis, the exit of NEOS could present ClearView with opportunities for market share growth or a potentially advantageous exit strategy. NEOS Protect, a strategic partner of NobleOak (ASX:NOL), contributed significantly to NobleOak’s in-force premiums and underlying net profit after tax.
The report suggests several positive scenarios for ClearView. An acquisition of NEOS would significantly bolster ClearView’s adviser network and accelerate progress toward new business targets, market share gains, and gross premium growth. It could also potentially set the stage for a future acquisition of NobleOak. Alternatively, if a larger life insurer acquires NEOS, it could trigger a roll-up strategy involving smaller players like NobleOak and ClearView. The exit of NEOS will provide ClearView an indication of M&A appetite in the life insurance industry and help in their plans for a potential 2026 exit.
ClearView remains on track with its FY25 guidance, as confirmed during the Morgans Conference in May 2025. Updates provided during the conference indicated no adverse developments, with the company progressing well toward achieving its FY25 financial targets for gross premiums and underlying life NPAT margins, as well as its FY26 operational targets for new business and in-force premiums market share. The technology migration remains on schedule.
The company’s valuation remains unchanged at $0.84, with analysts maintaining their forecasts. ClearView is currently trading at substantial discounts to its estimated embedded value, residual income valuation, and book value. The completion of the technology platform migration, expected by December 2025, is anticipated to simplify processes and enhance customer touchpoints, potentially leading to increased business and market share. A potential uplift in dividend payout policy from 40%-60% to 50%-70% of underlying NPAT upon completion of this migration/transformation program is anticipated.
