POWERED BY MOMENTUM MEDIA
ClearView decides not to repay JobKeeper
ClearView has decided not to repay JobKeeper after it was pressed by a Parliamentary committee to have its board consider it, given its profit margins.
Last month, Labor’s Dr Andrew Leigh asked ClearViews chief executive, Simon Swanson whether the insurer would repay $2.4 million in JobKeeper after its profits did not tangibly fall during the 2020 calendar year.
In an answer to the question on notice, ClearView said its board had considered repaying JobKeeper after looking at its 2020 calendar year profits as requested by the committee despite it usually reporting on a financial year basis.
It said its net profit after tax (NPAT) during 2020 declined from $22.1 million to $17.5 million.
“The board has taken these factors into account and the competing risks and benefits, and considers that accessing the JobKeeper entitlement was the right thing to do by policyholders and employees. Given the circumstances outlined above it is not appropriate to repay these funds,” ClearView said.
ClearView said its board considered:
- The nature of the company’s operations compared to, for example, the high-volume retail businesses raised as examples in the committee hearing. In a life insurance business, a pandemic is considered a critical financial risk and this uncertainty is continuing;
- The over-riding importance for a life insurer is to protect policyholder interests over the long-term, this requires a sustainable balance between policyholders and shareholders and their respective interests. During COVID-19 ClearView waived premiums of $4.6 million for over 1,700 customers;
- JobKeeper had a positive impact on employment and business continuity during 2020 and played a role in assisting the company to deal with the ongoing ramifications and uncertainties of the pandemic; and
- Being a life insurer, profitability was a secondary factor particularly during a pandemic. Capital adequacy is the cornerstone of a life insurance company as it underpinned its ability to pay claims.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
