POWERED BY MOMENTUM MEDIA
Insurance inside super changes hit Link bottom line
Major publicly-listed superannuation administration provider, Link Group has reported a significant first half profit decline.
The company announced an 84% decline in statutory net profit after tax to $29 million in what Link managing director, John McMurtrie described as a “transitional year”.
The company acknowledged that its first half earnings had been impacted by regulatory change and historical client losses in its retirement and superannuation services (RSS) business.
It said those regulatory changes were mainly the Government’s Protecting Your Superannuation and Putting Members Interest First legislation.
The company’s investor presentation noted that it was looking to strong member growth in Australia and international opportunities whilst regulatory change, client exits and fund consolidation was likely to affect near term financial performance.
McMurtrie said he believed the company was making good progress on delivering on its strategic plan and that the medium to long term outlook remained strong.
“We have executed on a number of key strategic initiatives including the expansion of our BCM business through the acquisition of Pepper European Servicing (subject to regulatory approval) and our entry into the US$2.9 trillion ($4.42 trillion) UK pension market via our investment in Smart Pension. In addition, the future potential of PEXA as a growth pillar for Link Group is becoming evident, given its strong contribution to our first half results.
“Link Group’s business units also continue to display resilience and deliver sound underlying performance We remain committed to driving further efficiency in our existing operations, delivering on excellence in service for our clients and growth through new opportunities,” McMurtrie said.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
