CLEARVIEW WEALTH LIMITED — Investor Presentation 2012

Aug 19, 2012

Full Year 2012 Results SIMON SWANSON – MANAGING DIRECTOR ATHOL CHIERT – CHIEF FINANCIAL OFFICER

17 AUGUST 2012

DISCLAIMER

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The material in this presentation is background information on ClearView Wealth Limited (ClearView) and is not intended to constitute a securities recommendation. The presentation does not take into account the investment objectives, financial situation and particular needs of an investor, and is not suitable as a basis for an investment decision. Before making an investment decision we recommend you consult a licensed financial adviser.

The information contained in this presentation is given in good faith and has been derived from sources believed to be accurate as at the date of this presentation. It is provided in summary and does not purport to be complete and should be read together with the accompanying audited financial statements and Annual Report. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or other information (all of which may change without notice) contained in this presentation. To the maximum extent permitted by law, ClearView and its related entities and each of their respective directors, officers and agents disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this presentation.

Financial information in this presentation is historical as at 30 June 2012 unless otherwise stated. It should not be relied on as an indicator of future financial performance.

This presentation may contain certain forward-looking statements. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of ClearView, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place reliance on forward-looking statements and neither ClearView nor any of its directors, employees, advisers or agents assume any obligation to update such information.

2

2012 HIGHLIGHTS – RESULTS

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Underlying Profit Embedded Life Growth - Wealth Distribution -
Value Inforce Growth – No of advisers/
FUM (APLs)
$19.24m $265m (64.2 cps) $44.1m $1.38bn 70 (27)
0% 6% (Pre Dividends) 9% 9% 27%
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Underlying Profit*	Embedded Value	Life Growth - Inforce	Wealth Growth – FUM	Distribution - No of advisers/ (APLs)
$19.24m	$265m(64.2 cps)	$44.1m	$1.38bn	70 (27)
0%	6%(Pre Dividends)	9%	9%	27%
Favourable claims experience, partially offset by insurance lapse losses (albeit with a significant improvement in 2H)	Discount rates remain unchanged notwithstanding reduction in long term rates	LifeSolutions launched in Dec 2011; $3.6m of new business	WealthSolutions launched in Dec 2011; $36m of net inflows in 2H	Net increase from 55 at 30 Jun 11; 57 at 31 Dec 2011;86 today (up 56%)
Significant investment to develop range of new products and infrastructure to expand the business	Excludes the potential value of future growth and franking credits	Momentum in sales growth in Q4. Q4 run-rate of $13.8m (annualised)	Expected run-off in old wealth book partially offset by launch of WealthSolutions	Recruitment of successful and experienced advisers aligned with share offering
Lower FUMA levels negatively impacting on fee income	EV negatively impacted by lower FUMA levels and insurance lapse losses. EV after payment of FY11 dividend	Q4 run-rate excludes impact of further adviser recruitment post year end	Negative impact of investment markets on fee income and net investment flows	27 Approved Product Lists (APLs), access to third party advisers across Australia
Typical lag in current year profit for new life insurance business Note*:Underlying net profit is the Board’s key ~~hi dit t th i li~~	Excludes listing and short term development and growth related costs measure of profitability and the basis on whic ~~libiliti d i th i bl i~~	540% growth in sales over 1H h the dividend payment is determine ~~tt titi d t~~	Strong investment performance relative to peers d. It consists of profit after tax adjuste ~~d t idd l t th~~	3 Success being achieved through launch of LifeSolutions d for amortisation, the effect of ~~G’ di tiiti~~
~~cangng scoun raes on e nsurance pocy aes an n e pror comparae pero, resrucure, ranson an sysem upgrae coss consere unusua o e roups ornary acves.~~

FOUNDATION LAID AND SALES MOMENTUM UNDERWAY

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Distribution
 Recruiting experienced and
successful advisers to
ClearView’s dealer group
 Establishing distribution
agreements with IFAs
Products  Developing alliances with new
strategic partners
 Launch of LifeSolutions, our
($M)
new suite of life advice
products and services
Systems  Launch of Super & IDPS wrap
platform, WealthSolutions
 Successful integration of
acquired BUPA business and
achievement of cost savings
 Achieved early upgrade of life
administration platform for
direct products
 Development of systems and 1.5
processes for life advice 1.1
market
0.8
0.4 0.4 0.5
0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.2
-
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($M)

2.0

1.5

1.0

0.5

ClearView has laid the foundation for growth. As an example, life sales in 4QFY12 were 751% greater than 4QFY11

Life Sales

4

2010

Today

WHERE ARE WE NOW?

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• Transformed the group into a diversified life insurance and wealth management business with capability to access the core retail components of the $10.6B¹ life insurance and $433B² wealth management value chain

• Expanded market opportunity significantly with the launch of LifeSolutions and WealthSolutions to drive growth

• Strong financial position with no debt and $66 million of assets in excess of internal capital management benchmarks as at 30 June 2012³

• Scalable distribution capability in both the advice and non-advice (direct) life and wealth markets

• Expanded distribution channels with the focus on recruiting successful and experienced advisers and penetrating the broader financial adviser market, complemented by established and new strategic partnerships

• Dedicated and experienced management team that has both depth and breadth of experience in life insurance and wealth management which has been gained both locally & internationally.

1 Source: Plan For Life ‘Life Insurance Risk Premium Inflows & Sales for Year ended March 2012 and ClearView estimates

2 Source: Plan For Life ‘Analysis of Wrap, Platform and Master Trust Managed Funds at March 2012

3 Surplus capital reduced by $19m post Balance date on adoption of Board approved 3 year business plan. The reduction is due to the need for ClearView’s life insurance subsidiary to cater for the expected growth in LifeSolutions new business volumes. Will also reduce by $8m on payment of FY12 dividend.

5

DISTRIBUTION – A LEAD INDICATOR

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• Recruitment of experienced and successful financial advisers to ClearView (with a share offering to align interests);

• Entry into broader advice market through independent advisers - Approved Product Lists (APLs); and

• Direct sales focused on targeted telemarketing by internal call centre team

ClearView Financial Advisers

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Employed Franchised Aligned
100
90
80
70
42
60
22 25
50 12
40
17 17 17 17
30
20
28 28 28 27
10
0
31 Dec 2011 30 Apr 2012 30 June 2012 8 Aug 2012
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No of APLs with ClearView Product

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27
30
25
20
15
10 6
5 0
0
30 Jun 31 Dec 30 Jun
2011 2011 2012
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Growth in adviser numbers due to successful recruitment and launch into advice market.

These APLs give LifeSolutions access to over 2,000 independent financial advisers.

6

LIFE INSURANCE GROWTH

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NEW BUSINESS[1]

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
New Business (Annual)
6.0 of LifeSolutions in Dec 11;
5.0 
4.0 LifeSolutions Non-Advice Old-Life Book 12 almost equivalent to that
written over past three years;
3.0 
2.0 last quarter; strong momentum;
1.0 and
 Typical lag in flow through to
0.0
2009 2010 2011 2012
current year profit
FY 12 Monthly New Business
1,600
1,400
1,200 LifeSolutions Non-Advice Old-Life Book
1,000
800
600
400
200
0
Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12
$'millions
$'000
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• Growth accelerating since launch of LifeSolutions in Dec 11;

• New business of $5.2 million in FY 12 almost equivalent to that written over past three years;

• Nearly two-thirds of FY12 sales in last quarter; strong momentum; and

• Typical lag in flow through to current year profit

7

1 New Business is defined as annualised premium based on policy issue date and for which a premium has been collected

LIFE INSURANCE IN FORCE PREMIUM

IN FORCE PREMIUM[1]

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60
50
44
41 41 41
40
40
$M
30
20
10
0
June 2010 Dec 2010 June 2011 Dec 2011 June 2012
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Inforce premium mix

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LifeSolutions
8%
Non Advice
4%
Old Life Book
88%
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• 9% growth over prior year, predominantly achieved in last quarter of FY12.

• Driven by launch of LifeSolutions suite of products which reflects the early success of our strategy in the retail life advice market.

• 1 In force premium is defined as annualised premium in force at the date based on policy risk commencement date. The MBF Broken Bones policy ($0.6m reduction in premium) was terminated with effect from 1 July 2011.

8

WEALTH DIFFICULT BUT WEALTH SOLUTIONS GAINING TRACTION

FUM NET FLOWS[1]

Historical Book Fund Inflows FY2012

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Jul-Dec 10 Jan-Jun 11 Jul-Dec 11 Jan-Jun 12
0
-10
-20
-30
$M -40
-50
-60
-70 -60 -62
-80
-90 -87
-100 -90
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• Net outflow of historical book impacted by expected run-off, weak capital market conditions and a lack of inflows given WealthSolutions product was not available until second half of year;

• WealthSolutions launched in December 2011;

• Net inflows of $36m onto the platform in 2H 2012.

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25
CLAL CFML
20
15
10
5
0
WealthSolutions Fund Inflows FY2012
14
12
10
8
6
4
2
0
$'millions
Jul11 Aug11 Sep11 Oct11 Nov11 Dec11 Jan12 Feb12 Mar12 Apr12 May12 Jun12
$'millions
Jul11 Aug11 Sep11 Oct11 Nov11 Dec11 Jan12 Feb12 Mar12 Apr12 May12 Jun12
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• 1 FUM net flows is defined as inflows into ClearView products (net of internal transfers), less redemptions from ClearView products (net of internal transfers). Excludes management fees outflow.

9

WEALTH FUM

TOTAL FUM[1]

FUM MIX ($m)

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1.9
1.7
1.5
1.3
1.1
$B
0.9 1.8
0.7 1.5 1.4
0.5
0.3
0.1
-0.1 June 2010 June 2011 June 2012
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491
SUPER 643
PENSIONS
52
ROLLOVER
161
RETAIL UNIT TRUSTS &
33
WEALTH SOLUTIONS
SAVINGS
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• Reflective of current market conditions; negative impact of investment markets on fee income and net investment flows

• General deferral of retirement plans of clients has disproportionately impacted ClearView owing to its historic participation in the retiree market

• Long term fundamentals sound

10

1 Includes ClearView FUM, ClearView MIS and WealthSolutions; excludes any external non ClearView products

Full Year 2012 Results FINANCIAL RESULTS

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SOLID RESULT IN CHALLENGING ENVIRONMENT

Y/E 30 JUNE $M (unless stated otherwise)	FY2012	Change on FY2011	2H2012	1H2012	Change 2H on 1H
Underlying NPAT1	19.24	(0%)	10.17	9.07	12%
per fully diluted share (cents)	4.53	(1%)
Reported NPAT	22.34	158%	10.11	12.23	(17%)
per fully diluted share (cents)	5.24	149%
Funds under management and advice/FUMA ($B)	2.9	(2%)	2.9	2.8	4%
Net assets per share2(cents)	63.7	5%	63.7	61.5	4%
Fully franked dividend per share (cents)	1.8	0%
Embedded value	265	6%3	265	250	6%3
Embedded value per share2(cents)	64.2	6%3	64.2	60.7	6%

• Underlying NPAT[1] of $19.24m broadly in line with last year despite challenging economic conditions and investment markets

• Reported profit of $22.3m (up 158%) impacted by a $9.7m policy liability effect from the decline in long-term discount rates (FY11: -$0.4m). No restructure and transition related costs (FY11: -$3.0m)

• Strong Balance Sheet with no debt, $66m surplus capital (above internal benchmark) and net assets of 63.7 cents per share (up 5%) as at 30 June 2012

• Embedded value increased by 6% (if FY11 final dividend payment of $7.7m is excluded) to $265m and despite lower FUMA levels

• Surplus capital reduced by $19m post Balance date on adoption of Board approved 3 year business plan and further $8m for FY12 dividend

• 1 Underlying profit is the Board’s key measure of profitability and the basis on which dividend payments are determined. It consists of profit after tax adjusted for amortisation, the effect of changing discount rates on insurance policy liabilities and in the prior year restructure, transition and system upgrade costs considered unusual to the Group’s ordinary activities.

2 Adjusted for Employee Share Plan (ESP) loan of $17.4m (FY11:$12.0m) and 31.1m (FY11: 20.7m) ESP shares.

• 3 Calculated excluding the FY 11 fully franked dividend of $7.7m

12

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SEGMENT VIEW – LIFE INSURANCE THE STANDOUT

Y/E 30 JUNE $M	FY2012	FY2011	CHANGE	COMMENTS
Life Insurance	11.1	9.0	24%	Favourable net claims experience partially offset by lapse losses (albeit with a significant improvement in 2H) and increased expenses (investment in LifeSolutions).
Wealth Management	7.5	11.0¹	(32%)	Fee income adversely affected by weak investment market performance and negative FUM flows. Expenses increased due to product development (WealthSolutions). Higher effective tax rate in FY12.
Financial Advice	(0.6)	(1.2)¹	52%	Benefits from restructuring masked by weak investment markets and lower FUMA levels.
Listed entity and other	1.2	0.5	148%	Predominantly investment earnings less listed entity costs. Greater return from transfer of excess capital from Life insurance entity.
Underlying NPAT	19.2	19.3	(0%)	Underlying NPAT reflective of favourable net claims experience offset by lower FUMA fee revenue, lapse losses in life insurance and development costs associated with investment in LifeSolutions and WealthSolutions ($1.3m of project development costs expensed and $4.3m capitalised in FY12).
Amortisation of intangibles	(6.8)	(7.4)	(9%)	Non cash item that relates to acquired intangibles predominantly from the Bupa acquisition.
Other adjustments	9.9	(3.2)	403%	Reduction in long-term discount rates resulted in a significant positive policy liability effect. Refer to next slide for breakdown.
Reported NPAT	22.3	8.7	158%	Benefited from “other adjustments”.

13

1 FY11 Wealth Management (WM) and Advice profits restated to show profit from ClearView MIS in WM due to structural reorganisation of reportable segments.

OTHER ADJUSTMENTS – FY12

Y/E 30 JUNE $M	FY2012	FY2011
Policy liability effect from change in discount rates1	13.9	(0.6)
Life administration system upgrade2	-	(0.7)
Transition and restructure costs3	-	(3.5)
Other	-	(0.1)
Income tax effect4	(4.0)	1.7
Total other adjustments (after tax)	9.9	(3.2)

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1 The life insurance contract policy liability (based on Australian IFRS) is discounted using market based rates that typically vary at each reporting date and create volatility in the policy liabilities and consequently earnings. ClearView separately reports this volatility which represents a timing difference in the release of profit and has no impact on cash earnings.

2 System upgrade “catch up” to latest version post the Bupa acquisition. All subsequent system spend reported as part of underlying profit or capitalised in accordance with capitalisation policy.

3 Transition costs largely relate to costs payable to Bupa prior to migration off Bupa’s infrastructure and post acquisition employee termination related costs.

The restructure costs relate to a provision to restructure the Financial Planning business completed by 31 Aug 11.

• 4 Income tax effects includes the tax effect of the amortisation of CWT software.

14

BALANCE SHEET SHAREHOLDER[1 ]

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$M	30/06/12	31/12/11	30/06/11
ASSETS Cash equivalents 125 117 122
Financial assets - - -
Receivables 6 10 6
Deferred tax asset 4 6 12
PP&E 2 3 1
Goodwill 5 5 5
Intangible 49 49 52
Total Assets 191 190 198
LIABILITIES Payables 8 8 9
Current tax - - -
Provisions 4 4 4
Life Insurance2 (84) (75) (63)
Total Liabilities (72) (63) (50)
Net Assets 263 253 248
Net Assetsper share3 63.7 cents 61.5 cents 60.5 cents
Net Tangible Assets4 209 199 191
NTAper share3,4 51.5 cents 49.2 cents 47.3 cents

STRONG CAPITAL POSITION

• No debt.

• $66m[5] ($53m at 30/06/11) surplus capital above internal target benchmarks.

• Shareholder capital conservatively invested in cash and interest bearing securities.

• Changes in proposed APRA capital standards (to take effect on 01/01/13) not expected to have a material impact on the capital position.

• Life insurance policy liability increase reflective of reduction in long term rates over the period.

• Intangible assets includes capitalisation of intangible software ($4m carrying value) offset by amortisation of acquisition intangibles.

• 1 Shareholder balance sheet excludes the life investments contracts (i.e. unit linked business) and deconsolidates retail unit trusts.

• 2 Life insurance asset reflects insurance liabilities net of the future recoverability of the deferred acquisition costs in accordance with the accounting standards. 3 Adjusted for Employee Share Plan (ESP) loan of $17.4m (FY11:$12.0m) and 31.1m (FY11: 20.7m) ESP shares.

• 4 Includes deferred tax asset (DTA).

• 5 Prior to FY12 dividend payment of $8m and reduction of $19m on adoption of Board approved 3 year business plan post Balance date. The reduction is due to the need for ClearView’s life insurance subsidiary to cater for the expected growth in LifeSolutions new business volumes.

15

RETURN ON CAPITAL EMPLOYED

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REPORTED NET ASSETS RETURN

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$248 M $263 M $19.2M
250
$239 M UNDERLYING
NPAT
58
69
200 79
4 $2.2M
66
150 53 INVESTMENT
40 RETURN ON
$M SURPLUS
3
CAPITAL
100
2 $17M
139
126 BUSINESS
120
50 LINE PROFIT
0
1
Pro forma 30/06/10 30/06/2011 30/06/2012
Capital employed Surplus capital Intangibles and DTA
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FY12 ROCE
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13% POST TAX

UNDERLYING BUSINESS LINE PROFIT ON CAPITAL EMPLOYED = 17/(126+139)/2

• 1 Pro forma as if current Capital Management Plan had been implemented as at 30/06/10.

2 Increase in capital employed since 30/6/2011 is mainly due to the non-cash effects of the change in the life insurance contract policy liabilities as a result of the reduction in long term discount rates (net of tax).

3 Surplus capital reported is surplus capital above internal benchmarks. Internal benchmarks exceed regulatory requirements.

• 4 Prior to FY12 dividend payment of $8m and reduction of $19m post Board approved 3 year business plan after Balance date.

16

EMBEDDED VALUE (EV)[1]

EV reflects cash flows from in force business; excludes future growth potential

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300
$248 M $259 M $265 M
250 16 22
39
36
200
46
63
$M
150 Financial planning
109
Wealth mgmt
104
101
100 Life insurance
Net worth
50
98
73
65
0
2 2
31/12/2010 30/06/2011 30/06/2012
DISCOUNT RATE SENSITIVITY ($m) RDR -1% RDR +1%
Net worth 98 98
Life insurance 116 103
Wealth management 37 34
Financial planning 23 21
Total excl. franking credits 274 256
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EXCLUDES THE VALUE OF:

• Future growth potential

• Future franking credits (potential value $36m)

• Listing and short term development and growth related costs

• No change in discount rates (for consistency) notwithstanding drop in long-term market discount rates over the year

MOVEMENTS FROM 30/06/11 DUE TO:

• The emergence of net cash flows and value added by new business over the year

• The utilisation of the carried forward revenue tax losses

• Lower FUMA levels (lower fee income relative to expectations)

• Claims, client discontinuance and expense rate experience relative to expectations

• Changes made to the assumptions about the future cash-flows assessed

• Payment of final FY11 dividend of $7.7m

1 EV increase based on consistently applied risk discount rates of 11% for life insurance and 12.75% for wealth management and planning.

2 EV as at 30 June 2011 is prior to FY11 dividend payment and value of utilisation of tax losses. EV at 30 June 2012 is prior to FY12 dividend payment.

17

Full Year 2012 Results REGULATORY OVERVIEW & OUTLOOK

REGULATORY OVERVIEW

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Reforms Im act on ClearView p ClearView well positioned due to vertically integrated FOFA (implementation delayed to 1 July 2013) business model. Based on proposed changes, ClearView’s capital requirements not expected to be materially impacted New APRA Capital Standards (1 January 2013) relative to the position at 30 June 2012. ClearView well placed with existing whole group Stronger Super (1 July 2013) and APRA Standards satisfying APRA risk and capital management framework for Super (circa 1 July 2013) and financial strength to meet proposed requirements. Significant uncertainty; Target publication date of final standard has been extended. Impacts across the industry IFRS Phase 2: Insurance Accounting as a whole. Represents an opportunity for ClearView due to Compulsory super 9% to 12% by 2020 increased inflows into superannuation.

19

MARKET OUTLOOK

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• Long term market fundamentals are sound

Insurance - under insurance gap remains

• Wealth - mandated super contributions to increase from 9% to 12%

• Short term outlook is market uncertainty and volatility coupled with tough economy

• Favourable for life insurance - strong sales momentum

• Negatively Impacting wealth – negative impact of investment markets on fee income and net investment flows

• Life and wealth are complementary products over the economic cycle

20

CLEARVIEW OUTLOOK

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• Short term

• Build on the initial success of LifeSolutions;

• Continue to recruit experienced and successful advisers;

• Increase listings on APLs and related access to independent financial advisers;

• Refine and broaden rollout of WealthSolutions.

• Business impact

• Current business growth now emerging in life and in accordance with Board approved 3 year business plan we have set aside $19m of surplus capital to fund this strong growth;

• 1

• No debt and $66m of surplus capital;

• Growth in life insurance expected to flow through to Appraisal Value growth from FY13 and beyond.

• Inadequate takeover offer

• The ClearView Board² continues to advise shareholders to REJECT the Offer for your ClearView shares. To REJECT CCP BidCo’s Offer, simply do not respond to it and DO NOTHING.

• The Target’s Statement has been released today. The Target's Statement provides detailed reasons for the Board's recommendation, including reasons why the offer materially undervalues ClearView.

1 Prior to FY12 dividend payment and reduction of $19m on adoption of Board approved 3 year business plan post Balance date. The reduction is due to the need for ClearView’s life insurance subsidiary to cater for the expected growth in LifeSolutions new business volumes.

• 2 References to the Board in this context exclude Mr John Murphy, who has absented himself from deliberations and provides no recommendation as he is a director of entities associated with CCP BidCo

21

CONCLUSION

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• Foundation laid, sales momentum underway

• Vertically integrated to leverage the life and wealth value chains and to adapt to recent regulatory reforms

• Scalable distribution capacity in both advice and non-advice

• Well positioned: non bank aligned, lack of legacy products and launch of full suite of life advice products and state-of-the-art superannuation and IDPS wrap platform

• Strong financial position

• Experienced, seasoned and capable management

22

2012 Results APPENDIX

VALUE MAP

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Non-Advice
APRA regulated
(Direct)
Tied &
Life insurance
aligned Reinsurance
manufacture
advisers
Independent Platforms
financial - Master trusts Asset
advisers - Wrap acc’s management
- Simple acc’s
Corporate/
industry
ASIC regulated
super
ClearView Wealth
ClearView Distribution ClearView Life Insurance
Management
Referral alliances
Retail customers
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DISTRIBUTION AND PRODUCT

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LIFE INSURANCE – FY12

Y/E 30 JUNE $M	FY2012	FY2011	CHANGE
Net premiums	38.1	36.6	4%
Interest income	1.7	1.3	34%
Net claims incurred	(10.1)	(14.6)	(30%)
Commissions expense	(3.3)	(0.4)	620%
Operating expenses	(16.1)	(11.4)	40%
Movement in risk policy liabilities	5.6	0.9	521%
Underlying profit before tax	15.9	12.4	28%
Income tax expense	(4.8)	(3.4)	42%
Underlying profit after tax	11.1	9.0	24%

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COMMENTS

• Underlying profit not yet reflective of growth initiatives (i.e. penetration of the adviser market through Dec 11 launch of LifeSolutions only occurred in last quarter of FY12)

• Favourable net claims experience (including reinsurance profit share arrangements), offsetting lapse losses (albeit with a significant improvement in the second half)

• Increase in expenses reflective of investment in LifeSolutions (building a life advice business) as well as increased acquisition activity in 2H FY12

26

.

LIFE INSURANCE – FY12

SOURCES OF PROFIT

Y/E 30 JUNE $M	FY2012	FY2011
Planned profit margin released	8.7	10.6
Profit arising from difference between actual and expected experience	1.3	(2.5)
Investment Income	1.1	0.9
Underlying life insurance profit after tax	11.1	9.0
Other adjustments (after tax)	9.7	(0.9)
Amortisation	(1.4)	(1.4)
Reported life insurance profit after tax	19.4	6.7

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FY 12 Monthly New Business
1,600
1,400
LifeSolutions Non-Advice
1,200
Old-Life Book
1,000
800
600
400
200
0
$'000
Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12
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PREMIUMS IN FORCE[1 ]

MILLION $44.1

IN FORCE PREMIUM MIX

2% 3% OTHER FUNERAL PLAN ACCIDENTAL

8% LIFESOLUTIONS

12% ACCIDENTAL DEATH

53%

TERM LIFE – SHORT FORM TERM LIFE – FULLY UNDERWRITTEN UNDERWRITTEN 22%

27

1 In force premium reduced by termination of MBF Broken Bones policy with effect from 1 July 2011 ($0.6m).

FUNDS UNDER MANAGEMENT

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FUNDS UNDER MANAGEMENT ASSET MIX
Reflecting the high proportion of FUM for
pensions, approximately 50% of assets are
BILLION
$1.38
held in cash and bonds
FUNDS UNDER MANGEMENT ($M)
23% 23%
3%
491 INT’L FIXED AUSTRALIAN CASH
FIXED INTEREST
SUPER 643 INTEREST 543
PENSIONS COLONIAL 5%
4% 156 FIRST STATE EMERGING
MARKETS
8%
PROPERTY MACQUARIE
LISTED
INFRASTRUCTURE
21%
13%
AUSTRALIAN
INTERNATIONAL
SHARES
52 SHARES
ROLLOVER
161
33
CLEARVIEW MIS &
SAVINGS
WEALTH SOLUTIONS
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CLIENT ASSETS

WEALTH 12 MONTH RETURN TO 30/06/12

CLEARVIEW FUNDS	QUARTILE*
Open Managed
Aggressive	2
Assertive	1
Prudent	1
Cautious	2
Conservative	1
Closed Managed
Diversified Balanced	1
Diversified Growth	1
Diversified Stable	2

In the past 12 months, the majority of ClearView’s Managed funds have performed within the top quartile of comparable funds with the balance in the second quartile.

*Source Van Eyck, Morningstar Data retail fund peer group

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FUNDS UNDER MANAGEMENT & ADVICE

$2.90[BILLION ]

FUMA ($M) BY PLATFORM

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CLEARVIEW MIS WEALTHSOLUTIONS
125 [ 36 ]
550
COLONIAL
FIRST STATE
CLEARVIEW
FUM
OTHER
1,219 363
74
CHALLENGER
58
50 ANZ
157 BT
276
MACQUARIE
NAVIGATOR
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WEALTH MANAGEMENT – FY12

Y/E 30 JUNE $M	FY2012	FY2011	CHANGE %
Fee revenue	30.4	34.1	(11%)
Interest income	2.1	2.3	(10%)
Commissions expense	(7.0)	(8.2)	(15%)
Operating expenses3	(15.7)	(14.4)	9%
Underlying profit before tax	9.8	13.8	(29%)
Income tax expense	(2.3)	(2.8)	(19%)
Underlying profit after tax	7.5	11.0	(32%)
Funds under management1	1,380	1,515	(9%)
Net flows1	(152)	(147)	3%
Market movement2	49	138	(64%)

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COMMENTS

• Fee revenue significantly impacted by reduction in FUM[1 ] levels

• Lower inflows reflect negative consumer sentiment towards investment markets and delayed retirement; weak performance of investment markets further impacting FUM balances

• Increase in expenses reflective of investment in WealthSolutions (ahead of new business volumes)

• Significantly lower effective tax rate in FY11 results

• WealthSolutions FUM in-flows of $36m

• 1 Includes ClearView FUM, ClearView MIS and WealthSolutions

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2 Excludes WealthSolutions

3 Includes investment management expenses

FINANCIAL ADVICE – FY12

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Y/E 30 JUNE $M	FY2012	FY2011	CHANGE
Fee revenue1	15.1	17.1	(11%)
Interest income	0.2	0.6	(59%)
Commissions expense1	(2.3)	(2.5)	(7%)
Operating expenses	(13.9)	(17.0)	(18%)
Underlying profit before tax	(0.9)	(1.8)	49%
Income tax expense	0.3	0.6	(55%)
Underlying profit after tax	(0.6)	(1.2)	46%
Funds under advice	1,528	1,446	6%
Funds under management3	1,380	1,515	(9%)
Risk insurance under advice	$29m	n/a
Net flows2	(13)	31	(142%)

COMMENTS

• FY11 has been restated to exclude the ClearView MIS (reclassified to Wealth in FY12)

• FUA increased due to recruitment of aligned advisers.

• Fee margin impacted by lower employed planner FUA levels and change in mix of business (no margin from aligned advisers)

• Benefits from cost restructure of business unit reflected in lower operating expenses partially offset by lower fee and interest income

1 Fee revenue and commission expenses exclude amounts from dealer services that net off each other (FY12: $5.8m; FY11: $1.9m).

2 Net flows only include net flows from CFS and Navigator which represent 54% of total FUA. 3 Internal advice fee of 50bps earned on wealth FUM. This reverses out on consolidation

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LISTED ENTITY – FY12

Y/E 30 JUNE $M	FY2012	FY2011	CHANGE
Interest income	2.3	1.6	39%
Operating expenses	(0.7)	(1.0)	30%
Underlying profit before tax	1.6	0.6	161%
Income tax expense	(0.4)	(0.1)	(210%)
Underlying profit after tax	1.2	0.5	148%
Other adjustments	-	(0.8)	100%
Reported profit after tax	1.2	(0.3)	500%

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COMMENTS

• Listed entity capital increased due to dividend received from life insurance entity partially offset by FY11 dividend paid to shareholders in September

• Operating expenses positively impacted by reversals of over accruals in FY12

• Other adjustments in FY11 related to restructure of the financial advice business

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BALANCE SHEET REPORTED

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$M	30/06/12	31/12/11	30/06/11
ASSETS Cash equivalents 285 205 208
Financial assets 1,179 1,285 1,418
Receivables 12 13 10
Deferred tax 14 17 24
PP&E 2 4 1
Goodwill 5 5 5
Intangible 49 49 52
Total Assets 1,546 1,578 1,718
LIABILITIES Payables 13 12 12
Current tax 1 - -
Provisions 3 5 6
Life Insurance1 (84) (75) (63)
Life Investment 1,219 1,254 1,368
Unit trusts 131 129 147
Total Liabilities 1,283 1,325 1,470
Net Assets 263 253 248

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1 Life insurance asset reflects the future recoverability of the deferred acquisition costs in accordance with the accounting standards.

IMPACT OF ESP SHARES

PER SHARE CALCULATIONS

Y/E 30 JUNE Million	FY2012
Number of shares on issue	409.3
ESP shares on issue	31.1
Shares on issue to calculate NAV per share (A)	440.4
Net assets	$263
ESP loans	$17.4
Proforma net assets (B)	$280.4
Fully diluted NAV per share = B/A	63.7 cents
Underlying NPAT	$19.2
Interest on ESP loans after tax	$0.4
Proforma underlying NPAT	$19.6
Fully diluted underlying NPAT per share1	4.53 cents

BALANCE SHEET

• Accounted for as an option in accordance with AASB 2

• Limited recourse loan not reported as a receivable on Balance Sheet

• Loan repaid with cash if shares are “in the money”

• 31.1 million Employee Share Plan (ESP) shares on issue and $17.4 million loans receivable at 30 June 2012

INCOME STATEMENT

• Underlying NPAT adjusted for after tax interest on ESP loans

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1 Weighted average number of shares used for the purpose of calculating fully diluted underlying NPAT per share to take account of ESP shares issued during the year.