ClearView Wealth (ASX:CVW) share price surges 15% on strategic review

A strategic review is the next step for the diversified financial services company.

| More on:
An older woman high fives an older man with big smiles after seeing good news on their laptop.

Image source: Getty Images

The ClearView Wealth Ltd (ASX: CVW) share price has bolted out of the gates this morning.

Shares in the insurance and wealth management company surged more than 15% higher in early trade and are currently up 14.26%, trading at 62 cents.

Let’s take a look at what ClearView announced.

Time for a strategic review

Investors have pushed the ClearView share price higher after the company announced its intentions to conduct a strategic review earlier today.

The company highlighted that FY21 has been a transformational year and the business has achieved a number of milestones.

Following an evaluation and discussion with the company’s largest shareholder, Crescent Capital Partners, the ClearView board decided to carry out the strategic review process.

ClearView said the review would focus on enhancing customer and policyholder outcomes.

The company also aims to achieve a long-term shareholding base, adding it would consider a change of control as part of the strategic review.

The company will continue to keep shareholders informed in accordance with its continuous disclosure obligations.

ClearView milestones for FY21

ClearView noted various milestones outlined in its full-year results for FY21 had put the company in a strong position.

These milestones include;

  • Strong balance sheet and capital base with net cash and investments of $374m as at 30 June 2021
  • Raising of $75 million of Tier 2 capital and completion of other capital management initiatives in FY21
  • Solid business performance in FY21 in a challenging environment
  • Declaration of a fully franked FY21 cash dividend of 1 cent per share
  •  Commencement of multi-year life insurance transformation project.

ClearView share price snapshot

ClearView is a diversified financial services company that partners with financial advisers to help clients.

The company operates in 3 separate business segments: life insurance, wealth management and financial advice.

The ClearView share price has had a stellar year, soaring more than 50% since the start of 2021. The company’s shares are also up 76.29% over the past 12 months.

Should you invest $1,000 in ClearView right now?

Before you consider ClearView, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and ClearView wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers