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