Insignia Financial targets annual cost savings of $200m, lowers advice guidance
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The news: Wealth manager Insignia Financial will target around $200 million per year in cost savings by 2030 after presenting a new strategy to investors today, aimed at becoming "Australia's leading and most efficient wealth management company".
The numbers: Insignia shares fell 4.5% to $3.18 at market open on the ASX, having advanced more than 50% over the last 12 months.
The company, which will present its FY26 to FY30 strategy to investors today, also reaffirmed its full-year guidance for group net revenue margin, operating expenditure and strategic investment.
However, it revised down its net revenue guidance for its advice segment, from $175 million to $150 million, and increased net revenue margin guidance for its wrap platforms business from between 28 basis points (bps) and 28.7 bps to between 28.7 bps and 29.5 bps.
The context: Insignia said its guidance changes reflected its new operating segment structure, following a "major overhaul" of its operating model and executive team in July.
The company lifted its wrap net revenue margin guidance following the transfer in of non-advice services revenue. Meanwhile, its advice net revenue guidance was adjusted down to include only advice service fee revenue.
The sources: ASX announcement, ASX announcement
