The strong performance of AMP’s financial planning business was not enough to offset a “challenging” year in the life insurance sector, which saw the group’s net profit fall by 11 per cent (A$17 million) in 2013.
AMP reported a net profit of A$672 million for the year ending 31 December 2013, compared to A$689 million for 2012, according to an announcement on the Australian Securities Exchange (ASX).
The decline was largely attributed to high insurance claims and policy lapses in AMP’s life insurance arm.
AMP chief executive Craig Meller said a review had been conducted to tackle issues in the struggling life insurance sector.
“We’re already seeing the benefit of working more closely with our customers to help them get back to work after illness or injury, improving the financial outcome for both our customers and AMP,” he said.
“We’re also investing in new systems and data analytics that will improve claims management performance over the medium and long term.”
Australian wealth protection fell from $190 million in 2012 to $64 million in 2013, the report showed.
The drop contributed to an underlying profit year-on-year loss, with $849 million in 2013, compared to $950 million in 2012.
However, AMP’s wealth management business still recorded an overall improvement – jumping from $285 million in 2012 to $330 million last year.
AMP Bank was up 34 per cent on 2012, with a profit of A$83 million, while the New Zealand business grew 19 per cent in the year to $97 million.
