AMP reports net profit loss
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.
AUTHOR
Staff Writer
Recommended for you
In this special episode of Relative Return, Momentum Media’s Phil Tarrant and Jordan Coleman discuss the publishing house’s expansion into greater coverage of the wealth management space.
In this episode of Relative Return, host Maja Garaca Djurdjevic speaks with Riley James, founder and chief executive of fintech SuperAPI, about creating a superannuation ecosystem and potential changes from the Quality of Advice Review.
In this new episode of The Manager Mix, host Laura Dew speaks to Anthony Kirkham, head of Asia-Pacific investment management at Western Asset to delve into everything fixed income in a world of rising interest rates.
In this episode, host Laura Dew speaks with Phillip Hudak, co-portfolio manager of the Australian Small Companies Fund at Maple Brown-Abbott, about the allure of Australian small caps and how the current market environment presents a “compelling opportunity” reminiscent of the post-Global Financial Crisis period.
