AMP reaches $120m settlement on super class action
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
In two separate ASX announcements on 15 September, the firm announced the outcomes of two cases against it.
In its first-half results for the six months to 30 June 2025, AMP said litigation and remediation costs, which included those for class actions, were $11 million compared to $2 million in the first half of 2024.
In the first outcome, which had been brought via a class action, an agreement in principle has been reached to settle the class action against NM Superannuation Proprietary, AMP Superannuation, and AMP Services for $120 million.
The proceedings related to fees charged to members of certain AMP superannuation funds between 2008 and 2020, and the interest rates received, and fees charged, on cash-only fund options. It had initially been initiated as two cases in 2019 by Maurice Blackburn and Slater & Gordon after the Hayne royal commission, but was subsequently consolidated into one action.
AMP said it will contribute $75 million of the $120 million settlement with the balance met by insurance, and that AMP makes no admission of liability in reaching the settlement.
AMP chief executive Alexis George said: “The settlement of this class action is another important step forward for AMP, which means we can put this legacy matter behind us. We have transformed our superannuation offer in recent years and we remain focused on delivering for members, through strong investment returns, competitive fees and insurance, and quality service to our members.”
Rebecca Gilsenan, national head of class actions at Maurice Blackburn, said: “This settlement is a major step towards justice for millions of Australians who trusted AMP to safeguard their retirement savings.
“The class action alleged that AMP’s superannuation trustees prioritised the financial interests of the AMP Group over those of its members. Transparency and fairness are fundamental to the integrity of the superannuation system, and the financial security of Australians is placed at risk when those principles fall by the wayside.”
Secondly, the financial services firm said it has reached agreement to settle with insurers’ legal proceedings brought by AMP for amounts incurred in historical remediation programs which concluded in 2022.
“AMP sought recovery under its insurance policy of compensation and costs arising out of these historical remediation programs. To date, proceeds totalling approximately $44 million have been received.
“AMP remains in discussions with a number of other insurers in relation to these proceedings, following a hearing in August 2025.”
AUTHOR
Laura Dew
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