AM pulls plug on insurance company
AM Corporation has pulled the plug on its own life insurance company as a part of one of the biggest revamps in the group’s 25 year history.
AM has signed a deal to transfer its life insurance business to Lumley Life under a plan to concentrate on its core business of superannuation and investments.
AM chairman David Smith says the decision to outsource the services follows a comprehensive review of AM's operations.
"It had come to the point where we had to make the decision whether to significantly grow the life insurance business or offload it. We chose the latter," he says.
"We saw that the life insurance market was maturing rapidly so we chose to form an alliance with a group committed to the market."
Under the terms of the deal, Lumley Life will take over AM's risk portfolio and look after the life insurance needs of AM's 150,000 clients including salary continuance, trauma and TPD insurance cover.
AM's move to dismantle its life insurance business is among a raft of changes sweeping through the group. Other changes include the exit from its 50 per cent holding in the Fiducian financial services group and a massive investment in Internet enabling technology as well as a yet to be launched wrap service.
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