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.
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver discuss the Reserve Bank of Australia’s cautious stance in response to persistent inflation, subdued growth prospects, and political shifts affecting the nation’s journey towards net zero emissions.
In this episode of Relative Return, host Laura Dew speaks with Rachel White, head of financial adviser services at Vanguard about how advisers can help Australians to feel confident in retirement.
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina take a look at the Reserve Bank’s unanimous decision to leave rates on hold on Melbourne Cup Day and whether future cuts are still on the cards.
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
