AMP makes friends in Japan, India
AMP has flagged Japan and India as two ports of Asia where it will beef up its financial services presence through new partnerships with local players.
In Japan, AMP has forged an alliance with technology company NEC which will take a 10 per cent slice of equity in AMP Japan KK, as well as being technology supplier. In the deal, NEC will provide AMP access to its customers who will be offered financial products via an electronically enabled distribution platform.
NEC runs the second biggest Internet provider in Japan, Biglobe, which has a staggering customer base of more than 4 million users. Additionally, AMP Japan has established a distribution alliance with accounting software provider Miroku Jyoho Service (MJS) which will expose more than 8,000 accounting firm clients to defined contribution pension and mutual fund products.
AMP will be entering the Indian financial services markets in a partnership with local financial company The Sanmar Group. The Sanmar Group had earlier established a strategic partnership with GIO in 1998 providing broking services in government securities and other short-term wholesale debt interests.
AMP will be concentrating on the distribution of life, pension and savings products through an agency network and hopes to make available wrap accounts once the evolving local markets can accommodate such products.
AMP will be taking a 26 per cent stake in the Indian joint venture company AMP Sanmar Assurance Company Limited (ASAL), which is the maximum stake permissible by Indian regulation. AMP is planning to increase the stake once regulations have been eased, and in the mean time, ASAL is applying for a life insurance license.
AMP chief executive Paul Batchelor says the approach into these two Asian outposts is a "long-term, low risk" one which he expects to create attractive options for the future.
"The two initiatives are in countries we have focused on because of their long term potential, and represent another two steps in the strategy previously disclosed to the market," he says.
AMP managing director of international and technology ventures Tim Wade says AMP will be leveraging its experience in financial advice, industry convergence and product aggregation. He echoes Batchelor's view that Asia is "a long term opportunity for AMP" due to the strong savings culture there and deregulation in the dynamic markets.
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