Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AMP's NZ FY profit flat, plans to ditch Axa brand in March

AMP's NZ FY profit flat, plans to ditch Axa brand in March

By Paul McBeth

Feb. 21 (BusinessDesk) - AMP's financial services unit in New Zealand reported flat annual earnings as rising insurance claims offset gains in its wealth management businesses. The local unit will stop using the Axa brand from the end of next month.

Underlying profit slipped to $119 million in the 12 months ended Dec. 31 from $120 million a year earlier, on a 3.5 percent increase in annual premium income to $298 million, the company said in a statement. In Australian dollar terms, the NZ unit showed a 3.9 percent fall to A$73 million. The Australian parent reported a 2.3 percent gain in net profit to A$704 million.

AMP Financial Services New Zealand managing director Jack Regan said the increased level of insurance claims "impacted" the result, with a spike in high value lump sum life insurance claims and a higher incidence of income protection claims.

Regan said the company will have to increase life insurance premiums because regulatory changes mean consumers won't be able to benefit from lower tax rates, and has already taken incremental steps to mitigate the future impact.

The New Zealand unit was the nation’s biggest retail fund manager with $30.9 billion under management as at Sept. 30 last year, and was the third-biggest KiwiSaver provider with $13 billion under management.

AMP's New Zealand business was the only unit to shed financial advisers, with 640 as at Dec. 31 from 704 a year earlier. The wealth manager put it down to how adviser numbers are reported under the new compliance regime.

Regan said the New Zealand unit was ahead of schedule in the Axa integration, and will stop using the brand after March 31. As part of that, the two KiwiSaver schemes, which are both default providers, will be merged, subject to regulatory approval.

In 2011, AMP completed its A$13.3 billion bid for rival Axa Asia Pacific’s Australian and New Zealand businesses, selling back the Asian units to French parent Axa SA.

AMP lifted underlying profit to A$955 million from A$909 million a year earlier, with wealth management the strongest performer. The board declared a final dividend of 12.5 Australian cents per share, taking the annual payment to 25 cents. The return is payable on April 11 with a March 8 record date.

The dual-listed shares gained 1.4 percent to $6.69 in trading on the NZX today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news