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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news