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

 


CORRECT: AMP’s NZ FY profit flat, plans to ditch Axa brand

CORRECT: AMP’s NZ FY profit flat, plans to ditch Axa brand in March

(Fixes incorrect funds under management in 5th graph)

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 $13 billion under management as at Sept. 30 last year, and was the third-biggest KiwiSaver provider with $2.4 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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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