AMP New Zealand posts little-changed 1H underlying profit
By Rebecca Howard
Aug. 10 (BusinessDesk) - AMP’s New Zealand financial services, the local unit of the Australian financial services firm, posted a little changed underlying operating profit after tax in its first half, as it continues to grow its revenue base and closely manage costs.
The New Zealand financial services business reported an underlying operating profit after tax of A$72 million in the six months ended June 30 versus A$71 million in the year-earlier period.
Its operating earnings increased 5 percent to A$65 million in the first half of the year as a result of higher experience profits. According to AMP, if actual experience differs from that expected, the financial effects of these differences are recognised as experience profits or losses in addition to the planned profits. It said its experience profits were A$8 million versus A$3 million in the same period a year earlier, largely due to improved management of claims.
Its profit margins were unchanged at A$57 million, reflecting lower controllable costs and improved profit margins from mature and wealth management, offset by lower general insurance profit share due to higher natural hazard claims, it said.
The company said its controllable costs decreased by A$1 million to A$38 million, as it remains focused on cost control, including business reorganization and product rationalisation.
Its net cash flow fell 26 percent to A$54 million as a 13 percent increase in cash inflows versus the same period a year earlier was offset by a 17 percent rise in cash outflows.
New Zealand financial services had 12 percent of the total KiwiSaver market as at March 31, 2017, and about 236,000 customers.
Parent AMP meanwhile reported a first-half net profit of A$445 million versus A$523 million in the prior period. Its underlying net profit was A$533 million versus A$513 million in the same period a year earlier. Underlying profit excludes the impact of market volatility, accounting mismatches and other items, it said.