AMP's NZ unit lifts 1st-half profit 9% on claims management

AMP's NZ unit lifts first-half profit 9% on better insurance claims management

By Paul McBeth

Aug. 20 (BusinessDesk) - AMP Financial Services New Zealand, the local operation of the Australian fund manager and insurer, lifted first-half operating profit 9 percent by keeping control of costs while improving management of insurance claims.

Operating profit rose to $64.6 million in the six months ended June 30, from $59 million a year earlier, the Auckland-based company said in a statement. That was largely due to a "claims experience" profit of $4.3 million in the period, turning from a loss of $500,000 a year earlier, which AMP said was due to improved claims management and a lower lapse rate.

"As we continue to grow our revenue base, closely manage our costs and refresh our channels, we believe the business is in a good position to achieve a solid result for the full financial year," New Zealand managing director Jack Regan said.

AMP's group profit jumped 33 percent to A$507 million on a 19 percent gain in revenue to A$8.62 billion. The board declared an interim dividend of 12 Australian cents per share, payable on Oct. 9, with a Sept. 3 record date.

The New Zealand financial services division increased net cash flows 6 percent to $214.6 million on growing KiwiSaver funds and client gains, with assets under management expanded 10 percent to $14.9 billion.

Regan again warned the local division's profit will be eroded by $10 million in the second half of the financial year, and a further $10 million in the first half of 2016 due to tax changes on the assessment of life insurance.

AMP Capital, the group's fund management division which also covers New Zealand, had A$18.25 billion in local assets under management, out of the A$151.47 billion it manages around the world.

The dual-listed shares were unchanged at $6.98 on the NZX, and last traded at A$6.28 on the ASX.

(BusinessDesk)

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