February 13, 2018
- AMP Examines Options After Insurance Bounces Back
- AFA Revamps Connect Tour
- AIA Australia Sponsors Pain Education Program
AMP Examines Options After Insurance Bounces Back
AMP’s life insurance business has bounced back from a $415 million loss in 2016 posting $110 million in earnings for 2017 following reinsurance arrangements with Munich Re and Gen Re.
The two deals released around $1 billion in capital to the AMP group which stated that it was looking at realising more value from its life insurance business and was “well progressed with a portfolio review with all alternatives being considered”.
“As a result, AMP is in discussions with a number of interested parties. While the portfolio review is yet to be concluded, AMP expects to provide a further update at or before its AGM,” the company stated in its annual results.
The return to positive figures in earnings was the result of strengthening of best estimate assumptions and the reinsurance program, which effectively reinsured 65 per cent of AMP’s retail life insurance portfolio.
Despite this, profit margins for the life insurance business declined by 43 per cent to $99 million reflecting the assumption changes and impacts from the reinsurance program.
At the same time, annual individual life premium remained stable at $1.5 billion, while lapse rates increased marginally from 13.9 per cent to 14.2 per cent. Cash inflows were also stable at $1.8 billion, outflows fell by 7 per cent to $902 million and claims totalled $1.1 billion.
AFA Revamps Connect Tour
The AFA has reworked its annual Connect Tour roadshow for advisers and will feature different programs in each state.
The tour, which will run from 14 February to 27 February will have stops in Sydney, Hobart, Perth, Adelaide, Melbourne and Brisbane and will include an optional masterclass with US speaker, Amy Florian, chief executive of Corgenius, in all states except Tasmania.
Florian spoke at the 2017 AFA National Adviser Conference and will cover the skills to help clients make wise decisions in the midst of loss.
The Sydney leg of the tour will tie in with the 2018 Finology Summit Where investing meets investors in association with PortfolioConstruction Forum and programs in other states will feature the AFA’s Communities of Practice, including AFA Genxt, AFA Inspire, AFA Practitioners, AFA Leaders Forum and AFA Foundation.
The AFA stated that content from the tour will be made available to members who were not able to attend and AFA Chief Executive, Phil Kewin said the new content was aimed at finding a balance between technical skills and knowledge and their practical application for advisers.
AIA Australia Sponsors Pain Education Program
AIA Australia will partner with Pain Revolution, a community based educational program aiming to help people who suffer from chronic pain.
As part of the arrangement, the life insurer will sponsor the annual Pain Revolution Ride which raises funds to train local health professionals along the course of the route to work in the community and support other doctors, physiotherapists and health professionals in education and treatment of persistent pain.
The inaugural Pain Revolution ride in 2017 reached over 350 healthcare professionals, 900 patients and 50 community leaders along the regional Melbourne to Adelaide route, and the 2018 ride will travel from Sydney to Albury.
AIA Australia Chief Group Insurance Officer, Stephanie Phillips, said chronic pain affected five million Australians each year and the insurers wanted to help educate, raise awareness and give people the resources to recover from, and prevent persistent pain.
“We see supporting Pain Revolution as a real shared value opportunity – tackling chronic pain and finding a new, effective path to recovery not only has potential benefits for our own claimants, but for society and the millions of Australians suffering this condition,” Phillips said.