{"id":41870,"date":"2018-08-09T09:00:21","date_gmt":"2018-08-08T23:00:21","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=41870"},"modified":"2018-08-15T07:50:24","modified_gmt":"2018-08-14T21:50:24","slug":"amp-flags-possible-sale-of-life-business","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/08\/09\/amp-flags-possible-sale-of-life-business\/","title":{"rendered":"AMP Flags Possible Sale of Life Business"},"content":{"rendered":"

AMP has flagged that it may consider the sale of its life insurance business in Australia as part of an ongoing wider strategic review of the group\u2019s business.<\/p>\n

\"\"<\/a>
AMP Acting Chief Executive, Michael Wilkins<\/figcaption><\/figure>\n

Speaking at a media briefing following the release of its 2018 half year results, AMP Acting Chief Executive\u00a0Mike Wilkins <\/strong>said the time was right to restart the review of its \u2018manage for value\u2019 businesses after the group had been stabilised, and its board renewal process and search for a new Chief Executive had begun.<\/p>\n

\u201cWe are talking to some interested parties about those businesses and just to be clear those businesses are our Australian wealth protection business and our New Zealand business and we are looking at all the opportunities there,\u201d Wilkins said.<\/p>\n

\u201cWe want to give those businesses certainty as quickly as we can but also we want to make sure we do the right thing by all parties \u2013 not just our shareholders but our customers and the people who are in those businesses. So we\u2019ll take the right amount of time to reach the right conclusion,\u201d he added.<\/p>\n

\u201cWe are talking to some interested parties about those businesses and…those businesses are our Australian wealth protection business…”<\/h6>\n

When asked whether AMP would consider a trade sale for the business areas under review, Wilkins repeated that AMP was \u2018looking at all available options\u2019 and was currently in discussions with a number of interested parties and would continue to pursue those discussions.<\/p>\n

The group\u2019s underlying profit for the half year was $495 million and its net profit was $115 million taking into account provisions for advice remediation announced in late July (see: \u00a0AMP Accelerates Advice Remediation Program).<\/p>\n

Profit margins for AMP\u2019s life insurance business declined by $3 million to $46 million for the half year with AMP stating this was a result of implementing of previously-announced reinsurance agreements.<\/p>\n

Operating earnings, however, fell by $51 million to $1 million, driven by a deterioration in claims experience and capitalised losses and reserve strengthening on a large group plan worth $29 million, which terminated on 1 July 2018.<\/p>\n

AMP stated the negative claims experience was driven by higher than expected claims activity, mainly in the area of TPD, but its insurance business had paid out $597 million in total claims during the half year.<\/p>\n","protected":false},"excerpt":{"rendered":"

AMP has flagged that it may consider the sale of its life insurance business in Australia as part of an ongoing wider strategic review of the group\u2019s business.<\/p>\n","protected":false},"author":3,"featured_media":41888,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[4247],"class_list":{"0":"post-41870","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-company-news","8":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=41870"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/41888"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=41870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=41870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=41870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}