The financial services unit in New Zealand reports flat annual earnings as rising insurance claims offset gains in its wealth management businesses.

AMP Financial Services New Zealand has reported a 2% increase in operating earnings to $68 million and a 2% rise in underlying profit to $77 million in the year ended December 2009.

The company credited the improvement to a reduction in costs as well as an increase in life insurance sales and income.

An 11% reduction in controllable costs helped to drive a 3.5% reduction in cost to income ratio to 37.9%.

Total life insurance sales increased by 5% to $31 million and there was a 9% increase in life insurance annual premium income.