AMP Financial Services suffers 1Q cash outflow, NZ shines
Australia-based insurer AMP says “very subdued cashflows” experienced in 2011 have continued into the first quarter of this year.
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BUSINESSDESK: Australia-based insurer AMP says “very subdued cashflows” experienced in calendar 2011 have continued into the first quarter of this year.
AMP Financial Services (AFS) experienced a $A292 million net cash outflow in the three months ended March.
That was down from the $A331m net outflow in the December quarter and up from the $A133m outflow in the March quarter last year.
The company says this reflects “continued uncertainty and subdued investor sentiment”.
However, its New Zealand business provided a bright spot with a net cash inflow of $A47m in the quarter, up from $A26m in the same quarter a year earlier.
Total Australian contemporary wealth management, which includes superannuation, pensions and investments, had a $A138m net cash outflow in the three months compared with a net inflow of $A68m in the same quarter last year.
The company said AMP Bank's deposit book grew significantly, with $A937m coming from both retail and AMP superannuation and term deposits in the quarter compared with $A56m in the year-earlier quarter which it says reflects an ongoing investor trend towards cash investments.
AFS contemporary wealth management had $A83.4 billion in assets under management (AUM) at March 31, up from $A79.3 billion at December 31, while AMP Capital Investors' AUM rose to $A124.9 billion from $A123 billion in the three months.
AMP's risk insurance annual premium income rose to $A1.91 billion at March 31 compared to $A1.89 billion at December 31 and $A1.76 billion at March 31 last year.
New Zealand premium income rose to $A260m in the latest three months from $A249m in the December quarter.
New Zealand AUM rose to $A9.89 billion at March 31 from $A9.24 billion a year earlier.
AMP shares, which trade on both the ASX and NZX exchanges, rose 1.9% to $NZ5.25 on the NZX, up from the $NZ4.55 low in September last year but down from $NZ7.88 in April last year.
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AMP Financial Services suffers 1Q cash outflow, NZ shines
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