Fall in AMP 1H earnings as Australian wealth protection drags
The dual-listed financial services firm expects a first-half drop of up to 16%.
AMP, the dual-listed financial services firm, expects first-half earnings to fall by as much as 16 percent after its Australian wealth protection business struggled in the second quarter.
The Sydney-based firm anticipates underlying profit of between $A415 million and $A435 million in the six months ending June 30, from $A491 million a year earlier, the company says in a statement.
Poor claims and lapse experience in its Australian wealth protection unit was the major factor in the weaker earnings, with experience losses of $A32 million in the five months ended May 31, of which half came from income protection, it says.
"This reflects the ongoing volatile nature of experience across AMP's insurance portfolio, which has in-force premiums of more than $A1.7 billion. The industry is experiencing increased pressure on insurance claims and policy lapses."
AMP boosted annual underlying profit 5.1 percent last year on the strength of its wealth management unit.
The rest of its business is in line with market expectations, with stronger operating results in its bank, mature and New Zealand businesses in the five months to May 31, it says.
The shares were unchanged at $5.85 on the NZX, having shed 3.3 percent this year. The stock closed at $A4.98 on the ASX last week and has gained 3.5 percent on the Australian bourse this year.
(BusinessDesk)
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Fall in AMP 1H earnings as Australian wealth protection drags
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