AMP very happy with NZ performance
AMP New Zealand, while small in context of the group's international operations, has been highly profitable and is an important part of the business, chief executive Paul Batchelor says.
Wednesday, February 28th 2001, 10:38PM
Overall the group produced a profit after tax and abnormals of A$1,152 million compared to a loss of A$424 million in the previous year largely attributable to hefty losses from the GIO purchase.
The New Zealand business had a "very strong" performance in 2000, raising its profit 36% from A$29 million to A$41 million.
Batchelor says AMP New Zealand had strong growth in funds under management and grew its market share in both single premium and regular premium business.
AMP says it increased its new business in New Zealand by 10% from A588 million to $645 million. InvestorNet significantly bolstered this increase.
Market share for single premium business grew from 23% to 37% while regular premium business fell one point to 24%.
The one area where AMP lagged in market share in New Zealand and Australia is unit trusts. AMP has between 3 and 4% of the market in both companies. In the United Kingdom though AMP Henderson is that largest player in the collective investment market.
In New Zealand there was an outflow from insurance bonds as AMP proactively migrated customers from the regular premium version of the product into unit trusts and superannuation funds.
"This is in response to a trend for customers to separate their insurance from their savings," the company says.
Batchelor says New Zealand is a "business that we continue to be very happy with."
"It's one where we find a lot of innovation within the group."
He says New Zealand has developed a number of products and services that are then used in other parts of the group.
AMP New Zealand's next major initiative is a website where it sells financial services to the public.
The site (a vertically integrated vortal, as opposed to a portal) is due to be launched next week managing director AMP Financial Services Andrew Mohl says.
AMP launched a similar service, AMP Direct, in Australia last year.
You can read Philip's blog here: http://www.goodreturns.co.nz/blog/
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