Strong business growth across all the sectors helped contribute to a successful year for AMP in New Zealand in 1999.
While the parent company in Australia reported a bottom line loss of A$424 million for the 12 months ending December 31, the New Zealand subsidiary increased its profit 70 per cent to $34 million.
The result was produced by a combination of cost cutting and a 52 per cent increase in sales.
Overall, costs fell six per cent to $105 million from $112 million and the number of employees shrank 9 per cent.
AMP says much of this increase has been in the superannuation and unit trust market.
|
New business |
1998 $m |
1999 |
% increase |
|
Retail managed funds |
$240.2 |
401.3 |
67 |
|
Employer sponsored super |
82.5 |
109.0 |
32 |
|
Life (regular) |
11.4 |
14.5 |
27 |
|
Life (single) |
52.5 |
61.9 |
18 |
|
Total |
386.6 |
586.7 |
52 |
The company says it is well placed for future growth and development, particularly in transactional banking, e-business, superannuation, investments and private capital.
AMP has used New Zealand as a test bed for its move into transactional electronic business with the launch in April of a general insurance website designed to enable customers to access and buy AMP products over the Internet.
Also, during the year it has integrated the Ergo and Citibank into AMP Banking. AMP Banking now has $2.4 billion of assets under management and it accounts for 7 per cent of New Zealand's new retail lending business.
AMP advisers and brokers began selling AMP Banking products in 1999.
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