AMP finds market tough
Friday, August 23rd 2002, 6:44AM
AMP's six monthly results released yesterday illustrate how turmoil on global sharemarkets is affecting peoples' choice of where to put their money, and the impact it is having on company profitability.
During the period up to June 30 AMP's superannuation business suffered a net $2.3 million outflow of funds compared to a $60.9 million inflow in the corresponding period last year.
However, the sales of new risk business rose nearly 50% from $4.9 million to $7.1 million.
The company was experiencing some reluctance from people to put money into shares, instead opting for lower risk investments such as mortgage funds and cash.
Also people had stopped making top-ups to their minimum contributions in the corporate superannuation area.
Overall, the AMP group posted a 25 percent fall in profit to $A303 million ($NZ356 million) for the six months to June 30, down from $A403 million in the previous first half.
Earnings a share were A27c compared to A36c in the corresponding period the year before.
AMP increased the interim dividend by A1c to A26c, which is 15 percent imputed.
AMP chief executive Paul Batchelor said they were the toughest market conditions in more than 20 years.
AMP expected to release details of a new issue of hybrid securities, containing elements of debt and equity, in the next couple of weeks to raise $A750 million that would be used to restructure debt.
|
6m to June 2002 |
6m to June 2001 |
|
|
AMP Fin Services NZ profit |
26.4m |
22.4m |
|
Superannuation net inflows |
(2.3m) |
60.9m |
|
Net policy cash outflows |
(17.3m) |
106.4m |
|
Superannuation (AUM) |
1070 |
1065m |
|
Gross new risk sales |
7.1m |
4.9m |
| « Sovereign produces a bumper profit | Sovereign takes regulation bull by the horns » |
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