While the AMP group has been struggling, reporting a $969 million bottom-line loss, largely due to problems in the United Kingdom, the New Zealand business continues to perform well.
AMP Financial Services in New Zealand made an underlying net profit of $50.1 million in the year to December 31, compared to a $56.2 million profit in the corresponding period last year.
The company describes this as "a credible result against a backdrop of extremely difficult global market conditions."
Sales of risk products were up significantly on the previous year, while sales of managed funds and superannuation products performed below the company's expectations, but in line with overall industry performance.
Sales of all risk products, including life insurance, disability and crisis cover, increased significantly over 2001. AMP has been able to grow its overall market share in risk products, and maintain its position as the second biggest provider of Term Life to the New Zealand market, due to the continuing success of its Lifetrack product. Lifetrack was launched in August 2001 and has rapidly become a leading product in the risk market, allowing AMP to broaden its distribution base.
AMP says it continues to lead retail superannuation net assets under management with 18% of the market, through its range of multi-manager, personal and small-business superannuation products.
It says that the investment and savings business performed below expectations, but it was in line with overall industry performance.
The overall industry experienced a net outflow of funds in the personal superannuation sector for the second year running. In contrast AMP continued to attract more new funds to its superannuation products than any other provider for the third year in succession, leveraging the strength of its contemporary, multi-manager superannuation products.
As a result, AMP continues to lead retail superannuation net assets under management with 18% of the market, increasing market share by 1% for the year.
The general insurance business had a solid year while bedding in a new manufacturing arrangement with Royal & Sun Alliance, with a 10% increase in gross written premiums.
AMP Henderson retained its positions as New Zealand’s largest fund manager with $10.3 billion of funds under management.
Despite the difficult market conditions for superannuation, AMP continued to take a lead in the debate around savings issues. The regular SuperWatch series of research on savings continued during the year and in July a major piece of research was published on consumer attitudes to saving and debt. AMP continued its advocacy of superannuation taxation reform. For more in this area see www.supertalk.co.nz
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