AMP tones down its image
AMP chief executive Andrew Mohl talks to Good Returns about the year ahead.
Tuesday, March 4th 2003, 10:29PM
by Sue Allen
If beleaguered financial services firm AMP has a mantra for the next year, it seems to be "core business, core business, core business."
Last week the Sydney-based company posted a $961 million loss with the main problem being its UK business – which accounts for about 70% of the group’s revenue.
Against that, AMP New Zealand managed an underlying net profit of $50.1 million, not too far behind its $56.2 million profit of 2001.
AMP’s chief executive, Andrew Mohl told Good Returns that complacency had its part in contributing to the company’s woes.
"The company started 150 years ago and I think it thought of itself as wealthy, almost bigger than the market, and there was a level of complacency and cost which was not really warranted in 2003."
He says it is now time to sharpen up the business and make people within it accountable to shareholders and customers.
"There are a whole range of small and large signals of that; if you go to the executive floor of AMP now, it’s open, open glass offices, doors are open so people can go in and out."
The chauffeur-driven Mercedes Benz and the London apartments have also gone.
"Expansion plans in Asia they were all symptomatic of that culture."
He sees the focus on core business as one of the things the New Zealand has been doing right.
"One of the strengths of New Zealand’s performance is on the risk product side," he says.
Last year, sales of life insurance products in New Zealand were up 35% on 2001. There was a 10% increase in general insurance premiums.
"Over the last 18 months I think we have also seen the importance of budget and end-to-end responsibility and we will be trying to carry that model into trading this year."
AMP New Zealand managing director Ross Kent says the company has already refocused on primary product lines in risk and savings and investment.
"We also need to manage our adviser services as if it were a commercial entity in its own right."
He says in future advisors will be able to offer advice to customers on a broader range of products, "some outside the AMP stable."
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