Net cashflows have increased by 62.7% to $477.4 million and assets under management have increased 4% to $14.8 billion.
Jack Regan, managing director of AMP New Zealand, said: “This is a strong result that reflects improved performance in wealth management driven by increased margins from higher assets under management, increased general insurance profit share and lower controllable costs.
“Despite the loss of transitional tax relief, which came into effect for all life insurance companies on July 1, 2015, AMP continued to diversify its earnings and is well positioned for continued growth. For the first time, more than 50 per cent of AMP’s operating earnings have been derived from business areas other than wealth protection.
“In 2016, AMP New Zealand will continue to execute our strategy and grow shareholder value by deepening customer relationships, enhancing our online and digital capabilities, further upgrading our wealth protection and wealth management solutions, building on our general insurance partnership and delivering a first class customer service experience.”
Net cashflows were $184 million (62.7%) higher than the prior year reflecting strong KiwiSaver flows and the transfer of clients on to AMP New Zealand financial services platforms.
AMP New Zealand is the third-largest KiwiSaver provider, with 13% of the total KiwiSaver market as at June 2015 and approximately 245,000 KiwiSaver customers.
As at December 31, 2015, the AMP KiwiSaver Scheme had $3.9 billion in assets under management, which is an increase of 13% on the previous year. AMP New Zealand’s total assets under management increased $546 million (4%) to $14.8 billion as a result of positive market performance and net cashflows.
Experience profits improved from $2.9 million to $14.1 million in the year. AMP said it reflected overall improved management of claims, with an increased focus on helping customers return to work and a better lapse experience. Lapses improved by 1.8 percentage points from the prior year to 11.9% as a result of a strong emphasis on lapse management.
Regan said: “In 2015, AMP New Zealand supported 2048 families in times of need by paying out $108.5 million in life insurance and $26.3 million in trauma claims. AMP New Zealand also helped 486 New Zealanders who were unable to return to work because of an illness or injury by paying out $16.8 million in income protection insurance, and assisted 116 Kiwis to return to work following a major illness or injury.”
Total annual premium income (API) by $4 million to $337 million at year end. The reduction reflected subdued new business sales and the closure of a particular loss-making Group Risk policy.
General insurance profit share increased 48.5% to $10.1 million on the previous year. In 2015, AMP New Zealand paid $79.7 million in general insurance claims.
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