In a separate announcement, yesterday AMP warned its latest quarter had been challenging, thanks to a surge in the outflow of cash from its Australian wealth management arm, in part due to the royal commission disclosures
It said net cash outflows from its Australian wealth management business were $1.5 billion, up from $243 million a year earlier – with inflows remaining weak and outflows remaining “elevated.”
But partly offsetting that, AMP Capital had net external inflows of $521 million, helped by strong investment in infrastructure assets in the United States and Europe. Its life insurance arm, which AMP is selling, had “negative’ claims experience in the quarter, while new business was “subdued.”
In its banking division, the value of its $20 billion loan book stayed essentially unchanged as credit growth slowed down.
“It was a testing quarter, particularly in Australian wealth management and Australian wealth protection, although AMP Capital and AMP Bank again demonstrated ongoing resilience,” Mr. Wilkins said.
The move to exit life insurance comes after a new CEO was appointed by chairman David Murray in August, with a brief to transform the business and deal with its cultural problems.
“Looking forward, our incoming CEO, Francesco De Ferrari has the mandate to transform AMP. The outcomes from the portfolio review will create greater flexibility as he sets the new strategy for our simplified business portfolio,” Mr Wilkins said in the statement.
