Thursday 18th August 2011
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AMP Financial Services New Zealand has reported 32 percent fall in first-half profit while noting strong cash flows into KiwiSaver, offset by a soft retail investment market.
The financial services firm which has merged with Axa reported an operating profit of $NZ28 million for the six months to June 30, down from $NZ41 million in the same period last year.
AXA New Zealand recorded a profit for the quarter since the merger of $NZ15m. This included non-recurring gains when AMP and AXA aligned assumptions.
Earnings were affected by the Christchurch earthquake, assumption and modelling changes, higher costs and experience losses.
Last year there was also a $NZ7m one-off gain from lower corporate tax rates.
Net cash flows increased 4 percent and during the period AMP KiwiSaver funds under management reached $NZ1 billion.
Operating expenses increased 13 percent to $NZ35m, driven by higher marketing, employment and IT costs. There were also costs to support advisers in Christchurch.
The business recorded a 3 percent increase in risk annual premium income.
"AMP leads the market in retail wealth management and is the second largest in the wealth protection market," managing director Jack Regan said.
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