Thursday 18th August 2011
|Text too small?|
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.
No comments yet
AMP 1H earnings creep ahead of forecast, appoints Craig Meller as CEO from next year
NZ sharemarket to unleash demand for an extra $2 billion from investors, says AMP
AMP Capital NZ cut costs in 2011, parent may ask for more
AMP Financial Services suffers 1Q cash outflow, NZ shines
AMP NZ Office 1H profit falls 28.2%
Daily ShareChat: AMP
AMP granted clearance to buy AXA
Stocks to watch: Good news start for AMP
AMP still interested in AXA despite rejection
NAB trumps AMP offer to scoop AXA AP's Australasian business