AMP sees possible $A1.2 billion writedown

By NZPA

Monday 18th November 2002

AMP Ltd today said it anticipates having to make a $A1.2 billion ($NZ1.36 billion) writedown of its troubled United Kingdom financial services business and its AMP International arm this year.

AMP chief executive Andrew Mohl said the group was still reviewing its United Kingdom Financial Services business (UKFS), but believed there would have to be significant asset writedowns.

The group had accelerated the review of the carrying value of its operating subsidiaries, primarily within UKFS and the former AMP International division.

Mr Mohl said uncertainty remained around precise valuations because the independent valuation process was still ongoing.

However, the group expected that a writedown "in the order of $A1.2 billion is possible for the year to 31 December, 2002".

"Previous valuations are no longer appropriate in light of the substantial falls in equity markets since 30 June, 2002, difficult operating conditions and the changes in the business arising from the five-point reform agenda," Mr Mohl said.

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