News Round Up

Sunday, October 12th 2003, 11:41PM

Ratings agencies Moody's Investors Service and Standard and Poor’s have have kept their ratings on AMP unchanged following an announcement that United Kingdom and Australia regulators have given "in principle" approval to the company’s demerger plans.

“Regulatory approval of the demerger is an important milestone in the demerger process, and the likely issue of common equity to repay the reset preferred securities (RPS) should result in a stronger capital position for the Australian entities than initially contemplated,” S&P credit analyst Kate Thomson says.

However, AMP continues to face many challenges in successfully completing the planned demerger, and life insurance and funds management markets remain volatile and competitive across the globe.

Moody's views AMP’s announcement last week as a positive progression in the demerger process.

Bumper profit for Fidelity
Fidelity Life has reported a record $4.3 million profit for the year. This is an increase on the $2.5 million profit reported for the previous year.

In its 30th year of operation, the company's sustained growth is reflected in a further $19 million increase in funds under management to $165 million and a $5 million increase in premiums in force.

Chief executive Milton Jennings attributes the result on a conservative investment and management strategy and the successful focus on reducing management costs during the year.

"It is pleasing to report a profit result in such turbulent times for the life industry and affirm our stability in a market which is rationalising the number of competitors,” he says.

New research site
Ratings agency Moodys has launched a specialist web site for Australian and New Zealand in response to expanding interest clients in those markets.

The site provides access to a broad range of in-depth and unique analysis on Australian and New Zealand entities, together with current information on Moody's activities in the region.

Moodys says the site is a further step in making its rating process more transparent.

"We are trying to be as open as possible about our ratings process. We feel this is an essential part of our work," communications manager Lim says.

Liontamer offer extended,

Liontamer has extended its offer period for SUPERgrow 150 and EASYgrow 85. The funds were due to close on October 17 and this has been extended to the end of the month.

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