[OPINION] What is the future for AMP?
Tuesday, May 8th 2018, 1:06PM
AMP just can’t keep itself out of the news at the moment. The latest “event” is that three directors have resigned from the board.
Two immediately and the third one will leave at the end of the year.
While this is all to do with the parent company in in Australia following revelations at the Royal Commission, it can’t be doing its New Zealand operations any good either.
There has been nothing to suggest that AMP NZ has had the problems its parent has had.
But the future of the local operations are in the balance.
While AMP has said little about it the New Zealand operations are under review and one option is they could be sold.
An announcement on this is likely to be made at the company’s annual meeting tomorrow.
AMP’s overall strategy is to tilt to higher growth parts of its operations. New Zealand is seen as a mature business which it puts into the value category rather than the growth one.
With a clear strategy to grow you can see why the New Zealand operations could be divested.
Also they only account for 12% of the group’s overall revenue.
Who would buy AMP in New Zealand is an interesting question. It’s unclear if a current player would be interested, especially as AIA is in the process of buying Sovereign, OnePath is in play, Asteron, while officially not for sale, is rumoured to be on the market. Partners Life, which is keen to grow probably wouldn’t want the AMP business it is includes wealth management and KiwiSaver which are areas it does play in.
There is talk a Chinese life company could buy AMP, however that could be interesting following the new governments stance on foreign ownership and ANZ’s bungled sale of UDC.
Maybe more will be revealed tomorrow?
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