AMP has better experience with life insurance claims

AMP Financial Services New Zealand has reported operating earnings of $57 million for the half-year to June 30, an increase of 16% from the same time last year. The improvement is the result of strong growth in profit margins, while experience profits remained steady.
Profit margins for the half-year to 30 June 2013 were $56 million, up 17% primarily driven by higher revenues from growth in assets under management and life insurance premiums, as well as improved cost control.

Regan says 60% of the profit increase was attributable to taking costs out of the business. He says that the integration with AXA is nearly complete and this is showing benefits including better efficiencies.

While AMP had integrated the wealth management businesses of AMP and AXA, notably the merging of KiwiSaver schemes and a move to a multi-manager investment approach, it had decided not to keep the two insurance offerings.

He said it was originally intended that the two product sets would be combined into one, but has since decided against the move.