AMP life business flat, but company on track

The company reported operating earnings for the year were up 4.6% to $120.2 million, with the result driven by growth in assets under management, cost control and improved experience profits on its risk business.

Overall managing director Jack Regan described the result as being “strong”. However, the risk business result was “flat” and the company was “being quite cautious in the market.”

Its caution comes from the “competitive pricing” from other players, the changes to the taxation of life insurance business and new solvency standards

The industry-held view is that around 80% of all business written at the moment is replacement business.