Quarter of AMP's profit now from wealth management

AMP reported operating earnings of $64.6 million for the six months to June 30.  This is an increase of 9% from the same period last year.

The company has been working on growing the non-life insurance parts of its business in response to changes to life insurance tax.

AMP managing director Jack Regan says the changes, are likely to result in an ongoing reduction of approximately $10 million of profit margins in the second half, with a further $10 million to take effect from the first half of 2016.

“As we continue to grow our revenue base, closely manage our costs and refresh our channels we believe the business is in a good position to achieve a solid result for the full financial year,” Regan says.

For the first time the company has disclosed the make up if its results. AMP chief financial officer Simon Hoole says 54% came from wealth protection, 25% from wealth management and the balance from general insurance and its mature business which is in run-off.