For immediate release
AMP New Zealand reports operating earnings of $134 million
AMP Financial Services New Zealand (AMP New Zealand) has reported operating earnings of $134 million for the full year
to December 2016, an increase of 3.7 per cent on FY 15. Excluding the effect of the loss of transitional tax relief,
operating earnings increased by 12 per cent.
Assets under management increased 6.2 per cent to $15.7 billion reflecting positive market performance and net
Blair Vernon, Managing Director AMP New Zealand, said: “AMP New Zealand continues to grow our revenue base, closely
manage costs and evolve our distribution channels to reflect changing customer buying patterns.
“In 2017, we will do even more to grow shareholder value by deepening customer relationships, further developing our
Adviser and direct channels and positioning them for ongoing regulatory change.”
Performance against key measures:
Operating earnings: Operating earnings increased 3.7 per cent to $134 million.
Cost to income ratio: The cost to income ratio improved by 1.4 percentage points to 28.4 per cent and controllable costs decreased 4.8 per
cent to $85.3 million from FY 15. AMP New Zealand continues to focus on cost control, including business reorganisation
and product rationalisation.
Cashflows and assets under management (AUM): Net cashflows were positive overall but decreased year-on-year by 17.2 per cent to $395.6 million, reflecting lower
KiwiSaver flows and a reduction in one-off transfers of clients onto AMP New Zealand platforms.
As at 31 December 2016, the AMP KiwiSaver Scheme reached $4.4 billion in AUM, an increase of 13 per cent from 31
December 2015. AMP is one of the largest KiwiSaver providers with 12 per cent of the total KiwiSaver market and 238,000
customers as at 30 September 2016.
Experience profits, lapses and claims: Experience profits of $14.9 million reflected overall effective management of claims with an increased focus on helping
customers return to work and a better lapse experience.
Lapse rates were 11.1 per cent, 0.8 percentage points improved from FY 15, as a result of a continued strong emphasis on
Mr Vernon noted: “In 2016, AMP New Zealand supported more than 1,600 families in their time of need by paying $91.5
million in life insurance and $31.6 million in trauma claims. AMP also helped 672 New Zealanders who were unable to
return to work because of an illness or injury by paying out $20.2 million in income protection claims, and assisted 140
Kiwis to return to work following a major illness or injury.”
Total annual premium income (API): API increased $2.4 million to $339 million.
General insurance: General insurance profit share increased 2 per cent on the previous year to $10.3 million. In 2016, AMP New Zealand
customers were paid $53.7 million in general insurance claims.
Other key highlights for AMP New Zealand include:
AMP was named Life Insurer of the Year by The Australian and New Zealand Institute of Insurance and Finance at the New
Zealand Insurance Industry Awards.
AMP launched AMP Essentials – New Zealand’s first combined life, trauma and temporary disablement insurance product
(linked with the AMP KiwiSaver Scheme) to help address the issue of underinsurance in New Zealand.
AMP made 16 new funds available within its AMP KiwiSaver Scheme providing members access to a total of 27 funds managed
by five of the industry’s leading fund managers. The range includes single sector and diversified fund options and a
responsible investment option for the increasing number of Kiwis who want to invest in a socially responsible way.
AMP launched 9 new fund options within NZRT. AMP is a leader in workplace savings with $2.9 billion of funds under
management in its New Zealand Retirement Trust (NZRT).
AMP launched a Qualifying Recognised Overseas Pension Scheme (QROPS) product within NZRT, enabling customers to
transfer their UK pensions to New Zealand and to AMP from existing QROPS in New Zealand.
A further 9,267 customers downloaded the My AMP App to keep track of their AMP KiwiSaver Scheme and NZRT accounts,
investments and insurances on the move.
AMP registered its suite of investment products under the Financial Markets Conduct Act regime.
AMP awarded 23 recipients a share of $200,000 to help them achieve their dreams as part of its AMP Scholarship
Programme. AMP also awarded $16,000 to help PhD students further their studies through AMP Ignite.