AMP NZ profit up 6 per cent over half-year

The New Zealand operations of financial management company AMP has reported a profit of $29.4 million for the six months to June.

AMP Financial Services NZ today said the result was 6 per cent ahead of the same period last year.

For the 10th consecutive quarter life insurance business grew, with inforce annual premiums rising 16 per cent year-on-year to $96m, the company said.

That increased AMP's share of the annual risk premium inforce business from 10.7 per cent to 11.2 per cent.

Growth in life insurance was driven by a significant 40 per cent increase in new sales in the half-year period, AMP Financial Services NZ said.

Parent company, AMP Ltd, Australia's biggest corporate pensions manager, met forecasts today, reporting a 7 per cent rise in first-half profit on stronger fee income.

Underlying profit, which strips out the effect of investment market volatility, climbed to A$420m , while net profit rose 6.8 per cent to A$424m.

Assets under management rose 6 per cent to A$96 billion in the latest six months.

AMP Financial Services NZ said its growth in the life insurance market was reflected in a 38 per cent increase in the value of new business compared to the same period last year.

The customer retention rate was a market-leading 93.2 per cent, compared to an industry average of 88.4 per cent.

The number of AMP advisers selling life insurance grew by 38 in the past six months, following the 48 advisers recruited in 2005, taking the total in New Zealand to 347.

In the New Zealand workplace savings market, AMP maintained its No 1 position in corporate master trusts through its flagship product, the New Zealand Retirement Trust, with a market share of 27.4 per cent.

Assets under management grew 9.1 per cent to $946.1m, up from $867.1m in December 2005.

AMP Financial Services NZ managing director Greg Camm said the company would continue to focus on employer-sponsored workplace savings, an area considered likely to grow driven by the Government's KiwiSaver initiative and planned investment tax changes.

"We welcome the introduction of the KiwiSaver scheme, particularly given that saving in the workplace is the most effective way to encourage New Zealanders to save," Mr Camm said.

"We also strongly support the new investment tax regime which will simplify and strengthen investment taxation."

During the period, assets under management for the New Zealand unit's retail managed funds increased 5 per cent to $1.9 billion.

- NZPA