AMP (NZ) annual result:
Revenue - $66.5m, up 22pc
Profit - $75m, up 23pc
KEY POINTS:
AMP Financial Services (NZ) has reported operating earnings up 22 per cent to $66.5 million, which it puts down to increased life insurance profits and disciplined cost control.
Underlying profit after tax increased 23 per cent to $75.4m for the year to the end of December 2008, upfrom $61.2m, the company announced today.
Overall in Australia and New Zealand, the AMP Group posted an 8 per cent fall in 2008 underlying profit and said it would cut dividends, after a fall in operating earnings in wealth management.
AMP Australia reported a profit of $1 billion for the year to December 31, down from $1.12 billion in the previous year.
The New Zealand business had performed well in difficult times, said AMP Financial Services managing director Jack Regan.
"Given the ongoing uncertainty in financial markets, we will, in the year ahead, continue to drive the cost, risk management and business efficiency programmes that have enabled our business to demonstrate the substantial progress evident in our results.
"While growth will be challenging, we are well positioned to both create options and take advantage of opportunities as they arise. We intend to come through the current turbulence more resilient than ever," Mr Regan said.
Net cash flows increased 74 per cent to $150.2m, largely driven by KiwiSaver.
Fourth quarter cash flows were positive at $31.8m, reflecting the sixth consecutive quarter of positive cash flows for AMP Financial Services.
Total life insurance new business increased 15 per cent in what has been a challenging market for new business.
Life insurance annual premium income increased 12 per cent, underpinned by sales growth and strong customer retention.
Costs increased four per cent from $73m to $76m due to the substantial one-off restructuring costs related to the consolidation of head office into Auckland.
General insurance premiums increased five per cent to $91m and home loan sales grew one and a half per cent to nearly $750m in softening market conditions.
AMP shares were worth $5.90 on the sharemarket this morning.
