AMP New Zealand has confirmed it has deferred IPO consideration due to their focus on the separation of AMP Life and New Zealand wealth management.
The announcement was included in the company’s FY18 financial results along with its priorities for 2019.
“The separation will establish AMP New Zealand’s wealth management business as a standalone business unit with a mandate to accelerate business growth,” said AMP New Zealand’s Managing Director, Blair Vernon.
“We are also focused on continuing to support advisers to respond to the unprecedented period of change occurring in our industry, which reflects our unwavering belief that the provision of sustainable access to advice is critical for all New Zealanders and their long-term financial wellbeing,” he said.
AMP NZ stated it will continue to support transparency across the industry, reflecting on how it swiftly concluded its offshore adviser development programme in April last year, as part of its ongoing commitment to support transparent practices across the financial services industry.
“As part of the regulators’ review of the New Zealand life insurance industry we expect to receive our individual report from the FMA/RBNZ soon, which we will thoroughly review to address any further actions to continue to protect the interests of our customers,” said Vernon.
AMP New Zealand’s wealth management business reported operating earnings of $57 million, a figure broadly unchanged from FY17 primarily supported by earnings growth in advice and positive net cashflows.
Its customers received $233 million in claims payments in FY 2018, including:
- $107 million in life insurance claims
- $25 million in trauma claims
- $29 million in income protection claims
Total annual premium income (API) for the business was stable year on year at $343 million.
“Despite challenging market conditions, we continued to deliver on our commitment to provide high-quality advice and services to support our customers through the country’s most extensive and diverse network of financial advisers,” said Vernon.
“In 2019, we will continue to prioritise the separation of AMP’s life insurance and mature business to Resolution Life. The separation will create an opportunity to establish and grow wealth management as a standalone business.”