Financial services firm AMP New Zealand has announced its financial results for the year 2018.
AMP New Zealand’s wealth management business reported operating earnings of $57 million, broadly unchanged from FY17.
Its KiwiSaver Scheme showed a slight increase in growth with $5.1 billion in funds under management. FY 18 controllable costs were largely flat at $35.6 million.While its cashflows decreased to $89.6 million, primarily driven by higher KiwiSaver cash outflows, including $62.5 million in first-home withdrawals from 2,270 AMP KiwiSaver Scheme members.
“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,” AMP NZ managing director Blair Vernon said.
Other key highlights for the firm include experience losses of $13 million, which were due to a one-off reinsurance capital loss and adverse lump sum claims in FY18; lapse performance of 11.9%; and a total annual premium income (API) of $343 million.
“In 2019, we will continue to prioritise the separation of AMP’s life insurance and mature business to Resolution Life,” Vernon added. “The separation will create an opportunity to establish and grow wealth management as a standalone business.”