AMP New Zealand reports 1H 18 operating earnings of $60.4 million

08 August 2018

AMP New Zealand reports 1H 18 operating earnings of $60.4 million and pays $103 million in insurance claims to help everyday Kiwis

AMP Financial Services New Zealand (AMP New Zealand) has reported operating earnings of $60.4 million for the half year to June 2018.

While operating earnings were down 12.6 per cent, this was mainly driven by a reduction in experience profits reflecting an increase in the number of claims AMP New Zealand paid to support its customers who were unable to work due to an illness or injury.

Assets under management (AUM) increased 7.2 per cent to $17.5 billion as a result of positive market performance and net cashflows. AMP KiwiSaver Scheme AUM also increased 12.3 per cent to reach $5.2 billion.

Blair Vernon, Managing Director AMP New Zealand, said: “During the first half of the year we delivered on our commitment to help New Zealanders achieve better outcomes by providing high-quality advice, products and services through the country’s most extensive and diverse network of financial advisers.

“AMP’s solid first half performance is underpinned by what we do every day to support our 556,000 customers, particularly at claim time, and our communities more broadly. During the past six months, AMP customers received $103 million in claims payments to provide them with dignity and to protect their families in their time of need.

“The account balance of members in the AMP KiwiSaver Scheme continues to grow above the industry average as we help more Kiwis to achieve an aspirational and better than ‘no frills’ retirement.”

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Performance against key measures:

Cost to income ratio:

The cost to income ratio eased by 1.9 per cent to 29.1 per cent while controllable costs decreased 3.3 per cent to $38.5 million from 1H 17. AMP New Zealand continues to focus on cost control including business reorganisation and process

Cashflows and assets under management (AUM):

Net cashflows were positive overall, but decreased year-on-year by 6.8 per cent to $53.6 million, driven by lower regular
contributions in wealth management. AUM increased 7.2 per cent to $17.5 billion as a result of positive market performance and net cashflows.

As at 30 June 2018, the AMP KiwiSaver Scheme reached $5.2 billion in AUM, an increase of 12.3 per cent from 30 June 2017. AMP is one of the largest KiwiSaver providers with 10.7 per cent of the total KiwiSaver market and 228,000 customers.

Experience gains, lapses and claims:

Experience profits of $2.5 million were a reduction of $5.5 million from 1H 17, with an increase in the number of income protection claims in 1H 18 and fewer term and income protection lapses in 1H 17.

Lapse rates remained sound at 10.8 per cent reflecting an ongoing emphasis on lapse management.

Mr Vernon noted: “During the first half of 2018, AMP New Zealand supported hundreds of families in their time of need by paying $45 million in life insurance and $14 million in trauma claims. AMP also helped 57 New Zealanders who were unable to return to work because of an illness or injury by paying out $13 million in income protection claims.”

Total annual premium income (API):

API increased by $4.2 million from 1H 17 to $342.8 million, reflecting higher new premium income particularly from strong growth in group risk new business.

General insurance:

General insurance profit share continued to be positive. In 1H 18, AMP New Zealand customers were paid $31 million in general insurance claims.

Other key highlights for AMP New Zealand include:

  • AMP concluded its offshore Adviser development programme as part of its ongoing commitment to promote and support appropriate and transparent practices across the financial services industry. AMP’s strong focus on conduct and culture is also reflected in its work to establish an industry-leading position to address issues relating to replacement business practices to protect the long-term interests of policyholders.
  • Following the launch of AMP’s Fund Selector tool and AMP KiwiSaver Scheme personalised videos, AMP launched its online AMP KiwiSaver Scheme calculator and  Alex the Chatbot via, to encourage more members to make active choices about their fund selection and retirement outcomes.
  • AMP partnered with Key To Life Trust to support Mike King’s I AM HOPE Tour to help reduce the high rates of suicide in New Zealand. The team travelled 4,200 kilometres across New Zealand reaching 20,000 children and 5,000 adults in 25 days.
    Mr Vernon said: “Sometimes those who are struggling just need to know someone cares and I AM HOPE helped to raise awareness and encourage communities and individuals to become an integral part of the solution. To continue to effect positive change requires the increased and collective understanding, focus and support of as many of us as possible, and that’s what the I AM HOPE Tour was all about.”
  • AMP was awarded the Rainbow Tick in recognition of its genuine focus on being a diverse and inclusive workplace for people of different genders, sexualities, ethnicities, physical capabilities and cultures. This accreditation supports other AMP initiatives underway to support a diverse and inclusive working environment that is free from discrimination, harassment, victimisation, bullying and unreasonable behaviour and where everyone is treated with dignity and respect.
  • AMP teamed up with Support Crew ( to help customers even more at claim time and to encourage New Zealanders to use the free online platform to easily coordinate meals and support for family and friends in need.
  • AMP released the results of its second round of research into KiwiSaver noncontributors, focused on small and medium-sized business owners and their role in encouraging Kiwis to achieve an aspirational retirement.
  • AMP opened applications for its 20th annual AMP Scholarships. This year, recipients will receive a share of $200,000 to help them achieve their dreams in support of communities across New Zealand. Since 1998, AMP has received more than 50,000 scholarship applications and awarded more than $2.4 million to help 300 Kiwis.

Discover some of the ways we helped our customers in 2018