Retail market rewards AMP

By Phil Boeyen, ShareChat Business News Editor

Monday 11th December 2000

Insurer AMP (NZSE: AMP) has released details of its third-quarter cashflows which it says demonstrate continued growth and momentum in the company's core businesses and markets worldwide.

Net cashflows for the company overall rose 40% compared with the same quarter last year to A$6.5 billion, with a 282% jump in net cashflows from contemporary retail products. These include such products as superannuation, mastertrusts, annuities and unit trusts.

In Australia retail net cashflows rose 18.8% to $918 million and in the UK they were up 192% to A$1.7 billion. In the 'rest of world' category the rise was even more spectacular, jumping thirteen-fold to A$3.6 billion on the back of strategic alliances between Henderson Global Investors and Banco Popolare di Lodi in Italy and Mackenzie in North America.

Institutional net cashflows worldwide were not as rosy as the retail sector, slowing to A$1.5 billion, however the company says Henderson Global Investors continues to be a leader in the UK market in institutional equities mandate wins. Client business worth several billion dollars has already been secured and is expected to flow through to net cashflows in the next quarter.

In general insurance, gross written premiums increased to A$426m, up 6% on last year.

AMP says today's announcement reflects its move to report net cashflows on a quarterly basis, consistent with international best practice in standards and frequency of performance reporting.

"It reinforces our commitment to strong corporate governance through more regular and transparent disclosure of performance information," says CEO Paul Batchelor.

Mr Batchelor says the company's third-quarter performance is particularly pleasing against a backdrop of full-scale reconstruction of the UK retail businesses and integration of GIO in Australia.

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