AMP Financial Services suffers 1Q cash outflow, NZ shines

Thursday 10th May 2012

Australia-based insurer AMP says “very subdued cashflows” experienced in calendar 2011 have continued into the first quarter of this year. AMP Financial Services (AFS) experienced a A$292 million net cash outflow in the three months ended March.

That was down from the A$331 million net outflow in the December quarter and up from the A$133 million outflow in the March quarter last year. The company says this reflects “continued uncertainty and subdued investor sentiment.”

However, its New Zealand business provided a bright spot with a net cash inflow of A$47 million in the quarter, up from A$26 million in the same quarter a year earlier.

Total Australian contemporary wealth management, which includes superannuation, pensions and investments, had a A$138 million net cash outflow in the three months compared with a net inflow of A$68 million in the same quarter last year.

The company said AMP Bank's deposit book grew significantly with A$937 million coming from both retail and AMP superannuation and term deposits in the quarter compared with A$56 million in the year-earlier quarter which it says reflects an ongoing investor trend towards cash investments.

AFS contemporary wealth management had A$83.4 billion in assets under management (AUM) at March 31, up from A$79.3 billion at Dec. 31 while AMP Capital Investors' AUM rose to A$124.9 billion from A$123 billion in the three months.

AMP's risk insurance annual premium income rose to A$1.91 billion at March 31 compared to A$1.89 billion at Dec. 31 and A$1.76 billion at March 31 last year. New Zealand premium income rose to A$260 million in the latest three months from A$249 million in the December quarter.

New Zealand AUM rose to A$9.89 billion at March 31 from A$9.24 billion a year earlier. AMP shares, which trade on both the ASX and NZX exchanges, rose 1.9 percent to NZ$5.25 on the NZX, up from the NZ$4.55 low in September last year but down from NZ$7.88 in April last year.

BusinessDesk.co.nz

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