AMP appoints Andrew Mohl as chief executive

By NZPA

Monday 30th September 2002

Troubled financial services giant AMP has appointed acting chief executive Andrew Mohl to the position permanently, and added the title of managing director.

Mr Mohl, who has been acting chief executive since former CEO Paul Batchelor stepped down suddenly last Monday, will take up the reins from October 7, AMP chairman Stan Wallis said in a statement today.

"We have taken advice regarding the availability of suitable candidates in Australia and overseas, and decided that an extended international search for a new CEO is not in the best interests of AMPs shareholders, customers and employees," Mr Wallis said.

"The AMP board believes that Mr Mohl's outstanding operational achievements in lifting the performance of AMP's Australian and New Zealand financial services businesses in recent years, and his previous experience in asset management, banking and prudential regulation make him well qualified to assume the role."

Mr Mohl's contract, to be finalised in the next few weeks, will include finalised details of the equity component of his remuneration.

AMP also said today it would increase the size of its $A750 billion preferred securities offer to $A1.15 billion.

"Extensive demand during the institutional bookbuild process last week led AMP to increase the size of over-subscriptions from $A250 million to $A400 million."

Mr Batchelor left the company amid criticism about its poorly performing Pearl unit in Britain.

Pearl has been at risk as its "with profits" fund guarantees a smooth investment return to its investors, which means in falling markets Pearl has to increase its capital to be able to support payouts to investors.

AMP pumped in $A1 billion, equivalent to Stg331 million, in July to shore up Pearl. Then last week it committed to put in another Stg169 million by the end of this year.

AMP shares were down 15c at $NZ14.50 today, off the low of $NZ13.20 reached on September 24.

In New Zealand, AMP Financial Services manages the $NZ5.3 billion funds of 350,000 customers. Separately, its Henderson Global Investors has $NZ11 billion of New Zealanders' funds under management.

It is also the country's largest property investor and its AMP Banking has retail deposits of $NZ500 million.

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