REPORTING SEASON: AMP Limited (AMP)
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Figure 1: AMP Limited 12 month chart
Wealth management and protection company AMP Limited (AMP) has reported a better than expected 2.5% drop in full year profit to $672 million as strength in its wealth management business was offset by weakness in the wealth protection unit.
Underlying profit, which smooths out market volatility stemming from AMP’s assets invested in the share market and more accurately reflects trends of its business performance, dropped almost 11% to $849 million.
Australia’s largest life insurer and pension manager has blamed a rise in income-protection claims due to the slowdown in the mining sector and an increase in people cancelling their policies for the result.
Craig Meller, who took over as Managing Director and CEO in January, said earnings across the company would have grown by 15% if the wealth protection unit was excluded.
The company, which issued two profit warnings last year, is undertaking a strategic review which could impact jobs.
Its integration with AXA is almost complete and it plans to continue investing in the Asian market.
A final dividend of 11.5 cents per share, franked at 70%, will be paid on the 10th April.
Shareholders will be also able to take part in a dividend reinvestment plan.
AMP shares have had their biggest jump in five years following today’s result after falling almost 9% in calendar 2013.