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AMP rises on investment returns

An earnings lift in AMP’s wealth management arm has taken the banking group to a 27% rise in first-half profit to $543 million.

AMP’s first half featured record retail cash flow, strong growth in management assets and a surge in profit from the Cobalt/Gordian general insurance arm. The latter posted an after-tax profit of $98 million, up more than 170% on the previous corresponding half.

“AMP is using its strengths in brand, distribution, products and platforms, cost efficiency, asset management and product packaging to power its strategy of running the business better than it has ever been run before,” CEO Andrew Mohl said in what will be his last results announcement for the company. Mr Mohl will depart AMP at the end of this year.

Operating earnings from AMP’s contemporary wealth protection arm, which includes life premiums, were steady at $59 million, with risk annual premium income rising 7% to $433 million.

Mature, AMP’s closed life business and the largest of its kind in Australia, boosted operating earnings by 3% to $95 million on a book of $18.9 billion.

AMP NZ increased its operating earnings by 4% to $24 million due to strong risk life insurance bookings and reduced operational costs. Annual premium income grew 28% to $101 million.