AMP is continuing to stonewall speculation on the future of its general insurance arm. But recent statements by Chief Executive Paul Batchelor that the company has a range of options to provide general insurance services to its customers has done little to dampen the speculation. The matter has been revived again by the Australian Financial Review, which suggested the company is in talks with several insurers about the possible sale of AMP General/GIO.

As we reported several weeks ago, Mr Batchelor has admitted that one option for AMP is “to manufacture some general products in-house and outsource others”  – a situation that would allow it to retain its general insurance operation without investing additional capital.

While AMP General returned only 8% on invested capital, the integration with GIO has brought savings of $177 million and a useful $39 million operating profit.

Prompted to say something to investors, however, AMP said in a statement to the ASX that it is examining such options as “joint ventures, alliances and partnerships. We are actively examining ways in general insurance to reshape our manufacturing processes, further improve efficiency and release capital.”