For personal use only

Transcription

1 5 October 08 Manager ASX Market Announcements Australian Securities Exchange Level 4, 0 Bridge Street Sydney NSW 000 Client and Market Services Team NZX Limited Level, NZX Centre, Cable Street PO Box 959 Wellington, New Zealand AMP Limited (ASX/NZX: AMP) AMP updates on portfolio review and Q cash flows Part One: AMP agrees to sell wealth protection and mature businesses. Announces intention to divest via IPO New Zealand wealth management and advice businesses Part Two: Part Three: AMP completes portfolio review AMP Limited provides Q cash flows update AMP Limited Alfred Street, Sydney NSW 000 Australia ABN Public Affairs T E media@amp.com.au W AMP.com.au/media AMP_AU

2 5 October 08 AMP Limited provides Q 8 cashflows update Challenges in Australian wealth management (AWM) partially offset by a continuing resilient performance from AMP Capital and AMP Bank in a difficult environment. AWM net cash outflow of A$.5 billion reflects continued weakness in inflows and elevated outflows. AWM assets under management increased A$579 million during Q 8 to A$.6 billion. AMP Capital external net cash inflows of A$5 million driven by ongoing strength in real assets notably infrastructure investment in Europe and the US. AMP Bank s total loan book steady at around A$0 billion at the end of Q 8. Australian wealth protection recorded negative experience of A$ million during the quarter reflecting challenges facing the sector. AMP has today agreed to sell Australian and New Zealand wealth protection and mature to Resolution Life, which assumes risk and profits of the businesses from July 08 subject to risksharing arrangements. AMP Acting Chief Executive Mike Wilkins said: It was a testing quarter, particularly in Australian wealth management and Australian wealth protection, although AMP Capital and AMP Bank again demonstrated ongoing resilience. AMP Capital s solid performance continues to reflect its strength in real assets, with a number of significant infrastructure debt and equity transactions driving net external cashflows. AMP Bank s performance remains steady, with its total loan book at A$0. billion. We remain focused on our H priorities. We are pleased to have completed our portfolio review and have made progress on establishing our remediation program for financial advice. AMP s full year 08 results will be announced to the market on 4 February 09, with the record date for the full year dividend on 8 February 09. Media enquiries Investor enquiries Catherine Woods Howard Marks Mobile: Phone: Mobile: Mark Roberts Michael Leonard Mobile: Phone: Mobile: AMP Limited Alfred Street, Sydney, NSW, 000 ABN Public Affairs T E media@amp.com.au W AMP.com.au/media AMP_AU

3 AMP Limited provides Q 8 cashflows update Commentary Australian wealth management Net cash outflows of A$.5 billion in Q 8 increased from Q 7 net cash outflows of A$4 million due to weaker inflows while outflows remained at elevated levels in part following AMP s appearances at the Royal Commission. Total Australian wealth management increased A$579 million from Q 8 to A$.6 billion, with positive investment markets offsetting weaker cashflow. AMP s award-winning wrap platform, North, reported a net cashflow of A$88 million in Q 8, down from A$. billion in Q 7. AMP Capital AMP Capital external net cash inflows were A$5 million in Q 8, down from net cashflows of A$66 million in Q 7. External net flows were driven by equity raisings for AMP Capital s flagship real estate funds and infrastructure debt and equity transactions in the US and Europe including an equity investment in Invenergy s natural gas-fired power generation facilities across the US, Canada and Mexico. increased from A$90.5 billion at Q 8 to A$9.4 billion in Q 8, primarily due to infrastructure transactions and the impact from stronger investment markets. AMP Capital s share of China Life AMP Asset Management, the joint venture with China Life, reported A$78 million in net outflows for the quarter reflecting the transitional phase for new regulatory reforms and challenging equity market conditions in China. AMP Bank AMP s total loan book moderated in Q 8 to A$0. billion from A$0. billion in Q 8 reflecting the slowdown in credit growth, a period of conservative liquidity management and increased flows to the non-bank sector. Deposit book increased by A$77 million in Q 8 to A$.5 billion. Australian wealth protection Claims experience was negative during the quarter (A$ million) in what remains a challenging environment for the wealth protection sector. New business continued to be subdued in Q 8. Retail API increased predominantly due to age and CPI increases to premiums while Group API dropped due to the departure of a large group plan (previously flagged to the market) on July 08. AMP has today agreed to sell Australian and New Zealand wealth protection and mature to Resolution Life, which assumes risk and profits of the businesses from July 08 subject to risksharing arrangements. New Zealand financial services New Zealand financial services net cashflows increased 7 per cent to A$8 million in Q 8 from A$76 million in Q 7. KiwiSaver net cashflows in Q 8 were A$85 million, down from A$07 million in Q 7, due to increased competition and higher retirement withdrawals.

4 AMP Limited provides Q 8 cashflows update Australian mature Australian mature net cash outflows in Q 8 were A$4 million, compared to A$56 million in Q 7, with run off of the book progressing as projected.

5 AMP Limited provides Q 8 cashflows update 4 Q 8 cashflows Australian wealth management Cashflows by product (A$m) Q 8 Q 7 Q 8 Q 7 Q 8 Q 7 North,894 4,4 (,0) (,0) 88,8 AMP Flexible Super 666,5 (,80) (,46) (54) (9) Summit, Generations and iaccess 6 4 (60) (80) (448) (496) Flexible Lifetime Super (superannuation and pension) (976) (80) (58) (44) Other retail investment and platforms (90) (8) (46) Total retail on AMP platforms 5,6 6,5 (5,869) (6,70) (708) 8 SignatureSuper and AMP Flexible Super - Employer (760) (65) (9) 9 Other corporate superannuation (709) (48) (88) () Total corporate superannuation,089,9 (,469) (,) (80) (4) Total retail and corporate superannuation on AMP platforms 6,50 7,7 (7,8) (7,0) (,088) 69 External platforms (6) (690) (97) () Total Australian wealth management 6,485 7,750 (7,970) (7,99) (,485) (4) Cash inflow composition(a$m) Q 8 Q 7 Member contributions Employer contributions Total contributions,78,804 Transfers, rollovers in and other 8 4,747 5,946 Total 6,485 7,750 North is an award-winning fully functioning wrap platform which includes guaranteed and non-guaranteed options. AMP Flexible Super is a flexible all in one superannuation and retirement account for individual retail business. Summit and Generations are owned and developed platforms. iaccess is ipac s badge on Summit. 4 Flexible Lifetime Super (superannuation and pension) was closed to new business from July 00. A small component of corporate superannuation schemes are included. 5 Other retail investment and platforms include Flexible Lifetime Investments and AMP Personalised Portfolio. 6 Other corporate superannuation comprises CustomSuper, SuperLeader and Business Super. 7 External platforms comprise Asgard, Macquarie, BT Wrap platforms and Challenger annuities. 8 Transfers, rollovers in and other includes the transfer of accumulated member balances into AMP from both internal (e.g. retail superannuation to allocated pension/annuities) and external products. Q 8 Q 8 Net cashflows Q 8 (A$m) Total net Other Superannuation Pension Investment cashflows movements North 7, ,480 AMP Flexible Super 6,7 (05) (09) - (54) 80 5,88 Summit, Generations and iaccess 0,74 (8) (96) (70) (448) 6 0,457 Flexible Lifetime Super (superannuation and pension),96 (465) (6) - (58) 89,744 Other retail investment and platforms, (46) (46) 7,466 Total retail on AMP platforms 9,5 (50) (50) 5 (708),585 9,00 SignatureSuper and AMP Flexible Super - Employer 8,98 (79) () - (9) 8 9,074 Other corporate superannuation,990 (88) - - (88) 68,870 Total corporate superannuation,98 (67) () - (80) 96,944 Total retail and corporate superannuation on AMP platforms,08 (877) (6) 5 (,088),98,974 External platforms 8,9 (80) (07) (0) (97) 8 8,608 Total Australian wealth management,00 (957) (70) (58) (,485),064,58 Australian wealth management - SuperConcepts 4 Assets under administration 4,8,87 5,469 Other movements include fees, investment returns, distributions, taxes, and foreign exchange movements. Flexible Lifetime Super (superannuation and pension) includes A$5.4b in MySuper (Q 8 A$5.4b). Other corporate superannuation includes A$6.0b in MySuper (Q 8 A$6.0b). 4 SuperConcepts assets under administration includes AMP SMSF, Multiport, Cavendish, SuperIQ, yoursmsf, Justsuper and Ascend platforms, but does not include Multiport Annual, SuperConcepts Accountants Outsource, SMSF Managers and MORE Superannuation.

6 AMP Limited provides Q 8 cashflows update 5 (A$m) Q 8 Q 8 by product Superannuation 79,597 79,878 Pension 6,090 6,4 Investment 6,6 6,6 Total,00,58 by asset class Cash and fixed interest 0% 9% Australian equities 0% 0% International equities 7% 8% Property 6% 6% Other 7% 7% Total 00% 00% (A$b) Q 8 Q 8 Closing.0.6 Average AMP Capital Q 8 Q 8 Net cashflows Total Other Q 8 (A$m) Cash inflows Cash outflows net cashflows movements External 67,096,675 (,54) ,00 Internal,96 5,088 (6,907) (,89),557 4,4 Total AMP Capital 90,49 7,76 (9,06) (,98),40 9,44 summary (A$b) Q 8 Q 8 Closing Average June 08 results have been restated to include $.b of internally managed. Other movements include fees, investment returns, distributions, taxes, and foreign exchange movements. is invested capital. Committed real asset capital is excluded from. AMP Bank AMP Bank by product Q 8 Other Q 8 Deposits and loans (A$m) end balance movements end balance Deposits (super and platform) 5,0 8 5,49 Deposits (other) 7, ,05 Loans 0,48 (9) 0,9 Represents movements in AMP Bank s deposits and loan books. At 0 Sep 08, super and platform deposits include AMP Supercash and Super TDs (A$.7b), North and platform deposits (A$.7b). Deposits (other) includes retail deposits, internal deposits, wholesale deposits and other deposits. Australian wealth protection Cashflows by product (A$m) Q 8 Q 7 Q 8 Q 7 Q 8 Q 7 Individual risk 66 7 (98) (8) Group risk (9) (00) (7) () Total Australian wealth protection 4 45 (90) (8) 4 Risk Insurance Annual Premium Q 8 Q 8 In-force API (A$m) API API Individual lump sum,090,9 Individual income protection Group Risk 7 7 Total,866,809

7 AMP Limited provides Q 8 cashflows update 6 New Zealand financial services Cashflows by product (A$m) Q 8 Q 7 Q 8 Q 7 Q 8 Q 7 KiwiSaver 9 5 (4) (08) Other 70 7 (74) (68) (4) () Total New Zealand (408) (76) 8 76 Q 8 Q 8 Net cashflows Q 8 (A$m) Total net Other Superannuation Pension Investment Other cashflows movements KiwiSaver 4, ,978 Other,09 4 () (7) - (4) 0,406 Total New Zealand 5,99 89 () (7) - 8 6,84 Other New Zealand financial services cashflows and includes New Zealand wealth protection, mature and non KiwiSaver wealth management products. Other movements include fees, investment returns, distributions, taxes, as well as foreign currency movements on New Zealand. New Zealand wealth protection Q 8 Q 8 Risk Insurance Annual Premium In-force API (A$m) API API Individual lump sum Individual income protection 4 4 Group Risk 4 4 Total 4 5 Australian mature Cashflows by product (A$m) Q 8 Q 7 Q 8 Q 7 Q 8 Q 7 Australian mature 7 (554) (49) (4) (56) Q 8 Q 8 Net cashflows Total Other Q 8 (A$m) net Superannuation Pension Investment Other movements cashflows Australian mature 0,9 (5) (8) (5) (4) (4) 6 0,4 Other movements include fees, investment returns, distributions, taxes, and foreign exchange movements.