AMP's NZ unit lifts full year profit 4.6% on KiwiSaver growth

AMP Financial Services New Zealand [NZX: AMP], the local operation of the Australian fund manager and insurer, lifted annual operating earnings as growth in its KiwiSaver funds helped cash flow to more than treble.

Annual operating earnings rose 4.6 percent to $120.2 million in the year ended Dec. 31, the Auckland-based company said in a statement. Cash flow jumped 212 percent to $293.4 million, which the company credited to more advisers transferring their clients' KiwiSaver accounts to AMP's financial services. Assets under management increased 7.3 percent to $14.2 billion.

"In an environment of significant competition and increasing regulation, our disciplined approach to meeting the objectives we set for the business has again seen us achieve a strong full-year result for shareholders," said Jack Regan, managing director of AMP New Zealand. "The result builds on the momentum created by the successful implementation of our strategic agenda, with growth underpinned by a significant increase in net cash flows, a continued focus on controllable costs and growth in profit margins."

Last year, the New Zealand Superannuation Fund ended its 12-year mandate with AMP's funds management unit, AMP Capital Investors NZ, to manage part of its local equity portfolio, worth $257.5 million.

In 2015 AMP flagged new solvency standards and the loss of transitional tax relief for life insurance companies may weigh on earnings.

The Australian parent company posted a 32 percent increase to annual profit of A$884 million, while its total assets under management increased 9 percent to A$215 billion. In Australian dollar terms, the New Zealand financial services division accounted for about a tenth of AMP's A$1.05 billion in operating earnings.

Shares of the dual-listed were unchanged at $6.70 on the NZX, and last traded at A$6.50 on the ASX.

(BusinessDesk)