KiwiSaver boosts AMP
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By AARON LIM - BusinessDay.co.nz | Thursday, 28 August 2008 |
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Net cash flows for AMP Financial Services New Zealand were boosted by KiwiSaver, rising 294 per cent to $67 million.
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Despite a 22 per cent fall in half-year group profit, fund manager and insurer AMP said its New Zealand business was cushioned by the introduction of the government's KiwiSaver superannuation scheme.
AMP said today net profit for the six months to June fell 22 per cent to A$366 million (NZ$448 million). Underlying profit fell 2 per cent to A$437 million.
AMP Financial Services New Zealand, meanwhile, posted a 20 per cent rise in operating earnings to $32.1 million. Net cash flows, boosted by KiwiSaver, rose 294 per cent to $67 million.
"AMP's 85,000 KiwiSaver members represent 12 per cent of the KiwiSaver market by number and 15 per cent of the total market by funds under management," AMP said.
Jack Reagan, managing director of AMP Financial Services, said in a difficult environment AMP had performed strongly in the corporate superannuation market thanks to its KiwiSaver and New Zealand Retirement Trust schemes.
The performance of AMP's New Zealand business was also boosted by a 12.5 per cent rise in life insurance income.
AMP group chief executive Craig Dunn said he expected the New Zealand and Australian economies to face ‘volatile" conditions through 2008. But initiatives such as KiwiSaver had enhanced the long-term attractiveness of the wealth management industry.
