AMP Swings to 2016 Loss but Plans a Share Buyback
08 Fevereiro 2017 - 7:39PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--AMP Ltd. (AMP.AU) plans to return up to
500 million Australian dollars (US$381 million) to shareholders
after it was pitched to an annual loss by charges against its
struggling wealth-protection business.
The Australian financial services firm said Thursday it would
buy back shares, beginning this quarter, and would maintain its
dividend for the final six months of last year despite notching a
loss in its life-insurance arm but better performances in its
capital, banking and New Zealand businesses.
AMP reported a net loss of A$344 million for 2016 from a A$972
million profit the year before.
AMP's life insurance arm has struggled with escalating losses,
and has previously warned industry conditions deteriorated
consistently last year, as claims have escalated and policies have
lapsed.
Last October, it said the underlying earnings of its
wealth-protection business would be hurt by A$500 million due to
capitalized losses and force it to book a goodwill impairment of
about A$668 million to reflect the decline of its embedded value.
The next month, it shuffled its senior leadership team, including
replacing the insurance executive and restructuring business
lines.
Chief Executive Craig Meller said the planned buyback and steady
dividend reflected AMP's strong capital position and positive
outlook for its business.
Its wealth-protection business recorded a A$415 million loss
against a year-earlier profit of A$185 million, while the
Australian wealth management operations saw earnings slip 2.2% to
A$401 million. AMP Bank saw the strongest growth, with earnings
rising 15% to A$120 million, while the New Zealand financial
services unit grew its profit 5% to A$126 million.
AMP said it planned a final dividend of A$0.14 a share, for a
full-year payout of A$0.28.
The company said it remained in a strong position with a A$2.3
billion capital surplus on Jan. 1.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
February 08, 2017 16:24 ET (21:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
AMP (ASX:AMP)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
AMP (ASX:AMP)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024