AMP Financial Services New Zealand says plans to consolidate its two KiwiSaver schemes could result in a drop in members' fees.
The company's New Zealand arm reported a dip in profit to $119 million in the year to December from $120 million the previous year, due to a higher than expected number of people making insurance claims.
But it says its profit margins increased for the second-half of the year, driven by higher revenues from growth in assets under management. AMP says its KiwiSaver schemes increased their asset value by a quarter to $2.4 billion.
Under the proposal all existing AXA KiwiSaver customers will be transferred to AMP.
AMP managing director Jack Regan said the consolidation means members will get the best of both schemes.
He said the plan is to develop AXA's multi manager investment style and make it available to all its KiwiSaver customers and also to reduce membership fees.
Mr Regan said customers will receive full details of the proposal May.
The move is subject to approval by the Financial Markets Authority and is expected to be completed by July if it gets the go-ahead.
Shares in AMP closed up 16 cents to $6.76 on Thursday.
