16 Aug 2013

AMP Financial Services expects to build on first-half results

7:38 am on 16 August 2013

AMP Financial Services New Zealand says it expects to build on its first-half results during the rest of this year.

However, that's probably not good news for consumers.

On Thursday, the life insurance company said operating earnings for the six months to the end of June rose 16% to $57 million although underlying profit rose only marginally.

Net premium income - which is premiums minus the cost of claims - was $1 million, a sharp turn around from the $11 million loss reported in the previous six months.

AMP also grew the value of its KiwiSaver scheme by 22% to $2.6 billion.

The publisher of the GoodReturns website, Philip Macallister, says AMP's comments about changes in the way life insurance is taxed are a veiled warning to consumers.

He says the key message is that insurance premiums will increase because of the tax changes.

Mr Macallister says the company's statement talks about 'progressively growing its revenue base' and one way to do that is to sell more insurance, which it's not doing a lot of.

He says the only other way is to increase premiums.