17 Feb 2012

Profit rise reported by NZ arm of AMP Financial Services

6:55 am on 17 February 2012

AMP's New Zealand arm boosted its full year profit, due to a recent merger with AXA and the performance of KiwiSaver.

Operating earnings at AMP Financial Services rose by a third to $NZ99 million for the year ending December.

The result includes a nine-month contribution from AXA following its merger with AMP in March last year.

Managing director Jack Regan says the result was also underpinned by solid life insurance margins and a 32% rise in KiwiSaver funds.

He says life insurance premiums will continue to rise as the industry is affected by the Christchurch earthquakes and transitions to a new tax regime.

Annual net profit for AMP's parent company's fell 12% to $A688 million. Underlying profit, which excludes the merger costs, rose nearly 20% to $A909 million.