AMP Profit Hurt by Life Insurance Claims; CEO to Stand Down

   By Ross Kelly 
 

SYDNEY--Australian wealth manager AMP Ltd. (AMP.AU) Thursday said Chief Executive Craig Dunn will stand down at the end of the year after a poor performance in its life insurance division weighed on its first-half results.

AMP reported a 6% rise in net profit for the six months through June to 393 million Australian dollars (US$359 million).

Underlying profit, which strips out nonrecurring items, declined by 9% to A$440 million. That was just above AMP's guidance of between A$415 million and A$435 million in June when it warned on profits.

AMP's life insurance unit experienced unexpectedly high claims, offsetting profit improvements in its financial planning and funds management units. About half the claims were income-protection payouts for people unable to work due to injury. The remainder were lump sum payments for death, trauma or total impairment cover.

Mr. Dunn will be replaced by Craig Meller, head of the company's wealth management division, after six years at the helm.

"Now is the right time for a leadership change," Mr. Dunn said in a statement.

Write to Ross Kelly at [e-mail]

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