In its Australian wealth protection business, the group reported experience losses of $32 million in the five months to the end of May 2013, comprising $26 million in insurance claims, $8 million in lapses, but offset by $2 million of “other positive experience”.
The unaudited results mean an expected underlying profit for the first half of 2013 within the range of $415 million to $435 million. Other line items contributing to net profit attributable to shareholders are consistent with market expectations for the half, the group stated.
AMP said the results reflect the “ongoing volatile nature of experience across AMP’s insurance portfolio”.
The industry overall is experiencing increased pressure on insurance claims and policy lapses, according to AMP.
The group said it continues to take action to improve its claims experience, including implementing new claims management policies, earlier intervention strategies and enhanced support to help customers return to work more quickly.
The reduced insurance profit was partially offset by stronger results in the group’s bank, mature and New Zealand businesses during the period.
