AMP Says Profit May Fall on Higher Life Insurance Claims
June 23 2013 - 7:50PM
Dow Jones News
By Ross Kelly
SYDNEY--AMP Ltd. (AMP.AU) said Monday its first-half profit may
fall by up to 15% after its life insurance unit recorded
unexpectedly high claims.
The company said underlying net profit, which strips out
nonrecurring items, in the six months ending June 30 would likely
range between 415 million Australian dollars (US$383 million) and
A$435 million. In the same six-month period a year earlier net
profit was A$491 million.
As well as the rising cost of insurance claims, AMP said a
higher-than-expected number of clients let policies lapse during
the period. 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.
Write to Ross Kelly at ross.kelly@wsj.com
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