AMP braces for record loss
(Australia) - Financial services giant AMP is this week expected to cap a horror year with a record loss, which the company has already indicated will be about A$900 million.
AMP's exposure to the British equity market though its life insurance operations in the UK have exposed the company to capital adequacy problems, and it was forced to inject more than A$1 billion into its Pearl Assurance subsidiary last year to shore up its capital position.
New chief Andrew Mohl, who replaced Paul Batchelor in September, has announced widespread job cuts and a restructuring of the UK operations.
Wednesday's results are also expected to include details of Batchelor's final payout, and there is speculation over the future of Chairman Stan Wallis.
The problems have seen AMP shares plumb record lows, down from a year high of A$19.76 to A$7.84.
New chief Andrew Mohl, who replaced Paul Batchelor in September, has announced widespread job cuts and a restructuring of the UK operations.
Wednesday's results are also expected to include details of Batchelor's final payout, and there is speculation over the future of Chairman Stan Wallis.
The problems have seen AMP shares plumb record lows, down from a year high of A$19.76 to A$7.84.
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