Total AMP Financial Services net cashflows for the quarter were $48 million, down from $103 million in the third quarter of 2009 as higher cash inflows were offset by higher cash outflows. This is in line with trends being seen more broadly across the industry.

Net cashflows for AMP’s retail superannuation and pension business were $96 million compared to $99 million in the previous corresponding quarter.

Higher customer balances, reflecting higher investment markets, and lower persistency led to higher cash outflows for the quarter. Persistency was 89.6 per cent for the quarter, down from 90.6 per cent in Q3 2009.

Net cashflows to AMP’s new all-in-one AMP Flexible Super product were $544 million in Q3 2010. Approximately two-thirds of net flows were into Retirement accounts, while the remainder, which were mainly externally sourced, flowed into the Superannuation accounts of AMP Flexible Super.

Corporate superannuation net cashflows were $102 million for Q3 2010. This is a $24 million decrease on the previous corresponding quarter due partly to improved investment markets which increased member withdrawal balances, resulting in higher cash outflows.

This was partially offset by higher cash inflows resulting from resilient employment conditions.

Overall net persistency was 93.5 per cent for the quarter compared to 94.3 per cent for the corresponding period.

Net cashflows for retail investments were $7 million compared to $23 million in Q3 2009 with higher outflows in AMP Flexible Lifetime Investments offset by inflows into AMP’s SMA offering, Personalised Portfolio Service.

Net cash outflows for external platforms improved by $7 million to $26 million compared to the previous corresponding quarter.

In Contemporary Wealth Protection, net cashflows increased by $18 million to $120 million in Q3 2010 with cash outflows decreasing by $4 million.

The improvement in cash outflows is not as a result of better claims experience which is driven by a combination of claim payments and change in reserves. During Q3 2010, claims reserves continued to increase at a higher than expected rate, giving rise to a continuing and accelerated rate of experience losses in the quarter.

The closure of the RSA product to new customers in the Australian mature business resulted in lower cash inflows in Q3 2010. Net cashflows fell by $31 million to $341 million.

Net cashflows in AMP’s New Zealand business fell $6 million to $90 million in Q3 2010 due to lower cash inflows. Cash inflows were impacted by lower inflows into the NZ Wrap product as well as lower than expected cash inflows on risk business, as customers continued to reduce levels of cover to minimise the impact of price increases following changes to the taxation of life insurance in New Zealand. This led to an increase in experience losses in the quarter flowing from higher lapse rates.

New Zealand profit margins in the quarter were also impacted by a $3 million one-off item, a general insurance distribution profit sharing arrangement following the Christchurch earthquake.

Assets Under Management

AMP Financial Services Contemporary Wealth Management (CWM) average AUM was 10 per cent higher at $51.2 billion compared to $46.6 billion for Q3 2009 due to positive market gains and cash inflows. Closing AUM was $51.9 billion, up 6 per cent from 30 September 2009.

AMP Flexible Super AUM at 30 September 2010 was $638 million. The Choice option accounted for about 25 per cent of the customer base but 64 per cent of the total AUM.

AMP Capital Investors (AMPCI) average AUM was 5 per cent higher at $96.5 billion compared to $92.1 billion for Q3 2009. Net cashflows from Asia for Q3 2010 were $431 million, almost double the previous corresponding quarter. Closing AUM was 2 per cent higher at $97.4 billion, compared to $95.2 billion for 30 September 2009.

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