On a like for like basis, AMP’s underlying profit for 1H 11 was up 3 per cent on 1H 10. Underlying profit is AMP’s preferred measure of profitability as it removes some of the impact of investment market volatility and is the basis on which the Board determines the dividend payment.

Net profit before AXA merger adjustments and accounting mismatches was A$450 million3, while net profit attributable to shareholders was A$349 million3. The interim dividend has been set at 15 cents per share, the same level as 1H 10 and will be 30 per cent franked with the unfranked amount being declared conduit foreign income. The dividend represents a payout ratio of 81 per cent of underlying profit.

AMP remained strongly capitalised as at 30 June 2011 with A$2.2 billion capital above minimum regulatory requirements, up from A$1.4 billion as at 30 June 2010.

Integration update
AMP has appointed the senior management teams to lead the merged business and has determined how the two companies’ products, services and platforms will come together.

“The merger of AXA and AMP is on track and we remain firmly focused on our overriding integration objectives, which are to maintain business momentum, sharpen our competitive edge by delivering synergies and drawing on the strengths of both companies, and to build a stronger
growth platform for the combined company,” Mr Dunn said.

The synergy target has increased 17 per cent to A$140 million post tax from A$120 million, due to a range of factors, including the removal of additional IT infrastructure duplication and contract renegotiations with external suppliers. This will see a one off increase in expected project
integration costs of 9 per cent to A$310 million post tax, to be incurred over three years.

Advisers and financial planners
The merged business had 4,020 planners and advisers at 30 June 2011, making it the largest network of financial planners across Australia and New Zealand. AMP Financial Planning is Money Management’s Institutional Dealer Group of the Year, while licensees in the AXA Financial Advice Network were voted the 1st, 2nd and 3rd most attractive licensees to work with in CoreData’s 2011 annual licensee survey.

As at 31 July 2011, the merged group had 4,048 planners, a fall of six advisers over the period from 31 December 2010. Ongoing strong growth in AMP planner numbers was offset by lower recruitment for AXA advisers, particularly in the first quarter of 2011, against a background of
heightened uncertainty for AXA advisers ahead of the final merger outcome.

“We are very pleased with the AXA adviser retention post the merger. As of today, around 97 per cent of the value of the adviser network in AXA and Charter Financial Planning has been retained.

“With financial advice at the very core of what we do, the merged group continues to innovate and lead the industry in the advice space,” Mr Dunn said.

The AMP Horizons Academy, a front runner in planner education and recruitment, is now being expanded to include AXA financial planning groups. The Horizons Academy is a major source of new advisers across the AMP Group, as is AXA’s Discovery Program, which successfully
transitions salaried advisers into self-employed advisers.

AMP has recently launched one of the industry’s first scaled advice programs – My Money Choices, with more than 500 planners now offering simple, cost effective advice to address the specific needs of customers.

The post AMP delivers A$455 million underlying profit for first half of 2011 appeared first on AdviserVoice.

The move comes after 14 years with the dealer group, Charter Financial Planning, who is owned by the AMP Group as a result of the recent merger with AXA Asia Pacific Holdings Limited. Integra has met their 90 days notice of termination period requirement with AXA/AMP and have officially
become authorised representatives under Garvan.

In response to the proposed Federal Government’s Future of Financial Advice (FoFA) reforms and the acquisition of AXA by AMP, Integra took the opportunity to review the offerings that are available in the market place in preparation for future growth and industry change.

Deborah Kent, Managing Director of Integra said ”With the proposed changes under FoFA along with consumer education around fees, commissions and volume based bonuses, it was important to us to align our business with a Licensee who fits our business model and will partner with us into the future, embracing industry change and assisting in building good advice businesses.”

“We were very impressed by the increased range of services, products and resources that will not only benefit our valued clients but will also extend to our business partner network” Deborah Kent said.

The post Integra Financial Services joins MLC owned, Garvan Financial Planning appeared first on AdviserVoice.

In the retail investments, superannuation and retirement markets AMP will maintain both the AXA North and AMP Flexible Super offers.

For corporate superannuation, AMP’s SignatureSuper will be its medium and large corporate superannuation product while AMP Flexible Super will target small to medium businesses’ superannuation needs.

AMP will initially continue to have two distinct personal insurance product offers, AMP’s Flexible Lifetime Protection and AXA’s Elevate and will continue to invest in both product ranges to ensure they remain competitive.

The company will build, within the next two years, a new retail insurance product range that takes the best attributes of the two current offerings. The transition to the new product will be managed in a way that safeguards the interests of existing customers and will include AMP’s current practice of refreshing the features on its back book of business.
x
AMP will continue to support both the AMP and AXA group risk products, enhancing AMP’s group risk offer that supports AMP’s mastertrust superannuation product and investing in AXA’s standalone offer, to capitalise on profitable growth opportunities.
x
AMP Financial Services Managing Director Craig Meller said that while the decisions are high level, they provide the foundations needed for the new merged business.
x
“The initial six week planning process brought together people from both AMP and AXA so we could learn more about each business and jointly decide on some of the elements of the combined company – and this is what we’ve done.
x
“The decisions announced today draw on the strengths of both businesses to build a new, stronger and more competitive wealth management company,” Mr Meller said.

AMP will continue its multi-brand approach to financial advice and will look at ways to further support all its financial planning businesses.

“We are using the assets and capabilities of the combined business to enhance the value propositions we offer our aligned planners and advisers, while maintaining the differentiation they value.
c
“These enhancements include new, competitive finance packages through AMP Bank and the broader rollout of AXA’s North platform,” Mr Meller said.
x
As previously announced, AMP will retain the AXA North platform as its wrap platform. It will provide a base for the company to compete more strongly in both investment and superannuation markets.
x
The existing AXA platform consolidation strategy to migrate the Summit, Generations and iAcess offers to the technology platform on which North operates will continue.   The merged business will maintain the competitiveness of Summit, Generations and iAccess through continued investment and enhancements.

The post AMP announces product and platform plans for the merged AMP/AXA business appeared first on AdviserVoice.

X

AXA Head of Product and Sales Capacity, Brad Collins said the programme, which commenced in 2009, has become an important part of the education programme for both AXA aligned and nonaligned advisers and their support staff.

X
“The Risk Learning Programme aims to equip advisers and their support staff with specialist skills and knowledge. It contains core modules on effective client engagement and behavioural research.

X
“The programme is designed to help advisers understand their clients and discuss risk insurance with compassion and sensitivity, which is often required on such a delicate issue “, he said.

X
Mr Collins said there were two main workshops aimed at client engagement and dealing with grief.

X
“We have developed our workshops after speaking with specialists who have excelled in the risk field and the feedback from the first two years has been overwhelming.

X

“We have designed a flexible programme where advisers and adviser support staff can choose workshops which are most relevant for them, and all of which are run by AXA’s learning and development experts, which makes it unique in many ways,” he said.

X

The programme, which commenced in 2009 has seen more than 250 advisers and support staff benefit. A further 75 advisers and support staff have already registered for workshops of the 2011 programme which commenced this week across the country.

The post AXA commences Risk Learning Programme v.3 appeared first on AdviserVoice.

The proposed transaction is a joint proposal with AXA SA under which AXA SA would acquire 100 per cent of AXA APH’s Asian business.

The proposed merger will bring together two of Australia’s longest standing businesses, creating a new force in financial services.

Under the proposal AXA APH shareholders will receive A$6.431 per share, consisting of cash and AMP shares, as well as the receipt of AXA APH’s 2010 final dividend of up to 9.25 cents per share.

AXA APH shareholders will receive some protection against movements in AMP’s share price and the opportunity to receive some benefit from any increase in AMP’s share price.2

AMP Chairman Peter Mason said the proposed merger will deliver significant value to AMP and AXA APH shareholders.

“This is a unique opportunity to deliver greater value for both sets of shareholders, while maintaining financial discipline and providing the opportunity for shareholders to participate in the ongoing earnings of a stronger and more competitive group.”

The merged businesses will have a significant share in one of the world’s fastest growing and most successful wealth management markets.

AMP CEO Craig Dunn said the merged company will have the market position to be a stronger competitor in financial services.

“The merged company will have the scale and expertise to provide Australian and New Zealand consumers with an improved range of low cost, simple options to help them prepare for a comfortable retirement, protect their families and buy their own home.”

Mr Dunn said the combined company will have a multi-brand planner strategy.

“One of the attractions of this merger is the diversity of financial planner models that AXA APH brings to the table. The combined company will have around 2,900 financial planners who will provide Australians and New Zealanders with a whole range of different financial planning choices,” Mr Dunn said.

The proposal is still subject to satisfactory due diligence, execution of final transaction documents, approval by AXA APH minority shareholders and further regulatory approvals.

It is expected that the scheme of arrangement will be put to the AXA APH shareholders seeking their approval by the end of the first quarter of 2011.

The post AMP welcomes AXA APH Directors’ decision to recommend merger appeared first on AdviserVoice.