AMP on course to offload UK arm

Australian financial services group AMP today said it remained on target to demerge its loss-making UK business by the end of this year.

The company wants to spin off the operations, including Pearl Assurance, NPI and fund manager Henderson, as part of a far-reaching restructuring plan.

Updating investors today, AMP chief executive Andrew Mohl said discussions with regulators over the proposals were well underway.

He reiterated that AMP had received “several approaches” for its UK business, although none have so far led to a detailed proposal.

AMP’s overseas overhaul comes after weak stock markets battered the UK life and pensions business and left its mark on the insurer’s overall performance.

As well as Pearl and NPI, the UK portfolio also includes London Life, Towry Law and has a 50% stake in Virgin Money. It serves five million policyholders.

Taking the name of AMP’s Henderson business, the new UK operation could eventually be listed on the London Stock Exchange.

As well as holding talks with the Financial Services Authority over the demerger proposal, AMP said Rothschild had been appointed to give an independent expert’s opinion on the demerger.

AMP stressed that the final capital structures for the proposed separate Australian and UK businesses had still to be decided.

Mr Mohl added: “Ultimately, we are focused on maximising the long term value of the businesses in AMP and the demerger proposal remains the primary strategic initiative to achieve that.”