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The Actuary The magazine of the Institute & Faculty of Actuaries

AMP ‘goes home’

In an implicit comment on the continuing travails of the UK’s life assurance industry, the once-mighty Australian Mutual Provident (AMP) announced on 1 May its intention to sever the links between its UK and Australian businesses – a change promoted to its mostly Australian shareholders as ‘AMP is coming home’. Shareholders will receive shares in the UK business as a result of the planned demerger, although these will initially be listed only in Australia. A ‘for sale’ sign appears to be hanging over many of the component UK businesses – NPI, Towry Law, Ample.

Actuaries with long memories will remember that AMP was widely perceived to have acquired the then Pearl Assurance very cheaply back in 1990. Indeed this transaction was an important stimulus to the development of embedded value reporting by life insurers. The circumstances of the original takeover indirectly prompted a paper to the Institute of Actuaries – it remains to be seen whether the subsequent history includes sufficient material for another!