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23/06/2003
AMP closes UK pensions unit and axes 900 jobs
Hopes of a rescue for struggling National Provident Institution, part of the Australian AMP group, sank today as the financial services outfit closed the doors to its remaining UK pension unit.
The surprise closure announcement will mean the loss of around 900 jobs at the division’s offices in Peterborough and Tunbridge Wells.
The move sees all the Sydney-based groups British interests closed and the funds placed under the wing of a single manager.
Originally analysts had expected the UK division to be demerged, but after testing market disinterest AMP was left with no other option but to settle for a multi-billion dollar writedown and axe the ailing British division.
It is thought that the UK division holds around 85,000 policies in unit-linked investments and a variety of pension products.
Chief Executive Andrew Mohl said that the option to retain the NPI portfolio but to close out new sales was the best one for both the UK policy and shareholders.
Lack of interest in the UK businesses of AMP led to a situation where the British assets were being massively written down to a level far below their inherent value.
The concern now is that with no new investment funds forthcoming, the strategy, which has been adopted across AMP’s British businesses including Pearl and London Life may fail as capital is extracted to support ongoing policies.
(SP)
The surprise closure announcement will mean the loss of around 900 jobs at the division’s offices in Peterborough and Tunbridge Wells.
The move sees all the Sydney-based groups British interests closed and the funds placed under the wing of a single manager.
Originally analysts had expected the UK division to be demerged, but after testing market disinterest AMP was left with no other option but to settle for a multi-billion dollar writedown and axe the ailing British division.
It is thought that the UK division holds around 85,000 policies in unit-linked investments and a variety of pension products.
Chief Executive Andrew Mohl said that the option to retain the NPI portfolio but to close out new sales was the best one for both the UK policy and shareholders.
Lack of interest in the UK businesses of AMP led to a situation where the British assets were being massively written down to a level far below their inherent value.
The concern now is that with no new investment funds forthcoming, the strategy, which has been adopted across AMP’s British businesses including Pearl and London Life may fail as capital is extracted to support ongoing policies.
(SP)
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