AMP Limited
(ASX:AMP) has indicated structural issues in the life insurance sector will impact its underlying profit in the order of $565 million for FY16 and FY17.
The company has indicated the changes will reduce the Australian wealth protection embedded value for FY16 by approximately $1 billion.
Goodwill attributable to the wealth protection business is expected to be fully impaired by $668 million.
AMP has taken action to re-set the wealth protection business and free capital by implementing a $750 million reinsurance arrangement with Munich Re.
AMP Limited posted a net profit of $1.05 billion at 30 June 2016.
