AMP Limited
(ASX:AMP) says poor claims and losses in its Australian wealth protection business are likely to impact the first half result.
The Wealth Management company says it’s expecting underlying profit for the first half to be within the range of $415 million and $435 million.
The group says it’s suffered losses for Australian wealth protection of $32 million for the five months to May 31, including $26 million in insurance claims and $8 million in lapses.
AMP says its insurance portfolio was volatile in nature, with about 50 per cent of claims for income protection.
It says the industry as a whole is under pressure with regards to insurance claims and policy lapses.
AMP delivered a $687 million net profit in its 2012 financial year.
