Wealth manager AMP has appointed a new chief executive officer at the same time as it announces a six per cent increase in its first half profit.
AMP says the head of its financial services division, Craig Meller, will replace retiring CEO Craig Dunn at the start of 2014.
Meanwhile, the company has posted a net profit of $393 million for the six months to June 30, up from $373 million in the same period in 2012.
AMP says its underlying profit was $440 million, down from $488 million in the previous corresponding period.
Underlying profit is seen by AMP as a better measure of its performance as it removes costs associated with its 2011 merger with AXA Asia Pacific and some of the impact of investment market volatility.
In a statement on Thursday, AMP said the result was driven by strong growth in its wealth management, investment management and AFS New Zealand businesses as well as reduced costs.
However, that was offset by lower interest rates and weakness in its insurance arm.
Dunn said the company was focused on improving its insurance business.
“Improving the performance of the insurance business is an area of critical focus as we introduce a series of actions to improve both customer retention and the management of claims, and which will deliver benefits to both customers and shareholders,” he said in a statement.
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Meanwhile, Meller said he would focus on growing the company’s revenues and improving efficiencies once he takes over on January 1.
“I’m very excited about the opportunity to lead AMP, particularly in an environment where our customers’ needs are rapidly changing,” he said.
“As we have announced today, we’re focusing on driving higher revenues through deeper customer relationships and improved business efficiencies.”
AMP declared an interim dividend of 11.5 cents per share, 70 per cent franked, down from 12.5 cents at the same time in 2012.
