From AMP this morning comes an interesting profit warning:
AMP Ltd shares plummeted in early trade after the insurer lowered its expectations for first-half earnings, saying poor claims and losses in its Australian wealth protection business in the second quarter were likely to impact the result.
At the 1015 AEST official market open, AMP shares were 9.24 per cent lower at $4.52, against a benchmark index fall of 1.03 per cent.
In an earnings update released to the Australian Securities Exchange, AMP said it was expecting underlying profit for the first half to be within the range of $415 million and $435 million.
The group said it had experienced losses for Australian wealth protection of $32 million for the five months to May 31, comprising $26 million in insurance claims, $8 million in lapses, and offset by $2 million of other positive experience.
50% of the losses were in income protection.
