AMP announced a major shake up of senior management as its profits are squeezed and the insurance business reports losses.
Three senior executives are departing, including the head of insurance, Pauline Blight-Johnston. The other two are Rob Caprioli, group executive, Advice and Banking, and Wendy Thorpe, group executive Operations.
Thorpe, who had previously advised of her intent to retire, will shortly join the board of AMP Bank as a non-executive director.
AMP chief executive Craig Meller says the new structure delivers sharper focus on performance in the core Australian businesses, drives efficiency and provides increased emphasis on growth.
He says the changes will drive short-term business performance and longer-term growth.
AMP last month said insurance losses in the third quarter were $44 million and losses for the second half of 2016 were likely to be $75 million.
The 2017 profit margins are expected to be reduced by $90 million. AMP in August reported a 10% drop to $513 million in underlying profits for the half year, about $12 million below analyst expectations.
The key changes effective January 1:
- Wealth Solutions and Customer: Paul Sainsbury, who was appointed Chief Customer Officer in April 2013, will lead a new division bringing together customer, wealth management and product solutions.
- Advice and New Zealand: Jack Regan, currently managing director New Zealand, will lead an expanded portfolio, assuming responsibility for AMP’s advice businesses. Regan will retain responsibility for the management of AMP New Zealand.
- AMP Bank: Sally Bruce will join the group leadership team as group executive, AMP Bank. She joined AMP from NAB in August 2015 as managing director, AMP Bank.
- Insurance: Megan Beer is appointed group executive, Insurance, bringing accountability to the stabilisation and management of the insurance business. Beer joined AMP in February 2014 as the director responsible for retail and group risk insurance portfolio.
- Technology and Operations: Craig Ryman will become group executive, Technology and Operations, assuming an expanded portfolio combining IT and operations.
- Enterprise Risk Management: Saskia Goedhart, chief risk officer, will join the group leadership team. Goedhart joined AMP in July 2015 from EY where she was the partner responsible for risk management in the financial sector throughout North America
This is the structure of the management team:
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