Shares in AMP were crushed today way beyond the impact of the global sell off.
While the rest of the market was down 2.8%, AMP shares fell almost 25% to close at $2.50.
AMP today announced the sale of its Australian and New Zealand insurance businesses to global wealth protection group Resolution Life for $3.3 billion.
In July AMP launched a program to repair its reputation and “earn back trust”, by compensating customers for lost earnings, strengthening risk management systems and controls, and cutting fees on its superannuation products.
AMP had admitted knowingly charging customers for advice they didn’t get and of misleading the corporate regulator ASIC.
The scandal claimed the scalps of former CEO Craig Meller, Chairman Catherine Brenner and three other board members.
Today’s announcement of the sale of AMP Life follows a review of the business.
In August the company posted a 74% fall in half year profit to $115 million, driven down by provisions to compensate customers for financial advice they paid for but didn’t receive.
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