AMP Confident of Completing £1.3bn National Provident Institution Acquisition

Australian-based insurance and funds management group AMP is on track to complete its £1.3bn acquisition of UK insurer National Provident Institution within the third quarter of 1999. This takeover, launched in late 1998, will make AMP the UK's fifth-largest insurer in terms of assets. AMP's confidence stems from its successful demutualisation and listing last year, as well as the purchase of UK funds manager Henderson in early 1998. AMP's recent A$3.3bn hostile bid for GIO Holdings Australia, a general insurer, has also yielded positive results, with the company acquiring 57.5% of GIO in January. Despite announcing a net profit of A$1.03bn for its first year since demutualisation, exceeding prospectus forecasts, AMP reported a loss of A$646m due to an extraordinary charge associated with demutualisation and listing.

Key Takeaways:

AMP expects to complete its £1.3bn acquisition of UK insurer National Provident Institution within the third quarter of 1999.
The acquisition will make AMP the UK's fifth-largest insurer in terms of assets.
AMP's demutualisation and listing last year, as well as the purchase of UK funds manager Henderson in early 1998, have contributed to the company's confidence in completing the takeover.
AMP's recent hostile bid for GIO Holdings Australia, a general insurer, has resulted in the acquisition of 57.5% of GIO in January.
AMP has announced a net profit of A$1.03bn for its first year since demutualisation, exceeding prospectus forecasts of A$774m-$977m.
The company reported a loss of A$646m due to an extraordinary charge associated with demutualisation and listing.
AMP divested A$0.18 a share to its 1.25m shareholders.
George Trumbull, chief executive, attributed the strong earnings to improved operational results and a solid investment performance.
AMP aims to further reduce its dependence on investment markets and has invested in operating businesses to achieve this goal.
AMP expects to better its performance in the current year and is seeking to acquire new outside investment mandates.

Statistics:

£1.3bn - AMP's acquisition price for National Provident Institution.
A$3.3bn - AMP's hostile bid for GIO Holdings Australia.
57.5% - Share of GIO Holdings Australia acquired by AMP in January.
A$1.03bn - AMP's net profit for its first year since demutualisation.
A$774m - Lower end of prospectus forecasts for AMP's net profit.
A$977m - Upper end of prospectus forecasts for AMP's net profit.
A$646m - Loss due to extraordinary charge associated with demutualisation and listing.
A$0.18 - Dividend per share paid to AMP's 1.25m shareholders.
A$433m - Operating margins in 1998, up from A$247m in the previous year.

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