The new chief executive of AMP says the company needs to adapt to the changing ways people are handling their money and investments.
Craig Meller will take over as CEO of the wealth manager on January 1, replacing Craig Dunn, who is retiring after 13 years at AMP and six years as its leader.
Since 2007, Mr Meller has been the managing director of AMP Financial Services, the segment of AMP’s business that deals with superannuation, financial planning and investment and banking products.
With AMP’s $14 billion merger with AXA Asia Pacific now almost complete, the company is working to capitalise on its larger size and deal with the changing demands of its customers.
“Our strategy for the future is being driven by our core belief that the Australian wealth management market remains highly attractive, with the market projected to double in size in less than a decade,” Mr Meller said.
“But to maintain success in this market we have to continue to change, we have to change because our customers are changing and want different things from us.”
Those changes have been brought about by the global financial crisis, regulatory overhauls, the increasing use of digital and mobile products and an ageing Australian population, he said.
Mr Meller’s appointment was announced as AMP reported a 10 per cent fall in its underlying profit to $440 million in first half of 2013.
Underlying profit is seen by AMP as a better measure of its performance as it removes costs associated with the 2011 AXA merger and some of the impact of investment market volatility.
AMP had warned in June its underlying profit could fall by up to 15 per cent, and its shares rose on Thursday as the fall had not turned out to be as large.
As forecast, higher than expected income protection claims impacted underlying profit, as well as lower investment income.
AMP’s net profit in the first half of 2013 of $393 million was up five per cent from $373 million in the same period in 2012, due in part to lower costs from the AXA merger.
AMP shares were up 17.5 cents, or 3.9 per cent, at $4.715 at 1540 AEST.
