AMP new sales more than doubles

Press, 14 May 1985, Page 28

AMP new sales more than doubles

PA Wellington The AMP Society’s premium income from new sales last year rose 110 per cent, the society said in its annual report. The new sales increase reflected an aggressive marketing programme by the office, the chairman, Mr Douglas Smith, said. The main fund earning rate went ahead 16.81 per cent and earnings from investment income rose 19 per cent. The total premium income was up 26 per cent and the total asset backing rose 15 per cent. AMP allocated an extra $270 million in bonuses doubling in value. There was an excess of market over book value of $370 million in the equity assets of the main fund. The report said its record results were achieved in spite of the background created by political

changes, the move from a restricted to a freer market, and changes to tax laws.

Mr Smith said new investment insurance policies contributed to the growth in individual policy sales during the year. These included the return from an increased emphasis on equities in the AMP portfolio, the ability of the main and investment-linked funds to strongly outperform inflation, and the realisation of benefits from the property investment. The AMP holds 40 per cent of the life office share of the private superannuation market. The ageing population, longer life expectancy, a shrinking workforce and Government moves to cut the national superannuation scheme all amounted to a “far reaching and significant social shift in New Zealand.” The report said recent

moves to deregulate the economy allowed the society to operate in a more liberal investment environment. The Government this year removed a requirement for the society to invest 31 per cent of its assets in Government stock and 20 per cent in house and farm loans. “However, we expect to be able to meet reasonable demands for house and farm loans, provided the normal lending criteria are met,” Mr Smith said. The society, New Zealand’s biggest life insurer, pays out about $600,000 each working day in benefits to policy holders and beneficiaries. The total for the year came to $137.5 million and was 18 per cent higher than the amount paid out in the previous year. More than $36.4 million went to policy holders at the maturity of their policies.

NZIG New Zealand Industrial Gases Limited has announced two new executive appointments, effective Ist April:

Mr G. M. (Glyn) Jones has taken up the position of Equipment Controller. Based in Head Office, this position has responsibility for the manufacture and marketing of all welding products and management of the Commercial function, and Eutectic + Castolin operation. Mr Jones, who joined NZIG in 1978, became a member of the Executive Management Group in April 1983 on appointment to his previous position of Equipment Manufacturing Manager based in Auckland. He has been with NZIG since 1978.

Mr D. W. (David) Waugh has been appointed to the position of Marketing Controller Gases. This executive appointment, based in Head Office, carries responsibility for the marketing of all gases, both cylinder and bulk. In his previous position of Manager LPG, Mr Waugh had been involved in the development of NZIG’s activities in this growth market. He joined NZIG in 1980 after a period in the U.K. working for the company’s parent group, BOC, in the development of environmental processes.