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AMP Limited (AMP)

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General Information
Company Name: AMP Limited
Stock Code: AMP
Website: www.amp.com.au
Market Cap ($M): 10,549
Equiv. Shares (M): 1,960
 Research Report Available

Report price : $16.50 (inc. GST)
Research by : Aegis Equities Research

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Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
  $ 5.230 $ 5.240 $ 5.360 $ 5.200 $ 5.280 5,625,629 $ -0.050  -0.947 %

Current Broker Consensus Recommendation more
Recommendation : Hold
Recommendation Date : 6th Nov 2008
12 Month Target Price (average) : $6.882
Brokers Surveyed : 10

Market Statistics
% of Market: 1.2800
% of Sector: 2.9715
Sector: Financials
Industry Group: Insurance
Industry: Insurance

Company Overview
Company Overview
AMP is a leading Australian diversified financial services organisation and a major provider of personal insurance, superannuation, pensions, investment and other financial services in Australia and New Zealand. It has strong positions in many of the markets in which it operates. Based on total assets under management, AMP is one of the largest fund managers in Australia.
Company History
In 1849, the Australian Mutual Provident Society (AMP) was registered under the Friendly Society Act of NSW for providing life insurance products. In 1958, AMP Fire & General Insurance was formed. In 1989, AMP acquired Pearl Assurance, the first of a number of life insurance and financial services acquisitions in the UK. In December 2003, the UK businesses were divested through a demerger. In 1998, the AMP demutualised and was listed on the ASX. In 2000, AMP acquired GIO and sold it in 2001.
Differentiating Factor
AMP enjoys a strong brand name in Australia and is a market leader in many of its products. Its key strengths in Australia include a strong, well-regarded distribution network.
Major Customers & Competitors
AMP operates through financial planners and agents in addition to its direct contact with policyholders and investors. Business is also conducted direct with companies who choose to invest in AMP products. Major competitors include other investment and funds management companies such as NAB/MLC, CBA/Colonial, Westpac/BT, ANZ/ING and SGB/Asgard.

Financial Summary
Year to Dec
 NPAT
Rep $M		 NPAT1
Adj $M		 EPS
c		 EPS chg
%		 PER
x		 PER rel
All Ords x		 PER rel
Sector x		 DPS
c		 Yield
%		 Franking
%		 ROE
%
2005A 809 839 44.8 -5.2 11.7 0.8 1.0 32.0 6.1 75 30.2
2006A 915 970 51.5 14.9 10.2 0.8 1.0 40.0 7.6 85 40.5
2007A 1,056 960 51.3 -0.3 10.2 0.9 1.0 46.0 8.8 85 48.5
1NPAT is normalised by removing non-recurring items and goodwill. All the above statistics are derived from normalised earnings.

Peer Comparison
P/E (x) EPS Change (%) Dividend Yield (%)
Company Code Last Price Mkt Cap 07A 08F 07A 08F 07A 08F
QBE Insurance Group QBE $23.85 $23,071M 12.0063 10.8449 -9.2015 10.7091 5.0943 5.2830
AMP AMP $5.23 $10,549M 12.5756 13.2488 -19.0065 -5.0809 7.4570 6.9790
Insurance Australia Group IAG $3.77 $7,383M 47.2283 13.5903 -77.8936 247.5155 5.9682 4.5093
Suncorp-Metway SUN $6.32 $7,296M 7.3926 8.6171 -49.6842 -14.2103 16.9304 11.0759
AXA Asia Pacific AXA $3.85 $6,884M 11.3306 11.1127 -2.3096 1.9611 5.1299 5.1948

Share Price Returns
3 Months (%) 6 Months (%) 12 Months (%)
AMP -22.6331 -33.1202 -48.2690
Sector -27.5719 -39.3531 -52.2372
Market -30.3444 -41.5083 -46.1688

Ratio Comparison
Year AMP Sector Market
P/E (x) FY07 10.2 10.0 11.3
FY08 12.6 10.0 10.3
Yield (%) FY07 8.8 9.6 6.0
FY08 7.5 9.2 6.2
EV/EBIT (x) FY07 7.5 4.9 7.6
FY08 9.2 5.0 6.7
EV/EBITDA (x) FY07 7.5 4.8 6.5
FY08 9.2 4.9 5.7

Directors
Name Position
P Mason Non-Executive Chairman
R Grellman Director
M Hellicar Director
Dr N Scheinkestel Director
D Clarke Director
J Palmer Non-Executive Director
J B Clark Director
C Dunn Director
Professor P Shergold Non-executive Director

Management
Name Position
P Leaming CFO
C Dunn Managing Director
J Ritch MD, AMP Capital Investors
Mr M de Cure GM, Strategy & Development
D Cohen General Counsel

Substantial Shareholders
Name % Holding
AMP Life Ltd 14.09
Capital Group Companies 7.8363
WestLB Asset Management 5.08

Calendar of Events
Date Event
09-Apr-2009 Dividend Date Payable for Final Year Result (c % franked)
13-Mar-2009 Dividend Record Date for Final Year Result (c % franked)
09-Mar-2009 Dividend Ex-Dividend Date for Final Year Result (c % franked)
19-Feb-2009 Reporting Date for Final Year Result
17-Oct-2008 Dividend Date Payable for Half Yearly Result (24c 85% franked)


Data supplied by Aegis Equities Research Pty Limited (ACN 085 293 910).
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