AMP AMP Limited

   By Ross Kelly 
 

SYDNEY--AMP Ltd. (AMP.AU) said Monday its first-half profit may fall by up to 15% after its life insurance unit recorded unexpectedly high claims.

The company said underlying net profit, which strips out nonrecurring items, in the six months ending June 30 would likely range between 415 million Australian dollars (US$383 million) and A$435 million. In the same six-month period a year earlier net profit was A$491 million.

As well as the rising cost of insurance claims, AMP said a higher-than-expected number of clients let policies lapse during the period. About half the claims were income-protection payouts for people unable to work due to injury. The remainder were lump sum payments for death, trauma or total impairment cover.

Write to Ross Kelly at ross.kelly@wsj.com

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