By Ross Kelly
SYDNEY--Australian wealth manager AMP Ltd. (AMP.AU) Thursday
said Chief Executive Craig Dunn will stand down at the end of the
year after a poor performance in its life insurance division
weighed on its first-half results.
AMP reported a 6% rise in net profit for the six months through
June to 393 million Australian dollars (US$359 million).
Underlying profit, which strips out nonrecurring items, declined
by 9% to A$440 million. That was just above AMP's guidance of
between A$415 million and A$435 million in June when it warned on
profits.
AMP's life insurance unit experienced unexpectedly high claims,
offsetting profit improvements in its financial planning and funds
management units. 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.
Mr. Dunn will be replaced by Craig Meller, head of the company's
wealth management division, after six years at the helm.
"Now is the right time for a leadership change," Mr. Dunn said
in a statement.
Write to Ross Kelly at ross.kelly@wsj.com
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