AMP LIMITED — Interim / Quarterly Report 2011

Oct 26, 2011

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27 October 2011

Manager Manager Company Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Announcement No: 48/2011

Market Information Services Section New Zealand Stock Exchange Level 2, NZX Centre, 11 Cable Street Wellington New Zealand

AMP Limited (ASX/NZX: AMP) (also for release to AMP Group Finance Services Limited (ASX: AQNHA & NZX: AQN010))

AMP Limited reports third quarter cashflows, AUM and business update

Please see attached announcement.

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27 October 2011

AMP Limited reports third quarter cashflows, AUM and business update

AMP Limited today reported cashflows for AMP Financial Services (AFS) and the group’s assets under management (AUM) for the third quarter to 30 September 2011. AFS cashflows and AUM include AXA post the integration of the two businesses.

AFS net cash outflows were $335 million for the quarter compared to net cash outflows of $170 million for Q3 10.

Net cashflows were impacted by a net outflow of $192 million from the departure of a Hillross practice in 2010.

Growth in AMP’s contemporary platforms and products partially offset the impact of volatile markets and subdued investor sentiment. Net retail cashflows on AMP platforms were $119 million for the quarter, up 21 per cent on Q3 10 ($98 million).

AFS’s growth initiatives continued to deliver results in Q3 11 with strong growth in the business’ core contemporary platforms and products despite the challenging conditions.

Highlights for Q3 11 were:

• AMP Flexible Super, launched just 18 months ago, is Australia’s fastest growing superannuation and retirement product with $3.5 billion in AUM, a 24 per cent increase over the quarter. Net cashflows for Q3 11 were $788 million, up 45 per cent on Q3 10.

• AXA North has evolved into an industry leading wrap platform with $2.0 billion in AUM – up 7 per cent on 30 June 2011. Net cashflows in Q3 11 doubled to $242 million compared to Q3 10.

• New Zealand KiwiSaver net cashflows increased 10 per cent on Q3 10 to A$168 million. AUM at 30 September 2011 was A$1.4 billion.

• Risk insurance annual premium income for AMP and AXA’s risk businesses was up 4 per cent in the quarter to $1.9 billion due to higher sales and annual premium increases.

• AMP Bank’s mortgage book grew to $11.1 billion, up from $11.0 billion in the previous quarter while its deposit book grew 16 per cent to $6.4 billion over the same period.

External platforms net cash outflows include the impact of the departure of the Hillross practice in 2010 with a remaining $140 million in AUM expected to transition from this practice by the end of 2011.

Corporate superannuation net cash outflows were $40 million, compared with a net cash inflow of $93 million in Q3 10. Cash outflows increased in Q3 11 due to higher customer withdrawals while cash inflows fell after the closure of AMP’s CustomSuper and SuperLeader products in 2010.

AFS’s contemporary large corporate superannuation product, SignatureSuper, continued to show resilience in a difficult environment, benefiting from a high proportion of superannuation guarantee contributions.

AFS’s Mature net cash outflows increased by $27 million due to the closure of the AMP Retirement Savings Account with new customers now moving to the low cost AMP Flexible Super product.

AFS’s Australian Contemporary Wealth Management AUM, restated to include AXA, and AMP Capital Investors’ AUM at 30 September 2011, were impacted by lower investment markets.

Australian Contemporary Wealth Management AUM at 30 September 2011 was $78.4 billion, down 5 per cent for the quarter.

AMP Capital Investors AUM at 30 September 2011 was $94.4 billion, down 3 per cent for the quarter.

Detailed cashflow and AUM data is contained in the attached tables. Comparative data, on 1 the same basis from Q3 10, for AFS cashflows is available on the AMP website .

Business update

Contemporary Wealth Protection experience

Experience losses in Contemporary Wealth Protection, which includes AXA’s Australian risk insurance business, were $12 million in Q3 11 (experience profits were $8 million for 1H 11), driven largely by higher income protection claims, which is consistent with a challenging economic environment, and higher lapse rates.

Performance and transaction fees

AMP Capital Investors 2H 11 performance and transaction fees are expected to be significantly lower than that achieved in 1H 11 ($20 million) reflecting volatile investment markets and subdued investment performance.

Cost guidance

The AFS cost guidance given at the 1H 11 results remains unchanged.

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1 www.amp.com.au/shareholdercentre/analysts/cashflows

1

Q3 11 Cashflows

	Cash inflows		Cash outflows		Net cashflows
Cashflows(A$m)	Q3 11	Q3 10	Q3 11	Q3 10	Q3 11	Q3 10
Australian contemporary wealth management
AMP Flexible Super2	1,414	803	626	259	788	544
North3	523	219	282	101	242	118
Multiport4	100	93	60	39	40	54
Summit, Generations and iAccess (including Assure)5	867	797	1,092	930	(225)	(133)
Flexible Lifetime Super (superannuation and pension)6	677	952	1,314	1,400	(637)	(448)
Synergy7	34	37	91	81	(57)	(45)
Retail investment8	88	111	119	103	(31)	8
Total retail on AMP platforms	3,703	3,011	3,584	2,913	119	98
Corporate superannuation and pensions9	737	775	789	682	(52)	93
Corporate superannuation mandate w ins	12	0	0	0	12	-
Total corporate super	749	775	789	682	(40)	93
External platforms10	766	714	1,089	953	(323)	(239)
Total Australian contemporary wealth management	5,218	4,500	5,462	4,548	(244)	(48)
Total Australian contemporary wealth protection
Individual risk	310	287	136	145	173	142
Group risk	115	93	49	53	67	41
Total Australian contemporary wealth protection	425	381	185	198	240	183
Total Australian contemporary	5,643	4,881	5,647	4,746	(5)	134
Australian mature	160	198	631	641	(470)	(443)
Total Australia	5,803	5,079	6,278	5,387	(475)	(309)
New Zealand
Kiw iSaver	192	176	25	23	168	153
Other11	177	260	204	274	(28)	(14)
New Zealand	369	435	229	297	140	139
Total AFS cashflows	6,172	5,514	6,507	5,684	(335)	(170)
Australian contemporary wealth management - AMP Bank by product12
Deposit (Supercash & Term Deposits)					670	102
Deposits (retail)					215	156
Mortgages					100	61

• 1 Comparatives have been restated.

• 2 AMP Flexible Super is a flexible all in one superannuation and retirement account for individual retail and SME business.

• 3 North is a market leading fully functioning w rap platform w hich includes guaranteed and non-guaranteed options.

• 4 Multiport is an administration platform for SMSF and IMA business.

• 5 Summit and Generations are ow ned and developed platforms. iAccess and Assure are ipac badges on Summit.

• 6 Flexible Lifetime Super (superannuation and pensions) w as closed to new business from 1 July 2010. A small component of corporate superannuation schemes are included.

• 7 Synergy is an in-house platform used by Genesys.

• 8 Retail investment includes Flexible Lifetime - Investments and AMP Personal Portfolio. Products previously reported under AXA Australian w ealth management investment segment are not reported in AFS cashflow s. AUM for those products is reported in the attached AUM disclosures under Asset Management.

• 9 Corporate superannuation and pensions comprise SignatureSuper, CustomSuper, SuperLeader and AXA business super. AXA business super w as previously reported as part of AXA Mature.

• 10 External platforms comprise Asgard, BT Wrap, Macquarie Wrap, Solar and other margin earning platforms used by Genesys. Solar is a Genesys badged version of BT Wrap.

• 11 New Zealand w holesale w ealth management is not reported in AFS cashflow s. AUM for this product is reported in the attached AUM disclosures under Asset Management.

• 12 Represents movements in AMP Bank's deposits and mortgage books for the quarter.

Q3 11 Cashflows continued 1

Q3 11 Cashflows continued 1
	Cash inflows		Cash outflows		Net cashflows
Cashflows by distribution channel(A$m)	Q3 11	Q3 10	Q3 11	Q3 10	Q3 11	Q3 10
AMP Financial Planning	2,438	2,173	2,449	2,125	(11)	48
Hillross	494	387	703	421	(209)	(34)
AXA Financial Planning	312	280	275	256	37	24
Charter Financial Planning	590	465	552	465	38	0
Jigsaw advisers	99	99	93	77	6	22
ipac group advisers and Tyan Mackenzie	493	306	549	401	(56)	(95)
Genesys group advisers	240	230	273	262	(33)	(32)
Direct (including corporate superanuation)	332	358	253	268	79	90
Centrally managed clients and other	186	189	265	279	(79)	(90)
3rd party distributors	619	592	866	833	(247)	(242)
Total Australia	5,803	5,079	6,278	5,387	(475)	(309)
New Zealand	369	435	229	297	140	139
Total AFS cashflows	6,172	5,514	6,507	5,684	(335)	(170)

1 Comparatives have been restated.

Q3 11 AUM[1]

	Q2 11 Total Other Q3 11 AUM(A$m) AUM Superannuation Pension Investment Other net cashflows movements7 AUM Q3 11 Net cashflows
	Australian contemporary wealth management AMP Flexible Super 2,800 302 486 - - 788 (119) 3,469 North 1,816 107 110 26 - 242 (107) 1,951 Multiport 1,217 36 - 4 - 40 (3) 1,254 Summit, Generations and iAccess (including Assure) 14,553 (141) 20 (104) - (225) (815) 13,513 Flexible Lifetime (superannuation and pension) 25,615 (297) (340) - - (637) (1,611) 23,367 Synergy 1,504 (28) (15) (15) - (57) (68) 1,379 Retail investment2 2,083 - - (31) - (31) (169) 1,883
	Total retail on AMPplatforms 49,589 (21) 260 (120) - 119 (2,893) 46,815
	Total corporate super3 19,883 (46) 6 - - (40) (920) 18,922 Externalplatforms4 13,081 (91) (202) (30) - (323) (89) 12,668
	Total Australian contemporary wealth management 82,552 (158) 64 (151) - (244) (3,902) 78,406
	Australian contemporary wealthprotection 240 240 (240)
	Australian mature3,5 23,486 (191) (74) (7) (198) (470) (17) 22,999
	Total Australia 106,038 (349) (10) (158) 42 (475) (4,159) 101,405
	New Zealand6
	Kiw iSaver 1,267 168 168 (4) 1,431 Other 7,878 (1) - (22) (5) (28) (12) 7,838
	New Zealand 9,145 167 - (22) (5) 140 (17) 9,268
	Total AUM 115,183 (182) (10) (179) 36 (335) (4,175) 110,673
	Australian contemporary wealth management - AMP Bank by product Deposit (Supercash & Term Deposits) 2,158 670 2,828 Deposits (retail) 3,383 215 3,598 Mortgages 10,992 100 11,092
1 Reported AUM excludes shareholder capital. 2 Products previously reported under AXA Australian w ealth management investment are not reported in AFS cashflow s but are included as part of Asset Management AUM. 3 4 External platforms other movements includes $0.7b of Asgard AUM acquired as a result of the Hillross IRIS acquisition. 5 6 AXA NZ w holesale w ealth management business is not reported under AFS but is included as part of Asset Management AUM (1H 11 $0.3b). 7 Other movements includes fees, investment returns, taxes, as w ell as foreign currency movements on New Zealand AUM. Corporate super includes AXA business super w hich w as previously reported as part of AXA Mature (1H 11 AUM $3.3b). AXA guaranteed savings account (GSA) w as previously reported as part of AXA Mature (1H 11 AUM $1.3b). The AUM is currently managed by AMPCI and AllianceBernstein.

Q3 11 AUM and API summary

	Q3 11 AUM and API summary
	Q2 11 Q3 11 AUM(A$m) AUM AUM
	Australian contemporary wealth management - AUM by product
	Superannuation 51,572 48,767 Pension 19,571 18,933 Investment 11,409 10,706
	Total 82,552 78,406
	Australian contemporary wealth management - AUM by asset class
	Cash and fixed interest 30% 32% Australian equities 35% 34% International equities 24% 23% Property 6% 6% Other 5% 4%
	Total 100% 100%
	AUM summary (A$b)
	Australian contemporary wealth management Closing AUM 82.6 78.4 Average AUM 83.1 80.5
	Asset Management AMPCI Closing AUM1 97.7 94.4 Average AUM 99.2 96.2 NMFM, ipac, AXA Global Investors (NZ) ClosingAUM2 27.9 26.0
	Risk insurance Annual Premium Income - API(A$m)
	Australia
	Individual lump sum 865 913 Individual income protection 361 369 Group risk 332 343 New Zealand Individual lump sum 181 189 Individual income protection 35 37 Group risk 30 30
	Total 1,804 1,880
1 2 Management responsibility of this AUM w ill transition to AMP Capital Investors. It includes AUM currently managed by National Mutual Funds Management, ipac and AXA Global Investors (NZ) on behalf of AFS and w holesale clients. Q3 11 includes AXA guaranteed savings account of $0.9b transferred in during the quarter.

	Risk insurance Annual Premium Income - API(A$m)
	Australia
	Individual lump sum	865	913
	Individual income protection	361	369
	Group risk	332	343
	New Zealand
	Individual lump sum	181	189
	Individual income protection	35	37
	Group risk	30	30
	Total	1,804	1,880
1	Q3 11 includes AXA guaranteed savings account of $0.9b transferred in during the quarter.
2	Management responsibility of this AUM w ill transition to AMP Capital Investors. It includes AUM currently
	managed by National Mutual Funds Management, ipac and AXA Global Investors (NZ) on behalf of AFS
	and w holesale clients.