AMP LIMITED — Interim / Quarterly Report 2013

Oct 24, 2013

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25 October 2013

Manager ASX Market Announcements Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000

Manager Market Information Services Section New Zealand Stock Exchange Level 24, NZX Centre, 11 Cable Street Wellington, New Zealand

Announcement No: 35/2013 AMP Limited (ASX/NZX/SGX: AMP) (also for release to AMP Group Finance Services Limited (ASX: AQNHA / NZX: AQN010 / SGX)

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update

Please refer to the attached documents.

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Public Affairs T 02 9257 6127 E media@amp.com.au W AMP.com.au/media AMP_AU

AMP Limited Level 24, 33 Alfred Street, Sydney NSW 2000 Australia ABN 49 079 354 519

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25 October 2013

Public Affairs Tel: 02 9257 6127 Email: media@amp.com.au Website: AMP.com.au/media AMP_AU

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update

AMP Limited today reported cashflows and assets under management (AUM) and an update on the Wealth Protection business for the third quarter to 30 September 2013.

Cashflows and AUM

Total retail net cashflows on AMP platforms for Q3 13 more than doubled to $567 million from $229 million in Q3 12.

This was offset by net cash outflows from external platforms of $233 million compared with net cash inflows of $194 million in Q3 12 which was boosted by a number of new practices joining the Hillross network during that quarter.

AMP’s Australian wealth management business continues to perform well with AUM of $96.7 billion as at 30 September 2013, up 5 per cent from $91.8 billion as at 30 June 2013. Net cashflows were $206 million for the quarter compared to $307 million for Q3 12.

Highlights for Q3 13 were:

• AMP’s leading wrap platform North continued to gain momentum with net cashflows of $1.0 billion, up 58 per cent on the previous corresponding period which had net cashflows of $644 million. North’s AUM jumped 22 per cent to $8.2 billion as at 30 September 2013 compared to $6.7 billion as at 30 June 2013.

• AMP Flexible Super closing AUM increased 10 per cent to $9.7 billion compared to $8.8 billion at 30 June 2013. Net cashflows were $521 million compared to $639 million in Q3 12.

Corporate Super experienced net cash outflows of $128 million compared to net cash outflows of $116 million in Q3 12.

AMP Limited 33 Alfred Street Sydney NSW Australia ABN 84 079 300 379 AFSL 233671

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update…/ 2

AMP’s Australian mature business had net cash outflows of $440 million for Q3 13. Net cash outflows of $144 million for Q3 12 were positively impacted by a one-off transfer of $320 million from the rollover of AXA’s National Preservation Trust product into AMP’s mature book.

AMP New Zealand’s net cashflows increased to A$65 million for Q3 13 from A$24 million Q3 12. This included a 16 per cent increase in KiwiSaver net cashflows. Total New Zealand closing AUM was A$11.6 billion, up 5 per cent on closing AUM of A$11.0 billion as at 30 June 2013.

The AMP SMSF business administered approximately 9,800 trustee accounts, including approximately 1,400 SuperIQ accounts, as at 30 September 2013, up from 9,650 accounts as at 30 June 2013. This does not include the accounts gained as a result of SuperIQ’s recent acquisition of Tranzact Limited.

AMP Bank’s mortgage book grew to $12.9 billion as at end Q3 13, up from $12.8 billion as at end Q2 13, while its deposit book grew from $8.1 billion at end Q2 13 to $8.6 billion after the launch of a range of competitive retail and SMSF deposit products and improved pricing of term deposits.

AMP risk insurance annual premium income was $2.1 billion, up 4 per cent for the quarter compared to $2.0 billion as at 30 June 2013 and up 6 per cent for the 12 months to 30 September 2013.

AMP Capital AUM at 30 September 2013 was $135.9 billion, up 4 per cent from $131.0 billion as at 30 June 2013.

Detailed cashflow and AUM data tables are attached.

Business update for the Australian Wealth Protection business

Wealth Protection experience for Q3 2013

Experience losses for Q3 13 were $24 million compared with Q3 12 experience losses of $37 million.

Lapse experience losses were $12 million, group insurance claims experience losses were $6 million and retail lump sum claims losses were $8 million. Income protection experience profits were $2 million.

Expected impacts on Q4 2013 operating results

Importantly, for this year, AMP has brought forward its year-end review of experience for those product areas that have the potential to impact the FY 13 operating results.

While this review is yet to be completed, AMP expects to revise its incurred but not reported reserves (IBNR) for the group insurance business and its best estimate lapse assumptions for the NMLA income protection book, which will impact both the Q4 and the FY 13 operating results.

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update…/ 3

Strengthening the IBNR reserves is expected to increase experience losses by around $15 million in Q4 13. This primarily reflects increased reporting delays of claims in the group insurance business.

The trend in lapse experience in the NMLA income protection book has continued to worsen in Q3 13 and as a result AMP will strengthen its lapse assumptions as part of its year-end review.

As this book is currently in loss recognition, the strengthened assumptions are expected to result in a capitalised loss in the range of $40 - $50 million in Q4 13 which will reduce AMP’s operating result by the same amount.

In total, these two adjustments are expected to result in a $55 to $65 million reduction in AMP’s operating results for Q4 13, in addition to any further experience outcomes in the fourth quarter.

Further changes in assumptions across the life insurance portfolio are likely at 31 December 2013 which could lead to adjustments to the embedded value of the business but are not expected to impact the FY 13 operating results.

AMP regards improving the performance of the Wealth Protection business as one of its highest priorities and continues to implement short and medium term actions to improve claims and lapse experience.

Dividend update

The AMP Board will make its decision on the dividend for the second half of 2013 in February 2014, based on the conditions prevalent at that time. The Board will have regard to AMP’s capital position and its dividend payout policy of 70 - 80 per cent of full year underlying profits.

In doing so, the Board will give consideration to the fact that the expected capitalised loss ($40-$50 million) is a non-cash item and would not reduce AMP’s overall capital position, given Deferred Acquisition Costs are deducted from AMP’s capital base to determine regulatory capital.

All figures in this announcement are unaudited.

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Details for 9am investor teleconference are below.

Media enquiries Investor enquiries Jane Anderson Howard Marks Phone: +61 2 9257 9870 Phone: +61 2 9257 7109 Mobile: +61 402 967 791 Mobile: +61 402 438 019 Amanda Wallace Stephen Daly Phone: +61 2 9257 6168 Phone: +61 2 9257 5207 Mobile: +61 422 379 964 Mobile: +61 416 289 535

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update…/ 4

Q3 13 Cashflows

	Cash inflows	Cash inflows	Cash outflows	Cash outflows	Net cashflows	Net cashflows
Cashflows by product(A$m)	Q3 13	Q3 12	Q3 13	Q3 12	Q3 13	Q3 12
Australian wealth management
AMP Flexible Super1	1,611	1,560	1,090	921	521	639
North2	1,958	1,071	938	427	1,020	644
Summit, Generations and iAccess (including Assure)3 Flexible Lifetime Super (superannuation andpension)4
	533 708 881 1,039 (348) (331)
	569 581 1,120 1,218 (551) (637)
Other retail investment andplatforms5	88	79	163	165	(75)	(86)
Total retail on AMPplatforms	4,759	3,999	4,192	3,770	567	229
Total corporate superannuation6	864	769	992	885	(128)	(116)
Total retail and corporate super on AMP Platforms
	5,623	4,768	5,184	4,655	439	113
Externalplatforms7	643	1,140	876	946	(233)	194
Total Australian wealth management	6,266	5,908	6,060	5,601	206	307
Australian wealthprotection
Individual risk	340	336	157	159	183	177
Grouprisk	96	90	61	58	35	32
Total Australian wealthprotection	436	426	218	217	218	209
Australian mature	150	461	590	605	(440)	(144)
Total Australia	6,852	6,795	6,868	6,423	(16)	372
New Zealand
KiwiSaver	177	144	62	45	115	99
Other	196	190	246	265	(50)	(75)
Total New Zealand	373	334	308	310	65	24
Total AFS cashflows	7,225	7,129	7,176	6,733	49	396
Cashflows by channel(A$m) ~~8~~
AMP Financial Planning	2,934	2,685	2,866	2,663	68	22
Hillross	739	872	673	492	66	380
Charter Financial Planning	1,162	923	1,002	869	160	54
Jigsaw advisers	87	109	90	125	(3)	(16)
ipac group advisers and Tynan Mackenzie
	486	537	501	567	(15)	(30)
Genesysgroupadvisers	256	280	270	304	(14)	(24)
Direct (including corporate superannuation)
	513	436	444	431	69	5
Centrallymanaged clients and other	155	473	210	224	(55)	249
3rdpartydistributors	520	480	812	748	(292)	(268)
Total Australia	6,852	6,795	6,868	6,423	(16)	372
New Zealand	373	334	308	310	65	24
Total AFS cashflows	7,225	7,129	7,176	6,733	49	396

~~1~~ AMP Flexible Super is a flexible all in one superannuation and retirement account for individual retail and SME business.

2 North is a market leading fully functioning wrap platform which includes guaranteed and non-guaranteed options.

3 Summit and Generations are owned and developed platforms. iAccess and Assure are ipac badges on Summit.

4 Flexible Lifetime Super (superannuation and pension) was closed to new business from 1 July 2010. A small component of corporate superannuation schemes is included. 5 Other retail investment and platforms include Flexible Lifetime - Investments, AMP Personal Portfolio and Synergy.

6 Corporate superannuation comprises SignatureSuper, CustomSuper, SuperLeader and AXA Business Super.

7 External platforms comprise Asgard, Macquarie and BT Wrap platforms.

8 Q3 12 cashflows have been restated to reflect changes in distribution channels.

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update…/

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Q3 13 AUM[1]

	Q2 13	Q2 13	Q3 13 Net cashflows	Q3 13 Net cashflows	Q3 13 Net cashflows	Total	Other	Other	Q3 13
						net
AUM (A$m)	AUM	Superannuation	Pension	Investment	Other		movements2		AUM
						cashflows
Australian wealth management
AMP Flexible Super	8,779	264	257	-	-	521	393	9,693
North	6,730	251	515	254	-	1,020	427	8,177
Summit,Generations and iAccess(includingAssure)	14,072	(192)	(111)	(45)	-	(348)	790	14,514
Flexible Lifetime(superannuation andpension)	24,022	(347)	(204)	-	-	(551)	1,190	24,661
Other retail investment andplatforms	3,166	(28)	(26)	(21)	-	(75)	196	3,287
Total retail on AMPplatforms	56,769	(52)	431	188	-	567	2,996	60,332
Total corporate superannuation	22,268	(139)	11	-	-	(128)	855	22,995
Total retail and corporate super on AMPplatforms	79,037	(191)	442	188	-	439	3,851	83,327
Externalplatforms	12,753	(105)	(102)	(26)	-	(233)	816	13,336
Total Australian wealth management	91,790	(296)	340	162	-	206	4,667	96,663
Australian wealthprotection					218	218	(218)
Australian mature	22,772	(219)	(62)	(65)	(94)	(440)	244	22,576
Total Australia	114,562	(515)	278	97	124	(16)	4,693	119,239
New Zealand
KiwiSaver	2,151	115	-	-	-	115	178	2,444
Other	8,877	(11)	(1)	(38)	-	(50)	292	9,119
Total New Zealand	11,028	104	(1)	(38)	-	65	470	11,563
Australian wealth management - AMP SMSF3
Assets under administration 12,299 437								12,736
Total AUM	137,889	(411)	277	59	124	49	5,600	143,538
Australian wealth management - AMP Bank by product
Deposits(Supercash,Super TDs & Platform TDs)	4,451						77	4,528
Deposits(retail)	3,663						383	4,046
Mortgages	12,756						130	12,886

~~1~~ Reported AUM excludes shareholder capital.

2 Other movements include fees, investment returns, taxes, as well as foreign currency movements on New Zealand AUM.

3 AMP SMSF includes Multiport, Cavendish, SuperIQ and Ascend administration platforms. SuperIQ is 49% owned by AMP, however 100% of assets under administration are included.

Q3 13 AUM and API summary

AUM (A$m)	Q2 13	Q3 13
	AUM	AUM
Australian wealth management - AUM by product
Superannuation	56,556	59,002
Pension	24,419	26,043
Investment	10,815	11,618
Total	91,790	96,663
Australian wealth management - AUM by asset class
Cash and fixed interest	32%	31%
Australian equities	34%	35%
International equities	23%	23%
Property	6%	6%
Other	5%	5%
Total	100%	100%
AUM summary (A$b)
Australian wealth management
ClosingAUM	91.8	96.7
Average AUM	91.9	94.8
Asset Management
AMP Capital
ClosingAUM	131.0	135.9
Average AUM	132.6	134.1
Risk insurance Annual Premium Income - API(A$m)
Australia
Individual lumpsum	985	1,030
Individual incomeprotection	410	416
Grouprisk	361	371
New Zealand
Individual lumpsum	210	222
Individual incomeprotection	44	47
Grouprisk	33	35
Total	2,043	2,121

AMP Limited reports third quarter cashflows, AUM and Wealth Protection update…/ 6

CEO briefing

9am – 25 October 2013

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