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AMP writes off £303m and looks for loanbook bids

AMP has written down £303m in UK business and is putting its mortgage business up for sale.

AMP NPI accounts for £213m of the writedown with lower valuations of other businesses, including Towry Law, Pearl and London Life, accounting for the rest.

The company blames difficult operating conditions and stockmarket falls. The Australian giant says the figures are subject to change and an independent valuation of the company&#39s assets is under way.

It has decided to quit the banking services market and is looking for a buyer for its £300m mortgage book.

There is uncertainty over the future of the 110 staff in its UK banking division.

The company has recently seen the departures of group chief executive Paul Batchelor and UK managing director Tom Fraser.

AMP UK spokesman Stephen Hoffman says: “AMP recognises that the value of some of its businesses have moved out of alignment with the market and the position needs to be corrected. It has no impact on the operation of the business. We will initiate discussions to sell the mortgage book to a third party.”

Riach Independent Financial Advisers principal Rob Riach says: “This does not surprise me and there will be others to follow. Depending on the quality of the mortgage book, it will not be too difficult to get rid of.”

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