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Fraser out as AMP splits its UK business in two

AMP&#39s new chief executive Andrew Mohl has announced a radical shake-up of its UK financial services, including the departure of managing director Tom Fraser.

The UK business will be downscaled and split into two separate operations following AMP&#39s acceptance that its ambitions to become a top five company in the UK were unrealistic.

As part of the split, the “mature” businesses, consisting of the closed books of Pearl, London Life and NPI, will come under AMP UK Life Services (mature business) headed by managing director Ian Laughlin, an actuary with an Australian background. John Drabble, previously managing director of Hillross, AMP&#39s Australian IFA, becomes MD of AMP UK Contemporary Financial Services, consisting of NPI IFA and corporate pension business, Towry Law, Ample and AMP UK Banking.

At a press conference, Mohl said there was no job for Fraser following the restructuring. Mohl has also reinstated former chief finance officer Marc de Cure as group general manager of strategy and development. He was sacked by previous chief executive Paul Batchelor. Mohl said that, with hindsight, investments in the UK could have been better.

He said that the economics of the Pearl direct salesforce did not add up in the medium term, adding that is was for the new directors to take strategy decisions. Mohl said: “The was a lot of incredulity about our top five strategy. We do not have the brand or financial muscle. We are committed to fixing the problems.”

The Abacus director Philip Martin says: “The general view is the historical purchases made by AMP have not given them the springboard into UK expansion and to become a top five player. This now seems like a sensible strategy as they will be able to pick off some of the distressed life company purchases that will be available in the next few years.”


S&P has negative outlook on Standard

Ratings agency Standard & Poors has revised its outlook on Standard Life to negative but maintains its AAA rating. It says its capitalisation has weakened and the options open to Standard to manage capital following market volatility and any further falls are limited. S&P also says costs and payouts will have to be carefully managed, […]

Abbey National – Safety Plus Growth (Issue 9)

Friday, 18 October 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-£500,000, Isa £1,000-£7,000 Term: Five years six months Guarantee: Capital returned in full along with 20% growth at end of term regardless of performance in index Return: Up to 55% growth Closing date: December […]

Cost cutters

The small corporate private medical insurance market, encompassing schemes covering three to 99 lives, saw very little innovation during the 1990s.Some new health insurers came along, offered “me-too” type products – and then went. Established insurers tweaked their benefits but as comprehensive cover became more expensive, they turned to fragmenting hospital lists and introducing budget […]

Pru and AbbeyNat in distribution link-up

Prudential and Abbey National are setting out their stall ahead of depolarisation with a deal to sell each other&#39s products.Under the agreement, Abbey will initially white-label the Pru with-profits bond until depolarisation, after which it will retain the Pru branding.The Pru will cease to manufacture protection products and instead white-label Abbey National-owned Scottish Provident&#39s products […]

Inheritance tax when it is relevant

Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]


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