View more on these topics

Virgin can teach AMP new tricks

One of the AMP&#39s most ambitious strategies as part of its effort to become a truly global player is its big investment in Richard Branson&#39s Virgin brand.

AMP has six million customers, £50bn under management and makes more than £1bn a year profit yet it saw a future in making an alliance with a minion in the financial services industry.

Virgin Direct has 200,000 customers with £1bn invested. That is after starting from scratch just two years ago and AMP&#39s executives have obviously taken note.

AMP has a half-share in Virgin Direct, adding to its other UK investments, Pearl Assurance and London Life.

AMP provides the capital for growth under a joint venture deal with Branson, which trades his marketing prowess with AMP&#39s technical ability to produce financial products.

On top of that, AMP also owns the worldwide rights to use the Virgin name for financial services – clearly seeing the ability of this brand to tap into a generation which traditional sales methods struggle to reach.

The life insurer has had similar success with its independent foray in retail banking in Australia, Priority One.

Offering phone banking and very competitive rates, particularly in the mortgage sector, Priority One has successfully carved out a slice of the market during its brief existence to become a key part of AMP Financial Services.

AMP also has big interests in more traditional areas in Australia and New Zealand.

It has a general insurance division, £50bn under management and 500,000 superann- uating clients.

Its pastoral company, Stabroke, has huge property holdings in the country&#39s northern cattle-grazing areas.

AMP&#39s other big international operation is PT AMP Panin Life, an Indonesian joint venture which is the biggest South-east Asian investment in financial services by an Australian company.

Recommended

Martyn confirmed in top role at IFAP

IFA Promotion is stepping up its efforts to boost the IFA sector following the appointment of Ann-Marie Martyn as chief executive. Martyn, 32, had been acting chief executive since last September, when Robert Browne-Clayton stepped down. Her salary is not being disclosed. She is now set to appoint a deputy as IFAP steps up its […]

NAPF highlights pension erosion

The National Association of Pension Funds has attacked the Government for “drilling holes” into the returns from occupational pension schemes. The attack comes as the NAPF published its annual survey of company pension schemes last week. The survey shows that the Pensions Act 1995 and the decision in the last Budget to axe tax credits […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment