AMP 0.47% $1.07 amp limited

More good news after market close

  1. 3,567 Posts.
    Mohl is certainly making an impression. Thats what I like to see, aggressive active management.

    ASX Code: AMP
    Announcement: Organisational Changes

    Date: 14 October 2002 - 17:06:26
    Market Sensitive: Yes

    AMP LIMITED 2002-10-14 ASX-SIGNAL-G

    HOMEX - Sydney

    +++++++++++++++++++++++++
    AMP has today announced changes to its senior management team and
    organisational structure, including the separation of the United
    Kingdom Financial Services (UKFS) business into two streams.

    AMP Chief Executive Officer Andrew Mohl said this announcement
    represented the first step in his recently announced five point
    reform agenda, which includes addressing areas of the business with
    inadequate returns and a strong focus on core businesses.

    "I have moved quickly to establish a new executive team that shares
    my passion for reform and values based leadership and will drive the
    business agenda," Mr Mohl said.

    "We are committed to achieving a turnaround in AMP's performance and
    restoring shareholder value."

    The key changes to AMP's organisational structure are:

    * UKFS will be separated into two clear business streams - mature and
    contemporary

    The mature business will assume responsibility for the management and
    long-term run-off of the UKFS mature and closed book of products in
    Pearl, London Life and National Provident Life. The mature book
    consists primarily of products sold through the 90:10 fund, which AMP
    has previously announced its intention to close by the end of 2003.

    The contemporary business will include NPI (IFA distribution and
    corporate pensions), Towry Law, Ample, the UK operations of AMP
    Banking and the development of new, open architecture products and
    platforms.

    "I have previously made the point that investors have clearly not
    been comfortable with the results being achieved, relative to the
    risks being run," Mr Mohl said.

    "The separation of UKFS into two streams allows us to better manage
    the risks, which are different for each business. The mature and
    contemporary businesses require different management skills and have
    distinct drivers of shareholder value.

    "Our execution of strategy will be twofold. In the mature business,
    we will seek to excel at managing the closed books of business,
    optimising costs, retention and capital management. In the
    contemporary business, we will pursue targeted opportunities in those
    areas where we believe we have real competitive advantage.

    "I want to reiterate that AMP remains committed to fixing the
    problems in the UK and not looking for an exit. We intend to manage
    the mature and contemporary businesses with a clear focus on
    maximising long-term shareholder value."

    * Closure of AMP International; and Asian & European financial
    services businesses report regionally

    The operating businesses formerly part of AMP International will
    report regionally.

    AMP Asia (AMP Sanmar in India and AMP Japan) will move under
    Australian Financial Services and the European operations (including
    the proposed acquisition of Commerzbank Asset Management Italia) will
    form part of the contemporary UKFS business.

    Development work will also be scaled back.

    Other businesses that formed part of AMP International, including the
    Virgin joint venture and Cobalt, will shift to AMP Strategy &
    Development. The international operations of Henderson Global
    Investors are not impacted by any of these changes.

    * Global Information Technology closed as a stand alone division

    A streamlined corporate IT function will form part of the Strategy &
    Development unit, working in partnership with the strengthened
    business unit IT functions.

    This partnership approach will form the model for the relationship
    between all corporate office functions and the business units,
    enabling a considerable reduction in corporate overheads in 2003.

    * Chief Operating Officer, Financial Services role discontinued

    Andrew Mohl held this role for about one month before his appointment
    as CEO. Given changes to structure and staffing, the role will not be
    filled.

    MANAGEMENT TEAM

    A number of changes have been made to the senior management team
    reporting to Andrew Mohl.

    As a result, five senior executives will be leaving the organisation:
    Tom Fraser, Managing Director UK Financial Services; Tim Wade,
    Managing Director, International, Strategy & Development; Warwick
    Foster, Chief Information Officer; Peter Noble, General Counsel; and
    Andrew Jones, General Manager, Human Resources.

    New appointments to the team are:

    Mature UK Financial Services: This business will be known as AMP UK
    Life Services. Ian Laughlin, subject to UK regulatory approvals, has
    been appointed to lead this stream. Ian has over 20 years experience
    in the financial services industry, most recently as Director, Office
    of the MD in UK Financial Services and, in effect, its Chief
    Operating Officer.

    Reporting to Ian as Director, Business Transformation will be
    Jonathan Moss, presently Appointed Actuary AMP Life in Australia.
    Jonathan has extensive experience of UK financial services and, as
    Chief Actuary, was responsible for the financial restructuring of the
    closed book at NPI.

    Contemporary UK Financial Services: This business will be known as
    AMP UK Contemporary Financial Services. Subject to UK regulatory
    approvals, John Drabble has been appointed to head this business.

    Originally from the UK, John has extensive experience of 'new world'
    wealth management. He has been Managing Director of a number of AMP
    businesses including the Australian unit trust business; fully owned
    IFA Hillross Financial Services; and AMP New Zealand. More recently,
    he has been in charge of 'new world' product and platform development
    in Australia, covering superannuation, income streams, investments
    and risk products.

    Chief Financial Officer: Paul Leaming has been confirmed as CFO. He
    brings strong finance experience and extensive knowledge of AMP's
    business operations to the position.

    Office of the CEO: Christine McLoughlin has been appointed General
    Manager of the Office of the CEO. Moving from her position as Board
    Executive and Company Secretary, Christine will be responsible for
    providing executive support to the CEO, as well as for regulatory
    affairs, corporate secretariat, corporate social responsibility and
    Office of the General Counsel.

    General Manager, Strategy & Development: Marc de Cure, formerly Chief
    Financial Officer, has agreed to remain with the company in a new
    capacity as General Manager, Strategy & Development. This allows AMP
    to retain Marc's skills, which have included successful divestments
    and overseeing significant group-wide cost savings.

    Marc's portfolio will include strategy; mergers, acquisitions and
    divestments; corporate IT; development; and other businesses formerly
    part of AMP International.

    General Manager, Human Resources: Gareth Bennett will act in this
    role pending a full search. Gareth has worked with AMP in senior
    human resources roles in both Australia and the UK since 1996.

    Management of the other two major businesses remains unchanged, with
    Roger Yates and Craig Dunn continuing in their respective roles as
    Managing Director, Henderson Global Investors and Managing Director
    Australian Financial Services. Matthew Percival's role as General
    Manager, Corporate Affairs also remains unchanged.

    "These changes are necessary to meet my commitment to move quickly to
    reform AMP," Mr Mohl said.

    "I would like to thank those executives who are leaving for their
    contributions to AMP and wish them well for the future.

    "We now have in place a fresh team to drive the transformation of
    AMP. Each member of the team brings in-depth understanding of the
    company to their role which means we can move quickly to turn AMP
    around.

    OVERVIEW OF CHANGES

    "The significant changes being announced are designed to enable AMP
    to deliver better return on equity to shareholders," Mr Mohl said.

    "We have moved quickly, which reflects the determination and
    enthusiasm of the new management team to turn around the performance
    of AMP.

    "It is early days but there is already a renewed sense of optimism
    and self-belief at AMP that augurs well for the future."

    MEDIA INQUIRIES INVESTOR INQUIRIES

    Karyn Munsie Mark O'Brien
    61 2 9257 9870 61 2 9257 7053
    0421 050 430

    Matthew Coleman
    61 2 9257 2700
    0421 611 138


    ATTACHMENT - CVs

    JOHN DRABBLE
    MANAGING DIRECTOR, AMP UK CONTEMPORARY FINANCIAL SERVICES

    Originally from the UK, John Drabble has extensive understanding and
    experience of 'new world' wealth management, having been Managing
    Director of a number of AMP's retail financial services businesses.

    Since August 2001, Mr Drabble has been Product Development &
    Integration Director, AMP Financial Services Australia. In that
    capacity, he has been in charge of 'new world' product and platform
    development covering superannuation, income streams, investments and
    risk products.

    Prior to that, Mr Drabble was Managing Director, AMP Financial
    Services, New Zealand. During his two years in the role, he oversaw
    major increases in new business, cashflows and profitability.

    Mr Drabble also has extensive understanding of distribution having
    held the positions of Managing Director, Hillross Financial Services
    and Managing Director AMP Financial Planning. He joined AMP in 1993
    as Chief Executive Officer of AMP Personal Investments Ltd.

    Before joining AMP, Mr Drabble was National Manager, Marketing and
    Distribution for Advance Asset Management. He has also held a number
    of senior sales and marketing management positions in Mars Inc and
    Unilever.

    IAN LAUGHLIN MANAGING DIRECTOR, AMP UK LIFE SERVICES (MATURE
    BUSINESS)

    Ian Laughlin has over 20 years experience in financial services
    covering sales, service, strategy and financial management. He is a
    qualified actuary and a fellow of the Institute of Actuaries in both
    UK and Australia.

    Since May 2002, Mr Laughlin has been Director of the MD's office, AMP
    UK Financial Services and has effectively been acting as UKFS' Chief
    Operating Officer. Prior to his transfer to the UK, he held the same
    position in AMP Financial Services Australia for over two years.

    Mr Laughlin joined AMP in 1996 as Chief Manager Life and Risk
    Insurance Service. He has since gained widespread experience of the
    business through a number of senior roles including General Manager,
    Product Development and Sourcing and General Manager, Customer
    Solutions for AMP Financial Services Australia.

    Before joining AMP, Mr Laughlin was General Manager Retail Customer
    Services for Suncorp and held a number of senior roles at National
    Mutual including General Manager, Finance in Hong Kong, where he
    oversaw a period of significant growth and General Manager, Strategy
    where he played an integral role in the proposed ANZNational Mutual
    merger.

    CHRISTINE MCLOUGHLIN GENERAL MANAGER, OFFICE OF THE CEO

    Christine joined AMP in 1997. Before her appointment to the Office of
    the CEO, she was Board Executive and Company Secretary. In this role,
    Christine was responsible for the development of Board and governance
    policies across AMP's businesses. Christine also led the
    establishment of company-wide policies and practices associated with
    corporate social responsibility.

    She joined AMP as Group Executive Legal Counsel, and in 1999 was
    appointed Director of Corporate Services for AMP's Asset Management
    business, managing its finance, legal and compliance and information
    technology functions.

    Christine was previously Optus Communications' Corporate Counsel and
    with Allen Allen & Hemsley in both Sydney and London.
 
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