AMP suffers a flogging

AMP has suffered its worst result in its 154-year history, posting a $896 million net loss for the full year. The company's shares hit a record low on the news, closing 21 cents down at $7.71.

AMP booked $1.2 billion in writedowns and restructuring charges, principally in its UK operations. Investment losses totalled $7.7 billion, an increase of $1.6 billion on 2002's result, and the value of its global equity investments plummeted to $54.4 billion from $71.7 billion.

Before writedowns and restructuring charges the company recorded a net profit of $495 million compared with the previous year's $667 million. Revenues from premiums and related products fell to $4.86 billion, down 22 per cent.