AMP into profit after UK divorce

AMP, Australia's biggest life insurer, today celebrated its protracted and costly divorce from its ailing British units as it returned to full-year profitability for the first time in three years.

The company spun off British-based Pearl, NPI, London Life and Henderson Global Investors units into HHG in December 2003, marking an embarrassing retreat from the country.

Writedowns triggered by the parting helped push the company to a loss of A$5.5bn (£2.3bn) in 2003. But AMP today reported net profits of A$934m in the year to last December.

Chief executive Andrew Mohl has cut costs and jobs in Australia since the split and has seen his group's investment returns blossom as the country's stock market has performed strongly.

'We're well positioned to build on these encouraging results,' Mohl said, announcing that he would return A$750m to shareholders and buy back A$265m of debt. More capital returns could follow in 2006, he added.

Despite the rosy results, which beat analysts' consensus forecasts, shares in AMP dipped today amid concern that growth may not be sustained. The stock, which rose 45% last year, eased 1.5% to A$7.37.