Bosses hit jackpot with AMP demerger

TOP executives at AMP will pocket millions of pounds when the troubled Australian insurer splits off its British business.

The divorce will trigger a windfall of up to £1.1m for Roger Yates, chief executive of HHG - the planned UK offshoot - on top of pay and bonuses of up to £3.3m.

More than 100 key fund managers and senior executives will also hit the jackpot, sharing £10.3m earmarked to buy their loyalty.

The details - disclosed in demerger documents - are likely to outrage AMP's 2m British policyholders. AMP wants to wash its hands of the UK, where it owns Pearl, NPI and London Life, to benefit its Australian investors.

The Financial Services Authority last week ordered AMP to introduce safeguards for UK policyholders, amid fears that they could be left in the lurch.

HHG, to include well regarded fund manager Henderson, will be listed in London and Sydney. It wants to squeeze £900m out of the UK funds over the 'long term' and will hand the cash to shareholders.

British staff have also suffered during AMP's reign. More than 4,000 have lost their jobs and the staff pension scheme has a £67m deficit.

Yates said: 'We need highly talented people to remain in place.' He added: 'What we have done here is also in policyholders' interest. We have been enhancing the security of their position.'

AMP, which has 70,000 UK shareholders, plans the demerger for December.