Summary of AMP's Wealth and Retirement Business Units Conference Call Company Overview - **Company**: AMP (AMP) - **Date**: July 21, 2025 - **Focus**: Wealth and Retirement Business Units Key Points and Arguments Strategic Direction - AMP has simplified its portfolio, reduced costs, and strengthened its balance sheet, positioning itself as a specialist in retirement solutions [6][7] - The company aims to approach growth with a challenger brand mindset, embracing technology and agility while maintaining its legacy of safety and security [7] Financial Performance - In 2024, AMP reported an operating profit of $236 million, with $174 million (approximately 75%) coming from its wealth management businesses [8] - The North platform is the third-largest WRAP platform for superannuation and pensions in Australia, managing approximately $80 billion [10] Retirement Solutions - AMP has introduced innovative retirement solutions, including the North Guaranty and lifetime superannuation options, which are unique in the market [11][12] - The company launched the Citro Lifestyle app to address the social aspects of retirement, enhancing customer engagement [12] Market Opportunity - By 2031, 33% of Australia's population will be in retirement, with $750 billion in assets expected to transition into the retirement phase over the next six years [14] - Despite significant wealth, 80% of Australian retirees struggle to enjoy a comfortable retirement due to a lack of financial literacy and access to advice [16][17] Challenges in the Retirement Sector - 50% of Australians are concerned about not having enough money in retirement, leading to a tendency to underspend [18] - There is a shortage of independent financial advisers, which complicates access to quality advice for the general population [19] Innovative Features - AMP's lifetime solutions combine the benefits of account-based pensions and annuities, providing clients with higher income in retirement [29][32] - The company has developed a unique approach to mitigate market and longevity risks through pooled solutions and market-linked income streams [41][44] Age Pension Insights - 63% of Australians are eligible for some form of Centrelink support in retirement, with the asset test favoring those using AMP's lifetime super functionality [45][48] - AMP's analysis shows that 94% of its members could benefit from increased eligibility for the age pension through lifetime super features [49] Growth and Market Position - The platform market is growing at approximately 10% per year, with AMP's North platform positioned to capture a larger share of the addressable market estimated at $2.4 trillion [70] - Only 10% of Australians currently receive financial advice, indicating a significant opportunity for AMP to expand its advisory services [71] Technology and Efficiency - AMP is investing in in-house technology and AI to enhance adviser efficiency and client engagement, aiming to increase the number of clients served by each adviser [75][84] - The North platform has seen significant growth in managed portfolios, now totaling $21.8 billion, reflecting strong adviser and client adoption [83] Conclusion - AMP is well-positioned to capitalize on the growing retirement market through innovative solutions, a focus on financial advice accessibility, and leveraging technology to enhance adviser-client relationships [76][92]

AMP's Financial Performance and Strategy - AMP's FY24 NPAT was $107 million[16] - Platforms FY24 NPAT reached $72 million[18] - Super & Investments FY24 NPAT was $67 million[21] - AMP is focusing on wealth management after simplifying its portfolio[15, 11] - AMP is adopting a challenger brand mindset to drive performance in wealth businesses[9, 12] Retirement Solutions and Market Opportunity - Australia's superannuation savings pool is the world's fifth largest, worth $4.1 trillion and expected to reach $10 trillion by 2040[37] - Only 1% of post-retirement assets are in lifetime products, representing a $28 billion market opportunity[31] - Platforms market has grown 10% in the last 12 months to $760 billion[102] - AMP Super has $58 billion in total assets[137] - 94% of AMP's 580,000 members would benefit from Lifetime Super[68] North Platform Performance - North's total funds under administration are $83.2 billion[99] - North has $21.8 billion in Managed Portfolios funds under management[99, 120] - MyNorth Lifetime has over 2,000 members[99]