AMP Ltd, Australia’s biggest life insurer, warned it will take $910 million in impairment and other charges this year, the biggest financial blow so far to hit a sector that is reeling from a consumer backlash over a series of scandals.
The profit warning, which sent AMP’s shares sliding 9%, could renew calls for a wide-ranging investigation into Australia’s banks, many of which also have large insurance units.
The country’s life insurers have been in crisis since a joint investigation by Fairfax Media and the Australian Broadcasting Corp in March accused them of using discredited methods to refuse legitimate claims for insurance payouts.
