News: NAB Australia's AMP closes venture capital fund to focus on core business

SYDNEY, Jan 25 (Reuters) - Australia's AMP Ltd (AMP) on Wednesday said it has closed its fledgling venture capital arm as the life insurer focuses on improving overall performance after flagging a nearly $1 billion earnings hit.

The decision comes three months after AMP said it would book A$1.168 billion ($885.69 million) in impairment and other one-off charges in the financial year ending June 30.

Australia's life insurers have seen declining business since local media in March revealed the use of discredited methods to refuse legitimate claims for insurance payouts.

National Australia Bank Ltd (NAB) last year sold 80 percent of its life insurance business to Japan's Nippon Life Insurance Co [NPNLI.UL] for A$2.4 billion, and Australia and New Zealand Banking Group Ltd (ANZ) is seeking a buyer for its insurance and wealth arm, valued at A$4.5 billion.

AMP's New Ventures fund was established in 2015, had five employees and had invested in three small companies, including A$1 million in online brokerage Macrovue Pty Ltd and more than A$1.5 million in personal finance mobile app Money Brilliant Pty Ltd.

An AMP spokesman said New Ventures would not make any further investments in startups to align with the broader company focus on improving performance in the short term.

"We have a strong portfolio of existing investments and our current focus is on maximising the benefits from these," the spokesman said.

Of 14 analysts polled by Thomson Reuters, only five have "buy" recommendations on AMP shares. ($1 = 1.3187 Australian dollars)