I believe the media is suggesting the life business is not a good move. Not all shareholders share the same opinion. I am quite excited about selling this part of the business. I believe it would have been a strategy from the top down. In essence, the new re-vamped AMP.
There is no better way to start fresh and to improve value then to remove your archaic part of the business built on commissions. The exact item the public and especially (Amp haters) rubbish them for is being sold, the hypocrisy is they are now being criticised for the move. Regardless of the sale being crystallised, going forward, this loss gets worse. Think about new policies that either expire or are change to a new product. Income would be reduced significantly. The RC has punished this part of the finance industry, in fact this was done many years again, with commission reduced by up to 50%. So we can scare monger about the RC, but the damage was already done in this industry. Maybe, just maybe, someone running the show is making a real genuine attempt at getting AMP in the box seat.
The other item, that we are not discussing here is the idea, that they may be doing this, as per APRA's requirements for capital. I don't know that any of us can see the significant value that this will have. After all, it is a lot of cash.
Shorting, there is now over $200M shares outstanding, this is very significant, our own little share buy back happening at some time soon.
AMP lawsuits, we have seen it all before, once people have to put up money, we then hear crickets... again, scare mongering by the haters and some overly excited lawyers wanting a new Porsche.
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