AMP Ltd

AMP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$9.52	Mwhcq	Kwdn

Some Risks in AMP Until the Life Business Is Sold and Remediations Complete

Johannes Faul , Shaun Ler

May 12, 2020

Our fair value estimate on narrow-moat AMP remains at AUD 1.60 per share following its annual general meeting. The wealth manager is steadfast on the cost-out and simplification of the retained Australian wealth management, asset management, and banking businesses. The AMP Life sale is due to complete by June 30, 2020. It could be derailed if the buyer (Resolution Life) walks, but with several key regulatory approvals granted, we think it’s likely to go ahead and our forecasts assume the sale proceeds as planned. Not selling AMP Life could be dilutive to our valuation as the business is capital intensive and also the least profitable within the group.

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