Valued in the market at $17 billion, AMP has further enhanced its reputation by assuming full ownership of technology providers, Super IQ and SuperCorp. An article in the Business Day section of the Sydney Morning Herald talks about AMP’s consolidation of its position as the leader of DIY Super Fund administration.
AMP now holds 7% of the retirement-savings industry
Before assuming complete ownership, AMP had 51% stake in Super IQ and 20% stake in SuperCorp. The deals have cost the wealth giant something in deficit of $30 million. Australia’s retirement-savings sector is valued at $2 trillion and there is a consensus that it is a highly fragmented industry. To hold 7% of the SMSF administration market is no small achievement and AMP must be lauded for it.
Market leader in end-to-end service
Catering to 17,000 SMSF funds, AMP has always envisioned a higher efficiency in scale, larger market share and low-cost services for its clients. With SuperCorp having 27,000 Super funds on its software platform, it goes without saying that AMP is likely to become market leader in end-to-end customer service and software-only option.
You can read the original article here.
AMP has always had a big appetite for takeovers
AMP’s appetite when it comes to acquisitions has been big and no one denies this. Their claim extends to start-ups, too. Only in September, they had acquired Fintech for as less as $1.5 million. The mobile app, after all, was expected to make the job of investors much easier when it came to accessing their finances online. AMP did not want to miss the boat of such a “booming sector” (the Apps will be next world-rulers!).
Super division compensating for AMP’s ailing life insurance division
AMP’s life insurance division has not performed for quite some time; what with a high number of claims-cancellation ailing it. It is the Superannuation sector which has been holding the wealth giant well in recent times. There are experts who felt AMP had run its race as far back as in 2013. But the company has come past the obstacles of white-collar recession and the GFC much like the giant it is.
