AMP Seeking Solutions to GIO Problem

Australia’s AMP has taken some steps to try to offset the losses it has suffered since taking over the troubled insurer GIO. It plans to cut costs in its U.K. operations, and, although it presently has no plans to sell GIO, it is looking for joint venture opportunities.

AMP is reportedly considering combining three U.K. life companies, London Life, Pearl Assurance and NPI Names, under its own brand. Combining the three companies, who have almost 4 million customers, would eventually result in the loss of around 3000 jobs, but would substantially reduce AMP’s cost of operations in the U.K.

In Australia, Reuters News Agency reported that AMP “was looking for alliances or joint ventures for its GIO general insurance unit.” AMP has already begun to integrate GIO’s life operations into its own, but has not ruled out a sale of the p/c business.